Speech by President Tony Tan at Banquet hosted by Lord Mayor of London

Your Royal Highnesses

Lord Mayor

Your Excellencies

Friends

Ladies and Gentlemen

        It is a great honour for me to be the first President of Singapore to undertake a State Visit to the United Kingdom. I am delighted to be here, and my delegation and I are touched by the warm welcome and generous hospitality accorded to us by the Lord Mayor and the City of London.

        High-level exchanges between Singapore and the City of London are long-standing. These include visits by the late President Ong Teng Cheong, as well as former Prime Minister Lee Kuan Yew and the Prime Minister of Singapore Mr Lee Hsien Loong, both of whom are Freemen of the City of London. They are testament to the robust ties between Singapore and London.

Old Links, New ties

        The history between our two cities can be traced back to Sir Stamford Raffles, who began his career as a clerk at the East India Company. After his arrival in Singapore in 1819, Sir Stamford laid the foundations for Singapore’s eventual success, by setting up a free port in its harbour which enshrined the principles of free trade and linked the country up with the world economy. Until today, Singapore’s seaport remains a cornerstone of its economy, and is the second largest container port in the world by volume, just behind Shanghai. This Friday, I will visit Lloyd’s of London in the City, which is fittingly located on the former site of the headquarters of the East India Company.

        London’s development as a global city and a cosmopolitan financial centre was a source of inspiration for Singapore. After its independence, Singapore studied London’s model as an offshore centre for US dollars. Singapore created the Asian Dollar Market in the late 1960s, followed by the Singapore International Monetary Exchange, or SIMEX, in the early 1980s. These were the building blocks for what is today the third largest foreign exchange in the world. Taking cue from London, Singapore diversified its economic links with all developed economies and integrated with its ASEAN neighbours. Singapore is now a bustling Asian financial hub with over 1,000 financial institutions performing various roles in Singapore and the wider region. British banks such as Barclays, HSBC, RBS and Standard Chartered have a significant presence in Singapore. Conversely, all major Singapore banks are also present in London. Singapore’s homegrown local bank, OCBC, set up operations in London as early as in 1969. CEOs of many multinational firms, some of whom are here today, have made London and Singapore their European and Asian headquarters respectively. Ties between our two cities are closer now than ever before. 

Complementary Roles

        Looking ahead, it is clear that the global economic and financial landscape is changing. Even as Europe recovers from the global financial crisis led by one of the strongest growing economies here in the UK, the re-emergence of Asia will fundamentally reshape the world order. The IMF has forecasted that in the next four years, emerging Asia will grow at about 7 percent per annum, which is nearly three times faster than the advanced economies. With Singapore’s strong links to all the key Asian economies of ASEAN, China, Japan and India, Singapore is in a strong position to grow as a gateway for international firms looking to do business in Asia, as well as for Asian businesses to access the global market. The growing connectivity and integration amongst ASEAN Member States will also increase capital flows across the region where Singapore will be the natural hub.

        Likewise, the UK remains a key international gateway and the most sought after address for growing Asian firms to set up their European headquarters. Both GIC and Temasek have a strong presence in London. In fact, many investment firms like them are not only looking at the UK and European markets from here, but also stretching to the Middle East and Africa as well. This is testament to London’s strong standing as a regional and international hub. With London’s strong links with other regions, the city is a natural attraction for many to set up base here.

        Singapore and London are gateways for Asia and Europe respectively. So it is natural that our two cities should continue to deepen and expand existing linkages as we adapt to the changing world. The UK-Singapore Financial Dialogue was established in February this year when Chancellor of the Exchequer George Osborne visited Singapore. The dialogue aims to institutionalize and deepen the financial and economic cooperation between Singapore and UK. There is much our two cities can learn from each other’s experiences, be it the internationalization of the Renminbi, or the implementation of regulatory reforms in the aftermath of the global financial crisis.

Global Liveable cities

        Singapore and London are two international cities that have firmly embraced globalization and free trade and are vibrant and interconnected financial centres. Our two cities are cosmopolitan and diverse cities which welcome professionals from around the world.

        To attract the best and the brightest, cities today must also be sustainable and liveable. Both Singapore and London have also done well in these areas. Singapore has been ranked as one of the most liveable cities in Asia. More impressively, London was recently named the most desired place in the world to work in. There is no better accolade that a global city could aspire to. While Singapore is not too far behind at number 9, and still the top in Asia, we must continue to do more to attract and retain the best talent. I believe London and Singapore can learn from each other on this front, especially with regard to tackling similar challenges such as social integration and housing affordability.

Ladies and Gentlemen,

        My State Visit to the United Kingdom marks a historic milestone in the bilateral relations between Singapore and the UK. Next year will bring another milestone, the 50^th anniversary of Singapore’s independence as well as the establishment of diplomatic relations between the Singapore and the UK. I am pleased that the momentum from my State Visit will carry on to 2015, as Singapore will be the featured country in the City of London Festival next year. This cultural exchange will build another dimension into our strong and growing ties, and reinforce the links between our two cities.

        I am confident that Singapore and London will continue to flourish as dynamic global cities, and our partnership will continue to deepen in the years to come.

Ladies and Gentlemen,

        I ask all of you to join me in a toast to the Lord Mayor and the City of London Corporation.