Speech By Minister S Iswaran at the 5th Turkey-Singapore Business Forum

SPEECH BY MR S ISWARAN, MINISTER FOR TRADE AND INDUSTRY (INDUSTRY) AT THE 5TH TURKEY-SINGAPORE BUSINESS FORUM ON MONDAY, 21 AUGUST 2017, 1415 HRS, RITZ CARLTON MILLENIA SINGPORE

His Excellency Binali Yildirim,

Prime Minister of the Republic of Turkey,

His Excellency Nihat Zeybekci,

Ladies and Gentlemen,

1.     Good afternoon.  It gives me great pleasure to join you today at the 5th Turkey-Singapore Business Forum.  I am happy to see such a good turnout of Turkish and Singapore businesses which is indicative of the keen bilateral interest in economic opportunities between our two countries. 

2.     Economic ties between Turkey and Singapore have gained significant momentum in recent years.  Over the past decade, annual bilateral trade in goods has consistently been valued at more than S$1 billion. In 2016, bilateral trade in goods amounted to S$1.41 billion. Trade in services amounted to S$0.5 billion in 2015. Investment flows have also been increasing in both directions.

Singapore and Turkish companies will enjoy greater access to each other’s markets across many sectors with the TRSFTA

3.     At the government level, Turkey and Singapore are working closely together to create conducive conditions for our businesses to grow.  Both governments have put in place frameworks to promote trade and investment relations between our countries. 

4.     We have an Avoidance of Double Taxation Agreement, which has been in force since 2001.  This helps to reduce the cost of doing business for Turkish companies in Singapore, and vice versa.

5.     We have also concluded a Free Trade Agreement (FTA), and I am pleased to share with you today that Turkey and Singapore have completed our respective domestic ratification processes on the Turkey-Singapore Free Trade Agreement (TRSFTA) and it will enter into force on 1 October 2017. 

6.     With the FTA, our businesses will enjoy greater access to each other’s markets across many sectors.  Key benefits of the TRSFTA include: tariff elimination on goods, fewer non-tariff barriers, better access to services markets, and the ability to bid for government procurement contracts.

7.     The TRSFTA marks a new milestone in our bilateral ties, and will create new business and investment opportunities for Turkish and Singapore companies.

8.     I would like to encourage all of you to take study closely the opportunities in our respective markets and regions, and make use of the TRSFTA to support the growth of your business.

Turkey is a promising and dynamic market which presents opportunities for Singapore companies and Singapore can serve as a springboard into Asia for Turkey companies

9.     Singapore companies have always looked beyond our domestic market to find new sources of growth.  With greater economic connectivity, it is important that our companies continue to seek out new markets and partnerships, to grow their top line and sharpen their competitiveness. 

10.  Turkey represents a large, dynamic market for Singapore businesses, with a population of 80 million and a GDP of nearly US$860 billion in 2016.[1]  Turkey is a successful regional hub for manufacturing and other business activities.  Situated at the crossroads of Europe and Asia, Turkey provides access to Europe, Eurasia, the Middle East, and North Africa.  Together, these markets have a combined GDP of US$24 trillion, and a population of 1.6 billion[2] and Turkey can be a good base for Singapore companies wanting to expand in that region. 

11.  Similarly, Singapore is situated at the heart of Asia, and is well-connected to China, India, as well as our immediate neighbours in Southeast Asia. This, and our position as a leading global trading and financial centre, makes Singapore an ideal springboard for companies to access the growing markets of Asia.  Many companies have already taken a keen interest in Asia’s rising middle class, and are using Singapore as a gateway to reach Asian consumers.

12.  As a cosmopolitan Asian city, Singapore can serve not only as a business hub for entry into the myriad Asian markets, but also as a representative market, a test-bed, to introduce new products and brands to the Asian consumer.

13.  Asian consumer demand will continue to be fueled by strong fundamentals and GDP growth. Southeast Asia, in particular, is an emerging market with a population of more than 600 million. Regional economic integration under the ASEAN Economic Community (AEC) will drive further growth by creating a single market and production base in our region.  Singapore can help international companies plug into the vibrant Asian economy and business community.

Singapore and Turkey have complementary capabilities and there is room for greater economic engagement between our business communities

14.  Turkey and Singapore have both prioritised development in infrastructure, healthcare, fintech, and e-commerce. These are areas in which Singapore companies have built up expertise and a good track record globally, and I am confident that they can be valuable partners in Turkey’s growth and development 

15.  A number of Singapore companies already have an active presence in Turkey, and are doing well in diverse sectors including ports and logistics services, urban infrastructure, healthcare and hospitality.

16.  For example, PSA is working with Akfen Holding and IFM Investors to manage and develop Mersin Port into a key player in the Mediterranean region. ST Electronics partnered CSR Zhuzhou Electric Locomotive Co. Ltd, to install passenger information systems on the Izmir Light Rapid Transit. Jurong consultants master-planned Petkim’s petrochemical complex in Aliağa.  Banyan Tree and Turkish developer, Nef, will be developing and operating Banyan Tree Bodrum. 

17.  Similarly, a good number of Turkish companies such as such as Koç Holding, Evyap and Vesbo Asia have contributed to the growth of Singapore as well as the Asian region.

18.  With the changing global economic landscape and shifts in value chains, I encourage both Singapore and Turkish businesses to look beyond your traditional markets for new opportunities.  Singapore and Turkey each combine Eastern and Western traditions in our unique ways. Let us work together to take our bilateral ties to even greater heights in the years ahead.

19.  Prime Minister Binali Yildirim’s visit is an important catalyst and timely boost for our bilateral relations and efforts.  I would like to thank you, Prime Minister, for leading such a distinguished delegation to Singapore.  We look forward to a good exchange of ideas today, and stronger and deeper ties between our two countries. 

20.  Thank you.   

[1] Source: World Bank, last accessed 11 August 2017.

[2] Source: Bloomberg markets.