Speech by SMS Sim Ann at the opening session of the High Level Dialogue on ASEAN-Italy Economic Relations

​SPEECH BY SENIOR MINISTER OF STATE FOR TRADE AND INDUSTRY MS SIM ANN AT THE OPENING SESSION OF THE HIGH LEVEL DIALOGUE ON ASEAN-ITALY ECONOMIC RELATIONS, WEDNESDAY, 11 APRIL 2018, 2.30PM, SHANGRI-LA HOTEL, SINGAPORE

Mr Benedetto della Vedova, Italian Deputy Minister of Foreign Affairs and International Cooperation,

Mr Enrico Letta, President, Associazione Italia ASEAN, and Dean, Paris School of International Affairs, Sciences Po,    

Mr Valerio De Molli, Managing Partner & CEO, The European House – Ambrosetti, Italy,

Mr Raffaele Langella, Ambassador of Italy to Singapore,

Distinguished Guests,

Ladies and Gentlemen,

Introduction

1.           A very good afternoon to all of you. It is my pleasure to join you today at the High Level Dialogue on ASEAN-Italy Economic Relations.

Singapore and Italy share longstanding relations, and there is opportunity to further grow our partnership

2.      It is our privilege to host this prestigious event in Singapore. This is a sign of our deepening ties and our hope for the ASEAN-Italy relationship to blossom even further. Singapore and Italy share longstanding and warm relations. Italy is an old friend of Singapore’s and was among the first countries to recognise Singapore’s independence in 1965. There are frequent high-level visits between both our countries, and our bilateral collaborations span many areas, including education, trade, and science and technology.

3. You have world-class strengths in a wide array of sectors, most famously in “Food, Fashion, and Furniture”, and there are many areas in which Singapore can learn from Italy. For example, Enterprise Singapore is currently assisting the Singapore Furniture Industries Council (SFIC) to identify suitable Italian designers to partner for manpower and capability development. SFIC will also be attending next week’s Milan Design week, including the prestigious furniture and design fair, the Salone del Mobile. This will be an excellent opportunity for Singapore to explore new areas of collaboration, and learn from the very best in design.  

4. Of course, we are very much aware that beyond Food, Fashion and Furniture, Italy has much to offer Singapore, especially in terms of skills and technical know-how. Notably, Singapore is paying close attention to Italy’s strengths in precision engineering. You are Europe’s 2nd largest manufacturing engine, and you have the world’s 4th highest and Europe’s 2nd highest density of robots. With Singapore’s manufacturing base accounting for about one-fifth of Singapore’s Gross Domestic Product (GDP), and the rapid advancements in Industry 4.0 technologies, this is an area in which Singapore sees many growth opportunities together with Italy.

5. In return, with our strong connectivity, skilled workforce, pro-business environment, intellectual property protection, and political stability, Singapore serves as a good business hub for Italian companies to access the Southeast Asian market. To date, there are close to 600 Italian companies based in Singapore, primarily in the services, electronics, chemicals, and consumer products sector. These include specialty chemical companies such as Coim and Faci, agri-food company Unigrà and luxury fashion brands such as Gucci.

6. Further illustrating Singapore’s position as a gateway to ASEAN and the broader region, Italian companies such as food company Barilla, confectionary group Ferrero, and pharmaceutical company Menarini have chosen Singapore as a regional HQ for the Asia Pacific region. Moreover, in 2017, Ferrero established its first Asia Innovation Hub in Singapore. 

7. In the areas of consumer business, Singapore companies like Star360, SingPost, Anchanto, and Shopmonk are keen to work with Italian brands to help them enter ASEAN and the wider Asian market.  

ASEAN continues to be an economic bright spot, and is an important partner to both the EU and Italy

8. As the 6th largest economy in the world, with a projected US$3 trillion economy by 2020, ASEAN is poised to be the next engine of growth in Asia.  Further, with our young population, growing middle class, and increasing urbanisation, the ASEAN region is an increasingly important market in the global economy.

9. Moreover, ASEAN is now better prepared to engage in deeper trade and investment liberalisation. The ASEAN Economic Community (AEC) has transformed ASEAN into a competitive single market and production base. Beyond the AEC, ASEAN member states are presently working with six of our dialogue partners, Australia, China, Japan, Korea, India, and New Zealand, to further widen and deepen regional economic integration, through the Regional Comprehensive Economic Partnership (RCEP).

10. By 2030, some experts predict that ASEAN could become the 4th largest single market in the world, after the EU, US and China. With over an expected 600 million consumers, ASEAN could offer a substantial market for both European and Italian products and services. 

11.  With the growth in ASEAN-Italy bilateral trade and the rising population of ASEAN consumers, demand for Italian goods and services can be expected to increase. In 2016, Italy was ASEAN’s 5th largest trading partner in goods in the EU. Merchandise trade between Italy and ASEAN has grown by over 50% in the last decade, with bilateral merchandise trade at over €15 billion in 2016. This is close to 10% of ASEAN’s overall bilateral merchandise trade with the EU.

12. In the face of rising anti-trade and nativist sentiments, a platform such as the High Level Dialogue on ASEAN-Italy economic relations, with its vision of enhancing the cooperation between ASEAN and Italy, is very timely.

Singapore’s ASEAN Chairmanship priorities for greater region-to-region connectivity and economic integration

13. This year, Singapore assumed the ASEAN Chairmanship under the theme of “Resilience and Innovation”, with the overall economic objective to deepen regional connectivity to position the region for increasingly seamless economic activity and opportunities.

14. The theme encapsulates our vision for ASEAN to be united in the face of growing uncertainties in the global strategic landscape. In this landscape, ASEAN must be adaptable and forward looking to harness opportunities and mitigate challenges from disruptive digital technologies to build a future-ready ASEAN.

15. As the ASEAN Chair, Singapore has set out a forward looking agenda with the aim of delivering on enhanced digital connectivity and e-Commerce flows. Working closely with ASEAN member states, Singapore aims to advance trade rules in e-Commerce and promote digital connectivity through an ASEAN Agreement on e-Commerce. This would benefit firms through stream-lining regional trade rules governing e-Commerce, lowering operating barriers to entry.

16. In addition, with the digital economy becoming a vital component of the global economy, Singapore is developing an ASEAN Digital Integration Framework to monitor the progress of ASEAN’s digital integration. This Framework will allow us to better scrutinise and improve our digital ecosystem to identify areas for improvement.

17. We hope that these efforts on enhanced connectivity and e-Commerce flows will lend increased opportunities for Italian businesses to leverage Singapore as a gateway to ASEAN and the broader region.

18. Apart from our efforts in internal integration, Singapore as the 2018 ASEAN Chair remains committed to improving the region’s ties with external partners, including the EU. Recognising this need, the ASEAN Economic Ministers and the EU Trade Commissioner Cecilia Malmström agreed in 2017 to launch discussions to develop a framework for a future ASEAN-EU Free Trade Agreement (FTA), close to eight years after negotiations were adjourned.

19. In the meantime, the EU and Singapore concluded the EU-Singapore Free Trade Agreement (EUSFTA) in 2014 and it is now pending ratification.   As the first concluded FTA between the EU and an ASEAN country, it will be a vital building block to an eventual ASEAN-EU FTA. We look forward to its swift entry into force. This will send a positive and important signal of our commitment to multilateral trade, and our resolve to keep the regional architecture open and inclusive.

20. Apart from the trade agreement, ASEAN and the EU are also negotiating the Comprehensive Air Transport Agreement (CATA). The agreement will forge new connections, and allow ASEAN and EU airlines the flexibility to react to increasing demand and to launch new services between our two regions when market opportunities arise.

21. With these two agreements that will bring EU and ASEAN closer, there is a unique opportunity to bring our relations to the next level. ASEAN and Italian businesses can look forward to more frequent connections, increased choices, lower prices, and better service offerings. This, in turn, will make it easier for businesses to trade, invest, and enter new markets.

Conclusion

22.        These are indeed exciting times with a lot of opportunities. Once again, I would like to thank The European House – Ambrosetti for organising this high-level forum here in Singapore. We look forward to fostering deeper economic cooperation between ASEAN and Italy as well as the EU.​​