Speech by President S R Nathan at the Annual General Meeting Dinner of the Singapore International Chamber of Commerce at Mandarin Court, Meritus Mandarin Singapore on 16 May 2006 at 9.30 pm

Chairman of the Singapore International Chamber of Commerce,  Mr Chew Heng Ching
Excellencies

Distinguished Guests

Ladies and Gentlemen

        I am pleased to be with you this evening at the 165th Annual General Meeting Dinner of the Singapore International Chamber of Commerce, or SICC for short.

2     Back in 1837, Singapore was a small but growing trading post under the British East India Company. Despite Singapore’s short 18 year history then, the leading merchants of this increasingly important settlement already saw the need to band together, help one another and form a collective voice for the business community. Thus the SICC was formed.

3     In the ensuing years, the SICC has grown and evolved with the changing economic landscape of Singapore. From being a predominantly British institution in its early days, the SICC’s membership has diversified as independent Singapore embarked on industrialisation and attracted more foreign investors here. The SICC remains to this day a chamber with a unique mix of multi-nationals and local companies.

4     What has stayed unchanged over these years is the key role that the SICC plays in Singapore’s economic landscape. With its pulse on the international business community, the chamber has been an invaluable partner in helping the Government better understand and meet the needs of our businesses, and actively contributing towards the formulation and review of our economic policies.

5     The SICC has also been an active advocate for Singapore in the international scene. In 2002, the chamber played a key role in helping to bring the Asian office of the International Chamber of Commerce to Singapore.

Trade – the Lifeblood of Singapore’s Economy
6     Some 169 years since the establishment of SICC, trade continues to be the lifeblood of Singapore’s economy. Trade has been growing by 6.8% per annum in the last 10 years, reaching a level of $716 billion in 2005. It now constitutes more than 3 and a half times our GDP, the largest proportion of any country in the world. Today, our key exports are electronics products, which make up about half of our exports, as well as petroleum and pharmaceutical products. Our major markets are ASEAN, Greater China, the EU, the US and Japan. We are also seeing promising growth in our exports to emerging markets such as the Middle East, Latin America and South Asia.

7     To expand Singapore’s economic space, the Singapore Government has pursued Free Trade Agreements, or FTAs, with our main trading partners. We have concluded 10 bilateral FTAs with countries including India, Japan, New Zealand, the United States and the European Free Trade Association. We have also concluded the Trade in Goods Agreement under the framework for the ASEAN-China FTA.

8     Through these agreements, we have secured good access to key export markets. Businesses in Singapore have also benefited through an elimination or reduction of tariff and non-tariff barriers.

9     Today, trade with our FTA partners accounts for some 65% of Singapore's global trade. More FTAs are in the works, with the Ministry of Trade and Industry in negotiations on 10 other FTAs. With the help of industry partners, including the SICC, it is also embarking on efforts to promote the FTAs to our business community, to raise awareness and to encourage them to leverage on these agreements.

Strengthening the Economic Base of Singapore
10     Beyond FTAs, we continue to grow manufacturing and services as mutually reinforcing growth engines. Emphasising both manufacturing and services will diversify our economic base and make Singapore more resilient against business cycles. And to maintain Singapore’s edge in a highly competitive global economy, we seek to foster a vibrant enterprise ecosystem that fuels interaction and growth.

11     Key to a vibrant manufacturing scene is an SME supplier base that is strong in quality, design and technology. The EDB, in collaboration with SPRING, has introduced a new programme, Supplier Development Initiative, which aims to develop and expand the capabilities of suppliers. It also aims to strengthen the synergies between MNCs and our local SMEs. The initiative started with Precision Engineering equipment manufacturers, and has since been replicated in other industries such as Medical Technology and Aerospace.

12     I am very happy to note that the SICC has also taken up my challenge to you earlier this year to explore new ways to get your member MNCs to work more closely with local SMEs. I am confident that the new SICC Enterprise Multi-Match programme, announced by Chairman Mr Chew Heng Ching, will help promote greater partnerships between MNCs and SMEs in Singapore. I applaud the SICC’s efforts on this new programme and hope to hear success stories soon.

Conclusion
The SICC has come a long way since its founding in 1837. I look forward to the SICC continuing to play an active and key role in the economic development of Singapore. I wish SICC every success in the years ahead.