Speech by Second Minister S Iswaran at the Singapore-India Business Symposium

Your Excellency, Mrs Vijay Thakur Singh, High Commissioner of India to Singapore,

Mr Ajay Shriram, President, Confederation of Indian Industry,

Mr Teo Eng Cheong, Chief Executive Officer, International Enterprise Singapore,

Mr Gautam Banerjee, Vice Chairman, Singapore Business Federation,

Distinguished Guests,
 
Good morning.  I am pleased to join you this morning for the Singapore-India Business Symposium jointly organised by the Confederation of Indian Industries, International Enterprise Singapore and the Singapore Business Federation.  The symposium theme, “Gateways to a New India”, is apt and timely given the renewed enthusiasm and excitement for the Indian economy after the General Elections earlier this year.  The resounding win by the Bharatiya Janata Party, and Prime Minister Narendra Modi’s strong leadership, are widely expected to usher in an era of political stability certainty and growth in India.  While it is still early days, the new government has announced several key initiatives, such as the “Make In India”; Swachh Bharat, or Clean India; and Smart Cities. This creates opportunities for India and raise the quality of life and living for the country.
 

Singapore and India relations have always enjoyed close ties

India and Singapore enjoy excellent relations, and the Singapore Government has worked well with the Indian Government over the years.  We initiated the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) with the BJP-Vajpayee government in 2000-2001, and concluded it with the Congress-Manmohan Singh-led government in 2005.  As we approach the 50th anniversary of the establishment of diplomatic ties in 2015, we look forward to elevating the Singapore India relationship to greater heights, and through different modalities of collaboration at the Centre and also in the states.
 
Since May, Singapore has had the privilege of welcoming several distinguished political leaders from India.  In addition to Indian Foreign Minister Sushma Swaraj and Urban Development Minister Venkaiah Naidu, we have also hosted Chief Ministers from the states of Andhra Pradesh, Rajasthan, Telangana and West Bengal.  In turn, ESM Goh Chok Tong, Foreign Minister Shanmugam and I have also visited India to call on the government at the Centre and state levels. These interactions demonstrate the importance we attach to our bilateral ties, and the scope that both sides see for greater cooperation for mutual benefit.
 
The development priorities and economic agenda of the new Indian Government present interesting possibilities for partnership between India and Singapore Singapore. One area where Singapore can contribute is in India’s mission to develop smart and sustainable cities.  We have been requested by the Indian Government to share our experiences in urbanisation and city development.  Urban solutions and smart cities are areas where our government agencies and private sector can make a meaningful contribution, having gained significant expertise in charting Singapore’s own development over the past five decades. We are, therefore, actively considering how best to work with the central government on its Smart Cities initiative, and also with states like Andhra Pradesh on its Capital City project.  This engagement will also enable Singapore businesses to participate in downstream needs and opportunities in areas such as township development, industrial and IT parks, as well as utilities such as water and power.  
 
Given the nature and scale of the need in these sectors, they will be an excellent opportunity for Singapore companies to partner their Indian counterparts to work on projects in India. In that regard, the CII Core Group, which has been visiting Singapore since 1995, and the broader CII membership, is in a unique position to catalyse new business alliances and partnerships between India and Singapore. 

Regional Integration presents opportunities for all
 
Looking beyond the bilateral relationship, Singapore has always championed and supported India’s integration into the broader region. The CECA was a useful pathfinder for India to broaden its ties with ASEAN, and both sides have since signed the ASEAN India Free Trade Agreement.  The FTA facilitates entrée of India companies into the burgeoning ASEAN market. Now, India is part of ongoing Regional Comprehensive Economic Partnership or RCEP negotiations which will connect 16 countries including the ASEAN countries, China, Japan, Korea, Australia and New Zealand.  Given the scale and composition of this RCEP  initiative, is of particular significance to India, as India is one of the largest exporter of services, and it is consistent with India’s aim to boost its share of merchandise exports through manufacturing.
 
India is well-positioned to attract investments from the likes of Japan, US, Europe and even China given its geographical location, the size of its domestic market, and relatively lower cost structure.  But today’s manufacturing rarely occurs in one location. Rather, it entails manufacturing activities distributed across diverse locations, which are integrated by sophisticated global supply chains. Access to regional and global markets for products and services, coupled with the untrammelled movement of raw materials, components and finished goods, also enhance the appeal of any manufacturing hub.   So a high-quality RCEP will therefore be of significant value to the India’s manufacturing ambition, and we look forward to India’s active involvement in this important regional integration effort which would lead to mutual advantage for all.
 

Opportunities for Singapore companies

Developments in India, and the growth of the larger Asia-Pacific region, offer promising opportunities for Indian and Singaporean businesses. Our respective strengths can be put to mutual advantage to pursue opportunities in India, Singapore, ASEAN, and certainly beyond.    IES, SBF and CII can help to identify the opportunities, understand the operating environment better, promote business connectivity, and facilitate partnerships. Platforms such as this symposium also contribute to this process through an exchange of views and business networking.
 
I wish you a productive event ahead and thank you for having me here.