Mr Lim Hng Kiang at the SBF-UBIFRANCE BUSINESS FORUM

SPEECH BY MINISTER FOR TRADE & INDUSTRY LIM HNG KIANG AT SBF-UBIFRANCE BUSINESS FORUM ON 28 OCTOBER 2013, 12:00PM AT UBIFRANCE OFFICE 77 BOULEVARD SAINT JACQUES, PARIS, FRANCE

FRANCE AND SINGAPORE: ESSENTIAL PARTNERS

Your Excellency Ms. Nicole Bricq, Minister of Foreign Trade

Distinguished Guests

Ladies and Gentlemen

Good afternoon.

I am confident all of you had a fruitful interaction this morning. Let me underscore some of the points that must have been raised. 

France and Singapore Enjoy Excellent Bilateral Relations

1.            First, France and Singapore enjoy excellent bilateral relations underpinned by similar strategic outlook and strong economic interest.

2.            Singapore is France’s largest trading partner in Southeast Asia and third largest trading partner in Asia, after Japan and China. France is Singapore’s second largest trading partner in the EU.

3.            With €6.5 billion worth of French investments in Singapore, Singapore is the most popular Southeast Asian destination for French investors, and the second in Asia, after Japan. Singapore is the second largest Asian investor in the EU, but our investment in France remains modest. There is scope for Singapore to tap into the vast opportunities in France.

4.            I think that is the key conclusion. That we can do more to develop our bilateral economic partnership to its full potential. This is why we have with us a well-represented business delegation from a diverse range of sectors, including logistics, urban solutions, commodities trading, health and wellness, information technology and architectural services. We hope that business partnerships can develop from this visit.

Singapore Remains the Gateway of Choice to Asia

5.            The second point I wish to highlight is that Singapore is entering a new phase. As our economy matures, we expect slower but qualitatively better growth. However, Singapore continues to welcome talent and investments, while being mindful of our physical and social constraints.

6.            We will maintain a pro-business environment which helps companies succeed in Singapore. We may not be the cheapest place to do business, but we stand firmly on a solid foundation built on efficiency, predictability and high standards of excellence.

7.            As a staunch proponent of free trade, Singapore will continue to expand our network of free trade agreements (FTAs) with other countries. We currently have the most extensive network of FTAs in Asia. Our numerous trade links provide companies with greater market connectivity. This is one of the attractions for French companies when they come to Singapore.

8.            Companies who want to expand their footprints in Asia continue to see Singapore as a natural gateway of choice. In 2012, we attracted S$16 billion worth of Fixed Asset Investments (FAI), up from S$13.7 billion in 2011.  

Europe Needs to Remain Engaged in Asia

9.            The third point I wish to underscore is that Asia remains attractive and the region is transforming, with new chapters of opportunity unfolding before us. The region will contribute significantly to world trade in decades to come. The region is not just growing, but also fast integrating.

10.         Solid progress has been made towards the vision of transforming ASEAN into a single market of over 600 million people. By 2015, the region will become a more integrated production base where goods flow seamlessly. This will provide a conducive environment for businesses to operate and flourish.

11.         ASEAN has embarked on a new endeavour with our six FTA Partners to launched the Regional Comprehensive Economic Partnership, or “RCEP” in short. The RCEP builds on ASEAN’s bilateral FTAs to broaden ASEAN’s linkages with its FTA partners. The RCEP will be one of the world’s largest free trade areas, with a market of more than 3 billion people and a combined GDP of US$17 trillion.

EU-Singapore FTA

12.         The final point in my summary is that soon we will have an additional platform to facilitate our engagement. Minister Bricq has underlined our efforts to conclude to EU-Singapore Free Trade Agreement (“EUSFTA”). The EUSFTA was initialled last month in Singapore and is now awaiting ratification. The EUSFTA signals the EU’s intent to engage a revitalised Asia. Other than the EUSFTA and the EU-Korea FTA, the EU is also negotiating bilateral FTAs with Vietnam, Malaysia, Thailand and Japan. We are confident that the EUSFTA will serve as a good template for these endeavours, and a pathfinder for the EU-ASEAN FTA.

13.         The FTA will give greater market access for French companies. Currently, agri-food products and consumer goods account for more than a quarter of French exports to Singapore. This is no surprise since France is well-known for its gourmet food, and eating happens to be one of Singaporeans’ favourite pastimes. Singaporeans can already experience the different facets of French culinary culture when they step into Michelin Chef Guy Savoy’s restaurant, or when they purchase a brioche from French artisan boulanger Éric Kayser. Under the EUSFTA, protection of intellectual property rights for uniquely French food products will be further enhanced. This will definitely strengthen the market position of distinctively French gourmet products, especially well-known cheeses, cured meats and wines.

14.         We look forward to the early entry into force of the FTA so that businesses and consumers can enjoy the benefits of this ambitious agreement as soon as possible.

Conclusion

15.         As the global economy becomes increasingly connected, free and open trade brings greater access to markets and opportunities. The access to goods and services improves consumers’ choice, while the flow of people brings talents across borders. It is with this belief that Singapore will remain an open, global city. We hope that Europe will do the same. Free and open markets are essential to countries’ long-term economic growth and employment.

16.         I am confident that Europe will overcome its present challenges and restore its dynamism and resilience. As Europe looks outwards, Asia offers many opportunities. Singapore, in the middle of this dynamic region, can play a useful role connecting Europe and Asia. Minister Bricq raised several suggestions for cooperation during our discussion earlier, such as urban solutions and infrastructure financing, which will build connections between Asia and Europe.

17.         I would like to thank UBIFRANCE and BPIFRANCE for your good work in facilitating B2B engagements over the years. We look forward to working closely with both of you.

18.         Thank you.