Speech by Minister Lim Hng Kiang at the 4th Turkey-Singapore Business Forum at the Four Seasons Bosporus Ballroom, Istanbul

Your Excellency Adnan Yildirim

Deputy Minister of Economy

Distinguished guests

Ladies and Gentlemen

Introduction

Good afternoon. I am pleased to join you today at the 4th Turkey-Singapore Business Forum in Istanbul and to attend the inauguration of the Turkey Singapore Business Council.

Turkey-Singapore bilateral relations have grown rapidly in recent years. In January this year, then-Prime Minister Erdogan visited Singapore. Today I am happy to be accompanying Singapore’s Prime Minister on his first official visit to Turkey. So far during our visit, we have been overwhelmed by the famous hospitality of Turkish people.

Singapore and Turkey are attractive business destinations

Turkey is an emerging market for Singapore companies, which are more familiar with the region around Singapore – Southeast Asia, China and India. Nevertheless, there is growing awareness that Turkey is an attractive investment destination because of its economic growth and potential. Turkey’s young population of more than 75 million also presents a sizable and attractive market for Singapore companies. To facilitate stronger trade and investment exchanges between Turkey and Singapore, International Enterprise Singapore, the government’s trade and investment promotion agency, opened its overseas office in Istanbul in 2012. Since then, targeted missions focusing on sectors like Urban Solutions and Consumer Electronics have been organised to facilitate the interests of Singapore companies in the market.

Singapore started out as a shipping and trading nation but we have since diversified our economy to establish globally competitive industries in electronics, energy & chemicals, precision engineering, infocomms & media and logistics among others. At the same time, our companies are also developing new expertise in data analytics, consumer & lifestyle businesses and safety & security as well as starting on space technologies. As Turkey pushes ahead with infrastructure and industrial development, Singapore companies have the right capabilities in these sectors to partner Turkish companies and to contribute to Turkey’s growth.

Several established Singapore companies are active in Turkey. Just now, you have heard a very interesting and dramatic account of PSA International, which is now jointly running the Mersin port with their Turkish partner Akfen Holding.  Jurong Consultants masterplanned the Petkim Peninsula for Petkim PetroKimya Holding in 2010. I strongly encourage more Singapore companies to explore the business opportunities that Turkey offers. Some of them are here at the Forum today as part of a business delegation led by International Enterprise Singapore and the Singapore Business Federation to find new markets and locate new partners in Turkey. I hope that the Turkish businesses present today could also share the Turkish economic dynamism with our companies so that both Turkish and Singapore companies can succeed together.

Singapore and Turkey are hubs for our respective regions

Turkey and Singapore are hubs for our respective regions and so are in an excellent position to connect two large and economically important markets. Both countries have an extensive network of trade agreements and strong connectivity which provides many opportunities for companies doing business in our respective regions.

This is timely against the backdrop of sluggish growth and demand in the advanced economies while several emerging economies in our regions continued to grow. Singapore and Turkey could work with each other as a springboard to the emerging markets in our respective regions.

Singapore is the gateway to fast-growing East Asia and Western Pacific. I urge Turkish businesses to leverage on Singapore’s strategic location to tap the opportunities in a rising Asia. Demand from Asia is growing strongly. According to the OECD, Asia will see 3.2 billion people moving up to the middle class by 2030, making up nearly 60 per cent of total global consumption.

Similarly, Turkey is strategically located at the crossroads of Europe, Central Asia, Middle East and North Africa. Singapore companies should seriously consider using Turkey as a base to tap into the large European market as well as the emerging markets of Central Asia and the Middle East.

Good progress of the Turkey-Singapore FTA

During the last Turkey-Singapore Business Forum, we announced the launch of the Turkey-Singapore Free Trade Agreement (FTA) which was envisioned as a high quality and comprehensive agreement that will help to reduce barriers to trade and investment as well as promote greater connectivity and flow between businesses and people from Turkey and Singapore. I am glad to share that within a few months, we have made very good progress. Experts on both sides have been working hard on finalising the Agreement and the business community can look forward to a progressive Free Trade Agreement covering a wide variety of sectors soon. I hope that the Agreement will serve as a further impetus to our economic relations when it enters into force in the near future.

Conclusion

Ladies and gentlemen, I would like to encourage both Singapore and Turkish businesses to look ahead, tap on the growing economic linkages of Singapore and Turkey, and seize opportunities in the emerging markets of our respective regions. The Turkey-Singapore Business Forum and the Turkey Singapore Business Council are excellent platforms to foster greater cooperation and business connectivity. The Turkey-Singapore FTA would further cement our bilateral ties when it is completed.

I would like to thank the Ministry of Economy for hosting this Forum and wish all the business leaders and representatives fruitful discussions ahead. Thank you.