Opening Remarks by President Halimah Yacob at the 14th PH-SG Business Council Meeting

Mr Guillermo Luchangco, Co-Chair, Philippines-Singapore Business Council,

Mr Loh Chin Hua, Co-Chair, Philippines-Singapore Business Council,

Distinguished guests,

Ladies and Gentlemen,

Good afternoon. It gives me great pleasure to join the 14th Philippines-Singapore Business Council (PSBC) Meeting. Since its establishment in 1994 by then Philippine President Fidel Ramos and then Singapore Prime Minister Goh Chok Tong, the PSBC has served as an invaluable platform to strengthen economic links between Singapore and the Philippines. I am delighted to see so many business leaders from the Philippines and Singapore here today. This speaks volumes about the health of our bilateral economic ties and the immense potential for greater collaboration.

Singapore and the Philippines formally established diplomatic relations on 16 May 1969 and this year marks the 50th anniversary of bilateral diplomatic ties. Over the years, economic ties between our two countries have grown from strength to strength.  Among ASEAN member states, Singapore was the Philippines’ largest trading partner in 2018. Singapore was also the 2nd largest foreign investor in the Philippines in 2018. Singapore companies have established a good track record in the Philippines and some of their investments contribute towards key development projects.

• For example, in New Clark City, Surbana Jurong is partnering Bases Conversion and Development Authority (BCDA) and Japan Overseas Infrastructure Investment (JOIN) to develop a masterplan for the Philippines’ first smart, green and disaster-resilient metropolis. Changi Airport International is part of the consortium which won the bid to operate and maintain Clark International Airport.

• I also met several Singapore business representatives on Monday at breakfast. I am happy to learn that our SMEs see opportunities in many sectors in the Philippines. An example of how they can thrive in niche areas is Adera - a Singapore fintech SME - who is partnering a local company for payment solutions in the e-jeepney project.

• Some Philippine companies have also established a presence in Singapore to support their international growth plans. For example, the Philippine fast food chain Jollibee, has gained quite a following in Singapore. This shows that quality food makes a difference whether it is fast food or fine dining.

• This strong economic cooperation is also facilitated by the close people-to-people links between our two countries. For instance, our shared passion for food and fashion presents opportunities for both our small and medium-sized enterprises. This morning, I visited “Singaporium”, a lifestyle and food pop-up fair at the Podium Mall featuring 17 SMEs from Singapore. I was heartened to learn that their products and concepts were well-received by the Filipino consumers.In fact, I was told by Benns chocolate that their products sold out within two hours! This speaks volumes of our Singapore brand. I have asked Enterprise Singapore (ESG) to look into how to better support Singapore SMEs to venture further into the Philippines market. Tan Soon Kim, Assistant CEO of ESG, promised to look into this.

In the face of uncertainties in the global economy, Singapore and the Philippines should continue to strengthen our ties and do more together. In fact, Benns chocolate gets their supply of cocoa from the Philippines itself. This provides opportunities to the cocoa farmers in the country.  In this regard, let me suggest three areas of cooperation:

• First, infrastructure.Infrastructure development is critical to every nation’s development. Singapore stands ready to share our developmental experiences and expertise in areas of interest to the Philippines. This could be done through a range of channels, including through cross-border partnerships among our enterprises.

• Second, human capital.Talent is the key to the future. Our two countries can collaborate in developing talents with suitable skillsets to power a globalised digital economy. Business communities can play an important role by offering exchange training programmes and internships in both markets.

• Third, innovation, which is the ultimate driver to long-term economic growth. We should encourage more collaboration between entrepreneurs from our two countries, and link up our innovation ecosystems. The Philippines could be a testbed for Singapore ideas, while Singapore could serve as a base for Philippine start-ups to scale up their operations for global expansion. The possibilities are infinite. The Philippines is a young country with young talents who are digitally savvy. Start-ups focusing on digital applications or interesting technology are a few areas they can look forward to. We must dream big and aspire to establish a Silicon Valley in the region with solutions that can power the world with new innovations.

Over the years, the PSBC has contributed significantly to the development of Singapore-Philippines economic ties. In collaboration with other business chambers, enterprises and public agencies such as Enterprise Singapore, it has built extensive business linkages between our two countries. With this solid foundation, let us continue to strengthen this meaningful partnership for the mutual benefit of our peoples.

I wish everyone a pleasant and fruitful session in the afternoon. Thank you.