Opening Remarks by Mr S Iswaran, Minister, Prime Minister’s Office and Second Minister for Home Affairs and Trade & Industry at the Turkey-Singapore Business and Investment Forum 2012 on Monday 23 July, 1410 Hrs at the Shangri-La Hotel Island Ballroom, Singapore
Your Excellency Zafer Çağlayan,
Distinguished Guests, good afternoon.
Introduction
I am pleased to join you at this afternoon’s Turkey-Singapore Business and Investment Forum 2012. Let me first extend a warm welcome to His Excellency Zafer Çağlayan and his delegation. Your visit marks yet another milestone in the growing ties between our two countries. I would also like to welcome the Turkish and Singaporean businessmen who are at this forum today.
Singapore-Turkey Relations Continue to be Strong
Bilateral relations between Singapore and Turkey have gathered significant momentum, especially in recent years. In 2009, then-President SR Nathan made a State Visit to Turkey. In March this year, Turkey’s Deputy Prime Minister Ali Babacan visited Singapore. More recently in May, Deputy Prime Minister Tharman Shanmugaratnam launched IE Singapore’s first overseas centre in Istanbul. The opening of our Singapore Embassy in Ankara later this year will help to further broaden and deepen our interactions.
Singapore-Turkey Trade Opportunities
Against the global economic backdrop of slow growth and weak demand in the advanced economies, it is now even more important for our economies and businesses to seek growth opportunities in new markets. In that respect, the geographical value proposition of our two countries allows us to capitalise on these emerging economic opportunities.
Turkey and Singapore are both strategically located at the crossroads of trade activity. Turkey is an important gateway to the markets of the Middle East and Central Asia, while Singapore, is a key entry point to Asia. This presents interesting opportunities for collaboration between our two business communities.
Record Bilateral Trade with Turkey
This is borne out by our flourishing bilateral economic activity. Singapore's trade with Turkey has been increasing significantly, with total trade registering S$2.2 billion last year, a 79 per cent increase from 2010. This marks a historical record for bilateral trade between our two countries and is testament to our growing economic ties.
Turkey's long-term growth potential remains very positive. The private sector, in particular, has grown rapidly as a result of the Turkish government's pro-business policies. Turkey possesses strong policy fundamentals, and a young, growing and increasingly well-educated population. Turkey’s large domestic market of more than 70 million people will also generate demand for many products and services.
In addition, people flows between Turkey and Singapore have been growing steadily. Last year, more than 20,000 tourists from Singapore visited Turkey, while 15,000 Turkish tourists visited Singapore. There are now 500 Turkish citizens based in Singapore and over 50 Turkish companies registered here. The enhanced air transport connectivity afforded by Singapore Airlines’ direct route to Istanbul, and Turkish Airlines’ daily flights to Singapore, will facilitate even more trade, investment and people flows between our countries.
Singapore’s Economic Value Proposition
With such connectivity coupled with Singapore’s favourable location, Turkish businesses can leverage on Singapore as a springboard to tap on opportunities in rising Asia. Demand stemming from this region is compelling. According to the OECD, Asia will see 3.2 billion people move into the middle class by 2030 and account for nearly 60 per cent of total global consumption1. Asia is a diversified market comprising many unique cultures, customs and legal/business traditions. Singapore can serve as an ideal hub for businesses seeking a sophisticated and nuanced understanding of such a variegated region, in order to develop and execute a pan-Asian strategy.
Singapore is committed to deepening economic links with Turkey. In May this year, IE Singapore became the first government agency to establish a presence in Turkey when it opened its overseas centre in Istanbul. Coinciding with the opening, a business mission comprising 22 companies also travelled to Turkey to seek opportunities in urban solutions, oil and gas, as well as the environmental services sector. Many of these companies have made valuable and fruitful connections during the trip. As the ties between Turkey and Singapore grow broader and deeper, it would become natural for both countries to consider entering into talks on a bilateral FTA to put our relationship on an even firmer footing. You may recall that Turkey’s Deputy Prime Minister Ali Babacan mentioned this to the media during his visit in March. We are happy to note Turkey’s strong interest and look forward to further FTA discussions with Turkey.
Conclusion
With the changing global economic landscape, businesses need to look beyond their traditional markets for new growth opportunities. One compelling way of doing so is to tap on the extensive economic linkages of Singapore and Turkey to seize opportunities in emerging markets in our respective regions. The Turkey-Singapore Business Investment Forum is, therefore, a valuable platform to foster greater cooperation and business connectivity between our two countries.
I would like to thank Minister Çağlayan for leading such a distinguished delegation to Singapore. Your visit and presence today further cements our growing bilateral ties. I wish you and your delegation a productive and memorable visit to Singapore.
I would also like to wish all the business leaders and representatives fruitful discussions and an enjoyable stay in Singapore. Thank you.
_____________________
1 OECD, “Perspectives on Global Development 2012 – Social Cohesion in a Shifting World”, 2011