SPEECH BY MR S ISWARAN, MINISTER OF STATE FOR TRADE AND INDUSTRY AT LAUNCH OF INTERNATIONAL TRADING TRACK BY SINGAPORE MANAGEMENT UNIVERSITY (SMU) IN COLLABORATION WITH IE SINGAPORE AND INDUSTRY PARTNERS ON 12 JULY 2006, 2.40 PM, AT DINING ROOM, SMU ADMINISTRATION BUILDING

Distinguished Guests,

Ladies and Gentlemen,

Good afternoon. I am pleased to be here at the launch of the International Trading Track by SingaporeManagementUniversity in collaboration with IE Singapore and various Industry Partners.

Singapore as an International Trading Hub

Historically, Singapore has always been an important “port of call” for traders due to our location on the East-West trade routes. Today, international trading remains a key economic activity which generates high value-add for the Singapore economy. Trade is three times our national Gross Domestic Product (GDP). We are the world’s third largest oil trading hub and the key oil-pricing centre in Asia. In addition, we also host a vibrant community of over 180 global trading companies such as BP, Stemcor and Toepfer, who have chosen to use Singapore as their regional or global trading base.

Our vision is to build a Super Trade Hub, which creates further economic value through knowledge-intensive activities such as risk management, supply chain management, and market research and development.Towards this end, IE Singapore, the lead agency for international trading, has been engaging the industry to introduce new initiatives and build new capabilities.. This will allow us to better leverage on the growth in global and regional trade.

Development of Trading Talent

One of the important initiatives is to position Singapore as a location for manpower development for the international trading sector. We hope to nurture a conducive environment by encouraging specialised institutes as well as corporate centres of excellence to establish themselves here, focused on developing new generations of trading talent. Ultimately, we aim to make Singapore a centre for thought leadership in the international trading sector.

Today, good traders are scarce and highly sought after. Experienced traders are regularly poached amongst companies. As firms fight to attract and retain talent, the industry has seen strong hiring trends and hefty pay increases in recent years. By growing a steady pool of quality trading professionals, Singapore will be able to provide the necessary pool of expertise for companies to continually draw upon. This is necessary to support the expanding trading operations of global companies in Singapore.

Last year, global trading companies under IE’s Global Trader Program (GTP) chalked up US$225 billion in total physical trade turnover, and employed around 1500 trading professionals.This means that, on average, each trader was responsible for a significant trade volume/value of US$150 million.

Traders are recognised as an entrepreneurial breed with an innate ability to “read the market” and strategise trading behaviour in a fast-paced environment. Whether good traders are born or bred continues to be a debate. But we know that regardless of the source of such talent, the skills need to be continually honed in the fast changing trading environment we have today. A good understanding of academic fundamentals will help shorten the learning curve of a young recruit.

In addition, for graduates with a keen understanding of the fundamentals of trading operations, there are ample opportunities in various supporting roles and related industries.For every trader hired, GTP firms hire additional professionals in supporting roles such as operations, risk management and finance. Furthermore, key supporting industries like the commodity banks and logistics firms are keen to hire graduates with a good foundation in International Trade.

For these reasons, IE Singapore has been focusing its energies on creating an environment conducive for the development of future traders. I am glad that these efforts have borne fruit.

SMU International Trading Track, first trading-focused curriculum at undergraduate level in Singapore

The new International Trading Track under SMU’s existing Bachelor of Business Management degree programme will be the first trading-focused curriculum at the undergraduate level in Singapore. This track will provide students with the necessary basic knowledge and skills for the international trading sector and supporting industries such as banking and logistics.

A unique feature of the International Trading Track is the emphasis on providing a practical orientation for students keen on this area of study. The curriculum includes at least one Business Study Mission to offer students a glimpse of the broad spectrum of sectors including oil, agri-commodities, metals, industrials and electronics.

In addition, students will take on internships with industry partners, receive on-the-job training that will give them an opportunity to apply their academic knowledge in a practical setting. IE Singapore and SMU are also working with foreign specialised institutes and industry partners to organise workshops on specific commodities or niche subjects.

I am very pleased to note that the industry has responded with enthusiasm to this initiative. To date, BP Singapore, Concordia Agritrading, Emirates National Oil Company, Lee Foundation (Regional Rubber), KOCH Refining, Noble Group, Stemcor (S.E.A), Swiss Singapore and Toepfer International have come forward to partner SMU. Collectively, they represent deep and diverse trading experience from the Energy, Agri-commodities and Metals sectors. Besides financial support, industry partners have pledged to offer internships to students and share key industry expertise through “Captains of Industry” seminars. This partnership with key industry players is a key feature of the program for it will help ensure that the curriculum stays connected with, and relevant to, the industry’s trends and needs.

It is my hope that this initiative will raise the profile of trading as a profession of choice amongst our undergraduates and ignite their interest in a career in trading. If we succeed, it will help augment our local pool of trading talent to complement traders hired from abroad.

I urge SMU students to take advantage of this opportunity to gain exposure to this unique and highly challenging sector. By taking this Track, I believe you will gain essential knowledge and skills for the fast growing world of international trading.

Conclusion

In closing, I offer my congratulations to SMU and IE Singapore on the launch of this International Trading Track. I would also like to thank the industry partners for your support and look forward to more of such initiatives, in partnership with the private sector, to further enhance Singapore’s position as a global trading hub.

Thank you.