SPEECH BY DR KOH POH KOON, SENIOR MINISTER OF STATE FOR TRADE & INDUSTRY AND NATIONAL DEVELOPMENT, AT THE 7TH NORWAY-ASIA BUSINESS SUMMIT ON 17 APRIL 2018, 9.30AM, AT FULLERTON HOTEL
Mr Per Sandberg, Norwegian Minister of Fisheries,
Ms Anita Nergaard, Ambassador of Norway to Singapore,
Mr Leonard Stornes, President, Norwegian Business Association (Singapore),
Distinguished guests,
1. Good morning. It is a pleasure to join you here at the 7th Norway-Asia Business Summit. I would also like to welcome Minister Per Sandberg to Singapore and understand that this is his first visit to Singapore.
Singapore and Norway enjoy good economic relations
2. Norway and Singapore enjoy good economic relations. Norway is Singapore’s 12th largest European trading partner, and 5th largest European investor. Our total trade in goods in 2017 exceeded S$1.5 billion, and Norwegian FDI stock in Singapore stood at an impressive S$20 billion in end-2016.
3. Our economic relations have also been bolstered by the Free Trade Agreement that Singapore has with the European Free Trade Association (EFTA), which Norway is a key member of. The EFTA–Singapore Free Trade Agreement (ESFTA) is the first FTA between EFTA and an ASEAN country. Since its entry into force on 1 January 2003, it has substantively facilitated trade and investment between Singapore and the EFTA States. In 2017, our bilateral trade in goods between Singapore and the EFTA States was valued at S$17.4 billion, almost a fourfold increase from 2002 when trade stood at S$4.5 billion. Investments similarly soared from a modest S$18 billion in 2002, to S$65 billion in 2016.
ASEAN is an important growth market and Singapore is an ideal partner to tap on growth opportunities
4. While we have come a long way in our economic relations, I believe we can further collaborate through ASEAN, which is increasingly becoming an important market in the global economy. Amidst the rise in anti-trade and protectionist sentiments around the world, ASEAN continues to be an economic bright spot.
5. ASEAN is the sixth largest single economy today, and is expected to grow at an average pace of 5% to 5.5% each year until 2020. By 2020, the region is projected to have a US $3 trillion economy, potentially becoming the fourth largest single economic block in the world by 2030. With its youthful population, growing and affluent middle class, as well as rapid urbanization, ASEAN presents opportunities for Norwegian businesses to grow consumer-centric activities.
6. Singapore is a natural partner for Norwegian businesses to grab these opportunities. Singapore and Norway already enjoy very good relations. Furthermore, our position and experience in ASEAN and the region, dedication to regional economic integration, robust Intellectual Property Regime, pro-business policies, and transparent and stable government, makes Singapore a trusted and valuable partner to Norway.
ASEAN: Digital economy and e-commerce
7. Despite the uncertainties in today’s global trade environment, ASEAN remains committed to deepening economic integration and continues to keep our markets open and competitive. One of the economic priorities for Singapore’s ASEAN Chairmanship this year is to foster innovation-driven growth through digital economy initiatives.
8. Singapore is working with ASEAN Member States to strengthen digital connectivity and promote e-Commerce flows through an Agreement on e-Commerce. The Agreement aims to advance trade rules in e-commerce, lower businesses’ operating barriers to entry, and build up greater digital connectivity. It will provide a platform for aspiring entrepreneurs, start-ups and Micro, Small and Medium Enterprises (MSMEs) to market their products and services regionally, while making it easier for them to send and receive electronic payments.
9. We are also developing an ASEAN Digital Integration Framework to monitor the progress of ASEAN’s digital integration. This Framework will allow us to better scrutinise and evaluate our digital ecosystem and to identify areas for improvement such as facilitating a free and secure cross-border flow of data. It will also enable us to develop regional e-payment networks with the required level of penetration and flexibility to support a diverse range of companies as they grow and digitalise.
10. An ASEAN Innovation Network is also being pursued this year. This network seeks to strengthen the linkages between innovation ecosystems in ASEAN Member States to spark new collaborations and new solutions, things that will help our businesses and benefit the consumers. This will help us address the demand from an increasingly sophisticated and growing consumer base in our region here.
11. These initiatives aim to allow ASEAN to tap on new opportunities in the digital economy, and reinforce our value proposition to our global partners.
Maritime digitalisation brings opportunities for Singapore-Norway cooperation
12. Singapore has also invested in digitalisation efforts at the sectoral level, and one such example is the maritime sector. We are taking active steps to promote digitalisation of the maritime industry and support collaborations among corporates and start-ups through grants as well as incubation and accelerator programmes. As traditional boundaries between industries become increasingly blurred, there is a need for the maritime industry to explore cross-sector growth opportunities with related sectors such as e-commerce, logistics, commodity trading, and technology. An example is Alibaba’s OneTouch platform tie up with Maersk Line, CMA-CGM, Evergreen and ZIM, which provides shippers with the option of booking directly with carriers instead of through traditional freight forwarders.
13. This year, the Maritime and Port Authority of Singapore (MPA) signed a Memorandum of Understanding (MoU) with the Singapore Shipping Association (SSA) and Singapore Customs to explore the use of digitised trade documentation. It has also worked with industry players to pilot the use of electronic bills of lading and bunker delivery notes, and the overall digitalisation of shipping processes.
14. I understand that Norway has also been looking into the digitalisation of its shipping processes. In this regard, our countries have uncovered new pathways of collaboration that could further strengthen our traditional maritime partnership. We are proud to say that even in these early stages of industry transformation, our mutually beneficial relationship has allowed for extensive partnering in maritime Research and Development, Education, and Training (RDET). One notable example of these partnerships is the MoU between MPA and the Research Council of Norway (RCN), which has been extended for six terms. This is a strong indication of our steadily growing collaboration.
15. As part of our efforts to engage Norway on the maritime front, the Singapore Maritime Organisation (SMO) and Association of Singapore Marine Industries (ASMI) have hosted “Singapore Nite”, in conjunction with the biennial Nor-Shipping week based in Oslo for the past six years. We were glad to see that the Royal Norwegian Embassy had introduced its own rendition of this event, the “Norway Night”, during the Singapore Maritime Week last year.
16. Maritime digitalisation is still in its infancy within the region. Together, Singapore and Norway can work to become forerunners for the transformation of this age-old industry within the region and beyond.
Conclusion
17. I hope today’s summit will provide both Norway and Singapore companies with more insights about the opportunities for collaboration in Singapore, ASEAN and the broader Asia region. On this note, I wish you a productive session ahead. Thank you.