OPENING ADDRESS BY MR S. ISWARAN, MINISTER OF STATE FOR TRADE AND INDUSTRY AT THE OPENING OF QUALITY AND STANDARDS 2007 AND STANDARDS AND ACCREDITATION PARTNERS AWARDS CEREMONY AT 11.15AM ON MONDAY, 5 NOVEMBER 2007 AT GRAND BALLROOM, GRAND COPTHORNE WATERFRONT HOTEL

Mr Hakan Murby, President, International Organization for Standardisation

, Chairman, Singapore Standards Council

Mr Heng Chiang Gnee, Chairman, Singapore Accreditation Council

Distinguished Guests, Ladies and Gentlemen

Good morning.

Introduction

I am pleased to join you today for the Opening of Quality and Standards 2007 and the Standards and Accreditation Partners Awards Ceremony.

At the outset, I would like to take this opportunity to commend all industry partners of Spring Singapore for their contributions to the national standardisation and accreditation programmes. I am told that there are some 1,200 standards partners and 400 accreditation partners who come from industry, academia, government agencies and other stakeholders. Together, they have helped to strengthen our industries and our standards and conformance infrastructure. It is through their dedication, commitment and support that Singapore is trusted globally, and our products and services well-regarded for quality and reliability.

With increasing globalization, international confidence in the array of national standards and conformance systems is a fundamental building block for market access and international trade. Singapore’s strong standards and conformance capabilities, and our efforts towards alignment with international standards, have helped our enterprises overcome technical barriers. Our close links with the international standards and conformance community have earned us worldwide acceptance. This reduces the need for our products to be re-tested in the export markets, thereby helping to lower entry barriers and costs for our exporters.

However, as a small export-oriented economy, we cannot afford to be complacent and must keep abreast of industry developments. Our Standards and Conformance Infrastructure must continuously evolve to address global concerns that shape the world’s economic landscape.

Impact of REACH on Singapore’s key export industries

Let me cite an example of how new regulations have an impact on two of our major export industries -- chemicals and electrical & electronics.

On 1st June this year, the European Union enacted the Registration, Evaluation, Authorisation and Restriction of Chemicals, or REACH, regulation. REACH places the responsibility of compliance on importers, requiring them to manage the use of a list of chemicals above a certain quantity, in any product that is brought into the EU market.

Singapore has some 500 companies in chemical manufacturing and related industries. Last year, our oil, petrochemical and chemical output grew by 12 per cent to S$74.7 billion, accounting for one third of our total manufacturing output. In 2006, S$13 billion worth of chemicals and related products were exported to the EU. This comprised nearly 30 per cent of Singapore’s total exports to the EU.

REACH has made it even more important for our chemical product exporters to work with and understand their EU customers’ needs. This not only includes giving the appropriate technical information and support to the customers. Our exporters would also need to communicate these requirements to all parties involved across the entire supply chain of their products.

In addition, REACH will also affect non-chemical companies that use chemicals in their manufacturing processes. An example is the electronics industry. In 2006, Singapore exported some S$23 billion worth of electronic products to the EU, accounting for almost half of our total exports to Europe.

So the amounts at stake are material and significant.And, it is critical that Singaporean enterprises affected by technical regulations such as REACH, be given the appropriate assistance to meet standards and technical requirements.

Overcoming Trade Barriers through Collaboration on Standards and Conformance Initiatives

To this end, SPRING collaborates with industry associations to establish industry-specific standards and conformance initiatives. One such collaboration is with the Singapore Chemical Industry Council (SCIC). Today, I am pleased to announce that SPRING is partnering the SCIC to help Singaporean exporters gear up to compete in the global market.

This collaboration will cover three main areas. First, it will entail an assessment of the impact of standards and technical regulations, such as REACH, on Singapore businesses. An impact study is already underway. The results are expected towards the end of the year.

Second, is to raise awareness, through various strategies and mechanisms, of the standards and technical regulations affecting chemical and chemical-related exports, and to build up industry capabilities to prepare enterprises to comply with such regulations. In this respect, I am pleased to note that a Guidebook on REACH for SMEs has been produced, and will be released tomorrow.

Third, is participation in standards development, at both local and international levels, which enables Singapore industries to be continually updated on the latest developments. At the same time, it also allows for the interests of Singapore businesses to be represented. I am therefore happy to note that SCIC is a key stakeholder representing the chemicals industry in the national standardisation programme.

Conclusion

Our enterprises need to constantly adapt to global changes to remain competitive. While regulations like REACH may pose a threat or hindrance to market access, I would like our companies to, at the same time, view them as plausible opportunities to secure first mover advantages through early adoption. The key to success in this endeavour is strong government-industry collaboration.I am confident that such collaboration will ensure that Singapore continues to develop a robust standards and conformance infrastructure that will help our enterprises overcome possible technical barriers and seize emerging opportunities.

I wish all of you a productive and engaging session at Quality and Standards 2007.

Thank you.