Lim Hng Kiang at the Malaysia Business Forum

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SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE & INDUSTRY AT THE MALAYSIA BUSINESS FORUM ON 20 NOVEMBER 2013 10:00AM AT RAFFLES CITY CONVENTION CENTRE

Your Excellency Dato’ Sri Mustapa Mohamed, Minister for International Trade and Industry,

Your Excellency Senator Dato’ Sri Abdul Wahid Omar, Minister in the Prime Minister’s Department,

Mr Tony Chew, Chairman of Singapore Business Federation,

Distinguished Guests,

Ladies and Gentlemen,

Introduction

1.         I am delighted to join you at this morning’s Malaysia Business Forum. I would like to take this opportunity to welcome both Minister Mustapa and Minister Wahid and their delegation to Singapore.

2.         The annual Malaysia Business Forum continues to be an important platform for businesses to keep abreast of latest developments and opportunities in Malaysia, network and explore potential collaborations.  Today’s solid turnout reflects strong business interest in Malaysia and the potential for our companies to continue reaping cross-border synergies. 

Malaysia’s Continued Progress

3.         Malaysia has long been a key destination for Singapore companies planning to expand overseas. In recent years, Malaysia has made important strides in enhancing its business environment and competitiveness.  

4.         Malaysia’s Economic Transformation Programme (ETP), launched in 2010, has generated impressive results. As at December 2012, 149 projects with a total committed investment of RM211.3 billion have been announced.  Malaysia has also made good progress in liberalising 15 out of 17 services sub-sectors and embarked on a series of business-friendly reforms. As a result, private investment in Malaysia has tripled since the launch of the ETP to reach RM139.5 billion in 2012. The ETP has strengthened Malaysia’s domestic resilience amidst external uncertainties and boosted private sector confidence.  

5.         Malaysia’s commitment to economic transformation has also garnered international recognition. According to the latest World Bank Ease of Doing Business Report 2014, Malaysia surged to 6th position from 12th position among 189 economies. Malaysia has also made steady progress in the World Economic Forum Global Competitiveness Report attaining 24th spot amongst the 148 countries. These achievements are a testament to Prime Minister Datuk Seri Najib Razak’s vision and stewardship in generating economic growth and improving government delivery.   

6.         The recently announced 2014 Malaysian Budget also underscored Malaysia’s commitment to tackling its fiscal deficit and federal debt. Not only does this send the right signal to businesses, it also represents an important step forward towards safeguarding the country’s long-term economic stability. I wish Malaysia continued success in its efforts. I am sure both Minister Mustapa and Minister Wahid will provide additional insights into key economic developments in Malaysia shortly. 

Positive Momentum for the Malaysia-Singapore Relationship

7.         Now let me turn to Singapore and Malaysia’s economic ties. Singapore and Malaysia enjoy longstanding and robust economic ties with strong trade and investment ties. I am pleased to share that in 2012, Malaysia continued to be Singapore’s top trading partner. Singapore’s trade with Malaysia grew 1.2 per cent year-on-year to reach S$113.4 billion. Investment linkages are also healthy. According to the Malaysian Investment Development Authority (MIDA), Singapore was the 3rd largest investor in Malaysia’s manufacturing sector in 2012, with manufacturing investments reaching RM 2.2 billion.  The close people-to-people ties have bolstered our strong economic relationship.

8.         Iskandar Malaysia (IM), an important symbol of bilateral economic activity, continues to make substantial progress. It attracted close to RM 129 billion in investment commitments as at October 2013. Singapore emerged as the top foreign investor in IM. As of June 2013, Singapore’s investments in IM accounted for 16 per cent of its total foreign investment.

9.         The proximity between Singapore and IM allows investors to position their full value chain of business and manufacturing functions across both locations. This helps reduce business costs and improves efficiency.  I encourage businesses to strengthen investment linkages and leverage on both countries’ complementary strengths. With the right mix of industries and enhanced connectivity, there is potential for both countries to develop a seamless economic space.

10.       Singapore companies have consistently expressed keen interest in a range of industries in Malaysia, including the manufacturing and services sectors. I encourage our companies to take advantage of Malaysia’s achievements and deepen your presence in the country.

Deepening Regional Economic Integration

11.       At the regional level, Singapore and Malaysia are working closely to realise initiatives such as the ASEAN Economic Community (AEC), the Regional Comprehensive Economic Partnership (RCEP), as well as the Trans Pacific Partnership (TPP).

12.       The AEC has seen solid progress being made towards transforming ASEAN into a single market of some 600 million people.   By 2015, ASEAN-based businesses will benefit from a more integrated production base in the region and enjoy the same treatment as local businesses.  This will level the playing field in ASEAN, making it cheaper and easier to do business in the region. 

13.       Singapore and Malaysia are also participating in ongoing negotiations on the RCEP and the TPP.  Both agreements seek even closer integration in the Asia Pacific region. The RCEP comprises ASEAN and the markets of six regional partners, i.e. China, Korea, Japan, India, Australia, and New Zealand. It has the potential to further transform the region into an integrated market of more than three billion people with a combined GDP of about US$17 trillion. Meanwhile, the ongoing TPP negotiations aim to strengthen Trans-Pacific integration and connectivity amongst 12 countries.[1] Both Agreements have the potential to help expand investment links and boost trade in the Asia Pacific region. 

Conclusion

14.       Forums such as this underscore the mutual strengths of our two countries. I urge companies to seize opportunities, explore mutually beneficial cross-border collaborations and consider deepening your business links in Malaysia.

15. On this note, I wish you a fruitful and productive Forum. Thank you very much.

[1]

Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, Vietnam.