SPEECH BY MR S ISWARAN, MINISTER OF STATE FOR TRADE AND INDUSTRY, SINGAPORE, AT THE JV SIGNING CEREMONY BETWEEN ASCENDAS, MIDC & MADC, 18 APRIL 2007, 5.45PM (MUMBAI TIME) AT TAJ MAHAL PALACE & TOWERS, MUMBAI, INDIA 

Introduction

I am delighted to be here in Mumbai today to witness the creation of two landmark projects between the State of Maharashtra and one of Singapore’s leading developers, Ascendas. This significant venture will see the development of world-class IT infrastructure in the cities of Pune and Nagpur in Maharashtra.It is also a testament to the deepening relationship between India and Singapore.

Singapore’s Journey to the West: Engaging Maharashtra

Singapore and India have deep historic ties that span across political, cultural and economic spheres. Economically, we are now in an era of flourishing relations. In 2006, India was Singapore’s 12th largest trading partner with total trade reaching US$13.2 billion. Between 2004 and 2006, Singapore’s cumulative investments in India more than doubled whilst an increasing number of Indian companies are setting up operations in Singapore - 2,579 as of last year - making them the fourth largest contingent of foreign companies in Singapore. Underpinning these developments is the Comprehensive Economic Co-operation Agreement (CECA), between India and Singapore. It is the cornerstone of our bilateral economic relations. Since the CECA was signed in August 2005, our bilateral trade and investments have increased significantly. From 2005 to 2006, trade volume increased by 20%. 

Last year, Singapore was India’s 3rd largest investor, after Mauritius and the United States, with US$599 million worth of investments. Maharashtra received the largest share with more than 15 per cent of the FDI flows coming to the state. In fact Maharashtra emerged as the most-preferred business destination for Singaporean companies in a survey of 99 businesses conducted by International Enterprise (IE) Singapore last November.

This comes as no surprise, for Maharashtra is undoubtedly one of India’s most dynamic states. It has witnessed exceptional growth in recent years. Mumbai is the financial and economic capital of India. It is home to many of India’s largest business houses as well as the Bombay and National Stock Exchanges. The JawaharlalNehruPort in Navi Mumbai is the busiest container port in the country.

Maharashtra’s growth also extends well beyond Mumbai. Pune, for example, is India’s 7th largest city and fast rising as a major industrial center for automotive and software companies. Many of India’s foremost Information Technology players such as Patne Computers, TCS and Infosys have been attracted to the state.

This is in no small part due to the development-oriented mindset of the Maharashtra government, led by its visionary Chief Minister Shri Vilasrao Deshmukh.

Singaporean businesses have been increasingly involved in Maharashtra’s development, with significant investments in industrial and urban infrastructure. Our companies are also pursuing port and airport opportunities in Mumbai, as well as seeking a presence in the healthcare and educational sectors. Ascendas’ two projects in Maharashtra are key planks in Singapore’s expanding linkages with India.

Ascendas: A global developer of businesses spaces

I would like to congratulate Ascendas on their maiden entry into the State of Maharashtra. Ascendas has come a long way from the creation of its first technology park, the Singapore Science Park, in 1980. Over the years they have established themselves as a premier developer of business spaces in Asia, coupled with quality property management. Their flagship projects range from Dalian in China to industrial parks in the Philippines, as well as the Bangalore IT Park set up more than 13 years ago.

The International Tech Parks that will emerge in Pune and Nagpur will not only benefit the people working there but also the neighboring community.

As Ms Chong Siak Ching* has mentioned, these two parks will create jobs for 70,000 people when fully completed. In addition, there will be considerable spinoffs from these projects for the services industry, housing and other supporting businesses. I believe the vibrancy sparked by these two parks will serve to enhance Maharashtra’s thriving reputation and, in turn, contribute towards attracting even more quality FDIs to the State.

Conclusion

In conclusion, I wish Ascendas success in its maiden foray into the exciting state of Maharashtra. This would certainly not have been possible without the initiative and hard work put in by Ascendas’ partners, the Maharashtra Airport Development Company (MADC) and the Maharashtra Industrial Development Cooperation (MIDC).I would like to place on record our appreciation for the keen support of both these agencies.

I am confident that this partnership will create a legacy that both Maharashtra, India and Singapore can be very proud of.

Thank you.

*Ms Chong Siak Ching is the President and CEO of Ascendas Pte Ltd.