Mr. Lim Hng Kiang at the Canada-ASEAN Business Forum

SPEECH BY MR. LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY AT CANADA-ASEAN BUSINESS FORUM ON 8 OCTOBER 2013, 1850hrs, FAIRMONT HOTEL

Your Excellency, Heather Grant, High Commissioner of Canada

Dr. Surin Pitsuwan, Former Secretary General of ASEAN

Mr Brad Wall, Premier of Saskatchewan

Distinguished delegates

Ladies and gentlemen

1.               A very good evening to all of you.  It gives me great pleasure to address you today at this very distinguished, inaugural Canada-ASEAN Business Forum.  It is heartening to see so many of you here this evening – from Singapore, other parts of ASEAN and Canada.  Let me welcome all of you to Singapore.  The good turnout today surely demonstrates the interest in building stronger links between ASEAN and Canada.

ASEAN is an important market

2.               ASEAN is a large and important market in Asia.  Its market size, at about 600 million people, comprises the third largest GDP in Asia – at nearly US$1.8 trillion in 2012.  The middle class in ASEAN is growing rapidly, and with it, rising consumer demand from increased spending power.  All these offer vast opportunities for Canadian companies seeking to expand beyond your traditional developed markets.

3.               The growth figures in ASEAN are encouraging in a global environment of weaker growth performance overall.  ASEAN has continued to show robust and resilient economic performance in 2012 – growing by 5.7 per cent – almost one percentage point higher than last year’s growth. Resilient domestic demand, including government-initiated investment and strong consumption demand, coupled with strong macroeconomic fundamentals and financial stability underpinned ASEAN’s growth performance. With the global economy slowly recovering, ASEAN should be able to sustain its growth at between 5.3 per cent and 6 percent in 2013.

ASEAN-Canada relations

4.               Relations between ASEAN and Canada have seen considerable developments since its establishment in 1977.  Trade flows between ASEAN and Canada a decade ago were relatively low, at about US$5 billion.  Economic engagement was modest. Talks on a Joint Declaration on Trade and Investment alone took us six years to reach a substantive outcome since its initiation back in 2005. 

5.               Now, the situation has changed. Despite the continued uncertainty in the global economy, total ASEAN-Canada trade reached an all-time high of about US$15 billion in 2012.  This represents an over 80 per cent increase in trade in the last five years, and more significantly, a doubling in growth rate compared to the 40 per cent increase in the five years before that.  Since 2009, Canada has maintained its position as ASEAN’s 9th largest trading partner and 11th largest foreign direct investment (FDI) source.

6.               On FDI, flows from Canada to ASEAN have also seen significant developments in recent years.  FDI from Canada to ASEAN was about US$101 million a decade ago.  But in the last five years, the stock value of Canadian FDI in ASEAN has grown over fourfold to about US$7 billion.  This saw a dip in 2012, where the FDI from Canada to ASEAN totalled US$500 million, but in the context of declining global FDI Inflows, this was not unexpected.  In fact, Canada’s direct investment to ASEAN exceeds that in Japan, India, and mainland China (excluding Hong Kong). All these point clearly to signs of avid business interest in the ASEAN markets. 

7.               Political and economic engagement has also picked up in recent years.  Canada and ASEAN signed a Joint Declaration on an ASEAN-Canada Enhanced Partnership in July 2009.  This partnership has laid the groundwork for us to advance shared economic priorities to stimulate private sector development and cooperation.  Following this, both sides adopted a Joint Declaration on Trade and Investment Cooperation in October 2011, and a Work Plan to implement the Joint Declaration in 2012.  These are all important milestones in our enhanced partnership efforts to facilitate trade and investment activities.  The Canada-ASEAN Business Council was also established in Singapore in 2012.  All these, as well as tonight’s flagship event point to expanding cooperation between Canada and ASEAN.  Singapore is delighted to be part of these encouraging developments.  I believe that these would unveil greater opportunities in ASEAN and Canada, and further catalyse our mutual trade and investments.

Bridging the ASEAN-Canada gap and Singapore’s role as Canada’s gateway to ASEAN

8.               To realise the full economic potential of our closer engagement, we need to look beyond these cooperation efforts at the G-to-G level. Private-sector awareness and interest are crucial to forge stronger trade and investment links. A deterrent that is sometimes heard when businesses mention Canada is the distance of Canada from ASEAN. Businesses have to be convinced that geographical distance need not be a deciding barrier to trade and investment where opportunities present themselves.  After all, many students in Singapore and other parts of ASEAN and Asia travel that same distance to study in Canada.  Surely our hardnosed businessmen should not be fazed where students are not! It is heartening therefore that the Canada-ASEAN Business Council has taken the first step to bridge the knowledge gap and build links for businesses through this very forum.

9.               Singapore businesses have done well in Canada, with over 40 local companies having business operations in Canada.  You might have heard of Prima Taste, a brand under the Prima Food Company which offers ready-to-cook Singapore cuisine products.  Canadian taste buds may share more similarities with Singaporeans than one might think, as Prima products are now readily available in Alberta, British Columbia, Ontario and Saskatchewan. 

10.           Another Singapore company that has done well in Canada would be Wilmar International whose business is in the area of agribusiness. The exclusive partnership that Wilmar secured with Ocean Nutritional Canada in the production of premium cooking oil is but one of the many instances showcasing how Canadian and Singaporean or ASEAN companies can work together in joint ventures and business collaborations.

11.           Similarly, the many successful stories of business ventures of Canadian companies in Singapore are telling of the array of opportunities available. Canada has much to offer to us in terms of its expertise in areas such as aerospace, biotechnology and clean technology. Over 100 Canadian companies have established business presence in Singapore.  Much of these investments are in the form of regional offices and manufacturing facilities in services such as financial and insurance services, aerospace and ICT sectors.  The Fairmont Singapore and Manulife are familiar Canadian names in Singapore.  Many Canadian companies such as Bombardier Aerospace and Celestica are using Singapore as a base or gateway into ASEAN and the Asia-Pacific. 

12.           Despite the economic slowdown, Canada has also maintained its leadership position in the areas of biotechnology and clean technology. Mutual collaboration in these high value-add sectors would be highly beneficial for both ASEAN and Canada.  As country coordinator for ASEAN-Canada relations, Singapore looks forward to Canada playing a more active role in facilitating the growth and development of ASEAN as a region.  Given the close business ties we share, I believe that Singapore is uniquely placed to bridge the geographical gap between ASEAN and Canada and elevate our business engagement to greater heights.

Canada’s leadership role in regional integration

13.           In the face of a more volatile and uncertain world, regional integration has been key to the success of our economies in riding out the global economic crisis. This is why, Singapore, as a member of ASEAN, remains committed to the ASEAN vision of deepening regional integration. With 2015 fast approaching, we welcome Canada’s continued support for ASEAN’s endeavours towards achieving an ASEAN Economic Community in 2015.

14.           I am delighted to note the initiatives Canada has launched to support ASEAN’s economic integration agenda at the ASEAN-Canada Post Ministerial Conference in July this year. Amongst others, these include funding commitments to support ASEAN’s economic integration agenda, specifically C$2 million to provide ASEAN with financial regulations training and C$4.5 million over three years to support an ASEAN public-private partnership centre of excellence, in partnership with Singapore and the Asian Development Bank.  Singapore welcomes these new developments and we hope that Canada would remain committed to the promises it has made to support ASEAN’s community building objectives.

Conclusion

15.           Ladies and Gentlemen, it is clear that the ASEAN-Canada dialogue partnership has been mutually beneficial in fostering stronger trade relations and creating more opportunities for the business community. Enhancing our relations would translate into greater regional integration and sustained growth for both ASEAN and Canada. Singapore looks forward to sustaining the momentum from this forum with our Canadian friends and building on the positive inroads made. 

16.           On this note, I wish you a productive session ahead. Thank you.