SPEECH BY MR S ISWARAN, SENIOR MINISTER OF STATE for TRADE & INDUSTRY AND EDUCATION AT THE Opening Event of THE Inaugural Asia Fashion Exchange – Audi RED CARPET NIGHT ON TUESDAY, 27 April 2010, 1950 hrs

Your Excellency Jörg Ranau, Ambassador of the Federal Republic of Germany

Mr Reinhold Carl, Managing Director, Audi Singapore

Partners from the retail and fashion industry,

Distinguished Guests,

Ladies and Gentlemen

Good Evening

Introduction

I am pleased to be here for the launch of the inaugural Asia Fashion Exchange.

Asia – Growing Market for the Global Fashion Industry

Asia is fast becoming an important market for the global fashion industry. Rising affluence has meant increased consumer spending.In 2007, Japan, China, Hong Kong, South Korea, Australia, Taiwan and Singapore had a combined purchasing power of US$227 billion for apparel and footwear.A report by Business Monitor International[1] forecasts that in Singapore alone, total retail sales will grow from an estimated US$28.19 billion in 2009 to over US$40 billion by 2014.

AFX - Launchpad for Asia’s Fashion Industry

In this regard, Singapore with its strategic location, strong infrastructure and connectivity and a growing pool of local design talent, can play a key role as a gateway to Asian designers and markets. The launch of today’s Asia Fashion Exchange, or AFX, is therefore a milestone event as it seeks to establish Singapore as a key fashion exchange hub in Asia.

The AFX offers international fashion players a platform to tap into the Asian markets. Conversely, there are also opportunities for Asian fashion brands to build stronger market awareness by leveraging on the AFX to break into international markets.Locally, there have been encouraging signs of some Singapore-grown brands enjoying much success overseas. Alldressedup, launched just five years ago in 2005, is now retailing across 16 countries.Raoul, another home-grown brand by F J Benjamin was launched in 2002. It has since grown from a single store in Singapore to more than 30 stores across countries such as Malaysia, Philippines, and Dubai.I look forward to many more promising labels leveraging on platforms such as the AFX to break into international markets.

AFX’s unique value proposition lies in its myriad of events that caters to every aspect of the fashion industry from trade, consumers, tourism and talent development. The response has been most encouraging. Blueprint, its trade show, will play host to some 50 top regional and international designers. Over 1000 buyers and visitors are expected attend. AFX will also host the first Asia Fashion Summit, a business networking conference for over 200 industry professionals. Tomorrow’s Audi Fashion Festival will showcase the world-class collections of top international designers and labels.

Grooming the Singapore Fashion Industry

Equally important, the AFX will help build further capability and profile fashion talent in Singapore and the rest of the Asian region. In this regard, fashion design competitions such as the one held earlier today will help uncover new local and Asian talent. Beyond this, our fashion industry also needs a constant exchange of fresh ideas, creativity and talent to be globally competitive.Our creative talent must also gain regional and international exposure. The AFX offers our local talent in the fashion industry the crucial opportunity to be exposed to, and compete against, the best in the region.

AFX - a Successful Private - Public Partnership

At this juncture, I would like to thank the many partners from the public and private sector who were involved in the organization of this milestone event. The fruition of AFX stems from a close partnership between government agencies and key private sector players. These include IE Singapore, SPRING Singapore, the Singapore Tourism Board, the Textile and Fashion Federation and many fashion and lifestyle brands such as Audi, MasterCard, FJ Benjamin, Tiffany & Co. and the Celton Group. Crucial support has also been provided by private sector partners such as Mercury, Samsung and the Orchard Road Business Association.Going forward, AFX will be an annual affair and I look forward to a further strengthening of this private-public sector partnership as we realise the true potential of the AFX.

Conclusion

Over the next few days, Singapore’s fashion scene will be abuzz with a confluence of creative energy and opportunities as the AFX bring together international fashion buyers and media, regional and local designers, as well as star modeling talent. Let me take this opportunity to wish everyone a successful Asia Fashion Exchange.

Thank you.