Speech by Prime Minister Lee Hsien Loong at the Honorary Doctorate Degree Conferment Ceremony, Eötvös Loránd University (Elte), 9 October 2007, Budapest, Hungary

Speech by Prime Minister Lee Hsien Loong at the Honorary Doctorate Degree Conferment Ceremony, Eötvös Loránd University (Elte), 9 October 2007, Budapest, Hungary

Professor Ferenc Hudecz, Rector of ELTE,
Faculty Deans and Distinguished members of the Senate,
Excellencies and Distinguished Guests,
Ladies and gentlemen,

Introduction

1. Let me thank the Rector Professor Ferenc Hudecz, and the Dean of the Faculty of Science, Professor György Michaletskey for their generous introduction and warm remarks. I am honoured by ELTE's conferment of this honorary degree. Receiving this degree is also of personal significance to me, as ELTE is the alma mater of my Mathematics supervisor in Cambridge, Professor Bela Bollabas. I am delighted that he and his wife Gabriella are here with us today.

Hungary and Asia

2. It is not just personal ties that bring Hungary and Singapore together. Our two countries may be in different parts of the world - Hungary is in Central and Eastern Europe and a member of the European Union, while Singapore is in Southeast Asia and at the heart of Asia - but the opportunities to work together are considerable. In fact, Hungary's links with Asia go back centuries. After former Prime Minister Peter Medgyessy introduced the New Asia Policy in 2002, Hungary has re-established and deepened its connections with the region, and this process has continued under Prime Minister Gyurcsány.

3. Hungary's engagement with Asia takes place at a time of vast changes and transformation in the continent. As recently as 1997, many Asian countries were engulfed by a severe financial crisis, requiring a massive international bailout. A decade later, the affected economies have recovered, and the whole region is on the move. The driving force is the rapid emergence of both China and India.

4. China is experiencing one of the most extraordinary economic booms in world history. Within the last 20 years, the country has changed beyond recognition. The transformation is not just in the growth of the economy, but also in the mindsets of the people, the integration with the global system, and the openness to ideas and debate. As China continues to develop and open up, it will create many more opportunities for other Asian countries and indeed the rest of the world.

5. India is on the move too. Its focus on high-tech global services has energised other service industries, including trade and tourism. India's economy is growing by 9% per year, and its trade has grown even faster. India still has much catching up to do compared with China, and its transformation will be more difficult, but it will be yet another centre of prosperity and economic dynamism for Asia.

6. The Asian renaissance is not limited to just China and India. In Northeast Asia, Japan has shaken off the decade of stagnation that followed the collapse of the bubble economy. South Korea has restructured its economy after the 1997 financial crisis, and has found success in new niches like media, entertainment, and IT.

7. Southeast Asia is also a significant part of Asia. It is a strategic region with rich mineral and energy resources, and vital sea lines of communi­cations. Its population of half a billion is half the size of India, and more than one third the size of China. Its combined GDP is the third largest in Asia. For countries which want to broaden their Asian exposure beyond China and India, Southeast Asia is the natural option.

Hungary-Singapore Cooperation

8. Within Southeast Asia, Singapore is a small but active country, cooperating with our neighbours and growing with the region. At the same time, we are reaching beyond Asia, and seeking opportunities further afield, including in central Europe. We do not believe that Asia's future lies in becoming a closed trading bloc. Instead, we seek to build an open framework of cooperation and link up with many partners all over the world.

9. Small as we are, we are acutely aware of our own limitations and vulnerabilities. We know that we have constantly to adapt and change with the world, or else become marginalised and irrelevant. Year after year, we have pursued change relentlessly. In recent years, with globalisation, the pace has speeded up. Sustained over decades, the result has been a comprehensive remaking of our economy, our society, and indeed our nation. When we became independent in 1965, poverty was rife, and unemployment high. Prospects were bleak. Many doubted that we would survive as a sovereign nation, let alone thrive and prosper. Today, we are a cosmopolitan metropolis at the crossroads of international trade, enterprise and talent. We are one significant node in the global economy, connected to many other nodes in Asia, Europe and America, creating value for others and so making a living for ourselves.

10. There is no magic formula behind our success. But we have pursued several strategies that have worked and delivered results. Let me highlight three of them.

11. First, we have kept our economy open, both in trade and investment. This is not an easy policy to sustain, as there are always pressures to protect local players from foreign competition, or local companies from foreign acquisition. You know about this in Hungary, as seen from the current debate over "Lex Mol", the proposed legislation to shield key public companies from foreign takeovers. All countries will have legitimate security concerns, which have to be taken into account. But to the greatest extent possible, we have endeavoured to keep the overall tenor of our economy and society geared towards the free flow of investments, talent, and ideas.

12. Second, we have grown by continuously upgrading ourselves and staying one step ahead of the competition. We differentiate ourselves from others by competing not just on cost but also on quality, integrity and reliability. We seek to nurture a spirit of inquiry and experimentation - never satisfied with the status quo, always rethinking old approaches and searching for fresh possibilities. Internationally, we are building a trusted brand name. We do our utmost to ensure that whatever we do is done well, to deliver on what we promise, and to provide a high-quality business and living environment. This creates a virtuous cycle, enabling us to attract even more talent and business, and so generate prosperity and opportunities for our people.

13. Third, with no natural resources, we have invested heavily in our people, and in their education, so that they can make the most of their abilities and talents. We have built an open and meritocratic system, emphasising equality of opportunity and an egalitarian ethos, so that all Singaporeans have the maximum chances to move up through their own efforts.

14. Going forward, globalisation will bring many new opportunities, but also fresh challenges. Those with high ability and knowledge are in great demand and being rewarded for their skills. But some segments of the population are finding it more difficult to cope and falling behind. This stretching out of incomes is happening all over the world. We cannot stop or reverse the global trend. Our response is not to erect barriers in order to keep out competition. Instead we are doing more to equip Singa­poreans with the skills and knowledge that they need to thrive in a knowledge economy.

15. One major policy to uplift all Singaporeans is education. We strive to ensure a high quality of education in all our schools, so that every child can receive a first class education suited to his ability and interests, and get the best possible start in life. With rising payoffs to education, this is the best way to tackle income inequality and raise the level of our society.

16. Beyond the school system, we are also upgrading tertiary institutions to create more pathways to success, and provide diverse routes for our young to develop and grow. Our universities nurture an environment that embraces diversity and new ideas. New and varied institutions have set up in Singa­pore, including overseas universities from Europe and the US. Our universities reflect a truly cosmopolitan mix, with the professors, lecturers and students coming from nearly 100 different countries, including not a few from Hungary. Our own students benefit from this rich and diverse environment, as do the foreign ones. It gives them a broader range of experiences and enables them to see things from new perspectives.

17. Hence in our cooperation with Hungary, education is a key priority. I am glad that Singapore universities have established links and exchange programmes with their Hungarian counterparts, including with distinguished institutions like ELTE. We want to encourage more such exchanges, to build friendships and mutual understanding. This is why we are introducing a new Singapore International Graduate Award (or SINGA), for interna­tional students to do their PhD training in a multi-disciplinary environment in Singapore. 240 SINGA Awards will be given every year to top students from all over the world, including Hungary. I hope that this will enhance the close educational ties between our countries and will bring our young talents even closer together.

18. Singapore also has much to learn from Hungary in the area of R&D. Hungary has world-class expertise in research, and science and technology. There have been 19 Nobel Prize winners of Hungarian origin in medicine, physics, chemistry and economics. Many inventions and discoveries which we take for granted in modern life were made by Hungarian-born scientists. These are remarkable contributions by Hungary to the world.

19. Hungary has played a part in Singapore's R&D efforts. Sir George Radda, a top Hungarian-born scientist, has contributed much to the success of our biomedical sciences initiative. As a member of our international advisory panel, he helped to grow the R&D links between our two countries, and between our universities and research agencies. These extensive ties have led to the signing of a Master Collaboration Agreement between Singapore's Agency for Science, Technology and Research (A*STAR), and Hungary's National Office for Research and Technology (NKTH) this morning. With this arrangement, I am confident that we can look forward to greater R&D cooperation, including joint scientific meetings, exchange programmes, industry research attachments and scientific collaborations.

Conclusion

20. Hungary and Singapore share many similarities. We are both small countries, placing strong emphasis on education and talent. We both need to protect our interests in an uncertain world, and we both appreciate the importance of working with other countries to maximise our influence and effectiveness. Our relationship is outward-directed, and aims to further our common interests through strong business ties, as well as a web of academic, research and cultural programmes.

21. Singapore's strategic position in Asia is like Hungary's geographical location in Central and Eastern Europe. I hope Hungary will use Singapore as an entry point to venture into the region, and tap the abundant opportunities in a rising Asia. Your companies can leverage on Singapore's position as a transportation and logistics centre in the region, and make use of our IT and telecommunications infrastructure. Similarly, Hungary can serve as a base for Singapore businessmen to launch their exports to Europe. There is great potential in our bilateral relationship which both sides are just beginning to realise.

22. As Singapore steps up its engagement with the Central and Eastern European countries, we see Hungary as an important and valuable partner. Let us find creative ways to partner each other, maximise our resources, and grow our relationship. Let us work together to benefit from each other's strengths, and so contribute to the prosperity and progress of both our peoples.