Mr S Iswaran at the Austria-Singapore Economic Forum, 22 Feb 2011

SPEECH BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE & INDUSTRY AND EDUCATION, AT THE AUSTRIA-SINGAPORE ECONOMIC FORUM ON TUESDAY, 22 FEBRUARY, 1000 HRS AT THE SHANGRI-LA HOTEL, SINGAPORE

His Excellency Heinz Fischer, President of the Federal Republic of Austria,

His Excellency Reinhold Lopatka, Vice-Minister of Finance,

Distinguished Guests

Ladies and Gentlemen

Good Morning

Introduction

I am very pleased to join you this morning at the Austria-Singapore Economic Forum.I would like to extend a warm welcome to His Excellency President Heinz Fischer and your delegation.Singapore is also pleased to host this large business delegation from Austria.

Bilateral relations between Austria and Singapore

Austria and Singapore enjoy good bilateral relations underpinned by our strong economic ties.Over the past decade, our bilateral trade grew by an annual average of 7 per cent reaching S$1.6 billion last year.Austria’s investment in Singapore also increased over the past decade to S$1.6 billion in 2009.

Singapore’s Business Ties to Austria: Spanning More Than Two Decades

Not many may know that Austrian companies have left an indelible impression on Singapore’s economic development, spanning a period of more than two decades.Singapore’s Mass Rapid Transit (MRT) system, our cableway system that links Mt Faber to Sentosa, and Changi Airport have all benefitted from Austrian expertise.

A Salzburg-based civil engineering company – Geoconsult— helped to build our first rail line in the mid 1980s.With a monthly ridership of close to 50 million, the MRT is an integral part of Singapore’s transport infrastructure.In the 1990s, Geoconsult designed more tunnels for the North East Line.Austria’s involvement continues today, with the tunnels for Singapore’s new Downtown line being built by ALPINE Bau, Austria’s second largest construction company.

Our Cable Car system, which has been an iconic attraction for over 30 years, was recently overhauled by Austria’s Doppelmayr/Garaventa Group - a world leader in ropeway engineering.

Changi International Airport’s newest terminal has a lighting system specially designed by Bartenbach Lichtlabor, an Austrian company which specialises in innovative lighting.Its controllable daylight reflecting system is the first of its kind in the world.

Opportunities in Asia

These are just some examples of the projects that underpin our longstanding and growing Austria-Singapore business links.There are already some 132 Austrian companies based in Singapore.And I would like to encourage more Austrian companies to consider using Singapore as a launch pad to tap the burgeoning opportunities in Asia as they seek to expand their customer base and diversify export markets.

Today, Asian economies like China and India are key growth drivers for the global economy and their contribution will grow over the longer-term.Currently, Austria’s exports to Asia comprise about 10 per cent of your total exports.[1] In contrast, about 30% of the EU’s total exports went to Asia every year from 2005 to 2009.Clearly, the potential to grow your links to this region is significant.

Singapore as Gateway to Asia

Singapore can serve as a gateway for Austrian companies seeking new opportunities in the emerging markets of Asia.As a global business city, Singapore has good infrastructure, excellent connectivity and a highly-skilled workforce.Our companies can also be good partners for Austrian companies venturing into the region.Our corporate cultures are compatible and Singapore companies have a strong presence in, and familiarity with, regional markets.Singapore is also well connected to China, India, Japan and ASEAN through our network of 18 Free Trade Agreements (FTAs).This enables companies based here to enjoy easier market access and tariff savings.

Negotiations for the EU-Singapore FTA also started last year.We hope to work towards a high quality FTA which will further boost the flow of goods, services and investment between Singapore and the EU, including Austria.Businesses are important partners in this process, and we look forward to your ideas and support to achieve a good outcome for all.

Austria as Gateway to Central and Eastern Europe

I would also like to encourage more Singapore companies to look to Vienna as a gateway to enter the promising emerging markets in Central and Eastern Europe.You can tap the knowledge of the many Austrian banks and law firms that have a deep and rich knowledge of the region.Austrians also speak Central and Eastern European languages and are familiar with the region’s business culture.This makes Austrian companies ideal commercial partners for Singapore companies, and many international companies are already coordinating their activities in Central and Eastern Europe from Austria.In addition, Austria itself is an attractive investment location with a prosperous and skilled population, good infrastructure and an excellent quality of life.

Potential sectors for bilateral cooperation

Austrian and Singapore companies should, therefore, work together to tap our respective regions’ growth and capitalize on opportunities to collaborate.For example, I understand that Austria is keen to expand in the areas of alternative energy and low-carbon transport [2].Singapore is also focusing on urban solutions and clean technology as new growth sectors.Austrian and Singapore companies could explore collaborations in these areas, for instance, to jointly develop and test-bed solutions in environmental engineering, waste management and renewable energy, and, thereafter, export them to the wider regions in Europe and Asia.

Manufacturing is another potential area for partnership.Both Austria and Singapore have strong manufacturing industries and there are many potential collaborative opportunities in the electronics and precision engineering sectors.I am, therefore, confident that the detailed presentations by our economic agencies later today will spark new ideas and partnerships.

Conclusion

I would like to commend the Austrian Embassy, the Austrian Federal Economic Chamber, as well as the Singapore Business Federation, for successfully organising this forum.I hope that the insights gained and partnerships formed at this forum will spur greater economic cooperation between Singapore and Austria.I wish you a productive session ahead and a pleasant stay in Singapore.Thank you.

[1] Latest estimates from the Austrian Federal Ministry of Economy, Family and Youth. In contrast, Austria’s exports to the EU27 comprised 70% of the total.

[2]Based on FT’s interview with Austrian Economic Affairs Minister, Reinhold Mitterlehner. Reported in FT Special Report on Investing in Austria, 22 Oct 2010, “Prospects Considered Brighter in More Niche Markets”.