Mr Lim Hng Kiang at the Signing Ceremony of the Peru-Singapore Free Trade Agreement

REMARKS BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE SIGNING CEREMONY OF THE PERU-SINGAPORE FREE TRADE AGREEMENT, AT THE PERUGOVERNMENTPALACE, AT 6.30PM ON THURSDAY, 29 MAY 2008

His Excellency President Alan Garcia,

Distinguished Guests

Ladies and Gentlemen

Good evening.

I am very pleased to be here today to share in the celebration of the signing of the Peru-Singapore Free Trade Agreement.

Singapore’s Engagement and Strengthening Ties with Peru

Both Singapore and Peru are situated in regions of dynamic growth.Latin America and Asia are experiencing healthy economic growth - growth in Latin America and Asia is expected to reach 5.6%[1] and 7.4%[2] respectively for last year.Trade and investment flows between both regions are also expanding.Bilateral trade between Singapore and Peru has likewise seen steady growth over the last five years, with potential to grow further in future years.Last year, bilateral trade reached S$56.1 million, with exports from Singapore to Peru accounting for 66% of total trade.

The Peru-Singapore Free Trade Agreement is a positive step towards strengthening our bilateral economic relations.I am pleased that we have signed a high quality and comprehensive Agreement today. .The PeSFTA will enable Singapore and Peru to leverage on each other’s strengths to enhance their access to the Latin American and Asian markets respectively and help catalyse further growth in bilateral trade and investment.

The warm and friendly ties between Singapore and Peru continue to grow with Peru’s hosting of the Asia-Pacific Economic Council (APEC) meetings this year, followed by Singapore’s APEC Chairmanship next year.The numerous visits by leaders and officials from both sides over the next two years will provide good opportunities for increased interactions to explore areas of collaboration between both countries.

Business Opportunities in Peru and Singapore

The PeSFTA will also serve to enhance B-to-B linkages between our respective business communities.For our Singapore companies venturing abroad, Peru is a market of promising potential. Singapore companies bring with them their international experience and capabilities in many sectors such as urban and industrial infrastructure, port and logistics, and e-government solutions.

In this regard, Singapore’s Trade Promotion Agency IE Singapore has organised two business delegations to Peru last year, together with our Non-Resident Ambassador to Peru Giam Chin Toon, to explore possible business opportunities.The two visits generated positive feedback from the business community and interest from businesses has been very encouraging.The business seminar jointly organized by Peru’s ADEX[3] and ProInversion[4] in September 2007 in Lima was also a success, allowing both Peruvian and Singapore companies to gain a better understanding of business opportunities available in both countries.IE Singapore has also organized a business mission comprising Singapore companies from the food industry who are here with us today. This a testament to our growing interest in exploring business opportunities in Peru.

Our warm and friendly bilateral relations combined with the signing of the PeSFTA today provides excellent prospects for enhanced trade and investment opportunities for our businesses.The annual Latin Asia Business Forum organized by IE Singapore has been successful in bringing together the business community from both Asia and Latin America to identify emerging business trends and potential opportunities.I hope to see Peru’s participation at this year’s Forum which will be held in Singapore from 22 to 23 September 2008.

Enhancing Relations at APEC

This year and next year present significant opportunities for Peru and Singapore to further deepen bilateral relations.Singapore and Peru share close working relations at APEC on many initiatives.Singapore has much to learn from the experiences of host economies like Peru as we prepare for Chairmanship in 2009.

Peru’s capable leadership in 2008 will continue the forward momentum achieved thus far on APEC’s key priorities. Singapore looks forward to working with Peru to ensure continuity on APEC’s key priorities as we host APEC 2009.

I wish Peru success in hosting APEC 2008, and I look forward to having engaging discussions at the Ministers Responsible for Trade meetings in Arequipa.

I wish every one of you an enjoyable evening.Thank you.

[1]United Nations Economic Commission for Latin America and the Caribbean’s (UNECLAC)Preliminary Overview of the Economies of Latin America and the Caribbean in 2007.

[2] United Nations Economic and Social Commission for Asia and the Pacific’s (UNESCAP) Economic and Social Survey of Asia and the Pacific 2007.

[3] ADEX is a Peruvian Exporters’ Association.

[4] ProInversion is Peru’s investment promotion agency.