Ladies and Gentlemen

Let me first welcome everyone for attending the first Global Chinese Entrepreneurs’ conference in Singapore.

The prospects for Southeast Asia are brightening up again, after five very tumultuous years. Since 1998, we encountered the Asian Financial Crisis, September 11, threats from the regional terrorist network, the Bali and Mariott bombings, and then the outbreak of SARS. But the Asian Crisis is now behind us. Southeast Asian nations are recognising the threat of terrorism and tackling the problem proactively. SARS has also been contained. The region is growing healthily, exports are increasing, and investments are flowing in again. This is bolstered by the global economy looking brighter, with the US economy recovering and Japan and EU emerging from their economic troughs.

So it is timely for so many distinguished entrepreneurs to be gathered at this conference. You can see first hand the investment prospects in Southeast Asia, and start making plans for long term investments.

In Singapore, we are encouraging businesses to venture abroad to take advantage of the opportunities around us. We are actively reaching out to foreign companies to invest and set up operations in Singapore. Domestically, over the past few years, we have been taking systematic steps to adapt our economy to the new environment, and make it more flexible and competitive. This will enable us to participate in the growth of the region, and not be left behind by its progress.

The environment has changed dramatically over the past years. Globalisation and technology are changing the way we live and work. Emerging economies such as Vietnam, India and China, have become formidable players. They are attracting foreign investments, and producing and exporting high quality, competitively priced goods. But they also present tremendous opportunities. We therefore cannot stay still and continue to do what we have been doing traditionally. We must break our old mould and seek new ways to earn a living.

So the Singapore economy is undergoing a process of rapid change. We are opening new doors, seizing new opportunities, and developing closer economic partnerships with countries around us. In particular, the economic collaboration between Singapore and China is strengthening. Let me highlight three important aspects of this partnership.

First, our industries are not just competing, but also complementing one another. For example, TV production has shifted from Singapore to China, but in its place Singapore has now become one of the global centres of research and production of new display technologies such as the plasma screens. So research, design and prototype manufacturing are done here, while mass assembly of more matured products is done in China. Semi-conductors and hard disk drives are made in Singapore, and then exported to China, as inputs into assembly lines for computers or mobile phones. So we are playing valuable roles in an international division of labour, capitalizing on our respective strengths.

Because of this, China is becoming an increasingly important trading partner for us. Today, it is Singapore’s fifth largest partner, and our bilateral trade is growing at about 30% a year. Last year, our trade with Greater China – PRC, Hong Kong and Taiwan – has already surpassed that with the US.

We are also growing the services sectors, such as financial services, private education and healthcare. As countries in our region grow and their populations become more affluent, they will want high quality services, and Singapore can capitalize on our reputation and brand name to offer these services. Already each year almost 700,000 tourists from China come to Singapore, and we will continue to grow the numbers and persuade more of them to stay at least three days in Singapore.

Second, we are harnessing entrepreneurship from both countries. We are encouraging Singapore businessmen to venture into China, and at the same time, attracting Chinese businessmen to come to Singapore.

Our businessmen are investing in seaports, real estate, food and beverage, logistics, public transport, and other areas in China. Today, China is our top investment destination. Conversely, many Chinese companies are coming to Singapore. Many are seeking to list on our stock exchange. 28 Chinese companies have already listed on the Singapore Exchange, with nine doing so just this year. The Torch Centre of China’s Ministry of Science and Technology is actively promoting high-technology Chinese enterprises to come to Singapore. It has announced the launch of an incubator in Singapore, which will help Chinese enterprises use Singapore as a launch-pad to serve the region and the world.

I encourage more Chinese companies to come to Singapore. Many Chinese companies are expanding and in need of capital, and Singapore is a viable alternative to other financial centres such as Shanghai and Hong Kong for raising funds. The companies can tap on the large investor base here. Over 200 global fund management firms and 150 venture capitalists operate out of Singapore, managing over US$200 billion.

Beyond financial operations, Chinese companies can consider setting up operations and management functions here, and make Singapore your headquarters in this part of Asia. You can tap on a network of more than 6,000 MNCs already in Singapore, and leverage on our international network of air, sea and telecommunications linkages, and Free Trade Agreements that guarantee tariff-free access into major markets around the world.

The third important aspect of a growing economic partnership is a free flow of businessmen, tourists and talent between China and Singapore, and increasing people-to-people exchanges.

Our people are travelling frequently to China, to tour, study or work. Many Chinese businessmen and workers are also coming to Singapore, making a positive contribution to the Singapore economy. We also started a student exchange programme, where 50 outstanding university students from China and Singapore will visit the other country every year. Such exchanges will be invaluable, as our youths grow up to become the next generation of leaders and businessmen.

We need to do more to promote people-to-people contact, and open our doors wider to visitors from China. Ultimately it is human contacts that forge closer relations and keep activities buzzing. A Chinese businessman can read all about Southeast Asia and Singapore, but to get a venture going, he has to visit Singapore, immerse himself in the business environment, meet people and develop guanxi.

This will involve liberalising our visa and employment rules. It is a important but delicate task. We must minimise inconveniences and formalities for businessmen and tourists, and at the same time address our security and other concerns.

The Ministry of Trade and Industry, Ministry of Home Affairs and Ministry Manpower will be implementing a series of measures to liberalise visa and employment rules. They include a new scheme called EntrePass, which will allow a foreigner to work in Singapore based not on salary or academic qualifications criteria, but his business plan. We will make Multiple Journey Visas more widely available. We will extend the period of stay and validity of visas. We will streamline the visa application process and work with more Chinese travel agents to make visa application easier and available in more cities.

The inaugural Global Chinese Entrepreneurs Conference will sow the seeds for further business collaboration between China and Singapore. We are encouraged by the turnout and the support we received. But we will need patience and perseverance, to stage the conference year after year, attract more foreign businessmen to participate. Then the conference will contribute positively in our growing collaboration.

Finally, let me congratulate the organisers for a successful conference. I hope to see all of you in Singapore again.

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