We have a role in facilitating investment in Asia: Minister S Iswaran

What role can Singapore play in this environment that is burgeoning with opportunities and challenges? I believe that investors seeking to be a part of Asia’s growth story will find Singapore a valuable partner, for three reasons: our domain capabilities; the commercial track record of our companies; and our high level of economic connectivity. Let me elaborate.

First, our capabilities. As a small, highly urbanised city state, we are well-acquainted with the challenges of economic development and urbanisation - and have acquired considerable expertise in providing the supporting infrastructural and urban solutions. With their experience in dealing with significant land constraints, for instance, Singapore-based companies have built up a commendable track record in designing and managing business parks.

Ascendas is one good example. As a developer of high quality business parks, it has leveraged on its experiences in Singapore to be the first to introduce the ready-built facility concept in China (Ascendas-Xinsu in Suzhou industrial Park). Ascendas pioneered the “work-live-play” business environment in the Bangalore International Tech Park by integrating office, retail, residential and recreational facilities in one location. Today, Ascendas is well-known for its high quality projects which attract foreign direct investments that drive the growth of local communities, and its current portfolio includes key projects in China, India, Vietnam and other regional economies.

Our natural constraints have also spurred us to develop solutions for other urban challenges. For instance, Singapore’s efforts to overcome our water constraints led to the development of expertise in water management technologies such as water reclamation and desalination. SembCorp, a Singapore company, has won recognition at the Global Water Awards for its innovative work in water management, and today, has global operations in areas such as water treatment and desalination. Another home-grown water treatment company, Hyflux, has also been internationally recognised for its expertise in managing and operating desalination projects, and today operates the world’s largest desalination plant in Algeria.

This leads me to my second point, the commercial track record of our companies. Singapore companies have been active in pursuing opportunities in Asia. Ascendas, Sembcorp and Hyflux, and many other Singapore companies operate major infrastructure and urban management-related projects in Asia. Other examples include Keppel’s Eco-City in Tianjin, Singbridge’s Knowledge City in Guangzhou, and Changi Airport International’s Airport City project in West Bengal. Their knowledge of the Asian market, their commercial network, and their ability to tap capital markets render them ideal partners for investors seeking opportunities in the region. The government also encourages alliances between Singapore-based companies with complementary capabilities in order to undertake more of such projects overseas. International Enterprise Singapore’s iPartners Programme expansion facilitates such partnerships and provides grants to support their development.

Finally, economic connectivity. Access to markets and transportation links are key to business success. In Singapore, as a small country, we well understand this and invest heavily to develop our connectivity. Changi Airport serves more than 86 international airlines which connect to nearly 200 cities in 60 countries. Among Southeast Asian cities, we are the most connected to China. We are also connected to 11 Indian cities with 352 flights a week. About 200 shipping lines call at Singapore offering connections to more than 600 ports in 120 countries. Today, we have the second busiest port in the world, with an annual container throughput of 28.4 million TEUs.

Beyond physical connectivity, we also seek greater economic links to other markets. Consequently, Singapore has committed to 18 Free Trade Agreements, which link us to major economies around the world, including key Asian economies such as China and India. These agreements reduce tariffs and regulatory hurdles for Singapore-based companies and investors seeking entry into these markets, making it easier to do business and for goods, services and capital to flow across borders.