SPEECH BY MR S. ISWARAN, MINISTER OF STATE FOR TRADE AND INDUSTRY, AT THE OFFICIAL OPENING OF THE INTERNATIONAL COUNCIL OF SHOPPING CENTRES (ICSC) ASIA EXPO 2006 ON 12 JULY 2006 AT 9 AM AT SUNTEC CITY AND CONVENTION CENTRE

Distinguished Guests,

Ladies and Gentlemen

Introduction

I am pleased to be here today at the opening of the inaugural Asia Expo of the International Council of Shopping Centres (ICSC). I am particularly happy to note that the ICSC has chosen Singapore to host its Asia Expo for the next three years. This is a strong endorsement of Singapore’s leading position in the retail landscape and MICE (Meetings, Incentives, Conventions and Exhibitions) industry in Asia.

Growth of the Asian Retail Industry

There is tremendous growth potential for the retail industry in Asia. The Economist Intelligence Unit (EIU) estimated that in 2005, China’s GDP grew by 9.9 percent and India’s GDP rose by 8.5 percent.These growth rates are amongst the highest in the world. The sheer size and rapid growth of these two economies will raise the level of affluence of their people, and also that of those in the surrounding region.

It is not surprising that the latest Merrill Lynch-Capgemini World Wealth Report estimated that Asia’s population of high net worth individuals grew by 7.3 percent in 2005, higher than the global average of 6.5 percent. Increase in personal wealth and higher disposable incomes in Asia will in turn fuel growth in the region’s retail industry. This will lead to positive spin-offs for a wide spectrum of industries associated with the retail sector, such as owners and managers of shopping centres, real estate developers, designers and contractors.

However, we cannot just rely on rising affluence to drive the growth of the retail sector. To remain competitive, retailers in Asia will have to keep raising the bar in terms of quality, service standards, and product range and diversity. As shoppers become increasingly well-travelled, they will be more sophisticated and discerning in their tastes. They will not only demand better quality products, but also more customised services and products which cater specifically to their needs.

Shopping – A Key Pillar of Tourism 2015

Let me now touch on the retail scene in Singapore. Singapore is widely recognised as a shopping haven, with signature fashion and shopping events such as the Singapore Fashion Festival, the Singapore Jewelfest, and the Great Singapore Sale. Our strengths lie in being able to offer a diverse range of authentic and high quality products, as well as a safe and pleasant retail environment. Visitors spend more than S$3 billion each year on shopping in Singapore, or about half their total expenditure here.

Shopping is a key pillar of the Singapore Tourism Board’s (STB) strategy to double visitor arrivals to 17 million and triple tourism receipts to S$30 billion by 2015. To achieve our vision, STB will implement various initiatives to enhance Singapore’s attractiveness as a shopping and lifestyle destination. One such measure is to catalyse the development of more compelling retail concepts and innovative product offerings. To facilitate this, we introduced an Investment Allowance Scheme last year which provides tax incentives for new investments in flagship concepts in the areas of retail, F&B and entertainment.

STB is also working on rejuvenating Orchard Road, our iconic shopping precinct, to become one of the best shopping streets in the world. To revitalise the street level shopping experience, pedestrian walkways will be upgraded and surrounding infrastructure will be enhanced. The government has also released prime sites at Orchard Turn and Somerset to increase retail space and spark the introduction of new retail concepts. The remaking of Orchard Road will also transform the precinct into a vibrant events stage hosting colourful street performances and outdoor activities all year round.

Singapore as the Preferred Venue for Business Events

Let me now touch briefly on our MICE sector. In 2005, Business Travel and MICE visitors made up approximately 25 percent of the 8.94 million visitors to Singapore, contributing about 30 percent of the S$10.8 billion of tourism receipts. STB aims to raise this contribution to 35 percent by 2015.

We recognise that it is no longer enough to rely on our traditional attributes, such as quality infrastructure and connectivity, to attract business events to Singapore. We need to make this place more interesting and exciting, and enhance our entertainment and lifestyle offerings.

In May this year, the Government announced the award of the Marina Bay Integrated Resort (IR) to Las Vegas Sands. When completed in 2009, the Marina Bay IR will boost Singapore’s MICE capacity by more than 100,000 square-metres. Visitors will be spoilt for choice with a variety of leisure offerings such as an ArtScience museum, world-class entertainment performances, retail outlets with leading brands and fine dining restaurants by world renowned chefs. Another IR will also be developed at Sentosa Island.

Aside from the IRs, STB has many other lifestyle projects in the pipeline. These include the St James Power Station and the Cannery providing round-the-clock entertainment, and VivoCity which is slated to become Singapore’s largest retail mall. With all these exciting developments, we are optimistic that business visitors will find Singapore a compelling place to work, meet and play.

Conclusion

Singapore’s dynamic retail sector, strategic position in the heart of Asia and connectivity to the rest of the world offer a truly global market for the exchange of business opportunities, products and ideas for delegates attending ICSC Asia Expo 2006. I encourage you to take some time off to also experience Singapore’s unique blend of tourism offerings, including our many attractions, exciting nightlife, colourful ethnic districts and great bargains at the ongoing Great Singapore Sale.

On this note, I wish all of you a very successful and fruitful session at ICSC Asia Expo 2006 and a pleasant stay in Uniquely Singapore.

Thank you.