Speech by George Yeo, Minister for Foreign Affairs, at SMCCI's Gala Dinner Nite at Grand Hyatt Ballroom on 10 Sep 2004 at 8.00 PM

Madam Nooraini Nordin
President of the Singapore Malay Chamber of Commerce and Industry
Mr Malek Mattar, Honorary Secretary of SMCCI and Chairman of the Organising Committee for the SMCCI Gala Dinner 2004

Distinguished Guests

Ladies and Gentlemen

1. I was invited to this gala dinner as Minister for Trade and Industry but I am just as happy to be here as Foreign Minister.

2. The Singapore economy is doing much better this year than last year. We expect the growth rate this year to be between 8% - 9%. Apart from Construction and some parts of domestic retail, the economy is doing well across a broad front. However, we do not expect the growth in the second half of this year to equal that of the first half. Next year, we expect growth to slow down to between 3% to 5%.

3. Globalisation is creating new problems and new opportunities for us. In many things that we do now, we have to be world class. If we are not, we will lose out to the competition. What we produce in Singapore have to compete with what can be exported. What we export to foreign markets have to compete with exports from other countries to those markets.

4. In this competition, we need good information and we need to have good products in the right niches. The positive aspect of globalisation is that there are new opportunities for us which were not open to us in the past. For example, we can now explore the export of halal foodstuff to many more overseas markets. For instance, Breadtalk, which already has outlets in Indonesia, Kuwait, Philippines,Taiwan, China and Malaysia, is working to obtain halal certification to supply halal raw materials to its Middle East, Indonesian and Malaysian franchisees. I remember discussing opportunities in China with Nooraini and other Malay businessmen when we visited Xinjiang in August 2001.

5. Singapore's economic agencies try to help local companies in two ways. First, they help our companies upgrade their efficiency and technology through various schemes administered by SPRING, A*STAR, WDA, IDA and MDA. Second, agencies like IE Singapore and STB help our companies to export and invest overseas. Many more overseas offices have been set up. In the last few years, we have enlarged our external economic space considerably through an active foreign policy and the negotiation of Free Trade Agreements, Avoidance of Double Taxation Agreements and Investment Guarantee Agreements. We have also worked with SBF to create Network Indonesia, Network China and Network India.

6. Our relationship with Malaysia is improving under the leadership of PM Abdullah Badawi. Indonesia is also growing as an economic partner. After the Presidential Elections next week, whoever wins, there will be a fresh impetus towards closer economic cooperation. The economies of Indonesia and Singapore are highly complementary. In the last two years, we have established much closer links to the provinces of Sumatra. We are also strengthening our links to Thailand and Vietnam.

7. Beyond Southeast Asia, we have also been working hard to expand our economic space in China, South Asia and the Middle East. All this will create new openings for members of SMCCI.

8. The key is entrepreneurship. We should encourage more Malays in Singapore to be interested in business, and to take calculated risks. For example, Armstrong Industrial Corporation headed for Thailand early in 1992 and had to manoeuvre through many challenges. Now, with total overseas investments amounting to $18 million and four plants in Thailand, Armstrong looks set to reap the benefits, especially to ride on the Thailand automative boom. When I was in MTI, I was inspired by the way Malek Mattar built up his mahogany furniture business. We need role models to encourage and inspire young Malay Singaporeans. A successful entrepreneur can contribute much more to Singapore as a whole than a successful professional or civil servant. It is a wonderful idea for SMCCI to recognise the Malay Entrepreneur of the Year, the Malay Woman Entrepreneur of the Year, and the Young Entrepreneur of the Year at this evening's Gala Dinner. I congratulate the Award winners and wish them continuing success.