Mr Lee Yi Shyan at the ASPRI’s Prosperity Lohei cum Annual Dinner

SPEECH BY MR LEE YI SHYAN MINISTER OF STATE FOR TRADE AND INDUSTRY AND MINISTER-IN-CHARGE OF ENTREPRENEURSHIP AT THE ASSOCIATION OF PROCESS INDUSTRY (ASPRI)’S PROSPERITY LOHEI CUM ANNUAL DINNER ON WEDNESDAY, 4 FEBRUARY 2009 AT 8PM, SHANGRI-LA HOTEL, ISLAND A BALLROOM

Mr James Goh, President of ASPRI

Members of ASPRI

Distinguished Guests

Ladies and Gentlemen

Good evening, I would like to thank ASPRI for inviting me to this joyous occasion. The process supporting industry has indeed come a long way and I am very happy that the industry has progressed a lot over the years.

The Singapore economy is going through its sharpest, deepest and most protracted recession. GDP growth in 2008 was just 1.2 per cent, a sharp slowdown from a 7.7 percent expansion in 2007. Overall, non- oil domestic exports fell by 7.9 per cent last year. There have been steep declines in the exports of electronics, pharmaceuticals and petrochemical products. In 2009, Singapore’s GDP is estimated to contract by between 2 per cent and 5 per cent.

Consumer demand in our key export markets, such as the US and Europe, will remain weak. Our manufacturing sector is therefore likely to continue to face a slowdown this year. However, not all is gloomy. For example, I understand from some ASPRI members that they have currently secured enough jobs in their “book orders”. Despite the economic uncertainty, EDB also estimated that with the new investments coming on-stream this year, it will generate about 6,000 new jobs in the coming months.

In collaboration with our tripartite partners, the government has also introduced the $750m SPUR programme to help our workers to retrain and upgrade their skills during this period of economic slowdown. This will also help companies to cope with manpower challenges as we enter a period of uncertainty. I like to commend ASPRI for taking a pro-active step to become one of WDA’s approved Quality Provider for Workforce Skills Qualifications (Process). I urge ASPRI members to take up this opportunity to send your workers for skill upgrading and train as many workers as possible.

Apart from tapping on the training schemes, ASPRI members would also have to continuously upgrade their capabilities so that they can handle larger and more complex projects. Examples of important capabilities include areas such as project management, design engineering, machinery upgrading, and maintenance management.

I am also pleased to point out that the government is doing its utmost to help companies especially in this tough time. For instance, SPRING Singapore has come up with enhanced financing schemes to help the SMEs. I hope that these measures will address the immediate needs of businesses in cash flow and working capital management and ensure that the enterprises have sufficient resources to continue operations. I urge more companies to make use of these schemes.

Our companies must also realize the importance of venturing overseas and be prepared to do so. For example, they can explore potential markets such as the Middle East and Vietnam, where their clients are expanding, or to seek new clients. In addition, companies should consider banding together to maximize their chances of overseas success. They can leverage on International Enterprise Singapore’s International Partners Programme, or iPartners, which catalyzes the formation of international alliances among Singapore-based companies. As a group, companies can combine resources and strengths to raise their competitive edge. Under this programme, IE Singapore will facilitate and support the formation, developmental and go-to-market phases of the alliances.

In this regard, I am happy to learn that there is already an iPartners alliance formed in December last year between two ASPRI members, namely Rotary Engineering and Heatec Jietong, as well as two other non-ASPRI members, Jason Electronics and PA marine. The consortium will provide turnkey engineering, procurement and construction services as well as supply chain solutions for the downstream oil & gas industries and offshore & marine industries in the Middle East, including Saudi Arabia and the Gulf region. This is very encouraging and I hope to see more of such alliances in time to come.

I hope that ASPRI will continue to be pro-active. I urge all members to work closely together and I look forward to your active participation in ASPRI’s initiatives and activities. In closing, I would like to wish all of you a Happy and Prosperous Chinese New Year and enjoy the celebration tonight.

Thank you.