SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE SINGAPORE-BRITISH BUSINESS COUNCIL’S FORUM ON URBAN SOLUTIONS, 3 DECEMBER 2010, AT 10.40 AM, GOODWOOD PARK HOTEL

Your Excellencies

Distinguished Guests

Ladies and Gentlemen

Introduction

Good morning. I am delighted to join you today at the Singapore-British Business Council’s Forum on “Collaborations in Urban Solutions”.

Bilateral Relations between the UK and Singapore

Singapore and the UK have a strong and long-standing relationship that is underpinned by excellent economic ties. The UK is our 3rd largest European trading partner and 15th largest trading partner in the world. Last year, our bilateral trade with the UK reached 13.7 billion Singapore dollars, accounting for close to 16% of our total trade with the European Union (EU). Our investment ties are robust as well. The UK is Singapore’s second largest foreign direct investor and is the top destination in the EU for Singapore’s direct investment. Significantly, Singapore’s investment into the UK represents nearly three quarters of our investment into Europe.

At the enterprise level, we have many regular business exchanges taking place between Singapore and British companies. These have been strongly supported and facilitated by organisations such as the British Chamber of Commerce; and through bilateral business platforms such as the Singapore-British Business Council (SBBC). The close working relationship between investment promotion agencies such as the EDB and the UK Trade & Investments (UKTI) has also further facilitated investment interest in both countries.

And with double-digit economic growth and a rising middle-class in Asia, opportunities for economic collaboration between Singapore and British companies in this region are set to grow.

Rapid Urbanisation Trend

As noted by Dr Albert Hong earlier, the world is rapidly urbanising. Asian countries will contribute significantly to this trend. Governments and city planners will inevitably be confronted by challenges brought about by urbanisation.This in turn creates a demand for effective “Urban Solutions” to overcome challenges such as environmental pollution, traffic congestion and threats to public safety.

Overcoming Singapore’s Constraints Through Urban Solutions

As a small city-state with no natural resources, Singapore has sought to be at the forefront in seeking innovative responses to challenges such as water and energy security, and rapid urbanisation. To this end, we have formulated resource-efficient policies and created technologies to address these challenges.

Let me share our experience in water. Water is a strategic resource for Singapore. We are a water-scarce country with no natural aquifers or groundwater, and limited land for water catchment. The development of ultra-pure, high-grade reclaimed water which we term “NEWater” is an example of how Singapore applies technology and innovation to overcome our constraints and achieve greater water sufficiency

Today, NEWater contributes to 30% of Singapore’s water supply. By 2020, its contribution will increase to 40%. In addition to addressing our water needs, the success of NEWater and other water projects has generated significant international interest and catalysed a vibrant water industry of more than 70 companies. As part of our vision to be the “Global Hydrohub”, we have opened up our advanced water infrastructure as a “Living Laboratory” for companies to test-bed cutting-edge water management technologies.

Singapore As A Living Laboratory

We have also extended this approach of using Singapore as a “Living Laboratory” to other urban solutions. We have several dedicated test-bedding platforms where companies can create, demonstrate and commercialise cutting-edge solutions before scaling up for the rest of the world.

In the Western part of our island, just next to the Nanyang Technological University, we have a 50-hectare CleanTech Park for businesses to work with academia to develop, test-bed and demonstrate clean technology solutions on a large scale.

In the Northeast, we have the Punggol Eco-town, a waterfront housing estate. This is a platform to develop and test-bed cost-effective solutions for energy, waste and water management for a green living environment.

We have also launched an electric vehicle test-bedding programme to trial different prototypes and recharging technologies. As a small island, Singapore provides the ideal environment for electric vehicle test-bedding. Our driving distances are short – the average passenger vehicle mileage is less than 60km per day, well within the electric-driving range of 90 to 160 km per full charge.

Singapore – A Home In Asia

Singapore can be therefore be a strategic partner for British companies to develop and test-bed urban solutions for Asia. Many British businesses are already aware of the many advantages that Singapore offers as an Asian base from which to manage, integrate and control their regional operations. Being strategically located in the heart of Asia, we enjoy excellent physical connectivity and access into the region. Our English-speaking business environment, coupled with the multicultural sensitivities of a cosmopolitan society, is also attractive to British companies seeking to understand the huge Asian markets of China, India and Southeast Asia.

Furthermore, Singapore’s comprehensive network of FTAs provides companies with greater market connectivity, which makes us a good springboard and gateway to Asia for British businesses. Singapore and the EU have also started negotiations on the EU-Singapore FTA. We hope to work towards a high quality FTA which will open up more commercial opportunities for companies in Singapore and the EU. Businesses are important partners in this process and we look forward to your support. We also welcome your feedback on how we can construct an FTA that will help advance your business interests.

Conclusion

I would like to take this opportunity to thank the organisers for putting together this conference. I hope that the discussions that will take place and partnerships formed at this Forum will spark off many collaborative opportunities between Singapore and British businesses.I wish you a fruitful session ahead.Thank you.