Speech by Minister Lim Hng Kiang at 6th Norway-Asia Business Summit

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SPEECH BY MINISTER FOR TRADE AND INDUSTRY (TRADE)

MR LIM HNG KIANG

6th NORWAY-ASIA BUSINESS SUMMIT

13 APRIL 2016, 9.30AM, FULLERTON HOTEL

Your Excellency, Prime Minister Erna Solberg,

Distinguished guests,

Introduction

1.        I am pleased to join you today at the 6th Norway-Asia Business Summit. Let me first extend a warm welcome to Prime Minister Solberg and her distinguished delegation to Singapore. 

Singapore and Norway have longstanding economic relations

2.        Norway and Singapore enjoy longstanding economic relations. Norway is Singapore’s 8th largest trading partner in Europe and Singapore’s 4th largest investor from Europe. At end-2014, the overall FDI stock in Singapore was estimated at S$23 billion. The Prime Minister has outlined the huge number of Norwegian companies here, making Singapore home to the largest concentration of Norwegian businesses in Asia. 

3.        Norwegian companies have made significant contributions to Singapore’s economic development.  For example, DNV-GL, the world’s largest marine and offshore classification society. Last October, DNV-GL launched its first independent Test Centre for substation automation in Singapore. This is DNV-GL’s first centre outside Europe, providing grid security and reliability testing services for the entire Asia Pacific region. Another example is international technology group, Kongsberg.  Its regional headquarters in Singapore oversees its operations in Asia across industries such as the aerospace, the offshore oil and gas sectors. 

4.         Singapore-Norway economic relations have also benefitted from the EFTA-Singapore Free Trade Agreement (ESFTA). In 2015, our trade was valued at almost S$10 billion.  Singapore is the largest trading partner and investment destination for both EFTA and Norway in ASEAN, indicative of our role as a gateway to this dynamic region. 

ASEAN is an increasingly important region with immense growth potential. 

5.         The overall global economic slowdown has prompted businesses to look towards ASEAN as its economic outlook remains relatively optimistic.  The Asian Development Bank predicts that the size of the middle class in Southeast Asia will rise from 24% of the population in 2010, to 65% in 2030. With a rising middle class, ASEAN will become an increasingly important final demand market, presenting immense opportunities for Norwegian businesses to grow consumer-centric activities. 

6.         The ASEAN Economic Community (AEC) will make ASEAN a more compelling market and production base. The AEC promotes greater economic integration among the 10 ASEAN Member countries, making it easier for companies to do business here. 

Singapore is well positioned as a launchpad for Norwegian companies to tap on the dynamic growing markets in ASEAN. 

7.         However, ASEAN remains a region with diverse cultures and differing levels of economic development. Singapore and Norway’s proven track record of fruitful collaborations make Singapore a natural partner for Norwegian companies to navigate the complexities of doing business in ASEAN. 

8.         Singapore is a reliable launchpad to manage regional operations with our robust intellectual property regime, transparent government, and consistent and predictable pro-business policies. 

9.         Singapore’s extensive network of 21 trade agreements can help Norwegian companies gain preferential access to markets within Asia and beyond. Recently, Singapore signed the Trans-Pacific Partnership (TPP). Singapore is also participating in the Regional Comprehensive Economic Partnership (RCEP) negotiations. Together, the RCEP and TPP are potential pathways towards the ultimate objective of a Free Trade Area of the Asia-Pacific. This will integrate Singapore further into the regional and global economy.

10.       Looking ahead, Singapore and Norway recognise the need to innovate and harness technological advances in order to remain competitive. Singapore and Norway can pursue many more successful partnerships in sectors where we have complementary strengths. These include areas like advanced manufacturing technologies such as robotics and additive manufacturing. Other key areas where we have synergies are the maritime, oil & gas, and clean technology sectors. 

Conclusion

11.       As we face greater global economic uncertainty, this Summit is timely as businesses need to improve their competitiveness and take advantage of opportunities in ASEAN and the broader Asia region. On this note, I wish you a productive session ahead. Thank you.