Minister Lim Hng Kiang at the Slovak-Singapore Business Forum

​SPEECH BY MINISTER FOR TRADE & INDUSTRY LIM HNG KIANG AT THE SLOVAK-SINGAPORE BUSINESS FORUM ON 3 NOVEMBER 2014, 2.40PM, KEPPEL TOWER

SLOVAKIA AND SINGAPORE: TO GROW ECONOMIC TIES

Your Excellency Mr. Miroslav Lajčák, Deputy Prime Minister and Minister of Foreign and European Affairs of Slovakia

Mr Ho Meng Kit, Chief Executive Officer of Singapore Business Federation

Distinguished Guests

Ladies and Gentlemen

Good afternoon.

I would first like to say a warm welcome to Deputy Prime Minister Lajčák and his accompanying business delegation, and thank them for their visit to Singapore. Last year, when President Tony Tan made a State Visit to the Slovak Republic, a similar Singapore-Slovak Business Forum was organised and very well attended. I believe that the exchange of visits by Singapore and Slovak business delegations signal both the interest and opportunities that exist in each other’s market and region.

Slovakia and Singapore Share Similarities

Singapore and Slovakia share many similarities. We are both small and young nations with export-oriented economies that are susceptible to changes in the international landscape and regional situation.

Singapore’s response to an increasingly competitive environment

As small countries with open economies dependent on foreign trade and investment, we also face similar challenges from globalisation. Singapore has responded to the opportunities and challenges of globalisation by growing Globally Competitive Companies (GCCs) to explore overseas markets, such as the Slovakia.

Increase collaboration with Slovakia

Singapore and Slovakia have enjoyed warm bilateral ties which have tripled over the past decade to reach $122.1 million. For two countries with populations of just over 5 million, this is a modest trade figure. Slovakia is also Singapore’s 22nd largest investor from the EU.

Further collaboration between Slovak and Singapore companies will be the next step in deepening our economic ties. There are many opportunities to explore and work together, and this is why we have a broad array of sectors being represented here today. They range from information technology to the environment, and banking to architecture.  We hope to see business partnerships arising from this business forum.

We are especially glad that three Slovak companies with us today have established offices in Singapore. These include ESET, an IT security company; ENSOF Inc, an IT services company and XXL Property Solutions Pte Ltd, an architectural firm. We also hope that more Slovak companies will also consider using Singapore as a base for accessing the ASEAN and broader Asian markets.

Singapore Remains the Gateway of Choice to Asia

Asia remains attractive and the region’s contribution to world trade will continue to grow. Asian economies are forecast to expand at an average of 5.5%  in 2014-2015, higher than the global average of 3.3 % for 2014. Within ASEAN, real GDP is expected to grow at 5.0% . 

We are pleased that companies who want to expand their footprints in Asia continue to see Singapore as a natural gateway of choice. In 2013, we attracted S$12.1 billion worth of Fixed Asset Investments (FAI), with 21,400 skilled jobs created, an increase of 15% over 2012 with 18,600 skilled jobs created.

As the Singapore economy matures, we continue to welcome talent and investments, while being mindful of our physical and social constraints.

We will maintain a pro-business environment which helps companies succeed in Singapore. Singapore may not be the cheapest place to do business, but we stand firmly on a solid foundation built on efficiency, predictability and high standards of excellence.

As a staunch proponent of free trade, Singapore will also continue to expand our network of free trade agreements (FTAs) with other like-minded countries. We currently have the most extensive network of FTAs and trade links in Asia, which provide Singapore-based companies greater market access and connectivity.

Southeast Asia has also been fast integrating, and solid progress has been made towards the vision of transforming ASEAN into a single market of over 600 million people. By 2015, the region will become a more integrated production base where goods flow seamlessly. This will provide a conducive environment for businesses to operate and flourish.

In addition, ASEAN and our six FTA Partners, namely Australia, China, India, Japan, Korea and New Zealand, have launched the Regional Comprehensive Economic Partnership, or “RCEP” in short. The RCEP builds on ASEAN’s bilateral FTAs to broaden ASEAN’s linkages with its FTA partners. When completed, the RCEP will be one of the world’s largest free trade areas, with a market of more than 3 billion people and a combined GDP of US$21 trillion .

EU-Singapore FTA

It is clearly beneficial for Slovakia to plug into this growing region. The rising affluence and growing middle class represent significant business opportunities for Slovak companies.

This will be greatly facilitated by the EU-Singapore Free Trade Agreement (“EUSFTA”), which was initialled in September 2013 and is now awaiting ratification. We are grateful to the Slovak Republic for its strong support for the EUSFTA, and look forward to its early entry into force, so that businesses and consumers can enjoy the benefits of this ambitious agreement soon.

Slovak and Singapore companies will benefit from significant tariff elimination and simplification of non-tariff measures resulting from the EUSFTA’s ratification.

Additionally, the EUSFTA breaks new ground in tackling significant non-tariff barriers to trade, with a specific focus on the automotive, pharmaceuticals, medical devices and electronics sectors. The Agreement also creates new opportunities for market access in services, and paves the way for major advances in areas such as intellectual property, government procurement and competition policy.

Slovak companies could take advantage of demand in these areas to tailor products and services for specific markets and tap on the distribution networks of Singapore companies to expand into third markets such as ASEAN.

Conclusion

In closing, today’s business forum is another valuable platform for our business communities to form networks and I wish everyone a fruitful day ahead.

Thank you.