Mr S Iswaran at the Official Opening of Globaltronics 2006

SPEECH BY MR S. ISWARAN, MINISTER OF STATE FOR TRADE AND INDUSTRY, AT THE OFFICIAL OPENING OF GLOBALTRONICS 2006 ON 10 OCTOBER 2006 AT 11:15 AM AT BALLROOM 1, SUNTEC SINGAPORE INTERNATIONAL EXHIBTION AND CONVENTION CENTRE

Distinguished guests, ladies and gentlemen.

Introduction

I am pleased to be here at the 8th staging of GlobalTRONICS and amparticularly happy to note that this event has been anchored in Singapore since 1992.

GlobalTRONICS is one of the largest electronics design and manufacturing events in Asia, welcoming some 500 exhibiting companies from 28 different countries. More than 20% of the exhibitors this year are new to GlobalTRONICS, injecting fresh appeal to the show.

Electronics sector as a key driver of growth for manufacturing industry

According to an In-Stat market intelligence report issued in January, contract manufacturing output in Asia reached S$116 billion in 2004 and is forecast to increase to S$256 billion in 2009, translating into a compounded annual growth rate of approximately 17% over the same period. This strong growth is increasingly driven by countries such as China, Malaysia and Thailand, supported by the availability of low-cost labour and an increasing pool of technical expertise.

As Asia becomes the global contract manufacturing hub for electronic parts and products, Singapore will have to find a role for itself to continue to be relevant and add value to the electronics manufacturing industry.

The Singapore Economic Development Board (EDB) estimates that Singapore’s manufacturing output in 2005 stood at S$208 billion, with the electronics industry contributing 36% of total output. Moving forward, Singapore aims to increase manufacturing output to S$300 billion by 2018.

Exciting times lies ahead for the electronics industry. In 2005, this industry contributed to half of the S$8.5 billion in fixed asset investments to Singapore. New players like Nepes Corporation have joined existing companies such as Linear Technology and Micron Technology, in injecting fresh investments in production facilities.

The trend towards digitisation in multimedia, coupled with the convergence of computing, communications, networking and entertainment have also led to the creation of new generations of hybrid devices. Such a phenomenon has fuelled the demand for semiconductors, a critical component of the electronics industry.

In a recent sales forecast, US-based Semiconductor Industry Association (SIA) projected global sales of S$491 billion for 2008, with Asia Pacific posting double digit gains.This region is expected to account for nearly half the global market by 2008. In this rapidly growing industry, Singapore’s relevance lies in its ability to leverage on its knowledge economy and offer value-add in terms of innovation, R&D, upstream technology and business opportunities in the electronics sector.

GlobalTRONICS encapsulates all these attributes and showcases not only traditional manufacturing angles for the electronics sector, but also provides a platform for industry players to learn about the latest in cutting edge technology pertaining to manufacturing.

Singapore as the Preferred Venue for Business Events

Let me now touch briefly on our MICE sector.In order to reach our targets of increasing visitor arrivals to 17 million and raising tourism receipts to S$30 billion by 2015, Singapore must go beyond the traditional factors of success. We have to continue to reinvent and rejuvenate the city into a compelling MICE destination to be on par with international MICE cities like Frankfurt, Las Vegas, Paris and London. The recently launched suite of incentives – “BE in Singapore” or “Business Events in Singapore” is a reflection of our continued commitment to work with industry partners to attract, grow and create more business events to be anchored in Singapore.

Conclusion

While you are actively participating in GlobalTRONICS 2006, may I also encourage you to take some time off to experience Singapore’s unique blend of tourism offerings, including our many attractions, exciting nightlife and colourful ethnic districts. I am pleased to share with you that the dazzling Hari Raya light-up along Geylang Serai and the Kampong Glam area, as well as the FestivalVillage bazaar that commemorates the Deepavali celebrations in Little Indiaare happening here in Singapore during this period.

On this note, I wish all of you a very successful and fruitful time at GlobalTRONICS 2006, and a pleasant stay in Singapore. Thank you.