Lim Hng Kiang
Singapore
“The company has made commitments to recycle the ash, and as for renewable energy, the gasification project is not an energy project, it is not a generation company (genco). It is to produce hydrogen and carbon monoxide or, essentially, carbon. Because as feedstock to the petrochemical sector, you need more C and more H2.”
“The Government will continue to recover the IIA awarded if the company fails any conditions or breaches the legislative amendments. I would like to highlight that there are no errant cases in the last five years for IIA and the current amendments are, therefore, not reactionary in nature, but are being made for legislative clarity.”
“In addition, the IIA scheme will be extended till 31 December 2022. Clauses 10 to 13 give legislative effect to this change. The remaining legislative changes arising from our periodic review of the income tax system are either administrative or technical in nature.”
“Data on household and individual savings rates by income groups are not available. However, data on the aggregate level of household financial assets can be obtained from the Household Sector balance sheet compiled by the Department of Statistics.”
“The aggregate level of financial assets owned by Singapore’s household sector6 in each of the past five years is provided in Table 1 below. Data on the amount of financial assets owned by households and individuals in the different income percentiles is not available.”
“The Second Review of the Comprehensive Economic Cooperation Agreement (Second CECA Review) is ongoing. The review is taking some time as both countries have our respective interests to work through, such as in the area of labour mobility. Our agencies regularly engage Indian counterparts to work through issues collaboratively.”
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“In line with this, the Government will continue to facilitate the growth in hotel room supply and expand the range of accommodation options available to travellers. At the start of this year, Singapore's hotel room inventory stood at over 41,000 rooms. With the opening of the Integrated Resorts and other hotels such as The Club, Fullerton Bay Hotel and the upcoming Grand Park Orchard, there will be about 6,000 rooms added to the inventory by the end of the year. Adequate supply of hotel rooms will continue to be provided through the timely release of sites for hotel development under the Government Land Sales programme. Additional supply of hotel rooms could also be made available through hotel developments on private land. We do not have the breakdown of casino revenues from locals and foreigners. INCREASE IN PROPERTY PRICES 38. Mr Calvin Cheng asked the Minister for National Development whether he can give an assessment of how much the recent increase in property prices can be attributed to foreign buyers.”
“The general rebound in the global economy and Asia has contributed to higher year-on-year visitor arrivals since end-2009. Indeed, visitor arrivals to the Asia-Pacific region have been projected by the UN World Tourism Organisation (UNWTO) to increase by 5% to 7% in 2010. All of these have allowed the Singapore hotel industry to make a strong recovery. The growth in Singapore's hotel room rates, occupancy and revenue, is similar to the recovery seen in the Asia Pacific – in particular cities such as Hong Kong. Average room rates in Singapore hotels have increased by about 20% to about $219 in June 2010, compared to a year ago. This has yet to reach the highs of 2008 where room rates averaged $245, peaking at the average of about $300 in the month of September 2008 when the inaugural F1 night race was held. The recovering hotel rates do not appear to have dampened demand. Average occupancy in hotels have ranged in the highs of 80% to 88% in the first half of this year, compared to 66% to 76% occupancy during the same period last year. Singapore is well poised to ride on the growth of tourism in Asia, with the opening of the two Integrated Resorts (Marina Bay Sands and Resorts World Sentosa), as well as the launch of three new malls along Orchard Road (ION Orchard, Orchard Central and Somerset 313). Supported by existing mainstay attractions such as the Night Safari, the Singapore Tourism Board (STB) is expecting record visitorship of between 12 and 12.5 million this year. Over the longer term, STB is targeting to grow visitor arrivals to Singapore to reach 17 million by 2015, supported by upcoming developments such as Gardens by the Bay, the International Cruise Terminal in Marina South, and the River Safari in Mandai.”
“As I have indicated in my reply, we have received comments, both positive as well as some which are more critical, and STB, of course, has taken these comments on board and tried to improve the exhibits in a more meaningful way. 3.00 pm”
“STB welcomes such feedback and will continue to make improvements to the pavilion to showcase Singapore in an impactful and meaningful way.”
“The pavilion has also been reasonably well-received by the Chinese audience, with close to 2,500 media reports commenting positively on the pavilion and its contents. The pavilion theme song, "Every Touching Moment", performed by local artistes comprising Stefanie Sun and JJ Lin among others, has also done well in popular music rankings in China. At the same time, STB has received feedback from some members of the public on how the pavilion’s exhibits can be improved. Specifically, the feedback indicates that we should see more content showcasing Singapore’s achievements and, in particular, our multi-racial harmony. STB has taken these suggestions on board and made improvements to the pavilion. These include the introduction of a video showcasing Singapore’s urban development to be screened in the pavilion theatre; the expansion of existing exhibits to showcase our pioneers, our ethnic costumes, festivals and national events; the re-design of various exhibits to improve visitor experience; as well as the re-calibration of the corporate messaging within the exhibition zones. In addition, STB has increased the number of guides by 50% to provide visitors with a better understanding of Singapore. The pavilion will continue to host a series of short-term exhibitions to showcase different aspects of Singapore’s culture, history and industry. These enhancements were in time for the Singapore Pavilion Day celebration on 7th August, where STB also took the opportunity to showcase Singapore through cultural dance performances and a music concert held at the Expo site. It is encouraging that Singaporeans have displayed a strong sense of ownership over the pavilion, and are keen to share their ideas for improvements.”
“Thank you, Sir. Participating in the Shanghai World Expo allows Singapore to share on an international platform the sights, sounds and experiences of Singapore. In line with the World Expo theme "Better City, Better Life", the Singapore pavilion also provides a platform to share Singapore’s achievements in the area of sustainable urban development. As Expo 2010 is held in China, the content of the pavilion was also geared towards attracting Chinese visitors, in addition to international tourists. The total cost of the project, including the design and construction of the 3,000-square metre pavilion as well as its operation, is about S$30 million. This amount is comparable to what other countries have spent on similar-sized pavilions. The Government provided the vast majority of the cost, with a contribution of about S$2.3 million coming from corporate sponsorship by Singapore companies. For the 2005 Aichi World Expo, the total cost incurred by us was about S$13 million, for a pavilion that was about 40% of the size of the current pavilion of the Shanghai World Expo. Since its opening on 1st May, the Singapore Pavilion has enjoyed strong interest among the World Expo visitors, receiving an average of 15,000 to 20,000 visitors per day, with constant queues of visitors forming outside our pavilion. This represents about 4% of the 400,000 to 500,000 daily visitorship at the Expo where more than 260 pavilions are showcased. The larger pavilions such as the Japan and German Pavilions, which are twice the size of the Singapore Pavilion, receive between 20,000 and 25,000 visitors daily. The Singapore Tourism Board (STB) has polled visitors to obtain feedback of their experience in our pavilion. The feedback received has generally been positive.”
“Mr Speaker, Sir, can I take Question Nos. 15 and 16 together?”
“Our FTA negotiations with the EU are progressing well. We have had two formal sessions and the third session is in September, and that is on track. SINGAPORE PAVILION AT SHANGHAI WORLD EXPO 15. Miss Penny Low asked the Minister for Trade and Industry (a) if he will elaborate on the objective and target number of visitors to the Singapore Pavilion at the Shanghai World Expo and whether it has been achieved; and (b) what is the investment amount and how it is funded. 16. Mr Teo Siong Seng asked the Minister for Trade and Industry (a) what has been the general feedback from visitors to the Singapore Pavilion at the Shanghai World Expo; and (b) what actions have been or will be taken to improve the Singapore Pavilion.”
“I think, basically, we all have to recognise that the second half of this year will see lower global growth but the situation is different in different regions. The G3 economies, of course, will see much lower growth whereas for much of the emerging economies, the risk, in fact, lies in higher liquidity and the risk of an asset bubble. So as highlighted by IMF, for the emerging economies, higher liquidity, inflationary pressures and asset bubbles remain something that we have to worry about. The consensus so far among the economists is that a double dip recession is not a significant risk for the moment. The growth prospects have turned downwards but we do not expect to see a double dip global recession.”
“Financial instability due to the sovereign debt crisis remains a significant downside risk that could dampen growth in our financial sector, with negative spillovers to other sectors of our economy. Moreover, the implementation of fiscal austerity measures in some European economies, combined with the weakening of the Euro, could further weaken EU domestic demand. As announced by the IMF last month, the Euro area as a whole is projected to see a very mild growth of only 1% in 2010. These developments could affect Singapore’s export performance, given that the EU as a whole accounts for 12% of our domestic exports. Given the small size of our economy and its outward orientation, Singapore will always remain susceptible to volatility in the external economic environment. It is not possible for us to fully insulate ourselves from the impact of any economic or financial turmoil. Nevertheless, we can mitigate the negative impacts of economic volatility. We did so during the recent global financial crisis, because of our sound financial management and fiscal prudence, which helped to keep our financial system stable, maintain investor confidence in our economy, and provided us with the resources and the confidence to introduce various measures to ride out such difficult times. The Government will, therefore, continue to monitor the developments in Europe and to assess the risks of contagion, and we stand ready to respond when appropriate.”
“Sir, the sovereign debt crisis in Europe was felt most acutely in Greece, but, in fact, reflected broader concerns over the sustainability of sovereign debt in a few other southern European economies as well. To date, we have not observed signs of the crisis spreading to the larger economies in Europe. Forceful policy interventions by the European Union (EU) and the International Monetary Fund (IMF) as well as the results of the recent bank stress tests have reduced overall financial market volatility. While the situation remains fragile, investor risk sentiments appear focused on the southern European economies rather than the EU as a whole. Given Singapore’s limited trade and financial exposures to the southern European economies at the centre of the crisis, the developments in these economies have not materially affected the Singapore economy so far. In particular, our exports to the EU as a whole continued to register strong growth in recent months. As announced by my Ministry last week, preliminary estimates indicate that Singapore’s GDP grew by 19% on a year-on-year basis for the second quarter of this year, following a similarly strong growth of 17% in the first quarter. In tandem with the economic recovery, the labour market has also improved strongly, with the seasonally adjusted overall unemployment rate declining from a recent peak of 3.3% in September 2009 to 2.3% in June 2010. In view of the exceptionally strong economic growth in the first half of this year, my Ministry now expects the Singapore economy to grow by between 13% and 15% for the whole of 2010. However, the expectation of strong growth for the year does not imply that the macroeconomic risks from Europe have fully subsided.”
“Mr Speaker, Sir, may I have your permission to take Question Nos. 13 and 14 together?”
“RAW PSLE SCORES OF CORE SUBJECTS 6. Dr Lim Wee Kiak asked the Minister for Education (a) for the past three years, what is the trend for the raw scores of the four core subjects of English, Mother Tongue Language, Science and Mathematics at PSLE; and (b) will the Ministry consider releasing the raw scores for greater transparency so that parents can make more informed decisions on their children's education.”
“SINGAPORE'S OK CRITERIA FOR FOREIGN WORKER DORMITORIES 5. Mr Yeo Guat Kwang asked the Minister for the Environment and Water Resources whether the Ministry will consider imposing the "Singapore's OK" criteria to all approved foreign worker dormitories. Assoc. Prof. Dr Yaacob Ibrahim: The National Environment Agency (NEA) re-launched the "Singapore's OK" (SOK) programme last year to reinforce the importance of good hygiene and sanitary standards amidst concerns over the global spread of Influenza A H1N1. The SOK programme is a voluntary programme targeted at the operators of different premises, including foreign worker dormitories. The SOK criteria comprise best practices operators can adopt to maintain a clean and hygienic environment. These practices include having a regular programme to clean common areas and living quarters, and internal inspections to ensure that the workers keep their quarters clean. A dormitory is certified SOK if the operator meets the SOK criteria. NEA does not plan to make the SOK criteria mandatory to avoid being overly prescriptive on the practices operators must adopt. Dormitory operators are expected to uphold a reasonable hygiene and sanitary standard, by adopting measures appropriate to their individual circumstances. To guide operators, NEA published the Guidelines for Good Environmental Health Practices for Dormitories and Hostels which are more detailed than the SOK criteria. These guidelines have been circulated to all dormitory operators. NEA also carries out regular inspections to ensure that an adequate standard of hygiene and sanitation is maintained at all foreign worker dormitories. Regardless of whether the dormitory operators adopt the SOK criteria, they will be penalised for any lapses uncovered during NEA's inspections.”
“Negotiations for an EU-Singapore FTA (EUSFTA) were launched in December 2009. Two rounds of negotiations have been held so far, with the third round scheduled to take place in Singapore in September 2010. The negotiations have been smooth and constructive thus far, and have covered the entire range of issues typically covered in an ambitious and comprehensive FTA like this one, such as trade in goods and services, non-tariff barriers to trade, government procurement, competition policy and sustainable development. On services, we cannot definitively point to specific sectors that will be liberalised as a result of the FTA, since the negotiations are ongoing. However, both the EU and Singapore intend to achieve outcomes that will benefit European and Singaporean businesses, with substantial coverage of services sectors. We will exchange further views on the sectors of interest in the upcoming rounds of negotiations. Singapore and the European Union (EU) launched negotiations for an EU-Singapore Partnership and Cooperation Agreement (ESPCA) in October 2004. The ESPCA was intended to strengthen bilateral relations and to pave the way for a closer partnership between Europe and ASEAN. The ESPCA was envisaged as a broad agreement that would cover bilateral cooperation on a wide range of issues, including economic development, science and technology, education and culture. We see both the EUSFTA and the ESPCA as important agreements that will lay the foundation for closer bilateral ties between Singapore and the EU in the years ahead. Naturally, there are unresolved issues on both agreements, but there is strong commitment from both sides to narrow the differences and to conclude negotiations for both agreements as soon as possible.”
“In this way, industry players, intermediaries, research bodies and training organisations can all come together in a private-public sector partnership to raise productivity across industry sectors. RECRUITEMENT AND RETENTION OF ALLIED EDUCATORS (Update) 48. Mrs Josephine Teo asked the Minister for Education (a) if he will provide an update on the recruitment and retention of Allied Educators in the last one year; and (b) whether new strategies are being considered in the light of the tightening job market.”
“GEMS-UP, which is the program name for "Go the Extra Mile for Service", aims to raise the capabilities of retailers for service excellence, by way of helping retailers re-design their business processes, increasing their use of IT and technology, as well as instituting comprehensive training programs through frameworks such as the Service Excellence Workforce Skills Qualifications (WSQ). In short, productivity improvement requires a holistic approach towards upgrading and human resources development. Employers and HR managers have a great role to play in the process. The above examples clearly demonstrate that different industries require their own plans for productivity measurements and improvements. It is with this consideration that the National Productivity and Continuing Education Council approached productivity improvement on a sectoral basis. It has set up working groups for the 12 priority sectors ranging from construction to retail, F&B and general manufacturing to develop productivity improvement plans for each sector. The working groups will work closely with the business associations and companies to develop sector-specific productivity measurements and indicators, guide companies in gathering data for tracking productivity performance, as well as help to provide relevant productivity benchmarks from overseas. In addition, the working groups are also studying the need for sector-specific productivity centres. These centres could become thought-leaders showcasing industry best practices, best-of-class innovations and solutions found locally or internationally, and also undertake industry-level research.”
“At the national level, the Government tracks productivity through indicators such as Value Added (VA) per worker. Such data are readily available to the public. But productivity improvements are essentially driven at the firm level by employers and their workers. The scope for such improvements will also depend on the unique characteristics of the industry they are in. Thus, to help firms understand their own productivity performance and to drive relevant changes at the firm level, more granular indicators are needed. For example, the Food and Beverage (F&B) industry employs a high number of part-time workers. This is part and parcel of the nature of the F&B business. However, including part-time workers into the VA per worker numbers would necessarily bring measured productivity down. A more meaningful measure for the F&B industry would be VA per man-hour. Another example is the Hospitality industry. Hotels who serve similar consumer segments may choose to compare the efficiency of their processes through indicators like room units cleaned per housekeeper, or number of check-ins/check-outs handled per front desk officer. Besides quantitative measures, there are also qualitative measures such as how pleased customers are with the check-in and check-out experience, attentiveness of service staff, level of customer satisfaction, etc. In the retail sector, there is also a tripartite effort to raise productivity.”
“Mr Seah Kian Peng asked the Minister for Education in respect of the PSLE (a) whether there is a difference in the Chinese Language scores between neighbourhood schools and brand-name schools such as Anglo-Chinese schools, Methodist Girls School (Primary) and St Joseph's Institution Junior; (b) whether the Ministry can release data for the top 10 schools, for the past decade, in terms of (i) overall scores; (ii) Chinese Language grades; (iii) English Language grades, and compare them with their national averages; and (c) whether the Ministry has conducted surveys to show that students are being penalised for an equal weightage in Chinese.”
“China is the top investment destination for Singapore companies which have invested a cumulative US$40 billion as at end-2009. Singapore companies continue to see investment opportunities in China to ride on its buoyant economy and attractive long-term prospects. Their investments in China are well-diversified across many sectors, from manufacturing and retail to logistics, infrastructure development and real estate. As China looks to develop its inland regions, Singapore companies are also exploring opportunities in less developed areas such as in Western and Central China. 　　　　 　　　　Companies investing in China, or in any other regions, should take a long-term view of their investments; study the Chinese economy and markets to understand the medium to long-term trends. We expect companies to carry out due diligence and feasibility studies as well as conduct their own company risk assessment and management. Similar to investing in other markets, companies should expect cyclical upswings and downturns when they invest in China. Companies which make informed, risk-adjusted investment decisions would find that they are better able to cope with shifting trends such as the current upswing in the Chinese property market. 　　　　 　　　　The current upswing in property prices is mainly concentrated in the residential property segment. Although there has been some spillover to the commercial and industrial property segments, office and industrial rentals appear not to have risen excessively. 　 　 DIFFERENCES IN CHINESE LANGUAGE SCORES OF NEIGHBOURHOODAND BRAND-NAME SCHOOLS 2.”
“Furthermore, overseas investments by our companies have enjoyed increased protection, both through our FTAs and our investment guarantee agreements. Our FTAs have also simplified regulatory barriers to trade. Such measures to facilitate trade help to lower business costs for our companies. For example, mutual recognition agreements for testing and certification of consumer electronics have helped our exporters avoid the need to duplicate testing procedures in other countries. This enables our companies to reap significant financial and time savings. RECRUITMENT OF FOREIGN DOCTORS 11. Dr Fatimah Lateef asked the Minister for Health (a) how many foreign doctors were recruited in the last three years compared to the numbers who graduated locally; (b) how many Singapore doctors who were trained or working overseas have returned to work in Singapore in the last three years; and (c) what is our current patient-to-doctor ratio and what is the projection of this ratio for the next five to eight years.”
“Singapore and the European Union (EU) agreed to launch negotiations on an EU-Singapore FTA (EUSFTA) in December 2009. The first round was held in Singapore from 8th-12th March 2010. The discussions went well and covered a comprehensive range of issues such as trade in goods and services, Government procurement, regulatory and other technical barriers to trade, competition policy and sustainable development. The launch of the EUSFTA negotiations marks a milestone in our relations with the EU. In 2009, the EU was Singapore's largest trading partner, accounting for 12% of our total trade. Singapore is the EU's 15th largest trading partner. The EU is also our largest foreign investor, with overall FDI stock from the EU accounting for close to 30% of Singapore's total FDI stock. Over 7,000 European companies have established operations in Singapore. When concluded, the FTA will further strengthen these strong economic linkages. We expect companies from both Singapore and the EU to gain greater market access, which in turn will boost the welfare of consumers in the EU and Singapore. As we are still in the early stages of negotiations, it is premature to quantify the scope and extent of benefits from the FTA. Singapore is open to discussing issues of mutual interest with the EU - such as food security and sustainable development – although we believe that the FTA should focus on areas of mutual trade and economic benefits. The EUSFTA, when concluded, will add to Singapore's existing network of 18 FTAs in force. These FTAs, which cover two-thirds of Singapore's exports, have brought direct and tangible benefits to Singapore businesses. Last year, companies based in Singapore enjoyed more than S$700 million in tariff savings as a result of our FTAs.”
“The pending sale of Raffles Hotel to a Qatar sovereign wealth fund and their subsequent plans for a makeover are commercial decisions. Any makeover plans will have to take into account Raffles Hotel's status as a gazetted National Monument. Proposals for any addition or alteration (A&A) to the building must comply with the Preservation Guidelines (PGL) under the Preservation of Monuments Act, and will require the approval of both the Urban Redevelopment Authority (URA) and the Preservation of Monuments Board (PMB). In evaluating the proposal, PMB will ensure that the proposed works do not compromise the existing architectural and historical value of the hotel. The history and architecture of Raffles Hotel are unique features that set it apart from other hotels. Investors would have incentive to tap into this. It is not unusual for hotels to undergo redevelopment and refurbishment to enhance their attractiveness. As the economy recovers and Singapore looks to tap on the growth in international travel, we can expect hotel room demand to increase as visitor arrival numbers grow. The development plans for Raffles Hotel, together with the opening of new hotels, will add to the variety of accommodation experiences for tourists to choose from. EU-SINGAPORE FREE TRADE AGREEMENT (Update) 10. Mrs Mildred Tan asked the Minister for Trade and Industry (a) what is the current status of the EU-Singapore Free Trade Agreement (EUSFTA) given that the first round of talks have ended; (b) what benefits will Singaporeans accrue from the EUSFTA, in particular in the area of food security and sustainable development; and (c) whether the Minister will provide the aggregate amount of the total gains to Singapore from our FTAs so far.”
“Sir, as explained in the ESC's report and also in Minister Tharman's response, both MOF and MTI are looking at this together. We are looking at the entity that can do this on a commercial basis. There is a range of approaches. We have studied how other countries have done so. So we are still in the study stage and we will be able to see how we can approach this in a very sensible and pragmatic manner.”
“This will largely be done by EDB. The EDB has begun this effort beyond targeting the bigger multi-national companies. They are also looking at companies that are of some size which will be classified as SMEs by their home country, but fairly large by our standards. And these will be promising companies, looking at the Asian growth story as the way to grow. So, if we can bring them to Singapore, anchor them here, then as they grow, they can use Singapore as a home base for their Asian growth.”
“I thank Mr Liang Eng Hwa for his very well researched comments. Obviously, it is a very complicated landscape out there. Our approach is to try and generally approach it sectorally. As Mr Lee Yi Shyan mentioned just now, we have already specific programmes working with 22 trade associations on each specific sector and therefore all the help is directed through this sectoral approach. At the same time, there are horizontal things that we have to do, whether it is technology, capability, training or human resource. These are horizontal programmes that we also have to do across the economy. So it is having to manage these vertical and horizontal approaches that sometimes it looks very complicated. Mr Lee Yi Shyan also explained, within our agencies we have tried to streamline our approaches so that companies do not have too many touchpoints dealing with different agencies. So far, I think the situation has improved. But if there is any area in any specific sector that faces too many overlaps or examples of people having to run from pillar to post, we will be happy to take this feedback in and review our processes.”
“Sir, in my response, I mentioned that cost is likely to go up this year compared to last year because this year we are in a recovery process; last year we were in the depth of a recession. But having taken all the various cost pressures in mind, the MAS and MTI estimate that inflation this year will be between 2% and 3%. So it is still something that we can cope with.”
“Nuclear energy Sir, the ESC report recommended that we should study the feasibility of nuclear energy amongst other options. The announcement created a buzz on the ground. There are those who strongly favour this. They mentioned that nuclear energy is clean, reliable and contrary to popular belief, a safe source of energy. The generation of electricity using nuclear energy is relatively cheaper and nuclear power plants are able to generate more electricity compared to other methods. Furthermore, the fuel used is inexpensive and easily transportable. However, another group is concerned about the safe storage and the disposal of nuclear waste. Nuclear plants usually have a highly complex infrastructure and the slightest malfunction might cause devastating results. They are also concerned about it being a target of terrorist attacks. Nevertheless, both groups would like the Government to consider this proposal carefully as it has both positive and negative implications. Besides the tangible and intangible costs and benefits, they would like the Government to look at the social costs and benefits of nuclear energy. I would like to ask the Minister about the status of our current knowledge and research capabilities with regard to nuclear energy. Would the Government consider having a private firm running the nuclear plant instead of it being State run? Finally, as nuclear plant can develop vast amount of energy, in any case that the production is more than the usage, would the Government consider having neighbouring countries as our partners?”
“When done, this will be our first FTA with an African country which gives us access to both north and east Africa. Mr Chairman, let me conclude. We are small and open and will always be vulnerable to the fluctuations of the global economy. There are still some uncertainties in the near future but we must chart the course for long-term growth and resilience during this period of our recovery. The first three strategies that I outlined – strengthening our existing clusters – capturing new growth areas and building a more vibrant corporate landscape – will expand the scope and capabilities of our companies as they compete in the new landscape. Our fourth and fifth strategies of deepening integration with our ASEAN neighbours and leveraging on our trade agreements will expand the market space for our companies. Together, these five strategies will put us on a path of a broad-based growth for our economy and create better jobs for all Singaporeans. Tourism Assoc. Prof. Dr Muhammad Faishal Ibrahim: Sir, in the last three years, we witnessed two F1 races and the developments of the two IRs which will operate in full scale in the coming months. They involve large amount of capital and infrastructure investment. I would like to ask the Minister what are the Ministry’s plans to get the most out of these investments. In addition, in view of the rising travel among Asians, what are we doing to reap maximum benefits from this opportunity? Finally, in view of the proposed plans of similar theme parks and casinos in our neighbouring countries, what are the Ministry’s plan to make Singapore a preferred tourist destination and extend our visitors’ stay here?”
“Today, Singapore has a network of 18 FTAs in force. As an export-oriented economy, Singapore thrives on the free flow of trade and better linkages to major economies and new markets. Last year, companies based in Singapore enjoy more than $700 million in tariff savings as a result of our FTAs. Our service suppliers and investors in key sectors enjoy more predictable and better access to the markets of our FTA partners. Furthermore, overseas investments by our companies have enjoyed increased protection, both through our FTAs and our investment guarantee agreements. Trade facilitation measures under our FTAs help to lower the business costs of our companies. For example, mutual recognition agreements eliminate duplicate testing and certification, yielding cost and time savings. In the case of consumer electronics, such mutual recognition agreements saved our exporters between $3,000 to $8,000 on testing costs for each type of product. Mr Wee Siew Kim has also asked about the areas where additional effort is needed. We already have FTAs with nearly all our top trading partners covering 66% of our exports. This year, we have embarked on two deeply significant FTAs. The first is with the European Union, our largest trading partner in 2009. We look forward to substantial tariff savings and improved market access there. The second is the Trans-Pacific Partnership FTA, together with seven other APEC economies, including the United States. This FTA can be the building block for eventually achieving an FTA for the Asia-Pacific region. The closer economic cooperation agreement with Egypt is also another important FTA this year. This would give us access to the Egyptian market.”
“Mr Chairman, our fourth growth strategy is to strengthen our integration with our Asian neighbours and, thereby, sharpen our competitive edge. ASEAN provides two key advantages for our businesses. First, with a middle-class of more than 75 million people, the ASEAN nations provide a growing market that serves as a very natural first step out of our borders. In fact, many of our successful companies such as Raoul, Crystal Jade and AceCom first started serving the ASEAN market before they expanded more widely onto the global stage. In addition, our companies have also leveraged on ASEAN as a competitive production base, conducting entire value chains of activities within ASEAN. For instance, STMicroelectronics conducts R&D, IC design, application support and wafer fabrication in Singapore while the packaging of chips is carried out in Malaysia and the final testing of the chips is conducted in Malaysia or Philippines or in fact outsourced to other players in Southeast Asia. ASEAN aims to achieve deeper economic integration through the ASEAN Economic Community or the AEC by 2015. The ACE will accelerate ASEAN's journey towards a single market and a synergistic production base with enhanced transport and business connectivity. ASEAN-based businesses, including Singapore-based businesses, will then be able to produce, operate and export more seamlessly across the region. We must take full advantage of this new development occurring in our neighbourhood. Our fifth growth strategy is to support our companies as they internationalise by leveraging on our existing FTAs and by pursuing new FTAs. Mr Wee Siew Kim asked about the benefits from our existing FTAs. Our FTAs have helped us to reduce costs, to lower our risks and open new markets for our companies. Let me elaborate.”
“Singapore's excellent connectivity to G3 companies and markets offers them the option to take a small calibrated step out of their borders but which immediately connects them to the developed world. We have already had some initial success. For example, Tata Communications from India has set up an international headquarters and data centre here. Our locally-based companies have grown quickly in the past decades. Some of them have managed to achieve regional and even international success. As Mr Liang Eng Hwa pointed out, our economy benefits when some of our local companies become industry champions in their own right and become queen bees. We definitely like to see more home-grown industry champions. We will take a multi-pronged approach to achieve this. Schemes such as the Partnerships for Capability Transformation (PACT) have already been announced by MOF and we will announce the details in May. We have many other schemes in place. Mr Liang counted there are over 150 schemes to help our local companies grow and succeed. I will leave it to Minister of State Lee Yi Shyan to elaborate on these schemes in his response later on. But this is the idea that we have to ride on the Asia growth story. We think we can strive to be a leading consumer business centre in Asia where consumer insights are developed and consumer-centric businesses managed and grown. In this way, we can build up a cluster of companies in the consumer-related fields of marketing, branding, consumer research and market intelligence. We will, therefore, establish an Institute of Asia Consumer Insights in Singapore to conduct such research and analytics that will draw insights from consumer data to create value for companies that are established here.”
“By being a home to companies' entire suite of solutions, we entrench them further in Singapore. We are, therefore, not just deepening our capabilities in each cluster or sector but also capturing the value between the sectors. Miss Penny Low and Ms Jessica Tan asked for the prospects of our global business hub strategy. Our third strategy is to build on this business hub position by attracting new players, as I mentioned just now. We intend to attract global mid-sized companies as well as Asian companies looking to internationalise and facilitating the growth of our own globally competitive companies. Mid-sized companies from the G3 economies who wish to tap into the opportunities in a rising Asia want to base their regional operations in a modern business friendly environment that is able to manage both India and China from one location. This is because some of these mid-sized companies do not want to set up one base in China, one base in India and another one in Southeast Asia. Singapore is well-positioned to be their pan-Asia headquarters. We have already done relatively well in attracting MNCs from the G3 economies to invest in Singapore. We are now attracting mid-sized companies who are responding to the Asian growth story and may grow into the MNCs of tomorrow. For example, Pall Corporation is an American clean-tech company specialising in fluid management technologies. They are keen to expand into Asia and have chosen to set up their Asia-Pacific headquarters in Singapore. At the same time, companies from India and China have started expanding their presence overseas.”
“It is not a choice between manufacturing or services, but whether we can successfully seize the new opportunities emerging in the space that spans manufacturing and services. Many manufacturing firms no longer simply transform raw materials into finished products. Rather, they now see themselves as entities that turn ideas into products and services that provide integrated solutions for the end-consumer. Let me illustrate with an example. Teo Garments is one of our largest local textile and garment manufacturing SMEs. They started off manufacturing apparel to meet the specifications of their customers. Today, they complement their manufacturing activities with a full range of services, from product development and design, to merchandising, to logistics management. Their customers, who include well-known Western brands such as Osh Kosh B'Gosh, benefit because it conveniently develops both the products and the services that they require. And, of course, Teo Garments benefits through the additional revenue and market opportunities that they can now reap. Economists call this the "servitisation of manufacturing". We expect this development to gain momentum and see this being replicated in many other sectors, blurring the once clear distinction between manufacturing and services. 2.15 pm Leading manufacturers are, therefore, moving beyond production to develop a full suite of services such as R&D, design, supply-chain management and after-sales support. These are activities that Singapore is well placed to capture. We already have well developed professional and business services that complement our manufacturing activities but to capitalise on these new opportunities, we need our manufacturing base.”
“Electronics is a key demand driver for our logistics, chemicals and precision engineering industries. It is also an important capability enabler for new clusters such as avionics and medical technology. But electronics is a sector that changes rapidly. So, we must also continuously adapt, and change in order to seize the opportunities in this very exciting sector. Looking at the future of electronics, we have identified four new growth areas. First, concerns about climate change have raised awareness and need for green electronics products, such as energy-efficient computing solutions, green automative and green lighting solutions. Second, demand for bioelectronics products, such as ingestible pill-cameras and bio-sensors, will increase as the developed world ages. The final two areas are security technologies such as biometric access systems and plastic electronics such as flexible e-book displays. These four areas are very high-tech and build upon the competencies that we have already established. They illustrate that our electronic sector has the potential to continue to grow. Mr Chairman, Sir, time does not permit me to go into all our sectors but suffice to say we have similar strategies to deepen and broaden our capabilities in each of our key sectors. Let me turn to our second growth strategy, which is riding on the convergence of manufacturing and services in new growth areas. The key to this strategy lies in understanding that the line between manufacturing and services is blurring. Some commentators have questioned why Singapore is still holding on to its manufacturing base. They are missing the point.”
“Despite the difficult conditions in 2009, we attracted new BMS projects resulting in 1,200 new jobs and over $1 billion in fixed investments. For example, GlaxoSmithKline opened a plant that will produce compounds used to manufacture its innovative vaccines such as a new vaccine that protects against meningitis. The logistics sector is also another key sector. Over the years, we have built upon our natural attributes and strengthen our position. Singapore was ranked by the World Bank in 2009 as the number two logistics hub in the world. Today, 17 of the world's top 25 leading logistics companies have a significant presence in Singapore. DHL, the world's largest logistics player, has expanded the responsibility of the Singapore office to manage operations as far away as the Middle East. Miss Penny Low has asked whether we can become a humanitarian or an international organisation hub. We are making good progress. We are home to more than 80 international non-profit organisations, a number that has more than doubled since 2005. EDB has, in fact, set up a dedicated International Organisations Programme Office to assist international organisations interested in Singapore. We agree with Miss Penny Low that our strategic location in Asia and our excellent logistics connectivity lend ourselves naturally to play the role of a disaster rescue and relief coordination hub. This is, in fact, what is happening. Let me turn to the electronics sector. This sector has been with us since the 1960s. It is a good example of how we have moved up the value chain. We started with semiconductor packaging, then moved up to the hard disk drive assembly in the 1980s, and then semiconductor wafer fabrication. Today, nearly half of the world's hard disk media are made in Singapore.”
“First, we will facilitate existing industries to move up the value chain by helping them to deepen and expand their capabilities. Second, we will take advantage of global trends, such as new growth areas at the intersection of the manufacturing and service sectors. Third, we will build a more diverse and vibrant corporate landscape. Last year, I explained that the value-added of our economy is contributed by the four groups: foreign MNCs contributing one-quarter of our value-add; foreign SMEs, another one-quarter; local large companies, one-quarter; and local SMEs, one-quarter. Going forward, we want to strengthen our corporate landscape by adding new players, for example, global mid-sized companies and Asian MNCs. Our fourth strategy, we will strengthen our integration with our ASEAN neighbours to sharpen our competitive age. And fifth, we will support the internationalisation of our companies by leveraging on our existing Free Trade Agreements (FTAs) as well as pursuing new FTAs. Let me elaborate on each of these strategies in turn. Singapore has adopted a cluster approach in our industrial development strategy by promoting the growth of the wider ecosystem that supports each industry. Miss Penny Low asked how some of these cluster strategies were progressing, particularly, our hub strategies for each of these clusters. Overall, we have done reasonably well. Let me give a quick update on a few major clusters and how we are deepening and expanding their capabilities, which is our first strategy. Let me start with the biomedical sciences (BMS). We started developing the BMS sector in 2000. Today, we are a highly competitive and trusted site for manufacturing pharmaceuticals. Our recent investment in building capabilities for biologics manufacturing has paid off.”
“As the economy recovers, we must expect costs to go up compared to last year when we were in a recession. But there is still some slack in our economy. As of the fourth quarter 2009, the economy was around 4%, below its recent peak level of output. Office rents and industrial rents were 17% and 29% below their peaks respectively. Nominal wages last year were 2.6% below 2008 levels. So we do have some buffer. Our forecast for inflation this year is between 2% and 3%. Mr Zaqy Mohamad asked for an update of the Special Risk-Sharing Initiative (SRI) scheme. In the 14 months, from December 2008 to January 2010, more than 16,000 loans worth about $8.9 billion have been catalysed under the SRI and other enhanced business and trade financing schemes. More than 90% of these loans went to our SMEs. We have extended these schemes for another year, with some scaling back on lending terms in view of the improving credit conditions. We expect the impact of this revision to be minimal as there had already been a decrease in the demand for Government-backed loans prior to this scaling back. After the discontinuation of the SRI in 2011, SMEs will still be able to tap on the mainstay Government financing schemes, which were in place before the recession. Let me now turn to the economic opportunities and the growth strategies for Singapore. Ms Jessica Tan, Mr Teo Ser Luck, Mr Wee Siew Kim and Dr Muhammad Faishal Ibrahim have all raised pertinent questions on this subject. The Economic Strategies Committee has set out the broad directions for the economy for the next 10 years, and the Government has responded with a slew of measures and programmes in our Budget. Let me focus on the five key growth strategies that my Ministry will pursue in order to raise the top line over the medium term.”
“Mr Chairman, first, let me thank Members for their comments and suggestions. Indeed, 2009 was a turbulent year for our economy. We went through a deep recession in the first half, but rebounded strongly towards the end of the year. GDP contracted by 2% over the year but employment increased by 38,800 jobs. In 2010, our focus will be on recovery and setting the stage for the next phase of growth. I will briefly talk about the outlook for 2010 and our strategy for consolidating the on-going recovery. For the medium term, we have to count on productivity to fuel our growth. As Deputy Prime Minister Teo Chee Hean said, productivity also means increasing the top line. I will therefore spend sometime discussing the economic opportunities and growth strategies for the medium term. In other words, how to grow the "top line". The Singapore economy should do well in the first half of this year. But uncertainties remain in the second half. We expect the fiscal stimulus in the G3 economies will fade and inventory adjustment will taper off in the second half. The underlying sluggish demand in private consumption and investment in the G3 economies, combined with fragile financial markets and tight credit conditions, may slow the pace of recovery. There are also new downside risks for us to monitor, such as the sovereign debt risk in Europe and asset inflation risks in Asia. But, overall, our economy should grow by between 4.5% and 6.5% this year. This is slower than previous recoveries, but a decent performance nonetheless given the strains the global economy is undergoing. Ms Jessica Tan and Mr Liang Eng Hwa have asked how we intend to manage our recovery and whether business costs will start to go up again as assistance measures are withdrawn and demand picks up.”
“Through inspections, mystery shopping and meetings with senior management, MAS will assess whether financial institutions have the proper systems and the controls in place to comply with these regulatory obligations. However, MAS still maintains that the primary role of the Board and senior management of financial institutions is to ensure that the controls and processes put in place are implemented vigorously and consistently by all staff in their dealings with their customers. Where there are breaches on non-compliance with MAS' rules and regulations, then obviously, appropriate regulatory action will be taken by the MAS. The regulatory actions that MAS can take will range from a reprimand, issuance of directions, composition of fines, referral of the matter to the Commercial Affairs Department and prosecution, or in serious cases, the revocation of licences.”
“As at 31st December 2009, the financial institutions that were confronted with these structured products problem have received a total of 7,257 complaints, of which, they have decided on 97% of these complaints. Of the cases decided, 66.6% of the investors have been offered settlement of which 95.3% has accepted the offers. Mr Lim also asked about the situation in FIDReC. As of 31st December 2009, a total 1,823 formal claims have been lodged with FIDReC for same defaulted products. Ninety hundred and ninety-three claims have been resolved while 51 claims are pending mediation and 779 claims have been referred to adjudication. The time taken to resolve a particular complaint would obviously depend on the factors such as the complexity of the dispute and when the parties involved are available for meetings and hearings. Mr Lim Biow Chuan also asked about the actions that MAS would take to ensure that the financial institutions abide by the new regulations on the marketing of structured products. As Members know, MAS has put up the proposal and through the consultation papers for feedback from the industry and from consumers. MAS is still in the final process of resolving this and incorporating the feedback received. When the proposals are settled, MAS will implement this through legislative amendments to the Securities and Futures Act, the Financial Advisors Act and the relevant regulations, notices and guidelines. This will be done with proper regulations. At the same time, MAS is intensifying supervision of the financial institutions in the sale of such investment products.”
“Madam, MAS shares the concerns of Mr Ong Kian Min that Singaporeans should exercise personal financial discipline and generally live within their means. This is done at four levels. First, MAS has rules on the granting of unsecured credit and credit cards in order to implement the Government's social policy of discouraging Singaporeans and PRs from spending beyond their means. Second, even though MAS leaves it to the banks to put in place the appropriate risk management practices in extending such credit, MAS continues to emphasise to the banks the need to uphold prudent lending standards that take into account the credit worthiness of the borrower and the borrower's debt servicing ability. Third, the Association of Bank in Singapore (ABS) has a code of consumer banking practice which requires the banks to provide clear information when offering financial products and services to their customers. For example, banks should inform customers of key information such as the applicable interest rates for credit facilities as well as the features and risks of such products. MAS expects banks to adhere to these standards as set out in the code. But, finally, the consumers themselves must also need to carefully assess their own repayment capability and ensure that they do not incur excessive debt. They should exercise prudence and not commit to a loan because of attractive promotional interest rates or free gifts. MoneySENSE has been working with partners such as ABS and the media to educate consumers on the responsible use of credit facilities and factors consumers should consider before taking on the debt. Let me turn to Mr Lim Biow Chuan's request on the update of the structural products.”
“Assoc. Prof. Paulin Tay Straughan asked the Prime Minister in light of the lower number of births recorded in 2009, whether the Government has plans to further enhance the pro-family incentives”
“We do not track the financial impact of the F1 race on commercial entities in the CBD specifically. The organizers of the F1 race, which include the race promoter and Government agencies such as the Singapore Tourism Board and the Land Transport Authority, are mindful of the need to minimise inconvenience to Marina Bay stakeholders and other commercial entities in the CBD. Drawing from experience gained in the inaugural race in 2008 and taking into consideration the feedback received from stakeholders and the general public, last year’s road closure period was reduced from 12 to seven days. Care was taken to minimise disruption to road users. For instance, Nicoll Highway and Esplanade Drive were re-opened to facilitate the morning peak traffic flow every day of the road closure period, with the exception of Sunday. As a result of these measures, commercial entities remained accessible to patrons throughout the 2009 F1 race period. For the Marina Bay stakeholders, entrances to the circuit park were carefully positioned to direct and facilitate pedestrian traffic to the malls. (For example, Gate 3 was located right next to Raffles City and Gate 7 was accessible via Marina Square.) The installation of gates on stakeholder premises was also delayed to as late as possible – some as late as Wednesday 23rd September, just two days before the event. Taxis were also allowed to access the Marina Bay area and passengers could choose to drop off at selected taxi stands. Our overall approach to the F1, as with other major events, such as the Singapore 2006 IMF-World Bank meetings, APEC 2009, the annual National Day Parade and Chingay celebrations, is to minimise inconvenience for all stakeholders and to help stimulate demand for businesses. PRO-FAMILY INCENTIVES 8.”
“(e) Innovation for Environmental Sustainability (IES) Fund Co-funds applied research and test-bedding of environmental products and services. PUB encourages greater water efficiency through the Water Efficiency Fund (WEF), which co-funds projects that yield at least 10% savings in a company's water consumption. SMEs enjoy a higher co-funding of 80% of project costs, compared to the usual 50%. PUB also provides constant flow regulators and spray nozzles to SMEs to help them to reduce their water consumption. Some of the schemes mentioned above have seen healthy take up by SMEs. For example, 139 applications for the IES Fund have been approved as at the end of last year, and 59 of these were from SMEs. PUB has also installed flow control devices in 3,880 SMEs. For the other schemes where SMEs take up has been low, we encourage SMEs to take advantage of the funding support available to improve their resource efficiency and reduce costs. NEA and PUB will continue to monitor these schemes and regularly review how they can be improved to better meet the needs of companies. BILL SIZES AT POLYCLINICS 4. Ms Sylvia Lim asked the Minister for Health what is the median and average bill sizes for polyclinics in 2009, after taking into account subsidies.”
“(4) The STB offices in the Greater China region are located in Shanghai, Beijing, Hong Kong SAR and Chinese Taipei while the offices in India can be found in Chennai, Mumbai and New Delhi. STB also has two Visit Singapore offices in Guangzhou and Chengdu which provide information to promote tourism to Singapore. *Cols 2345-2346. GRANTS FOR SMES TO GO GREEN 3. Mdm Ho Geok Choo asked the Minister for the Environment and Water Resources (a) what measures and grants are available to SMEs to go green; and (b) what has been the response from SMEs. Assoc. Prof. Dr Yaacob Ibrahim: National Environment Agency (NEA) and Public Utilities Board (PUB) provide a range of incentives to support companies' efforts to go green. These incentives are open to SMEs as well as larger companies. NEA offers various schemes to help companies to reduce their energy consumption, to recycle or minimise waste as well as to develop and test environmental technologies and solutions. These include: (a) Energy Efficiency Improvement Assistance Scheme (EASe) Co-funds up to 50% of the cost of companies' energy audits, which help to identify potential areas for energy efficiency improvements. (b) Grant for Energy Efficient Technologies (GREET) Co-funds up to 50% of the investment cost of energy-efficient technologies or equipment, with a cap of $2 million per project. (c) Singapore Certified Energy Manager (SCEM) Training Grant Covers over 80% of the SCEM programme course fees for companies to send their staff for energy management training. (d) 3R Fund Co-funds waste minimisation and recycling projects up to 80% of the qualifying costs, subject to a cap of $1 million per project.”
“33 9% China 5,263.33 5,843.57 6,524.23 7,287.76 8,283.35 12% World 60,495.38 63,429.19 66,834.18 70,570.89 74,660.40 5% Source: International Monetary Fund, World Economic Outlook Database, October 2009 Over the longer time horizon, China and India is expected to overtake United States as the world's largest economies by 2050, with Brazil and Russia close behind, as shown in Figure 1*. Trade – Domestic export of Goods (DX), Re-export (RX) of Goods and Export of Services (XS): Singapore's DX, RX and XS to these countries have increased significantly over the years. In fact, the CAGR of Singapore's DX, RX and XS to these countries have generally outpaced Singapore’s average growth rates of DX, RX and XS to the world, as shown below in the table below: Singapore’s DX, RX and XS to BRIC Countries CAGR (2003 to 2008) CAGR (2003-2007) Country DX RX XS Brazil 39.1% 44.1% 22.5% Russia 2.8% 12.9% 28.2% China 14.9% 25.6% 21.6% India 24.7% 26.4% 23.1% World 10.5% 12.3% 17.4% Outward investments – Direct Investment Abroad (DIA): The growth in Singapore's DIA to the BRIC countries paints a similar picture of the growth in Singapore's trade with the BRIC countries, as shown in the table below: Singapore’s DIA to BRIC Countries CAGR (2003-2007) Country DIA Brazil 29.4% Russia 20.7% China 18.7% India 61.3% World 18.0% (2) Based on latest available data from Dept of Statistics. (3) IE's China offices are located in Beijing, Chengdu, Chongqing, Dalian, Guangzhou, Qingdao, Shanghai, Xi'an, Hong Kong SAR while their offices in India are in Chennai, Mumbai and New Delhi. IE’s office in Brazil is in Sao Paulo while its centre in Russia is in Moscow.”
“In order to enhance bilateral trade and investment activities in these countries, we have to continue to extend our networks with the government and business communities, and deepen our understanding of their markets. At this stage of our engagement, we will first focus on facilitating business interest in priority sectors such as oil and gas, urban solutions and consumer products, as well as promoting Singapore as a commodity trading hub for the Russian and Brazilian mega-traders who are keen to expand their Asian presence. To enhance our relations at the Government-to-Government level, MTI established a joint committee with Brazil's Ministry of Development, Industry and Commerce (MDIC) in 2009 to serve as a platform to promote bilateral economic cooperation and business flows. We have also established business platforms, vis a vis the Latin-Asia Business Forum and the Russia-Singapore Business Forum, to engage Brazilian and Russian businesses, as well as government leaders, on investment and partnership opportunities. MTI will continue to monitor the opportunities in the BRIC economies, as well as the interest and demand from our companies, and regularly review the degree of our engagement and presence in these countries. According to IMF estimates, all the four BRIC markets are forecasted to have positive growth potential. The compounded average growth rates (CAGR) of these markets (2010-2014) are also projected to be higher than that for the rest of the world as shown in the table below: Estimated Gross Domestic Product, Current Prices (USD, Billions) Market 2010 2011 2012 2013 2014 CAGR 2010-14 Brazil 1,724.35 1,822.22 1,924.29 2,036.24 2,155.68 6% Russia 1,363.98 1,532.65 1,706.34 1,896.68 2,127.58 12% India 1,339.49 1,449.17 1,583.43 1,740.41 1,908.”
“China and India are our 3rd and 10th largest trading partners respectively. Singapore is linked to China and India through both bilateral and regional FTAs through ASEAN. These FTAs have reduced barriers to trade and created new opportunities for our businesses. In the case of China, MTI has also established various engagement platforms at the Government-to-Government level. The Joint Council for Bilateral Cooperation (JCBC), the Investment Promotion Committee, as well as provincial-level business councils, have been effective platforms to discuss mutually beneficial areas of cooperation. Beyond these formal platforms, IE Singapore actively encourages and facilitates exchanges at the company level. This is done through organising seminars, and business missions to explore opportunities in a wide range of sectors. Similarly, as more Chinese and Indian enterprises look to expand their operations abroad, EDB and IE have been promoting Singapore as a location for their regional and global headquarters and as a hub for international trading. China and India are not only important to us as markets for our companies but also as sources for tourism. Tourist arrivals from these two countries stood at 1.66 million last year, and STB has set up seven offices in these two rapidly growing markets.(4) Our economic relations with Brazil and Russia are still at a nascent stage. The geographical distance between Singapore and these two countries has meant a lower degree of familiarity among our companies with these markets. Russia and Brazil were our 27th and 29th largest trade partners respectively in 2009.”
“The BRIC countries are among the fastest growing economies in the world. They are widely expected to emerge as key growth engines for the global economy over the next 10 years. The burgeoning middle class and rapid urbanisation in these countries have created significant opportunities to grow our trade and investment with them. And indeed, we have been capitalising on these opportunities. Based on latest available data, Singapore's exports of goods to the BRIC countries have grown by 15.4% per annum from 2000 to 2009, much faster than the 5.7% per annum we have seen to the rest of the world, while our exports of services from 1999 to 2008 have grown by 24%, faster than the 14% annual rate to the rest of the world. Singapore's stock of foreign direct investment in the BRIC countries has grown by 3.4 times over 10 years (from 1999 to 2008)(2) and accounted for 18.3% of our total foreign direct investment stock abroad in 2008, up from 14.9% in 1999. International Enterprise (IE) Singapore's overseas centres in the BRIC countries reflect our growing trade relations and the interest of Singapore-based companies in these markets. The BRIC countries account for 14 out of IE Singapore's total of 36 overseas centres. There are nine centres in China, three in India and an office each in Brazil and Russia.(3). In the case of China, we have gone beyond the first tier cities to open centres in less well-known but promising cities like Chongqing and Xi'an. But while the term "BRIC countries" is a convenient label to describe these rapidly growing economies, the opportunities that each of them presents varies widely. MTI thus adopts a differentiated approach for each of the BRIC countries. Our economic relations with China and India are well established.”