SPEECH BY MR S ISWARAN, MINISTER OF STATE FOR TRADE AND INDUSTRY, AT THE ECO-PRODUCTS INTERNATIONAL FAIR (EPIF) 2006, NETWORKING RECEPTION ON TUESDAY, 31 OCT 2006 @ 6.45 PM, AT MARINA MANDARIN

Mr Kazuhiko Bando, Deputy Director General, Trade & Economic Bureau, Ministry of Economy, Trade and Industry of Japan

Mr. Shigeo Takenaka, Secretary-General for the Asian Productivity Organisation

Distinguished Guests

Ladies and Gentlemen,

Good Evening.

Introduction

I am pleased to join you this evening at this networking reception which is being held in conjunction with Eco-Products International Fair 2006.

Need for Sustainable Development

Let me start by thanking the Asian Productivity Organisation for giving Singapore the opportunity to host EPIF 2006.EPIF is an important annual event which reinforces the need for countries worldwide to embark on sustainable development.This means making better use of resources, better designs in terms of material usage, generating less waste and more efficient use of energy and water.

When it comes to sustainable development, we can learn a great deal from the experiences of countries like Japan, Germany and Holland.They adopt eco-design in all that they do, be it in their buildings, automobiles, home appliances, or even agriculture.Their relentless quest for fresh and innovative environmental solutions is notable and worthy of emulation by all countries.

It is a farsighted strategy, especially as consumers become more sophisticated and aware of environmental problems such as climate change and hazardous waste, and increasingly demand products that are environmentally-friendly.In fact, such heightened consumer awareness of and activism for sustainable development and environmental protection has caused the EU, as you are aware, to introduce environmental directives.

Against such a backdrop, early adopters of green manufacturing stand to reap significant rewards.The global market for environmental products and services was valued at some US$600 billion worldwide in 2003.In Asia, the environmental market is expected to grow at 10 to 12 % annually from 2003 to 2015, double the growth rate for the global market.This means significant new opportunities for businesses.

Also, an environmentally sustainable business strategy need not be at odds with a company’s motive to enhance profit and shareholder value.The experience of the Ricoh Group, a global manufacturer of office automation equipment and electronics devices, bears testimony to this.The Ricoh Group Sustainability Report 2006 outlines various ways in which Ricoh has successfully incorporated sustainable environmental management into its daily operations.According to this report, Ricoh saw economic benefits of US$260 million (for example, through sales of recycled products and improvement in brand value) from its environmental conservation costs of US$140 million.I am told that Ricoh will be presenting their environmental management practices at the conference tomorrow.I am sure their presentation will leave us with much food for thought.

Sustainable Development in Singapore

Singapore too is keenly aware of the importance of sustainable development.The subject is especially close to our hearts as we have no natural resources, limited water, and scarce land resources to be used as landfills.Notwithstanding this, we have endeavoured to turn our limitations into our advantage.For example, we grew our water industry from scratch spurred on by our need for diversified and reliable sources of water.Today it is a thriving industry which has in turn spun off many new environmental players who are active in the Asia-Pacific markets.

Other environmental service sectors have also seen the emergence of promising companies.Some of these enterprises, though small today, show good potential for growth, both regionally and internationally.Let me cite three examples:

(a)First, NewEarth.This company has successfully developed a unique “Crystallisation Technology” to treat and convert contaminated, dredged marine clay into environmentally-safe construction materials.I am told that NewEarth is now extending this proprietary technology to turn garbage incineration ash into usable end products.

(b)Second, Grenidea Technologies.Grenidea has developed the technology to convert agricultural biomass waste, such as palm oil fruit waste, into biodegradable packaging materials.It has since tied up with supermarket chains and their suppliers to use its environmentally friendly trays for fresh produces and fast moving consumer goods.

(c)Third,SIF Technologies, a prominent player in the fish farming sector in Singapore.The company has developed a proprietary process to treat water without the use of biocide or chemicals.It has since filed an international patent and is ready to export its services.

Such bold and innovative environmental solutions are laudable.To spur more of such developments, the Government will continue to work with the private sector to strengthen key environmental segments.For example, the Environment and Water Industry Development Council, or EWI was set up early this year to drive R&D efforts in this space and position Singapore as a global environment and water hub.Over the next five years, the EWI will invest some $330 million towards this effort.

These are indeed exciting times for environmental players.Opportunities abound for companies that continue to invest in technology, product and process innovation.These companies should also consciously incorporate eco-design and green manufacturing as part of their winning strategies.Only then can they create eco-products and services which meet the demands of their customers.

EPIF Eco-Award

I am happy to note that this year’s EPIF is of a much greater scale than the past.For the first time, the organisers have introduced the EPIF Eco-Award.This is a good initiative, as it will not only encourage enterprises to think and develop more eco-friendly products, but also enhance the stature of EPIF.I am told this inaugural award has attracted applications from 27 companies for 34 eco-products.I would like to extend my warmest congratulations to all the contestants for joining the quest for eco-design.

Conclusion

And, I wish all of you an enjoyable and rewarding time at this networking reception.Thank you.