Speech by MOS Alvin Tan at British Chamber of Commerce Singapore (BritCham) Sustainability Dialogue

His Excellency Nikesh Mehta, British High Commissioner to Singapore

Mr Haslam Preeston, President, British Chamber of Commerce Singapore and patrons of BritCham Singapore

Mr David Kelly, Executive Director, British Chamber of Commerce Singapore

Ladies and Gentlemen,

Introduction

1. I wanted to start by offering my warmest welcome to the British High Commissioner. Today we are here to congratulate the British Chamber on your 70th anniversary.

2. 70 years ago in 1954, Philip Mawrey, who was the father of the British Chamber, launched the UK Manufacturer’s Representatives Association (UKMRA) to provide trade support for British business interests in Asia.

3. 20 years later, UKMRA became the British Business Association, which in 1985, hosted Prime Minister Margaret Thatcher during her visit to Singapore.

4. At a speech on 8th April 1985 at the Shangri-La Hotel:

a. She shared about the British Business Association and how it was important to British companies, “particularly since so many British firms use Singapore as a springboard to other markets in the region”, very similar to what Singapore is as a launchpad to other markets in Southeast Asia and beyond.

b. Then she praised the association saying, “there can be no better testimony to the success of your work than the fact that British exports to Singapore have doubled in the past five years”.

5. Fast forward 40 years later, the UK remains an important partner for Singapore.

a. As the British High Commissioner has said, Singapore is UK’s largest trading partner in Southeast Asia; and

b. UK is the largest European investor in Singapore.

6. The British Business Association became known as the British Chamber of Commerce in 1998. And since then, it has also grown from supporting British manufacturing interests and industry in Singapore, to being a dedicated partner of Singapore across a variety of industries.

7. And we will keep expanding our collaboration and economic ties. For example:

a. UK-Singapore FTA entered into force in 2021,

b. We also launched the UK-Singapore Digital Economy Agreement in 2022,

c. UK-Singapore Green Economy Framework signed in 2023, and

d. UK-Singapore Strategic Partnership in September 2023.

8. We have done plenty as nations together over the last 70 years since 1954. And I thank BritCham for your contributions to expanding our bilateral and trade relationship.

9. Ladies and gentlemen, 1954 is a very different time from 2024. In 1954, the average annual temperature globally was approximately 11.6 degrees Celsius.

10. By 2023, it had risen to 13.1 degrees Celsius.

11. In 1954, the frequency and intensity of extreme weather events, such as hurricanes, droughts and heavy rainfall were less common and generally less severe.

12. By 2024, climate change has led to more frequent and intense storms, as well as prolonged droughts in certain areas, exacerbated by phenomena like El Niño and La Niña.

13. That is why it is important that we do something about this. And that’s why I’m grateful that the British Chamber has kicked off today’s inaugural Sustainability Dialogue. Let me share with you how Singapore is committed to playing our part to reduce the impact of climate change.

Singapore’s Commitment to Green Growth

14. Many of you know that we have committed to net zero emissions by 2050, through our Green Plan 2030. But it is not just about meeting these targets, but also about creating a sustainable and resilient green economy.

15. Two years ago, my government announced we would raise our carbon tax to achieve our net zero ambition. We are doing so in phases, and giving businesses advanced notice so they can plan and carry out their low-carbon transition.

16. Setting the right price requires careful consideration. We know that the transition to higher carbon taxes will result in higher costs in the near term. We are well aware and need to calibrate this very carefully.

17. To help our companies reach the forefront of sustainability, we have increased our support. We are journeying alongside you. For example,

a. We extended our Enterprise Financing Scheme (EFS) – Green by 2 years till 31 March 2026. This scheme will help local businesses to create and adopt green technologies to cut their emissions.

b. We also launched a Sustainability Reporting Grant, to help eligible Singapore companies develop their first sustainability reports in line with ISSB standards.

18. We will continue to strengthen support for our businesses, so they can continue to thrive in the green economy.

The UK-Singapore Green Economy Framework

19. That’s also why we launched our UK-Singapore Green Economy Framework (GEF) last year.

20. The framework is a cornerstone of our nations’ commitment to grow green together. It creates a platform for our governments, academia and businesses to catalyse green growth opportunities and decarbonise.

21. We have identified 3 Pillars that are key to this plan:

a.    Green Transport;

b.    Low Carbon Energy and Technologies; and

c.     Carbon Markets and Sustainable Finance.

22. Some workshops this afternoon will deep dive into these themes.

23. Under the Green Transport Pillar, we jointly established a UK-Singapore Green and Digital Shipping Cooperation Taskforce, to accelerate decarbonisation and digitalisation of our maritime and air transport industry. This is particularly important, because Singapore is a transport and maritime port for Asia and the UK for Europe.

24. Under the Low Carbon Energy and Technologies Pillar, we will share best practices on policy, regulatory and technical aspects on Carbon Capture Utilisation Storage (CCUS) and green grids. As the UK is a frontrunner and pathfinder on tech around CCUS, we look forward to learning from the UK through these exchanges. The UK and Singapore are also developing low-carbon hydrogen technologies together, as members of the International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE).

25. Under the Carbon Markets and Sustainable Finance Pillar, businesses and academia have stepped forward to lead initiatives.

a. Last October, the Singapore Green Finance Centre and Imperial College Business School hosted a Carbon Markets Roundtable in London. The forum studied how policy and infrastructure can drive voluntary carbon credits and markets and unlock financing for new green growth opportunities.

b. This is an area in which my team and I at the Monetary Authority of Singapore are working very closely on. We have ambitions to build a thriving carbon market in Singapore. In fact, we have signed many carbon credits MOUs, and also have two implementation agreements. I was in Ghana recently, bringing a delegation of about 22 businesses, project developers, to generate projects that can accrue carbon credits. With a strong accredited carbon credits market, we can make quite an impact in combating climate change. So please continue to work with us.

Opportunities for Businesses

26. What does this mean for businesses?

27. GEF is not just a government commitment to collaborate and exchange best practices. It is also a call to action for businesses to capture opportunities in the growing green economy.

a. For example, Singapore-based robotics specialist BeeX is working with UK company Sulmara Subsea and the University of Strathclyde to build an autonomous underwater vehicle to inspect offshore wind farms. This project will make inspections safer, more cost-effective, and less carbon intensive.

b. Last August, Enterprise Singapore and Innovate UK jointly launched a UK-Singapore Collaborative R&D Call focused on net zero solutions.

i. I am pleased to note that there are now seven UK-Singapore partnerships building sustainable technologies who have received funding of up to 70% of project costs.

ii. If this is of interest, please look out for subsequent rounds of open calls.

28. Finally, GEF is a living framework. As the green economy landscape evolves, so must we.

29. Last year, MTI and the British High Commission jointly organised an industry consultation on the GEF. Please continue to work with us as we continue to design this GEF.

Conclusion

30. As I conclude, let me again return in time 40 years to 1985 where our then Prime Ministers, like-minded in outlook and views, reminded us of what we stand for, as nations and as businesses that drive the prosperity of our countries.

31. Prime Minister Thatcher’s speech is timely today. She said that “the best way forward for all of us is through ever-expanding trade. More trade brings more wealth. More wealth helps developing and developed country alike, encouraging the interchange of skills, ideas, products and necessities”.

32. Prime Minister Lee Kuan Yew, during PM Thatcher’s visit, urged British enterprises to “encourage new entrepreneurs to venture their capital and share in the growth of an emerging Southeast Asia”.

33. We would do well to heed their call, continue to trade with one another, explore new frontiers with one another and break new ground together.

34. 70 years is a long time in Singapore - longer than Singapore has been a sovereign nation. And our common history extends beyond 70 years.

35. Through history, British legacy has left an indelible mark on Singapore.

36. Today your presence continues to define our trade relations, even as we tread the new waters of a green economy.

37. And I have no doubt that your future in Asia is (as it always has been) connected to Singapore.