Singapore Government Press Release
Media Division, Ministry of Information & The Arts, #36-00, PSA Building, 460 Alexandra Road, Singapore 119963, Tel: 3757794/5
WELCOME REMARKS BY MR GOH CHEE WEE
MINISTER OF STATE
FOR TRADE & INDUSTRY AND OMMUNICATIONS AT THE BUSINESS LUNCHEON FOR THE MEXICAN PRESIDENT WED, 27 NOV 96 AT 1.15 PM
His Excellency, President Ernesto Zedillo
Honourable Ministers
Distinguished Guests
Ladies and Gentlemen
I would first like to extend a very warm welcome to President Zedillo and his delegation to Singapore and to the luncheon meeting today. President Zedillo's visit is a reflection of the strengthening political and economic ties between Mexico and Singapore.
2. Singapore and Mexico are both members of APEC, the organisation spearheading the liberalisation of trade and investment in the Asia-Pacific Community. Both countries are also active participants and supporters of the World Trade Organisation (WTO).
3. On the economic front, bilateral trade between Singapore and Mexico has been increasing at an average rate of 24% per annum over the last decade to reach S$ 492 million in 1995.
4. While trade has taken off, bilateral investments between the two countries have unfortunately, lagged and remained very much in their infancy.
5. The visit of His Excellency, President Zedillo to Singapore will no doubt provide a fresh impetus for advancing the investment flows between Mexico and Singapore.
6. Singapore is situated in East Asia which is today the fastest growing region in the world. The World Bank forecasts an average 7.9% growth per annum for the region over the next decade.
7. With economic development in Asia booming, Singapore can play the role of regional gateway for Mexican companies to tap the business opportunities available in the region. Furthermore, with our well-established economic and business linkages, we can be Mexico's ideal partners in breaking into the regional markets. We can do so in 3 ways :-
a. First, Mexican companies can make use of Singapore as a manufacturing and service hub for their regional operations. To this end, we offer superb infrastructure, excellent telecommunication networks and world-wide distribution linkages that can help Mexican companies gain a foothold in the region more easily.
b. Second, Singapore companies can be joint venture partners for Mexican companies in Asia. Having ventured into the Asian markets for some time, Singapore companies have gained valuable insights into the operations of Asian markets. Our established commercial presence in many Asian countries makes Singapore companies useful partners in setting up joint ventures.
c. Third, the Singapore Government has established strong government-to-government links in many Asian countries. Flagship industrial parks have been set up in China, India, Indonesia and Vietnam as a concrete follow-up to our political initiatives. These flagship industrial parks facilitate foreign investment by providing a transparent and predictable operating environment that multi-national companies are comfortable with. Mexican companies, who are unfamiliar with Asia, can minimise their risk by setting up operations in such Singapore industrial parks.
8. Having described the opportunities available in Singapore and the region, I also want to encourage Singaporean companies in turn to tap the vast potential of the Mexican market. Not only does Mexico have strong manufacturing capabilities, she also has numerous linkages with regional economies, including NAFTA and Free Trade Agreements with other Latin American countries.
9. With a population of 390 million inhabitants and a combined GDP of nearly US$ 8 trillion, the NAFTA market is indeed a huge attraction. Singaporean companies would certainly do well to seriously consider the many business opportunities present there. For example, companies, especially those exporting to USA and Canada, could consider investing in Mexico to take advantage of her tariff-preferential status under NAFTA.
10. In fact, several Singaporean companies have already started to do so. I am pleased to note that four companies have recently decided to invest in the Mexican electronics and supporting industries. The first three companies, which will be setting up manufacturing operations in Guadalajara, are -
(i) Natsteel Electronics Pte Ltd ;
(ii) Flextronics Pte Ltd ; and
(iii) Hi-P tool & Die Pte Ltd
11. The fourth company, Sei Woo Rubber Works Pte Ltd, will be opening a manufacturing plant in the state of Chihuahua.
12. Furthermore, Map Services Pte Ltd, a wholly-owned subsidiary of the Port of Singapore Authority, has teamed up with Grupo Morphy, a Mexican company, to bid for the privatisation of the Mexican Port of Ensenada.
13.
Mr President, Excellencies, ladies and gentlemen, I encourage both Mexican and Singaporean businessmen to explore and seize the many business opportunities present in each other's regions. Your visit to Singapore, Mr President, is of great significance and may I thank you once again, for your kind presence this afternoon to address this luncheon meeting.
14. Thank you.
-----------------------------------------