Mr Peter Ong at the Official Launch of the Singapore Cooperation Enterprise

ADDRESS BY MR PETER ONG, PERMANENT SECRETARY, MINISTRY OF TRADE AND INDUSTRY AND VICE-CHAIRMAN, SINGAPORE COOPERATION ENTERPRISE, AT THE OFFICIAL LAUNCH OF THE SINGAPORE COOPERATION ENTERPRISE, 12 JULY 2006

Thank you Peter.As earlier explained, SCE will be the vehicle for us to export Singapore’s public sector expertise overseas. SCE will help to unlock the valuable expertise that resides within the public sector, acquired over the last 40 years of our development.We will share this with foreign governments keen to tap on our experience in building a world class physical, social and economic infrastructure.

There is tremendous recognition and respect abroad for Singapore’s economic development model and the Singapore brand name. In the last 3 years alone, the Singapore government, mostly through MFA and MTI, has received more than 100 enquiries from foreign governments interested in learning from our experience. We expect demand for such expertise to rise over the next 5-10 years. We estimate the global market size for public sector services to be worth billions, and capturing even a small slice of this is an attractive prospect.

SCE provides us with a vehicle to meet that demand by tapping on the expertise that is in our government agencies to further Singapore's external economy as well as to open new doors for Singapore-based companies.This is a logical progression for us. In the past, we relied heavily on foreign expertise. For example, we required French, British and Japanese expertise to build our first MRT system. Today, LTA has many competent personnel who are familiar with the entire process of planning for a new line, designing it, building it and managing its operations. Our Singapore companies also have expertise to run complex rail systems, and their expertise is sought after by other countries.This was one of the reasons why LTA has set up MSI Global to spread the expertise built up in the public sector beyond Singapore's shores.

Several other statutory boards have established commercial arms to deal with requests for our expertise. However, there is as yet no government entity that looks into how Singapore can best capitalize on the opportunities surrounding the export of our public sector expertise to provide a competitive edge to Singapore companies. SCE has been set up with this in mind. SCE will take a long-term approach, building up the resources and know-how to engage buyers and partners on a long-term basis and increasing the attractiveness of our product offering by providing access to the entire suite of public sector services that Singapore has.

Priority markets and sectors targeted by SCE

SCE intends to slowly build up its expertise and focus on several key areas where we see potential.For a start, following high-level visits by our leaders, countries in the Middle East, Russia and North Africa have expressed interest in tapping into Singapore’s public sector expertise.SCE will focus on these markets in the immediate term.Going forward, SCE expects to find opportunities in emerging markets such as China, India and South-east Asia.

In terms of sectors, SCE foresees that there will be interest in the development and management of industrial parks and Special Economic Zones, port management and transportation, as well as public services such as education, healthcare and e-government.

How SCE may benefit Singapore-based companies

I would like to elaborate more on how SCE's work may benefit Singapore-based companies by helping to open more doors for them, especially in new markets.

When a foreign government puts up a request for Singapore to replicate a successful Singaporean model in their country, SCE may structure the project to include both public and private sector expertise in its package delivery.

Let me illustrate with a possible scenario. Country A requests Singapore to share its knowledge and expertise in a medium-scale township project. SCE identifies the key expertise required for the project and determines that a mix of public and private sector expertise is needed.These could range from themasterplanning and management of business and industrial parks, to the design and building of specialised infrastructure such as transport systems and water treatment plants.SCE will engage Country A, and propose a packaged delivery from a consortium of relevant public and private sector service suppliers.

Another example would be when public sector staff are seconded to a foreign government via SCE, to help set up a new agency. This will help to strengthen institutional links between Singapore and the foreign government. This link is a crucial one as the government concerned may want Singapore companies in the project implementation phase as well to ensure smooth delivery of the entire 'Singapore model'.These will serve as important doors for our Singapore companies even as they internationalise and search for new markets to expand into.

SCE’s enhanced model for Public private partnerships (PPP)

SCE facilitates G to G collaboration and enhances the value of public private partnerships. While such public-private partnerships do exist in other countries, in areas such as healthcare management and urban development (See footnotes below), SCE, with access to the full suite of Singapore’s public sector services, and banking on Singapore’s brand name, will enhance the PPP model, create value, and enhance the competitiveness of our Singapore-based companies.

I shall leave it now to the CEO of SCE, Mr Alphonsus Chia, to elaborate on the set-up and operational model of SCE. Thank you.

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Footnote 1 – PPP for Healthcare Management.In Canada for example, the health ministry, public hospitals and research institutes teams up with private sector companies to provide healthcare services. The ministry provides experts to contribute in strategic planning, training and health system reviews; while the private sector companies offer financing and partake in the designing, building, setting up and management of the healthcare centres.

Footnote 2 – PPP for Urban planning and development.In Sweden, the environment ministry, trade councils and environmental technology companies team up to develop sustainable cities that employ environmentally-friendly technologies.