Mr S Iswaran at The Official Opening of the 8th AAMA-TEX 2010, 23 Nov 2010

SPEECH BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE & INDUSTRY AND EDUCATION, AT THE OFFICIAL OPENING OF THE 8TH ASIA APPAREL AND TEXTILE MACHINERY EXHIBITION (AAMA-TEX 2010) ON TUESDAY, 23 NOVEMEBER, 0900 HRS AT THE MARINA BAY SANDS EXPO AND CONVENTION CENTRE

Mr Benny Pua, Chairman of AAMA-TEX Organising Committee and President of TAFf,

Mr Teo Kim Chuan, President of Sewing Machine Traders Association (SMTAS),

Distinguished members of the ASEAN Federation of Textile Industries,

Ladies and Gentlemen,

Good morning.

Introduction

I am pleased to join you for the 8th edition of the Asia Apparel and Textile Machinery Exhibition (AAMA-TEX).Since 1989, this event has been anchored in Singapore and we are pleased to continue to host South East Asia’s leading textile and garment exhibition.

This year, with the collaboration between the Textile and Fashion Federation (TaFf) and the Sewing Machine Traders Association Singapore (SMTAS), AAMA-TEX 2010 is showcasing an even more extensive range of textile and apparel machinery than in previous years.Response to this 8th edition of AAMA-TEX has also been impressive. The previous event held in 2007 had 260 exhibitors and over 3000 trade visitors from 52 countries attend. I understand from the organisers that this year, more than 300 exhibitors and over 5000 trade visitors are expected to attend.

Promising outlook for the Asian textile and apparel industries

The outlook for the Asian textile industry is promising. While the recent global economic downturn may have dampened Asian textile exports figures in the last year or so, Asia’s strong recovery bodes well for the growth prospects for Asian textiles. With an expanding middle class and higher disposable incomes, Asia’s consumption capacity will continue to rise. The Asian fashion market, for example, is projected to grow at more than a 5 per cent compounded annual growth rate from 2008 to 2013. In comparison, American and Western European fashion markets are expected to grow at slower rate or even contract. Asian apparel and textile industries must therefore seize this opportunity to capture a share of these fast growing emerging markets in the region.

Recognising this, textile and garment producers in ASEAN recently banded together to set up an alliance to boost competitiveness. The Source ASEAN Full Service Alliance (SAFSA) initiative will promote ASEAN as a full-service supply chain leader in the global textile and garment market. This has resulted in virtual vertical factories, which are partnerships between textile mills and garment factories based in ASEAN. These partnerships seek to maximise efficiencies along the ASEAN textile and apparel industry supply chain and set high standards in production quality and value-added services.

Earlier this year, Singapore hosted the first SAFSA Global Forum in which some 20 leading global apparel brands, such as Marks & Spencer, H&M, Mango, Polo Ralph Lauren, Guess and VF Corporation participated.I am pleased to note that 23 MOUs were signed with eight international brands, which included Max Mara, Mango and Polo Ralph Lauren.The MOUs are set to carry through to AAMA-TEX 2010 as it targets US$20 to US$30 million in contracted sales

Singapore - A key textile and apparel hub

Here in Singapore, we are also taking steps to boost our competitiveness. With the elimination of global export quotas, there is added pressure on the textile and apparel industries in terms of pricing, quality and delivery time. Our textile and apparel industries are already synonymous with quality and compliance, and recognised for their strengths in design and marketing of cutting edge textiles and apparels. We aim to further strengthen this reputation.Last year, a new collective industry brand known as Apparel Singapore, was launched.Spearheaded by TaFf, the brand will help showcase the collective strengths of the industry and further raise the profile of Singapore’s textile and apparel industries.

Singapore’s competitive advantages, such as strong logistics and financial infrastructure support, have also been key in enabling our textile and fashion businesses to compete successfully in the global arena. These attributes have also helped to make Singapore the second largest sourcing hub in Asia, with an estimated sourcing volume of S$4.5billion.

Earlier this year, we also launched the inaugural Asia Fashion Summit. The summit acts as an Asian information exchange for fashion matters and aims to help Asia transform from being a home of manufacturing into a strategic fashion hub known for leading edge design and product development. Likewise, AAMA-TEX 2010 helps to showcase the region’s potential as a textile/garment hub by enabling Asian textiles and apparel producers and exporters to meet with key global buyers and keep abreast of the latest industry developments.

Conclusion

I would like to congratulate TaFf and SMTAS for successfully organising this 8th installment of AAMA-TEX. I wish all exhibitors and visitors a productive and rewarding time here.It is my pleasure to declare the 8th Asia Apparel and Textile Machinery Exhibition open.

Thank you.