Opening remarks by Minister Iswaran at plenary of SA trade mission to Singapore

OPENING REMARKS BY MR S ISWARAN, MINISTER (PRIME MINISTER’S OFFICE), SECOND MINISTER FOR HOME AFFAIRS AND TRADE & INDUSTRY AT THE OPENING PLENARY OF SOUTH AUSTRALIA’S BUSINESS MISSION TO SINGAPORE, MONDAY, 17 AUGUST 2015, 9.20AM, SWISSOTEL THE STAMFORD

The Honourable Jay Weatherill, Premier of South Australia

Your Excellency, Mr Philip Green, Australia’s High Commissioner to Singapore

Distinguished guests

Ladies and Gentlemen

1          Good morning. It gives me great pleasure to join you this morning to address the Opening Plenary of South Australia’s Business Mission to Singapore.

2          Let me first extend a warm welcome to Premier Weatherill and the distinguished members of the South Australian government and business delegation. At a meeting earlier this year in April, South Australia’s Minister for Investment and Trade Martin Hamilton-Smith mooted the idea of establishing regular trade missions between South Australia and Singapore. I congratulate the Government of South Australia on its quick work, because just a few months later, the first business delegation is here in Singapore. This inaugural business mission will lay the groundwork for further exchanges between companies on both sides, which will in turn help to strengthen our trade and economic links.

Strong bilateral economic ties

3          Australia is a close friend and partner for Singapore. Australia was the first country to recognise Singapore’s independence in 1965. In commemorating the 50th anniversary of the establishment of our diplomatic relations this year, our two countries have agreed to elevate our ties to a Comprehensive Strategic Partnership (CSP).  The CSP will serve as a framework for new levels of collaboration between Singapore and Australia in many areas such as the economy; foreign affairs; defence and security; as well as people-to-people links. The CSP will also enable greater collaboration with Australia at the state level.   

Singapore is well-positioned for businesses seeking growth opportunities

4          Our trade and economic ties have grown steadily in recent years, with the potential to strengthen further given the new growth opportunities in Asia. Singapore was South Australia’s largest trading partner within ASEAN from 2013 to 2014.

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 Over the past decade, we have also become the key market in Southeast Asia for Foreign Direct Investment (FDI) from South Australia.

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 Given Asia’s growth story – be it in China, India or ASEAN – the region will increasingly play a larger and more influential role in global trade and investment flows. Against this backdrop, Singapore can serve as an ideal location from which South Australian companies and their key decision makers can feel the pulse of the region, gain a deeper and more nuanced understanding of its development, and leverage the network of relationships to seize opportunities in the region.

5          Australian companies will find in Singapore a stable, business-friendly and trusted environment, with a compatible business culture and practices. Singapore’s connectivity and vantage point makes it an ideal base from which Australian companies can expand their presence in the region. I therefore urge companies in South Australia to use Singapore’s status as a regional hub as leverage to gain a foothold in Asia.

6          On that note, I am heartened to learn of South Australia’s keen interest in the region, which is manifest in the release of its paper entitled “South-Australia-Southeast Asia Engagement Strategy”. This paper sets out South Australia’s vision to raise its profile and presence in the region and help its businesses gain new markets. This will enable South Australia to tap on the region’s growth potential, and establish a firm foundation for a multifaceted relationship with Southeast Asia and Singapore. I also note that South Australia plans to implement this strategy through a number of specific arrangements, including the appointment of a South Australian representative based in Singapore. We welcome this move as it will facilitate the process of identifying potential trade and investment opportunities on both sides, as well as promote interactions between companies and trade agencies. In particular, International Enterprise Singapore and the Singapore Business Federation (SBF) are ready to work with South Australia to deepen our economic relationship.

Opportunities for Singapore-South Australia collaboration

7          From Singapore’s perspective, our companies continue to seek quality business opportunities in Australia. There is therefore scope for deeper collaboration between Singapore and South Australian companies, especially in three areas, namely (i) food and agri-business; (ii) infrastructure; and (iii) tourism, which I will briefly outline.

8          In the food and agri-business sector, South Australia enjoys a distinct advantage in branding, as a reputable source of premium, high-quality food products such as meat, seafood and dairy.  With the rise of the middle class and the disposable income of Asian consumers, there is strong demand for quality food products from Australia. South Australia is also renowned for its quality wine – from the Barossa Valley, Claire Valley and more.  Hence, there is great potential for Singapore companies to work with their South Australian counterparts, for quality South Australian products to gain access to the regional market by capitalising on Singapore’s strategic location and connectivity, as well as our companies’ well-established networks for food and agricultural trans-shipment. 

9          Turning to infrastructure, logistics (such as cold-chain supply) and transportation are important pillars that will support the food and agriculture businesses. Singapore companies have strong expertise and management capacities in these areas. Companies like Keppel Logistics have established a regional distribution centre in Brisbane in 2014 which provides warehouse management and local transportation services for the Australia and New Zealand markets.  Another good example is Singapore company, ComfortDelGro, which has made great strides in the transport sector as the largest private bus operator in Australia.  Given these prospects, we should work together to encourage information-sharing on possible opportunities in South Australian infrastructure projects especially in logistics.

10        A common trait that both Singapore and South Australia share is our relatively small population. Hence, we constantly seek creative ways to do more with less. As South Australia seeks to restructure its economy by enhancing innovation and moving up the value chain, we could also explore opportunities in info-communication technology opportunities. In line with Singapore’s vision to be a Smart Nation, we can connect Singapore’s technology companies with South Australia to explore how data and analytics could be used to create smart solutions that can improve the lives of our citizens.

11        Tourism is another area which holds significant opportunities for collaboration between Singapore and South Australia. Australia is ranked fourth among all outbound travel destinations for Singaporean travellers. Visitor arrivals from Australia into Singapore have also continued to grow after crossing the 1 million mark in 2012. We have also welcomed four very special “visitors” from Down Under, the koalas who now have their own Singaporean nicknames: Cantik, Sayang, Manja, and Nila. Since their arrival at the Singapore Zoo in May 2015, they have brought much joy to many Singaporeans who have flocked to see these furry ambassadors from Australia.

12        To meet the growing demand from tourists, infrastructure in the hospitality industry will be important. Far East and Stamford Land have established a good presence in Australia, and our Singapore companies will be keen to explore other opportunities in South Australia. South Australia is called “The Festival State” for its vibrant and diverse festival culture. South Australia can certainly work with Singapore and the Singapore Tourism Board to explore ways to further strengthen our tourist exchanges.

Conclusion

13        Looking ahead, we see significant opportunities for the partnership between Singapore and Australia to grow from strength to strength. To do so, we will need to work together to promote deeper and stronger trade and business ties.  An added advantage is that we have very good people-to-people links. Many Singaporeans have studied in Adelaide, and many others live or work there.  This has helped to foster strong bonds of friendship, familiarity and trust, which in turn can encourage and facilitate investments on both sides.  I am therefore confident that Singapore and South Australian companies can complement each other’s strengths and work together to explore new opportunities for mutual benefit.

14        On that note, I would like to wish everyone a fruitful and productive session today. We look forward to substantive outcomes for both Singapore and South Australian businesses. Thank you.

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Source: DFAT, Australia’s Trade by State and Territory 2013-2014.

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Source: South Australia’s Southeast Asian Engagement Strategy Paper (data from The Financial Times’ fDi markets database)