Distinguished Guests,

Ladies and Gentlemen,

 

Introduction

1.            Good morning. It is my pleasure to join you today to celebrate the official launch of the Global e-Trade Services, or GeTS in short. This is a timely development given the changing nature of global trade.

 

Changing Nature of Global Trade

2.            Global cross-border trade has grown rapidly over the years. With the progressive reduction in trade tariffs, global trade has more than doubled from US$6.5 trillion in 2000 to US$16.6 trillion in 2015. Despite recent uncertainties arising from protectionist sentiments and economic headwinds, global trade is not expected to dampen significantly. Driven by an overall improvement in economic outlook, coupled with strong fundamentals in Asia, global trade growth is expected to pick up in the years ahead.

3.            Underpinning the growth in global cross border trade is the improvement in digital connectivity. With growing internet penetration and proliferation of smart devices, companies are able to access markets and consumers anywhere in the world, at any time. This has spurred the growth of cross-border e-commerce trade, which has become a key engine for trade growth. In the years to come, e-commerce trade is expected to post strong growth, with Southeast Asia poised to be one of the world’s fastest-growing regions for e-commerce trade. Industry experts have estimated that Southeast Asia’s e-commerce market will surpass US$25 billion in revenue by 2020, more than double the total revenue in 2015.

4.            The development of e-commerce trade is expected to shape the nature of global trade and delivery patterns. The growth in e-commerce trade has been accompanied by an increase in a large number of smaller and lower-valued consignments that require just-in-time delivery. Traditional manual documentation will become increasingly cumbersome and time-consuming for e-commerce traders, and could impede the flow of goods across borders. For regulatory agencies, the increased volume of trade documents for processing will create additional pressure on limited resources. Therefore, to support the growth of e-commerce trade, it is important for us to have the right infrastructure that can ensure reliable, efficient and speedy customs clearance, while ensuring compliance with various regulatory requirements.

 

GeTS - better trade compliance, cost savings and productivity gains

5.            To this end, I am pleased to announce the launch of GeTS. Offering a comprehensive suite of services, GeTS can help traders meet regulatory and compliance requirements of foreign government agencies. GeTS is centred on a single electronic window that connects to various foreign businesses and government agencies. It can facilitate the electronic exchanges of trade documents with counterparties across borders. This enables companies to clear the customs more quickly and efficiently, which will translate into time and cost savings for companies.

6.            The enhanced connectivity through GeTS serves as a natural complement to our excellent physical infrastructure and logistics capabilities. We are ranked first in shipping, and ports and logistics, which is backed by our ease of doing business and efficient customs procedures. The efficiency gains from GeTS will help sustain Singapore’s competitiveness and attractiveness as a global trading and logistics hub.

7.            Notwithstanding our strong ecosystem for the trading and logistics sectors, we will continue to work with industry players to deepen our support for the community. One key initiative was the launch of the Logistics Industry Transformation Map last year, which charted out integrated strategies to strengthen support for our companies in the logistics sector. We have in the pipeline the launch of the Wholesale Trade Industry Transformation Map, which I believe would be of great relevance for our trading community here in Singapore.

Memorandum of Understanding

8.            I am also glad to witness the signing of the Memorandum of Understanding (MoU) between GeTS and the Singapore Logistics Association to develop a pan regional Business-to-Business (B2B) platform that facilitates collaboration between members of ASEAN logistics associations. With linkages to 500 freight forwarders and 1,300 counterparties in various ASEAN countries, companies can reduce inefficiencies from manual correspondences, and transmit their trade documents through a single digital platform that would help to facilitate customs clearance. This will allow companies within the region to move their goods across regional borders in a more efficient and cost-effective manner.

9.            This is an important initiative as ASEAN is a market with immense growth potential. With the rising affluence of ASEAN’s fast growing middle class, experts estimate that ASEAN could become the fourth largest single market in the world by 2030, raising its significance as a key final demand market for Singapore.

Conclusion

10.         In closing, I would like to take this opportunity to thank CrimsonLogic for this kind invitation. I am confident that CrimsonLogic and GeTS will continue to advance Singapore’s trade connectivity with the world, and I wish you every success in your ventures. Thank you.

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