SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE 10th Anniversary Gala Dinner of the Italian Chamber of Commerce in Singapore (ICCS) HELD ON THURSDAY, 2 DECEMBER 2010 AT 7.55 PM IN the BALLROOM, THE FULLERTON HOTEL SINGAPORE 

Today, Italy is our 6th largest European trading partner, while we are Italy’s largest trading partner in South East Asia. Total bilateral trade reached 4.6 billion Singapore dollars last year. On the investment front, Italy’s investment in Singapore has quadrupled over the past 5 years to stand at nearly half a billion Singapore dollars in 2008. Over 200 Italian companies are based in Singapore today, mainly in the services, electronics and chemical sectors. We are home to major names such as STMicroelectronics, Coim, Permasteelisa, Faci, Technoprobe, Saipem and Rainbow. I am happy to note that FIAMM, a global manufacturer of industrial batteries and automotive components, has joined their ranks by choosing Singapore as the hub for their trading and warehousing services for the Asia-Pacific. We welcome more Italian companies to follow suit and set up their Asia-Pacific headquarters in Singapore.

Singapore has also made significant investments in Italy in the past few years. Just this year, Changi Airport International acquired a 5% stake in Gemima. This is the holding company of Italy’s largest airport group Aeroporti di Roma, which manages the Fiumicino and Ciampino airports in Rome. This paves the way for a long-term partnership with Aeroporti di Roma in areas such as airport operations, commercial development and master planning. And I am pleased to note that Changi Airport Group is the first Asian operator to play a significant role in the strategic development of a European capital city airport.

These success stories would not have been possible without the extensive business networks and collaborative opportunities that ICCS has helped to foster over the years. Singapore greatly appreciates the Chamber’s strong efforts to promote Singapore to the business community in Italy. I understand that just last year, the Chamber brought in six business delegation visits to Singapore from various regions of Italy. And it is now working with our economic agencies to bring a delegation of Singapore SMEs to Italy next year.

Indeed our economic agencies such as the Economic Development Board (EDB); Agency for Science, Technology and Research (A*STAR), International Enterprise (IE) Singapore and SPRING Singapore enjoy a warm relationship with the Chamber. We view the ICCS as an important partner in advancing our bilateral economic relations.

Strong R&D links

Our economic ties span more than just trade and investment. It includes areas such as education and science and technology. Our research links, in particular, have been flourishing. I would like to take this opportunity to highlight the distinguished Professor Paola Castanogli’s work. As Scientific Director of A*STAR’s Singapore Immunology Network, she has played a key role in promoting closer Science and Technology collaboration between Singapore and Italy. A*STAR’s Experimental Therapeutics Centre and the Singapore Immunology Network recently signed an agreement with Italy’s Siena Biotech. They will jointly develop new drugs and targeted antibodies that could potentially help cancer and bone loss patients. Professor Castanogli’s work has helped to bring the research communities in Italy and Singapore closer together.

Potential for further cooperation

There is great potential for further collaboration between our two countries. Italian and Singapore companies should work together to tap on our respective regions’ growth.

Singapore SMEs can work with Italian SMEs to jointly tap into the European market. Italian SMEs are renowned for their artisanal strengths in fashion, furniture and product design. Singapore SMEs have gained much by collaborating with their Italian counterparts and benchmarking themselves against Italian standards.

For example, our furniture industry secured exhibition space at the prestigious and highly exclusive Salone Internazionale del Mobile, or Milan Furniture Fair, for the third year running. Gaining admittance into the Milan Fair is a critical validation of their design capabilities. I understand Singapore companies managed to generate substantial media and buyer interest. To further develop their capabilities, our furniture companies are keen to work with their Italian counterparts to jointly serve the European market.

Likewise, Singapore companies can catalyse Italy’s entry into the Asian market. The middle-class population is rapidly growing in this region. Globally, the middle class is expected to grow from 1.8 billion to 4.9 billion by 2030. Over 80 per cent of the growth will come from Asia, particularly from China and India. Asia, therefore, presents European companies with a very lucrative market.

I encourage Italian companies to leverage on the wealth of experience Singapore companies have in this region and jointly venture into third-country markets. For example, Italy’s world-class strengths in design and manufacturing, coupled with Singapore’s linkages and familiarity with regional markets, could be a formidable pairing to jointly tap the region’s fast-growing markets such as Vietnam and Indonesia.

Through our network of 18 Free Trade Agreements (FTAs), Singapore is well connected to the key areas of growth like China, India, Japan and ASEAN. This enables companies based here to enjoy easier market access into these fast-growing economies.

Singapore and the EU have also started negotiations on the EU-Singapore FTA.We hope to work towards a high quality FTA which will further boost the flow of goods, services and investment between Singapore and the EU.We look forward to the Chamber’s support for the FTA, and we also welcome feedback on how we can construct the FTA to suit your members’ needs.

The last ten years have seen a deepening of economic ties between Singapore and Italy. Much of this can be attributed to the work of the Italian Chamber. I would also like to commend the ICCS for its service to the Italian business community in Singapore. I offer my warmest congratulations to the ICCS on this special occasion and I look forward to Singapore and Italy’s bilateral economic relations achieving even greater heights in the years ahead.Thank you.