President of the British Chamber of Commerce Singapore , Haslam Preeston
His Excellency Nikesh Mehta, British High Commissioner to Singapore
His Majesty’s Trade Commissioner for Asia Pacific, Martin Kent
Distinguished Guests, Ladies and Gentlemen
Opening
1. Good evening. Thank you for inviting me to BritCham’s 25th Annual Business Awards Gala Dinner.
UK-Singapore economic relations
2. Last year, Singapore and the United Kingdom elevated our bilateral relationship to a Strategic Partnership.
a. This reflects the strong, broad and deep relationship that our countries share, across areas such as trade and investment, finance, science and technology, and digitalisation and cybersecurity.
b. It also reflects the convergence of our thinking on strategic issues such as free trade, international law and the rules-based multilateral system.
3. Our economic ties are one of the cornerstones of our bilateral relationship.
a. Over the past decade, trade in goods and services between the UK and Singapore has more than doubled from about S$14bn in 2013 to over S$38bn last year.
i. Today, the UK is Singapore’s fourth largest goods trading partner, and our largest services trading partner within Europe.
ii. In turn, Singapore is the UK’s largest trading partner in ASEAN, constituting 40% of the UK’s total trade with Southeast Asia last year.
b. The UK is also Singapore’s largest investor from Europe, with total investment stock in Singapore amounting to nearly $140bn in 2022.
i. On the other hand, Singapore is the UK’s fourth largest Asian investor, with total investment stock in the UK exceeding S$110bn in 2022.
4. These ties are especially precious at a time when the world’s economic order is under tremendous pressure.
a. In recent years, we have seen a proliferation of punitive economic measures imposed by countries around the world, which include tariffs, export controls outbound investment restrictions and many other measures.
b. We have also observed a concomitant rise in industrial policy, as countries strive to strengthen domestic supply chains and build up local industries in sectors such as clean energy, electric vehicles and semiconductor chips.
c. These shifts are taking place amidst a weakening of global institutions, such as the World Trade Organisation, which has in turn led to the destabilisation of the international system of trade and investment that has been painstakingly constructed over decades.
5. As a small and open economy, Singapore is deeply concerned about the erosion of the global economic order. This is why we have been working with like-minded countries such as the UK to strengthen the rules-based trading order, and open new avenues for more cooperation and investments in emerging areas such as the green and digital economy.
a. UK and Singapore have been FTA partners since the entry into force of the EU-Singapore Free Trade Agreement (EUSFTA) in 2019. After Brexit, we continued to be bilateral FTA partners through the UK-Singapore Free Trade Agreement, which came into force at the start of 2021. By the end of this year, tariffs on virtually all exports from Singapore to the UK will be eliminated.
b. We have also established agreements to broaden collaboration in emerging areas such as the digital and green economy, through the UK-Singapore Digital Economy Agreement and UK-Singapore Green Economy Framework.
c. Last year, Singapore joined 10 other countries to welcome UK to be a new member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This is one of the world’s largest Free Trade Agreements, accounting for about 15% of the global GDP.
d. And last but not least, both Singapore and the UK are also parties to the E-commerce Joint Initiative at the World Trade Organization, which aims to establish rules across a range of e-commerce issues including electronic transactions, digital trade facilitation and logistics, and cross-border data flows.
e. These bilateral, plurilateral and multilateral agreements demonstrate our shared commitment to the principles of free trade, rule of law, and an open, rules-based global economy.
6. But governments cannot do this alone – businesses play a critical role in harnessing the benefits of free and open trade.
7. Amidst a growing tide of protectionism and nationalism, it is even more important that we reinforce the business links between Singapore and the UK.
8. First, we should deepen partnerships between our businesses in research and innovation to drive productivity gains.
a. In this regard, both Singapore and the UK share a common interest in AI-driven innovation to unlock the next frontier of economic growth.
i. In 2021, the UK had launched a National AI Strategy to harness the power of AI to increase resilience, productivity, growth and innovation across the public and private sectors.
ii. Similarly in 2019, Singapore had also launched our National AI Strategy, and we updated it to NAIS 2.0 last year.
iii. As part of the NAIS 2.0, we are working with businesses in Singapore to drive the creation and adoption of AI-enabled solutions.
1. One such example is the collaboration between Singapore Aero Engine Services (SAESL) – who is present here with us tonight – with Rolls-Royce and A*STAR under the Smart Manufacturing Joint Lab Programme.
2. Under this Programme, the parties jointly developed a deep learning algorithm trained to detect different types of defects on aeroengine parts. This has significantly reduced the number of manhours needed for manual visual inspection, enabling SAESL to save costs and improve the efficiency and effectiveness of its repairsand maintenance programme.
iv. We welcome UK businesses to tap our AI ecosystem of industry-driven innovation, research capabilities, compute and talent resources to grow your AI capabilities, and to set up AI Centres of Excellence (CoEs) here in Singapore.
9. Second, we should accelerate efforts to unlock green growth opportunities as part of the transition towards a low-carbon future.
a. Both Singapore and the UK have set ambitious climate targets.
i. Singapore has committed to peak emissions before 2030 and to reach net-zero by 2050.
ii. Likewise, the UK has committed to reach net-zero by 2050. It has also committed to a 68% reduction in emissions by 2030.
b. Under the UK-Singapore Green Economy Framework, both our countries had recognised the opportunities and challenges arising from decarbonisation and the green economy.
i. We had set out three key pillars to deepen cooperation – namely, Green Transport; Low Carbon Energy and Technologies; and Carbon Markets and Sustainable Finance.
c. One of the most critical challenges of the climate transition is financing.
i. Here in Asia alone, at least US$1.1 trillion dollars is needed annually to meet climate mitigation and adaptation needs.
ii. I am glad to note that at the 9th UK-Singapore Financial Dialogue earlier this year, the Monetary Authority of Singapore and the HM Treasury had agreed to develop green finance and support energy transition projects in the region.
iii. Singapore has launched a blended finance platform called Financing Asia’s Transition Partnership – or FAST-P for short – with a target fund size of US$5 billion to drive this effort.
1. We hope that this will encourage businesses to bring in commercial capital to drive financing in areas such as phasing out of coal plants, renewable energy sources, grid infrastructure and low-carbon fuels like hydrogen and ammonia.
iv. I am glad to hear that companies such as X-Press Feeders are already positioning themselves to capture opportunities amidst the impending transition.
1. X-Press Feeders is the world’s first feeder carrier to operate containerships powered by green methanol.
2. Through the use of rudder bulbs and propeller boss cap fins and ducts to mitigate energy loss, X-Press Feeders has also raised the efficiency of their fleet by 20% last year, compared to 2019.
v. I encourage more of our businesses to leverage Singapore as a hub to unlock opportunities amidst the green transition, so that together, we can make concrete progress in this difficult but necessary journey towards a net-zero future.
10. Third, we should leverage each other’s hub status to drive trade and investments into our respective regions.
a. As a leading financial and innovation hub, the UK is well placed as a gateway for the EU. Likewise, our pro-business environment, consistent rule of law and strong financial markets make Singapore a good gateway for business to access opportunities in ASEAN.
b. The UK’s recent entry into the CPTPP will also promote further integration and provide additional business opportunities for businesses on both sides.
c. I encourage our businesses to tap our network of trade and investment agreements to expand into new markets in Asia and Europe.
i. In particular, ASEAN’s growth for 2024 and 2025 is expected to be robust at around 5%, above the projected global average of 3%. It is also projected to become the fourth largest economy in the world by 2030, with a combined GDP of US$4.5 trillion.
Closing
11. Let me take this opportunity to congratulate BritCham on its 70th anniversary this year.
a. Over the last 7 decades, BritCham has played an instrumental role in strengthening business-to-business linkages between the UK and Singapore.
b. Today, more than 6000 UK businesses have chosen to establish their presence in Singapore. I hope that in the years ahead, we can deepen our trade and investment links, and continue to be a sterling example of what we can achieve through economic cooperation and integration.
12. Congratulations too, to the finalists and award winners here tonight. Let us continue to work together to strengthen the partnership between Singapore and the UK, through research and innovation, capturing green growth opportunities and leveraging our position as a hub for trade and investments into Asia and Europe.
13. This way, we can build a more dynamic, innovative, sustainable and resilient economy that will bring benefits for our businesses and peoples.
14. Thank you.