Mr Lim Hng Kiang at the French-Singaporean Business Meeting

​OPENING ADDRESS BY MR LIM HNG KIANG, MINISTER FOR TRADE & INDUSTRY AT THE FRENCH-SINGAPOREAN BUSINESS MEETING ON 19 OCTOBER 2012 AT 9.03AM, SHANGRI-LA HOTEL

Your Excellency Jean-Marc Ayrault, Prime Minister of France,

Your Excellency Nicole Bricq, Minister of Foreign Trade,

Your Excellency Olivier Caron, Ambassador of France to Singapore,

Distinguished Guests,

Ladies and Gentlemen.

Introduction

1.         Good morning. It is my pleasure to join you today at the French-Singaporean Business Meeting.  I would like to extend a warm welcome to His Excellency Prime Minister Jean-Marc Ayrault and Her Excellency Minister Nicole Bricq.  You and your distinguished delegation’s visit to Singapore is testament to our growing economic ties.  I am also glad to see a strong representation of French and Singaporean companies across a broad range of sectors.  Your participation today signals our business communities’ keen interest in strengthening our bilateral trade and investment partnerships.

Strong France-Singapore bilateral relations

2.         France and Singapore enjoy strong economic ties underpinned by our warm bilateral relations.  We are key trading partners for each other in our respective regions – Singapore is France’s third largest trading partner in Asia, after China and Japan, while France is Singapore’s second largest trading partner in the EU.  Between 2001 and 2011, bilateral trade almost tripled to reach S$18.4 billion

[1]

.  Meanwhile, French investment in Singapore doubled over the past decade to more than S$8 billion in 2010, making Singapore the most popular Southeast Asian destination for French investors.  It is noteworthy that our trade and investment ties have grown, despite the global economic uncertainties in the latter half of the decade.

Singapore as a gateway to Asia

3.         One key reason for our robust relationship is the fact that French companies find Singapore useful as a strategic gateway into Asia, where longer-term growth prospects have remained positive

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.  Many French companies here use Singapore as a regional headquarter (RHQ) to manage and drive their expansion across multiple Asian markets.  Others bring substantial activities and expertise to Singapore as a choice home for their regional operations, whether in terms of control tower functions or research and development.  In general, the companies value Singapore’s good regional connectivity, well-developed infrastructure, pro-business environment, and skilled workforce. Indeed, there are more than 600 French companies in Singapore today.

4.         In the manufacturing sector, for example, French names are particularly well-represented in the electronics and aerospace industries.  In the case of electronics, STMicroelectronics has had a long-standing presence here, going back to 1984. STMicroelectronics has since significantly expanded their presence here by setting up four wafer fabrication plants and initiating cutting-edge R&D activities.  STMicroelectronics is also one of the largest private sector employers in Singapore with 6,450 employees.  As for the growing aerospace industry, leading players such as EADS, Safran and Thales  have contributed to a strong Singapore aerospace cluster with their capabilities in aerospace maintenance, repair and overhaul (MRO), manufacturing and R&D.

France as Singapore’s springboard into Europe

5.         The trade and investment interest is mutual.  France is the world’s fashion capital, a leading tourist destination and the second largest consumer market in Europe.  On Singapore’s part, some of our hospitality and fashion companies have been relying on France as a springboard to penetrate the larger European market.  Take The Ascott Limited, the world’s largest international serviced residence owner-operator.  Its regional headquarter in Paris manages over 45 properties across 20 European cities in Belgium, Germany, Spain and the UK.  In July 2012, our home-grown fashion brand Raoul, collaborated with Printemps Haussmann in Paris to open its first shop-in-shop within the departmental store, world renowned for showcasing the latest fashion trends.

 
Forging partnerships to seize regional growth opportunities

6.         As our bilateral economic relations mature, French and Singaporean companies are also forging new partnership models to expand abroad together, particularly in Asia.  In the lifestyle sector, French brands are tapping the distribution networks of Singaporean companies to expand their outreach in Asia.  For instance, Singaporean fashion retailer and distributor FJ Benjamin Holdings has a sizeable retail footprint of 191 stores across Southeast Asia, Hong Kong and Australia. French brands like Celine, Givenchy and Goyard are riding on FJ Benjamin’s ready network of stores to accelerate their penetration into Asian markets.

Deepening economic ties through the EU-Singapore FTA

7.         We need to encourage the formation and deepening of such mutually beneficial partnerships.  Singapore and the EU are working to do so through negotiations for an EU-Singapore FTA – the first FTA between the EU and an ASEAN country.  When concluded, the EU-Singapore FTA will provide for greater market access and commercial opportunities for EU and Singapore businesses.  

Conclusion

8.         In conclusion, I strongly urge our companies to explore the business opportunities that both countries have to offer to each other.  There are also areas of untapped synergy, where the global footprint and established brand names of French companies could be partnered with the regional experience and expertise of Singapore companies to create a stronger value proposition.

On this note, I wish everyone a fruitful day ahead. Thank you.

[1]

              Bilateral trade in 2001 was S$6.6 billion.

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              In 2013, the IMF expects Asia to remain the global growth leader and grow at over two percentage points more than the world average. Source: IMF Asia Regional Economic Outlook, 12 October 2012.