EMBARGOED UNTIL DELIVERY PLEASE CHECK AGAINST DELIVERY Speech By Mr Lee Yi Shyan Minister of State for Trade & Industry and Manpower At the Ground Breaking Ceremony of Van Der Horst Energy Limited’s New Warehouse and Office Complex on Monday, 6 July 2009 at 10.20am

Mr Neo Kok Ching, Chairman of Van Der Horst Energy Limited

Mr Peter Cheng, CEO of Van Der Horst Energy Limited

Ladies and gentlemen

Good morning

Introduction

It gives me great pleasure to join you for the ground breaking ceremony of Van Der Horst Energy’s new warehouse and office complex.

Overview of Singapore’s Logistics Industry

The logistics industry is an important pillar in Singapore’s economy. In 2007, the logistics industry contributed 9.4% of Singapore’s GDP and employed 180,000 people. Logistics SMEs account for 90% of the companies and employs 43% of the workforce.

Singapore’s excellent transport infrastructure has attracted leading manufacturers to set up their logistics and supply chain management bases here. In 2007, the World Bank recognized Singapore as the World’s Number One Logistics Hub, ahead of other strong competitors like The Netherlands and Hong Kong.

Our competitive edge in the logistics industry can be attributed to four key factors. First, Singapore is well-connected globally by sea and air. We have the world’s busiest container port linked to an excellent network of 200 shipping lines with connections to 600 ports in 123 countries. Our airport is served by 78 airlines connected to 186 cities in 59 countries. Second, Singapore has developed capabilities in logistics management. Many global logistics players like TNT and DHL have established their solution teams here to provide specialized logistics services for the Asia Pacific. In fact, 21 of the top 25 leading international 3rd party logistics (3PL) international players such as DHL, UPS and Agility have a strong presence here.

Third, we have well-established logistics infrastructure such as the Airport Logistics Park (ALPS) and the Banyan Logis Park on Jurong Island. They provide specialized and targeted services to serve the needs of specific industries such as chemical and air cargo. Last but not least, our specialized technological infrastructures like TradeXchange, provide a common platform which accelerate the flow of information and transactions across the supply chain.

Looking ahead and Building new capabilities

The current economic slowdown has caused a significant dip in demand and freight rates. To build a competitive edge, logistics companies can enhance customer service by offering integrated solutions that reduce the total cost of transportation and storage.

At the Government level, a range of capability schemes targeted at the logistics sector are available to assist companies to upgrade themselves. Let me highlight some of the programmes. SPRING Singapore’s Logistics Capability Development Programme (LCDP) provides funding support and resources to SMEs; to develop new capabilities so that they can offer a wider and more complete value-chain of services. Also, it helps to develop specialized know-how in areas such as reverse logistics, chemical logistics and pharmaceutical logistics.

Similarly, EDB has its PREP-Up scheme, a $100 million initiative aimed to boost Singapore’s workforce capabilities. This allows companies to build and retain a pool of experienced manpower within an industry to position themselves for the upturn.

In addition, those looking to expand overseas can tap on International Enterprise Singapore’s presence in over 30 locations worldwide. It will help them to better understand market conditions and meet potential partners. IE has various assistance programmes that provide financing for companies which are looking to internationalize, strengthen capabilities and enhance market access. We welcome logistics companies to leverage on these initiatives by SPRING Singapore, EDB and IE Singapore in their preparation for new opportunities when the upturn arrives.

Conclusion

Today’s ground-breaking marks the start of a new chapter in the Van Der Horst Energy’s journey. I have been told that your company is studying the possibility of installing solar panels on top of the building. If realized, could be the largest solar system installation in Singapore. This site will also include a sizeable rain water collection tank (est. 700 cu m) for toilet flushing, landscape watering and vehicle washing. In fact, I understand that the total investment to develop this eco-friendly environment building exceeds $28 million. I applaud the company for your efforts towards renewable energy, and your commitment to green and eco-friendly initiatives.

In closing, let me congratulate the management and staff of Van Der Horst Energy on the groundbreaking of your new warehouse and office complex.

Thank you.