Mr S Iswaran at the Opening of The Singapore Freeport, 18 May 2010

SPEECH BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE & INDUSTRY AND EDUCATION,AT THE OPENING OF THE SINGAPORE FREEPORT ON TUESDAY, 18 MAY 2010, 1935 HRS AT THE SINGAPORE FREEPORT, 32 CHANGI NORTH CRESENT

Mr Yves Bouvier

Chairman, The Singapore Freeport

Mr Alain Vandenborre

President, The Singapore Freeport

Distinguished guests

Ladies and Gentlemen

Good evening.

Introduction

I am pleased to join you today at the official opening of The Singapore Freeport.

Rising Affluence of Asia – New Business Opportunities

The opening of Singapore Freeport is a reflection of two key trends in Asia.First, the rising affluence in Asia. According to the World Wealth Report 2009, wealth in the Asia Pacific is expected to grow from US$8.3 trillion to US$11.4 trillion by 2013, representing an annual growth rate of 12.8 per cent. This figure is significantly higher than the expected global average of 8.1 per cent.

Second, high net-worth individuals in Asia are spending larger proportions of their wealth in “investments of passion”, such as collectibles and fine art. The Asian contemporary art market is booming. Art is increasingly seen as a viable investment option for wealthy individuals and the corporate sector. The same World Wealth report notes that between 2006 and 2008, the percentage of income spent on art collections increased from 20 to 25 per cent while expenditure on jewellery, gems, and watches rose from 18 to 22 per cent

These trends in turn fuel business opportunities, for example, in the provision of services to meet the needs of the growing art and collectibles industry in Asia.

Developing a Thriving Art and Collectibles Industry in Singapore

The Singapore Freeport is one company that has seen this business potential emerging in Asia and seized the opportunity.Catering to customers such as international auction houses, art dealers, fine art logistics companies and private collectors, it offers them a secure world class facility in which to store and trade freely their high value collections.The Singapore Freeport is the first such facility in Asiaand the largest Freeport dedicated to art collectibles.And, we are pleased that Singapore was chosen as its base for operations.Indeed with our strategic location, sound infrastructure and excellent connectivity to key markets in Asia, Singapore is an ideal location for companies seeking to tap into the arts and collectibles trade in the region.In Singapore, they have a convenient base to service clients in Asia and neighbouring regions such as the Middle East and Russia.

Singapore Freeport’s presence here will also be a strong catalyst to the growth of the art and collectibles industry in Singapore. It will help spur the development of related supporting services such as specialised logistics, conservation, art consultancy, and art investment businesses. In fact, we are already seeing the entry of more of such industry players into Singapore.Christie’s International, a leading global art business, is setting up its Fine Art Storage Services in the Freeport to serve its global clientele. It will also have a special focus on developing the Asian market.

Our local companies will also benefit from Freeport’s presence.For example, home-grown company Helutrans, which handles art logistics for Christie’s and other international auction houses, is expanding its services into the storage of high value collectibles at the Singapore Freeport.

Strengthening of Singapore’s art and collectibles ecosystem

Our approach towards developing the creative and arts businesses in Singapore is holistic and long term. To nurture the emerging arts and creative sectors, we have put in place key building blocks, including education. For example, the new campus of the School of the Arts, Singapore's first independent pre-tertiary arts school, was opened earlier this year. Able to accommodate up to 1,200 students, the school will groom the next generation of creative individuals who are passionate about, and committed to, the arts.This will in turn boost the vibrancy of our arts, media and entertainment marketplace. In the long run, we hope to become amajor marketplace for the visual arts, performing arts and collectibles in Asia.

Conclusion

In closing, I would like to extend my heartiest congratulations to Singapore Freeport on its official opening.I wish Singapore Freeport every success in your future endeavours.

Thank you.