His Excellency Valentino Valentini, Deputy Minister of Enterprises and Made in Italy,
His Excellency Dante Brandi, Ambassador of Italy to Singapore,
Mr. Tullio Ferrante, Undersecretary of State at the Ministry of Infrastructure and Transport,
Distinguished Guests,
Ladies and Gentlemen,
Introduction
1. Buona sera! It is an honour to welcome the arrival of Italy’s historic naval ship, the Amerigo Vespucci here in Singapore.
2. Why is this important? The Vespucci’s timely visit marks another milestone of high-level engagements between Singapore and Italy this year. Earlier in June, I had the pleasure to visit Rome with President Tharman Shanmugaratnam.
a. In his office in Rome, Minister Valentini and I had a good discussion on how Singapore and Italy could advance our bilateral relationship.
b. Minister Valentini shared with me about the visit of the Amerigo Vespucci. And I promised him that I will host him when the Vespucci arrives.
i. I’m happy to reciprocate his kind hospitality here in Singapore.
c. Minister Valentini and I spoke about the Vespucci, and I learned a little bit about this online to find out what the Vespucci is, In the spirit of the Vespucci’s motto: “Not he who begins, but he who perseveres”, both Minister Valentini and I have fulfilled our commitment to see this through.
3. In fact, there is much to learn from the Vespucci. And I suspect the Vespucci was the source of inspiration of the theme of today’s conference: “Invest in Italy: Where Innovatingis Tradition”.
a. This theme encapsulates what the Vespucci symbolises ─ a historic Italian naval training ship equipped with modern navigation instruments and a hybrid electric engine.
History and Tradition
4. Let me talk about how innovation is meeting tradition in the Vespucci sense, and go back in time to history. The history of Singapore captures the Vespucci’s spirit of tradition. Historically, Singapore and Italy were port cities that flourished through maritime commerce, making trade an integral part of our identities.
a. Italy, surrounded by the Mediterranean Sea, was a key node in the Roman Empire’s vast trading network. The Renaissance further solidified Italy’s role as a maritime hub, where cities like Venice thrived by trading with Asia and other parts of the world.
b. Singapore too, served as an entrepot for centuries, it’s core to our history as a maritime nation. Singapore facilitated the passage of goods from distant lands and distributed them across Asia through the Straits of Malacca. I was telling Minister (Valentini) that just about a couple of hours ago, I was in Malacca, coming down the Straits of Malacca and now in Straits of Singapore. Our histories as maritime port cities, are very intertwined.
5. Singapore’s trade relations with Italy can be traced back to the 13th century. Despite the considerable geographical distance between our countries, Italian goods such as textiles and glassware, passed through Singapore’s ports, finding their way into Asia where they were exchanged for spices.
Singapore-Italy Economic Relations
6. Drawing inspiration from the Vespucci’s motto, our trading relationship has not just started well, but has also persevered through the centuries.
a. Today, the products traded between our countries are much more varied in composition. We have also developed a multifaceted partnership, spanning tourism, science and technology, maritime and legal cooperation.
7. Trade continues to, as it has from the 13th Century, remain a key pillar of our ties, and Singapore’s economic relations with Italy are anchored by the EU-Singapore Free Trade Agreement (EUSFTA). Since the EUSFTA came into force in 2019, our trade and investment has been growing.
a. Since 2019, Singapore’s goods trade with Italy increased by over one-third and was valued at S$9 billion last year. Trade in services have also grown by more over 10%, amounting to almost S$2 billion based on 2022 figures.
b. Two-way investment flows are also growing, with Italy’s foreign direct investment into Singapore reaching over S$2 billion dollars in 2022. Singapore’s investments into Italy are at similar levels.
i. There are now over 850 Italian companies in Singapore, and they span across a wide range of sectors including electronics, chemicals and consumer products. A number of Italian multinational corporations such as STMicroelectronics, Fauci and Menarini, have chosen to set up their operations here in Singapore.
c. In the same way, Singapore companies are also exploring opportunities in Italy, and some have already made significant investments there. For example, PSA International operates two of Italy’s largest container terminals in Genoa and Venice. Combined, these container terminals handle more than 2 million TEUs of shipping containers annually.
8. On this note, I would like to thank Italy, and particularly Minister Valentini, for its recent ratification of the EU-Singapore Investment Protection Agreement (EUSIPA). We had talked about this in June and this was ratified in July.
a. Once in force, the EUSIPA will provide enhanced investment protection and legal certainty for our investors. I am confident that this will accelerate the growth of two-way investment flows.
9. Singapore and Italy are also like-minded and digitally progressive partners. We are both committed to advancing and shaping the rules for digital trade.
a. Singapore and the EU also recently concluded negotiations on the EU-Singapore Digital Trade Agreement (EUSDTA) in July. This will extend our strong trading relationship into the digital economy.
i. When in force, the Digital Trade Agreement will provide greater clarity for our companies by putting in place rules for digital trade and cross-border data flows. By enabling interoperable digital trade systems such as e-payments and paperless transactions, we can enhance efficiency of businesses’ digital transactions and also reduce business costs.
ii. This is particularly important and will benefit our small and medium enterprises (SMEs).
10. Amidst a growing tide of protectionism, these agreements reinforce business links between Singapore and Italy and can ensure that our businesses can transact confidently and seamlessly across both our countries and regions.
a. Again, an example of perseverance in the spirit of the Vespucci.
Forging ahead with the Singapore-Italy economic partnership
11. The Vespucci taught us that innovation and tradition are complementary. The ship’s hybrid engine, and your mission to foster international collaboration in scientific research embodies this complementary relationship.
a. It also reflects how Italy and Singapore’s economic relationship has continued to evolve with time, and the growth opportunities we can seize together, by drawing on our traditional strengths to build new capabilities particularly in innovative sectors.
12. Silicon Box, a Singapore-based company who is here with us today, is a good example of how businesses have recognised the potential of tapping the strengths of both markets in the tech and innovation space.
a. Italy has the second largest manufacturing sector in the EU with strengths in the areas of product design and precision engineering, while Singapore plays a critical node in the semiconductors value chain.
b. Silicon Box’s new chip factory in Piedmont will draw on Italy’s strong industrial background and enable the company to implement smart manufacturing solutions to produce next-gen semiconductor chiplets, improving its business capabilities and export competitiveness.
13. Similarly, Italian companies can capitalise on Singapore’s strengths as a globally connected trading hub that is home to a vibrant ecosystem of both domestic and multinational companies.
a. For Italian companies looking to expand their global reach, Singapore’s position as a gateway to Southeast Asia will help you tap into a growing consumer market that is projected to become the fourth largest global economy with a combined GDP of US$4.5 trillion.
b. To this end, I am glad to note that Italy has opened a new trade office in Singapore to boost business ties with Southeast Asia. Sace, an export credit agency under Italy’s Ministry of Economy and Finance, will focus on helping Italian SMEs capture trade and investment opportunities in the region.
Closing
14. In closing, Ladies and Gentlemen, the Vespucci’s call at Singapore’s port reminds us of the strength of our relationship. Its motto reminds us that as we have started well together centuries ago, so too we will continue to persevere together in the centuries ahead.
15. I wish you all fair winds and Gratzie!