Your Excellencies,

Distinguished Guests,

Ladies and Gentlemen,

A good afternoon to all of you, and let me extend a warm Singaporean welcome to our friends from overseas. 

Introduction

1.            I am pleased to address you today at the 12th edition of the Latin Asia Business Forum (LABF).  Since its inception in 2004, the LABF has grown from strength to strength to become an important platform to foster trade, investment, and closer economic cooperation between Latin America and Asia.

2.            This afternoon’s Forum marks the culmination of a week of initiatives designed to bring both regions closer together.  It commenced with the FEALAC[1] Journalists Visit Programme organised by our Ministry of Foreign Affairs, which hosted seven Latin American and Caribbean journalists in Singapore for them to gain a deeper appreciation of Singapore’s development journey over the years.  The Latin America Development Bank (CAF) and IE Singapore, in collaboration with our Centre for Liveable Cities, also held the “Latin Asia Business Exchange”, a week-long training programme curated for a select group of Latin American and Caribbean officials to share experiences and best practices in urban development.  In addition, the Economic Development Board’s “Bootcamp Latin Asia” hosted companies such as Minerva, KLIN, Coatis, and Xue Cafe to a three-day workshop to explore using Singapore as a hub to participate in the growth of the Asian market.

3.            The LABF continues to draw like-minded institutions to organise partner events, which add to the quality and vibrancy of this platform.  This year, for example, there were events on Ecuador, Argentina and the Pacific Alliance, amongst others.

Singapore’s bilateral economic relations with Latin America and the Caribbean have been growing

4.            Singapore's bilateral trade in goods with Latin America and the Caribbean is robust, amounting to S$18.1 billion in 2016.  Cumulative Foreign Direct Investment (FDI) from Latin America and the Caribbean into Singapore is also healthy, amounting to S$16.5 billion in 2015.  In the same period, Singapore's stock of Direct Investment Abroad (DIA) into the region amounted to S$6.9 billion.

5.            We have seen good growth in commercial activities between Singapore and Latin America and the Caribbean.  Today, there are more than 200 Singapore companies with 400 points of presence across the region, which is double the number of companies from 2015.  I am particularly pleased that Singapore companies from diverse sectors are increasing their efforts to tap on business opportunities and contribute to the growth of the region.  For example, Surbana Jurong (an engineering and masterplanning company) opened its first office in Mexico in April this year and Ascott (which focuses on service apartments) announced its entry into Latin America and the Caribbean through two franchises in Brazil.

6.            Partnerships in new sectors such as education, technology and perishable food have also been initiated.  In the last two years, companies such as Educare and Star Publishing have made their initial forays into Latin America and the Caribbean supporting educational reforms, working with both the public and private sectors to adopt Singapore’s education framework, teaching methodology and content.

7.           In 2016, e-government solutions company CrimsonLogic, supported by the Inter-American Development Bank, developed an Inter-Operability Platform (IOP) to connect the trade windows of the Pacific Alliance Member States.  I am pleased to note that later this afternoon, we will be witnessing the signing of an MOU between CrimsonLogic and the Government of Suriname to explore cooperation for a Single Window System to facilitate trade.

8.            There has also been stronger engagement at the government-to-government level.  Singapore was recently accepted as an Associate State of the Pacific Alliance in June 2017.  The Pacific Alliance is a forward-looking and dynamic bloc and we look forward to deepening our economic collaboration with the region.

9.            We also welcome the active presence of MERCOSUR members in Singapore. In particular, the re-opening of the Argentinian Embassy in Singapore marks an important milestone that will catalyse closer cooperation.

The current global climate requires countries and companies to look beyond their immediate regions and become familiar with new partners

10.         The current global political climate is marred by anti-globalisation sentiments and protectionist rhetoric.  Yet, as regions seeking growth and a better quality of life for our people, we must resist these trends that can impair our prospects.  International trade and closer economic cooperation creates opportunities for our businesses, jobs for our citizens, and growth for the economy. 

11.         Trade patterns will evolve in response to political shifts, economic cycles, and technological trends.  Adapting to these changes is challenging but essential if we are to sustain economic growth and competitiveness.  And staying engaged with the global economy allows us to diversify markets, continue to shape the rules of economic engagement, and enhance the demand of our goods and services.  

12.         The dividends of such international economic linkages may not always be equally distributed.  Hence, it is essential that governments complement this external orientation with domestic policies that ensure that the opportunities and benefits of international trade extend to all segments of our society.  In particular, this entails continually investing in the education and skills of our people, and the productivity and capabilities of our enterprises.

13.         This is the approach we have taken in Singapore and we look forward to working closely with our like-minded partners in Latin America and the Caribbean to form new and denser linkages with friends in this region.  Both sides can work together to establish greater connectivity through more direct air connections and economic platforms to explore opportunities in our respective regions.  Greater connectivity will bring our business communities closer together, and facilitate more exchanges between our people in areas such as culture, education, and tourism, thereby setting the foundation for our bilateral ties to flourish.

ASEAN is a market with much potential, and Singapore offers a good platform for Latin American and Caribbean companies looking to access opportunities in the region.

14.         Singapore is well-situated to provide companies from Latin America and the Caribbean access to the growth opportunities in ASEAN.  ASEAN is one of the fastest growing regions in the world with a population of more than 600 million.  Its growing urban middle class is expected to reach 50% of the population by 2030, and is an indication of the potential opportunities within the region.

15.         Beyond market access to a growing and diverse region, Singapore offers a compatible corporate culture, strong IP protection regime, organisations with valuable insights on the region, and access to the rich talent pool in Asia.  This makes us attractive for innovation-intensive activities.  Latin American and Caribbean companies also stand to benefit from Singapore's extensive network of Double Tax Agreements, Investment Guarantee Agreements, and Free Trade Agreements.

16.         Hence, there is significant scope for us to partner each other for mutual benefit.  Both our regions have similar population sizes, and are experiencing rapid urbanisation.  As our populations enter the workforce and consume more, this growing middle class will spur economic growth.

17.         Take for example the increase in demand for quality perishable food (such as meat, seafood, and fruits) by the rising middle class in Asia.  Latin America, a major food producing region, is well-placed to address this growing demand.  Singapore is the third largest agri-commodities hub in the world with ready logistics infrastructure, supply chain capabilities, and strong regional connectivity.  Latin American and Caribbean companies could use Singapore to access Southeast Asia and the wider Asian region and together, we can explore solutions to improve physical, financial, and information flows to facilitate greater trade between the two regions.

Establishment of Enterprise Singapore to deepen partnerships across both regions

18.         On the part of the Singapore Government, we will provide comprehensive and integrated support to Singapore companies through a new government agency Enterprise Singapore formed through the merger of IE Singapore and SPRING Singapore.  Enterprise Singapore will bring together and build on IE Singapore’s in-market networks and knowledge, and SPRING Singapore’s strengths in capability development.

19.         In particular, Enterprise Singapore will continue IE Singapore’s ongoing efforts to strengthen partnerships of Singapore companies with Latin America and the Caribbean.  The agency will also work on efforts to enhance the connectivity of the digital economies of the two regions to create more market access opportunities especially for our SMEs.  

Conclusion

20.         To conclude, there is much potential for closer economic cooperation between our two regions; to participate through trade and investments in the opportunities in our respective neighbourhoods for mutual benefit; to foster closer links between our people and our businesses.  This LABF and associated activities is an important platform to do more in that regard.  I look forward to many exciting initiatives and successful partnerships emerging from this Forum, and wish you all a fruitful day ahead.

21.         Thank you.

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