Minister Lim at “IGNITE”

SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT “IGNITE”, ON THURSDAY 3 AUGUST 2006, AT 6.50 PM, AT THE RED DOT MUSEUM

Distinguished guests, ladies and gentlemen,

Introduction: Strong Starting Position

Singapore is widely acknowledged as a leading destination for Business Travel, Meetings, Incentive Travel, Conventions and Exhibitions or BTMICE. Singapore is ranked the world’s second Top Convention City, as well as Asia’s Top Convention City by the International Convention and Congress Association. I am also pleased to note that Singapore has retained the position of Asia’s Top Convention City in the Union of International Associations’ 2005 rankings - a position we have held for the last 23 years. For the first time, Singapore also moved up one notch to fourth position globally. These achievements would not have been possible without your efforts and contributions.

Strong Potential for MICE in the region

Singapore is strategically located in the middle of Asia. We can feel the energy of Asian economies growing. As the region prospers, tourism and business travel will grow. This augurs well for the BTMICE industry in Singapore. The STB estimates that the Asia-Pacific BTMICE sector would grow by 2½ times, from 40 million BTMICE visitors in 2002 to over 100 million BTMICE visitors in 2015.

… but More Intense Competition

However, cities, like Bangkok, Melbourne, Shanghai and Dubai, are closing in on our lead. These cities have invested in new convention and exhibition facilities. We now see a commoditization of MICE venues. Hence, the need for Singapore to differentiate itself as a MICE destination has become even more urgent than before.

To stay ahead, we need to be aware of the competition and understand what our customers want. The needs of today’s business travellers have become more sophisticated. A discerning business traveller now seeks a destination that enables him to mix business with pleasure. We must differentiate ourselves from the mainstream, and offer compelling and unique value propositions to our customers.

Our Target

To achieve our Tourism 2015 target of tripling tourism receipts to $30b, BTMICE would play a critical role. BTMICE contributes about $3b or approximately 28% of total tourism receipts today. Our target is to raise this to at least $10.5b or 35% of total tourism receipts by 2015.

Our Strategy: A New BTMICE value Proposition

First, we aim to transform Marina Bay. It would be more than just a MICE and business Centre. We will have 200,000 square meters of convention and exhibition space and 10,000 hotel rooms. By 2009, it will become a buzzing lifestyle and entertainment hub – with The Esplanade, Marina Bay Sands, Gardens by the Bay and Singapore Flyer alongside a whole array of retail, dining and entertainment options.

Next, Singapore needs to move beyond being merely an efficient and effective venue. We must become a catalyst for business success. Singapore aspires to be an exchange capital where talent, technology and ideas converge to create synergistic value for both business events and visitors.

To actualize this value proposition, STB will adopt a strategic cluster approach that focuses on business events relating to Singapore’s key industry clusters, as well as key industries in our region. This approach requires close collaboration amongst companies, business and industry associations and government agencies to aggressively bid, create and grow a host of such business events.

By leveraging on Singapore’s key industry clusters to develop business events, these business events will, in turn, become enablers to help foster the development of these clusters. We aim to create a symbiotic relationship between business events and key industry clusters such as biomedical sciences, ICT and digital media; environment and water technologies; banking and finance, transportation and logistics, and tourism.

“BE in Singapore” Incentive Scheme

To nurture these cluster-specific as well as other business events, I am pleased to announce that STB will set aside $170 million from the $2 billion Tourism Development Fund for a new suite of incentive schemes under the umbrella name - “BE in Singapore” or Business Events in Singapore. Developed in consultation with our industry partners, “BE in Singapore” is comprehensive and pro-business. It recognizes the different business requirements of business events. “BE in Singapore” is designed not only to attract a critical mass of rotational business events, but also to create, anchor and grow events in Singapore.

“Singapore, Where Great Things Happen”

In line with the new value proposition, STB will embark on a three-year global marketing and advertising campaign, revolving around the tagline, “Singapore, Where Great Things Happen”. STB will work with industry partners to propagate top-of-mind awareness of Singapore as a MICE destination of choice through the campaign. STB will also help the local MICE industry strengthen its marketing and business development presence globally.

Conclusion

With all these exciting developments in place, we are optimistic that BTMICE visitors will find Singapore a compelling place to both work and play. Before I close, I would like to again acknowledge the efforts of our industry partners. I look forward to all of you harnessing our collective strengths to bring our BTMICE sector to new heights.

I wish all of you a pleasant evening. Thank you.