Speech by President Halimah Yacob at the EuroCham Europe Business Summit 2021

H.E. Barbara Plinkert, Ambassador of the European Union to Singapore

Mr. Federico Donato, President of the European Chamber of Commerce, Singapore

Distinguished Guests

Ladies and Gentlemen

It is my pleasure to be here today at the Europe Business Summit. Singapore and the EU enjoy excellent ties, including good cooperation at multilateral fora. Despite the uncertainties caused by the COVID-19 pandemic, both sides continue to cooperate closely on a broad range of areas. Today’s event is a good example of our strong economic relationship, and the relevance of the European business community not just in Singapore, but also in our region.

A significant milestone in this relationship was achieved in 2019 when we concluded the EU Singapore Free Trade Agreement (EUSFTA). Amidst the backdrop of the COVID-19 pandemic and protectionist sentiments worldwide, the EUSFTA has served as an anchor for our two economies. Both Singapore and the EU have undertaken some very substantive commitments in tariff elimination, rules of origin, and market access in the FTA. It also signals a strong commitment to upholding free and fair global trade, as well as serves as a pathfinder for an EU-ASEAN agreement in the future.

Let me therefore take this opportunity to thank those who have laboured ceaselessly towards the successful implementation of the EUSFTA. This includes the European Chamber of Commerce in Singapore, for its efforts to advocate for the EUSFTA, and its ongoing initiatives amidst its 20th anniversary to educate and make the FTA accessible for companies.

As a comprehensive and inclusive trade agreement, the EUSFTA has provisions on 21st century trade issues such as Intellectual Property, Renewable Energy, and Sustainable Development. Singapore and the EU share the view that trade and sustainability are not at odds with each other. On the contrary, they mutually support each other. Under the EUSFTA, Singapore and the EU recognised the need for trade to contribute positively to the fight against climate change. Therefore, we brought forward the first meeting of the EUSFTA Board on Trade and Sustainable Development (TSD Board) by one to November 2020. We also held the first TSD Public Stakeholder’s Forum to engage business, labour and environmental stakeholders from Europe and Singapore, to explore ways to work towards a climate neutral and resilient economy.

In line with our sustainable development ambition, the Singapore Green Plan 2030 was unveiled on the first of February this year. Singapore Green Plan 2030 is a whole-of-nation movement to chart the country’s way towards a more sustainable future over the next decade.

I am glad that EuroCham Singapore also successfully launched the Sustainability Awards recently, to recognise European and local companies distinguishing themselves in this field. Indeed, as mentioned by the President of the EU Commission, Ursula von der Leyen at the awards, “Europe and Singapore are walking in parallel on the path towards a greener economy.”

Another area of possible collaboration is digitalisation. Technology is changing the international economy rapidly, and even more so during the COVID-19 pandemic. Digitalisation proved to be a source of resilience during the crisis and played a crucial role in facilitating flows of products and services within and between borders

This impact in Southeast Asia has been transformational and likely permanent. A recent study by Google, Temasek and Bain covering six countries in Southeast Asia found that there were 40 million new internet users in 2020 alone, and more than a third of digital services consumers started using the service due to COVID-19. This underscores the huge potential of the digital economy in Southeast Asia. To support businesses in tapping on these new opportunities in the digital economy, Singapore has set aside $1 billion in the Budget this year.

Internationally, Singapore is growing a network of Digital Economy Agreements (DEAs) with key partners, to foster interoperability of standards and systems and support businesses engaging in digital trade and cross-border electronic commerce. A number of agreements and initiatives covering e-commerce, payment connectivity, cross-border data flows and entrepreneurship, amongst others, have been established and continue to be developed.

Digital economy collaboration between our two sides will complement the EU-Singapore Free Trade Agreement, and strengthen our digital connectivity as well as develop new opportunities. Even as governments develop cross-border economic opportunities, businesses must also recognise their roles as an integral part of society -- as employers who invest in the capability of its workforce, proactively taking the lead in identifying the relevant job disruptions to develop a training and transition plan for re-skilling their workforce.

I am also delighted to see the affirmation of European companies in Singapore and their commitment to our local workforce, through the creation of job opportunities for Singaporeans to develop their skills, creativity and talents, in the video campaign launched by EuroCham Singapore at the start of this year. Singapore too continues to welcome talents with the right expertise to complement Singaporeans, help us build capabilities and add vibrancy to our economy.

In conclusion, I am confident that Singapore and the EU will honour the EUSFTA by working closely towards creating more opportunities for businesses from both sides. Being the first free trade agreement between the EU and an ASEAN country, it also reflects the EU’s continued interest in actively engaging the region and anchoring its presence here. I hope both Singapore and the EU will further our economic partnership to the next level as there are many exciting upcoming opportunities, not just in Singapore but also in the region. Thank you.