Mr Lee Yi Shyan at the "Fastest Growing 50" 2006 Award Ceremony

Speech by Guest-of-Honor, Mr Lee Yi Shyan, Minister of State for Trade and Industry at the “Fastest Growing 50” 2006 Award Ceremony on Friday, 28 July 2006, 9:40am at the Grand Ballroom, The Ritz-Carlton Millennia Singapore

Mr Lee Keen Whye, Chairman of DP Information Group;

Distinguished Guests,

Ladies and Gentlemen,

Introduction

It gives me great pleasure to be here this morning as we honor 50 of the most exciting companies in Singapore.

Since 2002, the Fastest Growing 50 (FG50) Award has been celebrating companies that have demonstrated outstanding and consistent performance. Each company on the fastest growing 50 list has achieved a remarkable compounded annual growth above 50% over the past three years, with some reporting up to 400% or even 500% annual growth. The FG50 list comprises large multinationals, and small but high growth SMEs. Each a lesson for growth. Each is an inspiration.

Growth and Internationalization

For companies to achieve sustainable and high growth, internationalization must be integral to their growth strategy. High growth companies play in high growth markets.

According to DP Information’s SME Development Survey, the percentage of companies surveyed who had established a physical presence overseas more than doubled from 19% in 2004 to 43% in 2005.Among the award winners today, for example, we have Meiban which has production sites in Malaysia and China; Hi-P which has plants in China and as far as Mexico; eSys which boast its presence in 32 countries, and of course Banyan Tree whose resorts are all outside Singapore.

As our companies spread their operations far and wide into new markets, they begin to adjust their business models, supply chain and managerial resources. Over time, they gain experience and mature. As a group, our companies have a wealth of experience operating in a wide span of geography. I would like to encourage our companies to share your experience with the rest, form partnerships, and together make a bigger impact in the markets you serve.

The Growth of the Middle East

Speaking about high growth markets, I am sure most of you will also think of the Middle East. In recent years, many Middle East economies have shown great potential and experienced double-digit growth, thanks in large part to high oil prices and an infrastructure development boom. Fuelled by a combination of new wealth and an enlightened leadership, Middle East countries have progressively diversified from traditional oil-based economies, privatized their industries, and expanded their economic space through international trade.

Most eye-catching are the myriad large-scale infrastructure projects that are currently underway in the Middle East, especially in the energy-rich Gulf Cooperation Council (GCC) countries of Saudi Arabia, UAE, Qatar, Kuwait, Bahrain and Oman. All in all, there are over US$1 trillion worth of infrastructure projects around the Arabian Gulf region[1], and we shall soon witness many mega new cities and buildings sprouting throughout the Middle East. Prominent examples include:

·Dubailand – the most ambitious tourist destination ever created, which will house the Dubailand Theme Park, twice the size of the Walt Disney World Resort in Florida;

·the DubaiTower at Burj Dubai, which will be the world’s tallest building when completed in 2008;

·the King Abdullah Economic City in Saudi Arabia, which is expected to house up to 1 million people within the first 10 years of its completion in 2009; and

·the Jabal Omar Complex, which is built for the millions of pilgrims who come each year for Haj and Umrah from all over the world.

Growing Opportunities in the Middle East

Such an accelerated development in the Middle East presents enormous opportunities for Singapore businesses looking to expand their international footprint. This is especially so, as post 9-11, the Arab world is increasingly “Looking East” for new sources of technology, trade and investments, and the Singapore brand name is one that is highly regarded within the region. In fact we have received officials from various Middle East countries such as Saudi Arabia and Abu Dhabi who came here to see how we do our industrial planning, how we use ICT to streamline government processes, or how we solve our water shortage problem.

Despite being a relative newcomer to the Arab world, the results of our business engagement with the Middle East have so far been encouraging. With active support from IE Singapore, many Singapore companies have started to explore the Middle East market and are now actively pursuing opportunities in infocomm technology, financial services, construction & real estate services, oil and gas infrastructure services, environmental engineering services, and retail services, among others. As a result, Singapore's investments in the Middle East have more than tripled from 1999 to S$853 million in 2003.[2]For example, just this month alone, SembCorp Utilities has entered into a $2.5b joint venture project in Abu Dhabi to acquire a water and power plant; Surbana International has been awarded a $148m contract to provide architectural design and consultancy services for the Grand Corniche project, also in Abu Dhabi; and Dayen Environmental is entering into a joint venture with a Saudi Arabia firm to undertake environmental engineering activities.

I am confident that Singapore’s economic engagement with the Middle East will grow significantly in the coming years. I am also certain that the Middle East will become an important focus market for Singapore companies. It is likely that the region’s influence on the world economy will increasingly extend beyond oil. Having taken a deep interest in the market myself I will be visiting some of Middle East cities in the coming months.IE Singapore will be organizing business missions on oil and gas infrastructure to Saudi Arabia in September, on offshore oil and gas to Qatar in November, and also to the GITEX Consumer Electronics and IT Exhibition in Dubai in November. The SBF will also be organizing missions to Egypt, Jordan, and Saudi Arabia in November and December. I invite you to join these missions to seek out and exploit the opportunities in the Middle East. If you are not already looking seriously at opportunities in the Middle East, the forum later today is an excellent occasion to start thinking seriously about doing business in this vibrant region.

Conclusion

In closing, I would like to congratulate the winners of this year’s Fastest Growing 50 Awards on their significant achievements. To the representatives of each of the winning companies I say well done, and I look forward to your continued success.

I wish you all a fruitful session today.

Thank you.

[1] Source: Middle Economic Digest

[2] Source: Singapore Department of Statistics