Keynote Address by Dr Tony Tan Keng Yam, President of the Republic of Singapore at the Singapore International Chamber of Commerce 175th Anniversary Dinner

Mr Shanker Iyer
Chairman
Board of the Singapore International Chamber of Commerce

Mr Phillip Overmyer
Chief Executive Officer
Singapore International Chamber of Commerce

Excellencies

Distinguished Guests

Ladies and Gentlemen

        Good evening. I am happy to join with you tonight to commemorate the 175th anniversary of the Singapore International Chamber of Commerce (SICC). This is a remarkable milestone for one of the oldest chambers of commerce in Asia.

Acknowledgement of SICC and its Milestones

        SICC has come a long way since its inception in 1837. In the early days, chamber membership was small enough for meetings to take place in the office of the Chairman. Today, SICC has over 800 members representing over 40 nations, with major multinational corporations and home-grown SMEs among its members.

        At the first meeting of SICC on 8 February 1837, the Chamber established the regulation that it would work “for the protection of the general interest of trade and for communicating with the public authorities on all subjects affecting the common good”. SICC has grown from strength to strength by staying focused on these aims while continually adapting to changing circumstances. 

        In the 1830s, SICC successfully defended Singapore’s status as a free port.  In the 1900s, the Chamber lobbied for improvements to our dock. Today, SICC engages the Government on issues such as our annual Budgets and Free Trade Agreements. SICC has thus made valuable contributions over the years in advancing Singapore as a safe, efficient and commercially dynamic nation that offers a viable base for foreign businesses.

Global Economic Outlook

        The global macroeconomic environment is experiencing profound changes. In Europe, market sentiments are fragile, underscored by concerns over the longer-term fiscal sustainability of European countries. With Greece looking to form a new government, the future of the Greek debt situation is unclear and a disorderly sovereign debt default remains possible. Meanwhile, the US economy, while showing some signs of recovery, continues to be constrained by its fiscal deficit and unemployment. In light of these uncertainties, the IMF has forecasted GDP growth for advanced economies this year to be 1.4 per cent, down from 1.6 per cent last year.

        In Asia, economic prospects appear more positive. Despite the recent global financial crisis, Asia has continued to show good growth. Asia seems set to outpace the rest of the world over the next few decades, with China and India expected to become significant global growth engines. The Asian Development Bank, for instance, has forecasted that developing Asia will grow by 6.9 per cent this year. But it is worth noting that this was downgraded from earlier estimates, reflecting the sense that Asian economies will not be immune to the slowdown in advanced economies.

Challenges for Singapore

        These global developments pose challenges for Singapore. With the shift in economic momentum from advanced economies to emerging ones, weakening demand from advanced economies will affect our domestic production and exports. On the other hand, the growth of Asia will mean more competition from other major Asian cities such as Hong Kong, Beijing, Shanghai, Mumbai and Delhi.

        At home, our economy and society are changing too. Our natural constraints in land and energy have become more acute as our economy matures. The Singapore population is aging as older Singaporeans are healthier and living longer whereas younger Singaporeans are marrying later and having fewer children.

        Amidst these external environment and domestic constraints, we have to find new ways to continue achieving sustainable and inclusive economic growth. Our economy must create desirable jobs and support good standards of living for all Singaporeans.

Singapore’s Strong Fundamentals

        Singapore must reposition its economy towards activities that make better use of our limited resources and raise productivity at all levels to generate sustainable economic growth over the longer-term. Making these transitions will not be easy. Nevertheless, I am optimistic that we will succeed by focusing on the fundamentals that have underpinned our economic growth through the years. Let me elaborate on these fundamentals.

        First, our talent. Talent is an economic driver that sustains our success. The need for talent and innovation is greater than ever in an increasingly complex world. Singapore must continue to develop our talent base by investing heavily in our people. We must also remain open to global talent who can bring in new capabilities and technologies to complement local innovation and skills.

        Second, our connectivity. Singapore is one of the best-connected cities in the world. Changi Airport, which serves about 100 airlines, links us to nearly 200 cities in 60 countries. We have the second busiest container port in the world, with an annual container throughput of 29.9 million TEUs (twenty-foot equivalent units). Through 18 Free Trade Agreements, Singapore is linked to major economies around the world, including key Asian economies such as China and India. Our connectivity makes Singapore an ideal base for companies looking to expand into Asia, as well as for rising Asian companies seeking to globalise. We must build on our connectivity to succeed in our strategy of being a vibrant Global-Asia Hub.

        Third, our business environment. The Government has expended considerable efforts to develop a strong and transparent legal and regulatory environment to help businesses operate effectively. I am glad to note that last year, Singapore topped the World Bank’s ‘Ease of Doing Business’ index for the sixth consecutive time. As long as we remain committed to preserving a conducive business environment, businesses will confidently invest in Singapore for the long-term.

Role of SICC in Singapore’s Continued Development

        The Government must continue to actively engage our community and stakeholders to tap on their collective wisdom, and to collaborate on solutions wherever possible. Organisations such as SICC play a key role in this regard. By providing constant feedback and ideas on government policies, SICC helps the Government to understand the needs of our business community, and to ensure that government policies benefit their target audiences.

        I am heartened to note that SICC has introduced new committees including Manpower & Productivity and Emerging Markets, which are most pertinent issues in our economy today. This illustrates SICC’s commitment to staying relevant in a changing business landscape. I look forward to having these committees share their ideas with the Government.

        I would also like to encourage SICC to continue its efforts in organising networking platforms to forge closer partnerships between foreign and local companies. Given the diverse markets in which SICC members operate, SICC plays an important role both in encouraging investments from all around the world into Singapore, as well as in helping our local companies find new opportunities beyond our borders.

Conclusion

        In closing, I would like to congratulate SICC on your 175th anniversary, and wish SICC and its members success in furthering your business interests. I wish you all a pleasant evening. 

        Thank you.