Mr Lim Hng Kiang at the Oman Singapore Business Forum

OPENING REMARKS BY LIM HNG KIANG, MINISTER FOR TRADE & INDUSTRY, AT THE OMAN-SINGAPORE BUSINESS FORUM AT 9:30 AM, 31 AUG 2006 GRAND BALLROOM 1, GRAND COPTHORNE WATERFRONT

Your Excellency Minister Maqbool Bin Ali Sultan,

Minister of Commerce and Industry

Distinguished Guests

Ladies and Gentlemen

Good Morning. I am delighted to join all of you this morning. It gives me great pleasure to extend a warm welcome to Minister Maqbool and our friends from Oman, who have come to Singapore to attend the Oman-Singapore Business Forum. Your presence, coupled with the strong turnout of Omani businessmen and officials, bear testament to the growing relations between Oman and Singapore.

Although our businesses have traditionally been more familiar with the markets of Southeast Asia, China, Japan and the US, the Middle East is steadily gaining mindshare among our business community. The Middle East was Singapore’s 7th largest trading partner in 2005 [1].Overall trade has more than doubled since a decade ago to S$46 billion in 2005.

For the past few years, at both the Government-to-Government and Business-to-Business levels, we have been actively engaging the Middle East to increase our mutual understanding and awareness of the opportunities in both Singapore and the Middle East. This is because Singapore recognizes the immense potential that the Middle East possesses.

So far, our engagement efforts have garnered encouraging response. Many Singapore companies have ventured into the Middle East market and are now actively pursuing opportunities in construction and real estate, oil and gas supporting infrastructure, environmental engineering, transport and logistics, financial services and the info-comm technology sectors. From 2000 to 2004, Singapore’s investments to the Middle East doubled, reaching S$1 billion in 2004[2]. Over the same period, inward investments from the Middle East have increased by close to eight times[3].

Singapore and Oman have enjoyed friendly relations since we established diplomatic ties in 1985. Our bilateral relationship has been strengthened by the various platforms we have institutionalize to facilitate cooperation. The 5th Singapore Oman Joint Committee was held recently in Singapore in February this year to discuss strengthening ties between our governments and developing business cooperation. Our respective Ministries of Foreign Affairs also meet annually for consultation exercises.

The conclusion of the Avoidance of Double Taxation Agreement in 2003 to eliminate double taxation on income arising from cross-border activities is another testimony of the deepening economic relations between us. Singapore and Oman are also in the midst of negotiating an Investment Guarantee Agreement to facilitate investment flows between the two countries. These economic agreements will serve to strengthen our economic relations.

I urge Singapore’s businessmen to explore the developments taking place in Oman. Oman has embarked on a remarkable economic diversification program. Some of these include the development of Oman’s natural gas resources under the Oman Liquefied Natural Gas Project; the establishment of the Sohar Industrial Port at Al-Batinah; and the mixed urban development project of the seafront city “Al Madina Al Zarqa” or otherwise better known as “the

Blue City” in Al Sawadi. All these represent business opportunities for Singapore companies.

Over the last few years, Singapore’s companies have made inroads into Oman. The Public Establishment for Industrial Estates (PEIE) has adopted the Ascendas Real Estate Management System (AREMS) for its seven industrial parks including the country’s first technology park, “Knowledge Oasis Muscat”. Banyan Tree is managing the “Chedi Muscat”, a luxury hotel situated on the Boushar Beachfront in Muscat. TNA solutions has also collaborated with a local partner to establish ASM Technologies, a provider of education related ICT services. These examples prove that there are opportunities to be found in many sectors.

Singapore too can act as a gateway for Omani businesses to broaden its engagement of Asia. I welcome more companies from Oman to come and explore the opportunities in Singapore. I am confident that you will find Singapore a convenient and competitive place from which to expand your business in Asia.

I thank and applaud the Singapore Business Federation and the Oman Chambers of Commerce and Industry for taking the initiative to organize the inaugural Oman-Singapore Business Forum. Platforms like this forum play an integral role in deepening the understanding between our business communities.

I believe the future prospects for economic relations between Singapore and Oman are bright. I hope that through this forum, our people will learn more about the business opportunities and trends in Oman and Singapore and in the process, we can network, strengthen existing friendships and build new ones. Thank you and I wish all of you a very useful and successful forum.

[1] After Malaysia, US, EU, China, Indonesia and Japan.

[2] Source: Singapore Department of Statistics – total outbound investment total S$438.8 million in 2000 and S$1,017 million in 2004

[3] Source: Singapore Department of Statistics – total inbound investment total S$474.6 million in 2000 and $3562.3 million in 2004