Mr Peter Ong at the Berg Propulsion Plant Opening Ceremony

SPEECH BY MR PETER ONG, PERMANENT SECRETARY, MINISTRY FOR TRADE & INDUSTRY, AND CHAIRMAN, MARITIME & PORT AUTHORITY, AT BERG PROPULSION PLANT OPENING CEREMONY ON 21 MAY 2008 AT 1850 HRS

His Excellency, Mr Pär Ahlberger,

Swedish Ambassador to Singapore,

Mr Bjorn Svensson,

Chairman of the Board, Berg PropulsionAB,

Mr Aloysius Hendricks,

Chief Executive Officer, Berg PropulsionAB,

Distinguished Guests,

Ladies and Gentlemen,

Introduction

1.Good evening.I am delighted to be here today to officiate at the Opening Ceremony of Berg Propulsion’s first propeller manufacturing plant outside of Sweden and its International Headquarters for sales and marketing.

2.The establishment of Berg Propulsion’s new plant here affirms several things -- the significance of Singapore’s marine and offshore industry, the depth and breadth of our capabilities and our excellent business environment.

Vibrant Marine & Offshore Industry

3.Today, Singapore is the biggest ship repair nation in the world. We are also the largest manufacturer of offshore oil rigs, with 70 per cent market share.We have global leadership in the conversion of tankers to Floating Production Storage and Offloading Platforms or FPSOs.

4.In 2006, the marine and offshore industry achieved an output of S$9.8 billion, a substantial 40 per cent growth over 2005.The global demand for ship repair, FPSO conversions and offshore deepwater platforms remains robust. Shipyards and companies in Singapore are reporting strong order books and a high level of activity.

5.We aspire to be an integrated marine hub, comprising world class shipyards, companies offering complex marine systems and components and marine-related services. Companies here engage in a wide range of activities, such as manufacturing, headquarter services, training, research and development, engineering, regional distribution, and more. Berg’s presence in Singapore is an important contribution to our integrated marine hub.

Developing human resources for Singapore’s integrated marine hub

6.In the future evolution of the marine and offshore industry in Singapore, we are emphasizing more knowledge, capital and innovation intensive activities, all of which require well trained and educated human resources. Our educational institutions play a key role in developing people for industry. For example, both the National University of Singapore and the NanyangTechnologicalUniversity have final-year specializations and Master’s degree courses in Marine & Offshore Engineering. Graduates of our polytechnics also have opportunities to upgrade themselves with a university degree. Ngee Ann and Singapore Polytechnic are working with University of Newcastle Upon Tyne, to roll out a full-fledged Bachelor’s degree in naval architecture and marine/ocean engineering, starting in September of this year.

7.What this means is that Berg Propulsion, and the marine industry, can look forward to a steady stream of skilled and knowledgeable graduates from these programs. In addition to developing capabilities within the local workforce, Singapore adopts an open immigration policy to enable a foreign talent pool to augment our local human resources, thus providing a cosmopolitan workforce that will give companies based here a competitive edge when entering into other markets in the region.

Conclusion

8.In conclusion, let me congratulate the management and staff of Berg Propulsion on the opening of its Singapore manufacturing plant, as well as the establishment of its International Headquarters for Sales and Marketing here. This is an important milestone for Singapore and Berg Propulsion.I look forward to many good years of working together.