Mr S Iswaran at the Italian Festival Gala Dinner

SPEECH BY MINISTER OF STATE FOR TRADE AND INDUSTRY, MR S ISWARAN AT THE ITALIAN FESTIVAL GALA DINNER, 15 JUNE 2007, 8.15PM, GRAND BALLROOM, THE RITZ CARLTON MILLENIA

Excellencies Ambassador Dr Folco de Luca Gabrielli and Ambassador Dr Loo Choon Yong,

Mr Roberto Penno,

President of the Italian Chamber of Commerce, Singapore

Distinguished Guests

Ladies and Gentlemen,

Greetings

It gives me great pleasure to join you this evening at this gala event, which is especially dedicated to the 60th anniversary of Ferrari and to Italian design excellence in the automotive sector.I thought the Ferrari theme was particularly apt given the recent announcement of Singapore’s plans to host a Formula One street circuit race next year!

Italy-Singapore Economic Relations

This year’s Italian Festival in Singapore comes in the wake of several high level meetings between our two countries in recent times.Senior Minister Goh Chok Tong and, more recently, Minister Mentor Lee Kuan Yew have both made official visits to Italy in the last 9 months, during which they had good meetings with your Prime Minister, and political and business leaders.Last month, I led a business delegation to Italy comprising representatives from the automotive and furniture-design sectors of Singapore.The meetings between Italian companies and their Singaporean counterparts were instructive and eye-opening, allowing both sides to appreciate our common commitment to design, innovation, technology and quality as a basis for competitive advantage.

Italy and Singapore have traditionally enjoyed strong economic ties.Total trade between our two countries amounted to almost S$5.1 billion in 2006, an increase of 11.04% from 2005. Italy is Singapore’s 5th largest trading partner in Europe, while Singapore is Italy’s largest trading partner in Southeast Asia.Nevertheless, I believe that there is significant scope for our economic ties to be further enhanced through more business-to-business linkages.

In this era of globalization, companies need to adopt a global outlook and a collaborative business strategy in order to compete effectively and pursue opportunities in new markets. Partnerships between companies with complementary capabilities and shared value systems are key success factors in this environment.And there is a strong basis for such collaboration between Italian and Singaporean companies.

Basis for Italy-Singapore Collaboration

I believe the value proposition for such collaboration between our companies, particularly the SMEs, stems from three factors – Connectivity, Capability and Reliability.

Firstly, Connectivity.Singapore is located in the heart of Asia, is a member of ASEAN, and well-connected to the vast and growing markets of China and India.Apart from strong logistical links, we have enhanced our economic connectivity with Asian markets and beyond through regional and bilateral FTAs with partners such as ASEAN, USA, Japan, and India.Singaporean companies also have an extensive presence in Asia, with business contacts and networks to venture into these markets.Singapore can, therefore, serve as a gateway into high growth Asian markets for Italian companies

Secondly, Capability.Italian and Singaporean companies have a shared commitment to high standards in product quality, design and manufacturing. In the automotive industry for example, our companies are strong in high precision, high complexity, low volume-high mix manufacturing, with emphasis on key segments such as electronics, opto-electronics and tooling.Capability, and not cost, is the basis on which we both compete.The importance of such capability would be all too familiar to Italian companies in the automotive sector, where you have a long and proud history, but it can equally apply to many other sectors.

Thirdly, Reliability.Singapore provides a robust regime for the protection of intellectual property rights.Our companies are also familiar with the challenges of operating in emerging markets, especially when dealing with products which derive their value from brand, design and other intellectual property.Our reputation for reliability makes us natural partners for Italian companies seeking to establish or expand operations in these geographies.

Conclusion

I believe these three factors – Connectivity, Capability and Reliability – can and will form the basis for long term business relationships between Italy and Singapore.This evening, I have sought to give you the perspective through a Singaporean lens on how we can work together by leveraging on these factors for mutual benefit.I trust it is a view shared by the Italian business community and that it will underpin a long and fruitful association between our two countries.Buona Sera! (Good Evening)