Mr Teo Ser Luck at the American Chamber of Commerce’s 40th AGM Luncheon

SPEECH BY MR TEO SER LUCK, MINISTER OF STATE FOR TRADE AND INDUSTRY, AT THE AMERICAN CHAMBER OF COMMERCE’S 40TH AGM LUNCHEON ON FRIDAY, 19 APRIL 2013, AT 12PM, AT THE BEGONIA JUNIOR BALLROOM, LEVEL 3, MARINA BAY SANDS CONVENTION CENTRE

Mr David Adelman, US Ambassador to Singapore,

Mr Simon Kahn, Chairman of the American Chamber of Commerce in Singapore,

Distinguished Guests,

Ladies and Gentlemen,

Good afternoon, and thank you for the warm welcome. 

Introduction

1It is my pleasure to be here for the first time at the 40th Annual General Meeting of the American Chamber of Commerce in Singapore.

Let me congratulate AmCham on 40 successful years of serving the American business community in Singapore. The chamber has grown into an important voice for American companies today in Singapore. It is the largest foreign business chamber in Singapore, with over 4,500 members representing over 750 companies.

Strengthening US-Singapore Economic Relations

The United States (US) and Singapore share a longstanding and robust economic relationship. Our strong economic ties are underpinned by a shared belief in free trade and open markets. Our bilateral links are further strengthened by the milestone US-Singapore Free Trade Agreement (USSFTA) concluded in 2003, as the first FTA between the US and an Asian country. In 2012, the US was Singapore’s 5th largest trading partner, while Singapore was the US’s 6th largest trading partner in Asia, and the largest trading partner in ASEAN. Our investment relations have also continued to grow vigorously. The US remains Singapore’s single largest investor and the US’s cumulative investments in Singapore are its second largest in the Asia-Pacific region.  Meanwhile, Singapore is the US’s 4th largest Asian investor, and both Singapore and the US remain committed to maintaining and improving our strong economic relations.

Opportunities in Singapore for US Companies

Singapore’s first-rate infrastructure, sound economic policies and excellent connectivity to the rest of Asia, Singapore is the ideal gateway for US companies expanding into the Asian market. Many American businesses have established their regional headquarters in Singapore to tap the promising growth in Asia.

Two such American companies are Visa Inc and Greatbatch. Visa is expanding its Asia-Pacific headquarters in Singapore to cater for an increasing payment volume and in fact, the majority of Visa’s operations outside the US are located here. This includes a management and control tower which oversees the regional and global strategy for Visa. In the case of Greatbatch, which develops technologies to enhance the reliability and performance of medical products, it has established its first R&D centre outside of the US in Singapore to leverage emerging healthcare markets in the Asia-Pacific region. The centre will design and develop implantable medical devices for the multibillion-dollar Cardiovascular and Neuromodulation markets. We hope that more American companies will look to Singapore as a hub for their R&D activities.

Collaboration between Singapore and US Companies

Through the years, American companies have continued to expand their partnership with Singapore agencies and companies in the area of R&D. Our solid intellectual property regime supports the cutting-edge manufacturing and R&D facilities of numerous US businesses. For example, Procter & Gamble (P&G), which has its regional headquarters in Singapore, signed the Master Research Collaboration Agreement (MRCA) in 2010 with the Agency for Science, Technology and Research (A*STAR). Through the agreement, P&G and A*STAR have developed collaborative research on biotechnology, molecular biology, chemistry, high performance computing and materials. P&G’s mega Singapore Innovation Centre, the second of only 2 such centres in Asia, will also open later this year. We welcome more American businesses to expand and level up their activities in Singapore.

Besides working together in R&D, American and Singapore companies also share a healthy collaboration. For example, Dean & Deluca, a multi-channel retailer of gourmet foods, wines and kitchenware, and Cold Stone Creamery, an ice-cream parlour chain, have partnered with Kitchen Language, the franchised fast-food and restaurant arm of Far East Organization to open stores in Singapore, and possibly in Malaysia. Furthermore, following the recent enhancement to the Partnership for Capability Transformation (PACT) scheme, which is a scheme by MTI, SPRING and IE, announced at the Budget Debate in March, I am happy to note that we can look forward to stronger partnerships between American MNCs and Singapore SMEs. SPRING will work with AmCham to identify AmCham members who are keen to help our local SMEs upgrade their capabilities and access new markets.  We look forward to increased collaboration between American MNCs and Singapore SMEs in various sectors spanning manufacturing, healthcare, logistics, diversified technology and fast moving consumer goods (FMCG).  

Singapore businesses in the US

While American businesses continue to grow their success stories in Singapore, our local companies are also exploring business opportunities in the US, in particular sectors like semiconductor equipment, aerospace, medical technology, oil and gas, and textile and apparel. We encourage American companies keen on expanding their business and partnership network, to engage and work with Singapore firms in these industries.

Role and Achievements of AmCham

Let me commend AmCham for playing a vital role in strengthening economic ties between the US and Singapore. Besides helping in the USSFTA’s successful conclusion, AmCham has been strongly supportive of the on-going Trans-Pacific Partnership negotiations, which represents another platform that can further enhance the warm economic relations between our two countries. I would also like to congratulate AmCham on being awarded the US Department of Commerce’s Peace through Commerce Award 2012, for significantly promoting overall US trade relations.

We also appreciate AmCham’s contributions to the open dialogue on business opportunities and manpower issues related to the Population White Paper that was recently rolled out. Though we are mindful of our physical and social constraints, we are committed to maintaining a pro-business environment in order to shape a better future for all Singaporeans. We would like to assure US businesses that Singapore remains open and we welcome talent and investments from the US.

I would also like to take this opportunity to thank AmCham for their efforts in giving back to the Singaporean community. Community involvement has been one of the top priorities of the Chamber and American businesses here – beginning with the Cultural Affairs Program in the early 80s, the AmCham SMU Scholarship for the past 9 years and continuing today with a larger than ever Corporate Community Day, the largest event of its kind on the island. Last October, I happened to have the chance to bowl with Ambassador at an event organised for children from the Singapore Association for the Deaf. 

I was also at the official opening of the Stamford American International School in 2012, where I met Ambassador again.  It didn’t stop at the event, as the soccer team I captained played against Stamford American International School.  Today, I am glad to hear that The Yellow Ribbon Fund, a Singapore-based charity, will be the Chamber’s adopted charity for 2013. I applaud the positive impact that AmCham and its members are making in the community and I would like to encourage you to continue reaching out and growing your community engagement footprint in Singapore.  

Conclusion

To conclude, I would like to commend AmCham for its tireless efforts in driving American business and community activities in Singapore and we look forward to further collaboration with AmCham and US businesses in the years to come. I wish AmCham continued success in supporting the efforts of the US and Singapore in building an even stronger relationship.

Thank you.