Speech by Mr Heng Swee Keat, Deputy Prime Minister and Minister for Finance, at the EuroCham Europe Day Luncheon 2019, on 3 May 2019, 1.10pm, at Grand Hyatt Hotel

Your Excellency, Ms Barbara Plinkert, EU Ambassador to Singapore

Mr Federico Donato, President of EuroCham

Excellencies,

Distinguished Guests,

Ladies and Gentlemen,

Good afternoon everyone.

1. It is a pleasure to speak at this year’s Europe Day Luncheon.
   
    

2. We are here to commemorate the 69th anniversary of the Schuman Declaration of 1950 that led to the creation of the European Coal and Steel Community.
   
    
   
    

3. We commemorate this occasion amidst a changing economic and geopolitical landscape.
   
    
   
    
   
   Singapore enjoys robust and long-standing economic relations with the EU
   
    

4. Amidst a resurgence in nationalist and protectionist sentiments around the world, we are glad that the EU has continued to be an important flag-bearer for free trade.
   
    

5. In February, the EU-Singapore Free Trade Agreement and the EU-Singapore Investment Protection Agreement received the European Parliament’s support with a strong majority.
   
    
   
    

6. The EU-Singapore Free Trade Agreement will bring about significant benefits for businesses.
   
    
   
    
   
    

7. European companies have a long presence in Singapore.
   
    
   
    

8. European companies have also played an important role in transforming our industries.
   
    
   
    

9. Singapore also enjoys robust and long-standing economic relations with the EU. We hope to continue to grow this relationship in the years to come.
   
    
   
   Towards a deeper EU-ASEAN cooperation
   
    

10. The EU and ASEAN share many common positions on issues. Both seek to integrate the economies of their member states into a single market.
    
     

11. It is projected that by 2030, the 10 economies of ASEAN will become the fourth largest in the world, with the size of the middle class doubling.
    
     

12. The EU is the largest investor in ASEAN and in Singapore. The rapidly growing market in Asia presents opportunities for even greater collaboration between the two communities.
    
     

13. We hope that the EU-Singapore Free Trade Agreement acts as a pathfinder to agreements with other ASEAN member states, and eventually an EU-ASEAN Free Trade Agreement.
    
     
    
    Three Key Thrusts to build Singapore as a Global-Asia Node of Technology, Innovation and Enterprise
    
     

14. The centre of economic gravity is shifting, as many countries in Asia are now realising the importance of economic growth. Major countries with the world’s largest populations like China and India are transforming itself and welcoming economic development, while bigger economies like Japan have already been industrialising for many years.
    
     

15. The global economic weight is likely to continue shifting. We hope that Singapore can continue to play a role in this.Singapore will continue to position ourselves as “Asia 101” for global MNCs, like many of the businesses here, who are looking to expand into Asia’s growing markets.

16. The rule of law, protection of intellectual property and agreements we have with the EU on investment protection will serve as important base to assure companies that we stand by what we say and do what we are committed to. As an Asia 101 that is situated in the heart of this region, where many of you are already basing operations for South-East Asia and Asia in Singapore, I hope we will continue to serve you well.
    
     

17. Let me touch on the three key thrusts Iaid out for the broader economic transformation.
    
     

18. I will now elaborate on these three points.
    
     
    
    Investing in research and innovation, and building a vibrant start-up eco-system
    
     

19. First, on research and innovation. We have been investing significantly in research and innovation by our universities, research institutions and firms, and we will continue to do so.
    
     

20. We have set aside $19 billion as part of our five-year Research, Innovation, and Enterprise 2020 plan. Through our investment, we have built a deep base of science which is now ripe for commercialisation.
    
     

21. We have established various ways for Singapore and international companies to co-develop technologies with our universities and research institutions.
    
     

22. The start-up ecosystem in Singapore is also an exciting one.
    
     

23. Second, I would like to emphasise our commitment to investing in our people. Building deep skills is an integral component in each of our Industry Transformation Maps.
    
     

24. Indeed, workers themselves must also embrace upskilling and reskilling to stay relevant.
    
     

25. With the support of companies and increasing receptiveness of the workforce towards upgrading their skills, I am positive that we can continue to develop a highly skilled workforce to support the shift to greater value creation.
    
     
    
    Creating a conducive environment for businesses to thrive
    
     

26. Third, we will continue to build global partnerships and collaborate with countries in the innovation space.
    
     

27. Earlier, Ambassador Plinkert mentioned sustainable growth. Indeed, sustainable growth is something that is close to the heart of Singapore. As a little island state, when sea level rises, we have to take it seriously.
    
     

28. While we build global connections and train our workforce to be future-ready, it is equally important to ensure that Singapore remains attractive as an investment destination.
    
     

29. At the core of our fiscal system is our commitment to keep the overall tax burden low. A competitive tax regime helps us to attract and retain investments and talent.
    
     

30. We also provide support for businesses to innovate and scale up. In this year’s Budget, I extended writing down allowance for acquisition of qualifying intellectual property rights by five years, and extended the 100% Investment Allowance under the Automation Support Package by two years.
    
     

31. We will continue to plan ahead for the future, and ensure that Singapore remains an attractive destination for businesses to thrive.
    
     
    
    Conclusion
    
     

32. In conclusion, we trust that the robust and long-standing economic relations between Singapore and EU, the development of Singapore into a Global-Asia Node of Technology, Innovation and Enterprise linked up with all the key nodes around the world, the availability of a skilled workforce and competitive tax regime will create a conducive environment for your businesses to flourish.
    
     

33. I would like to take this opportunity to express my appreciation to Eurocham and the EU Delegation in Singapore for your role in fostering closer relations between Singapore and the EU. There are many ambassadors here who are active champions of closer relations here. Thank you very much. I also appreciate the strong support of the European business community for the EU-Singapore Free Trade Agreement and the EU-Singapore Investment Protection Agreement.
    
     

34. I look forward to greater economic cooperation and strengthening of Singapore-EU relations in the years ahead.
    
     

35. Thank you.

###