Welcome address by Mr Gween Seng Kwong, Secretary General for SMa, on 3rd April 2009, 8.30am - 1.00pm, at SBF Seminar Room 2.
Your Excellency
Distinguished Guests
Valued Members
Distinguished Speakers
and
Ladies and Gentlemen
Good Morning to all
1. I am honoured to welcome you to this morning's seminar on Buyer - Seller Meet in conjunction with the visiting delegation from EEPC India. This event is jointlyorganised by SMa, SBF & EEPC, supported by IE Singapore & High Commission of India.
Background on India
2. Indian economy has been witnessing a phenomenal growth since the last decade.After seeing a growth rate in excess of 9 per cent for the last 3 years, it is still holding its ground in the midst of the current global financial crisis. Pegging India's growth rate in the current year at between 7 and 8 per cent, India
would continue being the second fastest growing economy in the world.
Bilateral Relations - Singapore & India
3. The growing bilateral economic relationship is reflected in the rising bilateral trade
between Singapore & India. While, Singapore continues to be among the top four
investors for India and Indian investments in Singapore are also growing steadying.
Presently, the total bilateral trade during 2007-08 was US$ 15.49 billion.
India - Singapore Comprehensive Economic Cooperation Agreement (CECA)
4. The India-Singapore CECA was successfully concluded and was signed on 29 June
2005. The Agreement encompasses trade in goods (where Singapore based
exporters will enjoy tariff elimination or reduction in 75% of Singapore domestic
exports), trade in services, investment protections and other features. Mutual
Recognition Agreements will eliminate duplicative testing and certification of
products in specific sectors and co-operation chapters will encourage and facilitate
bilateral cooperation in several sectors. The CECA process has also encompassed
a review of the existing Avoidance of Double Taxation Agreement between India
and Singapore.
This agreement is India's first ever CECA and Singapore's first comprehensive
bilateral economic agreement with a South Asia economy. The Agreement is a
strategic compact between the two countries that will further enhance bilateral ties
by catalyzing the already growing flows of trade, investment, ideas and people.
India-ASEAN Free Trade Agreement
5. To add on, the Free Trade Agreement (FTA) in goods is expected to be signed
between India and the 10-member ASEAN during the India-ASEAN summit in April
2009. The FTA is expected to eliminate tariffs on 80% of the items traded in a
phased manner by 2015.
It is expected that ASEAN and Indian will gradually turn their free-trade agreement
into a comprehensive economic cooperation agreement that will also include
services and investment. The agreement has a potential to create a huge market for
services like banking, information technology, telecom, education and tourism. The
investment agreement is expected to attract foreign direct investment (FDI) from
ASEAN members, especially Singapore and Malaysia, and provide opportunity for
Indian companies to invest in the ASEAN region in sectors such as pharmaceuticals,
coal mining and automobiles. With the signing of the agreement, India-ASEAN trade
is likely to surpass US$ 50 billion by 2010.
New opportunities available in Manufacturing
6. With a vast domestic market and availability of low-cost workers with advanced
technical skills has been instrumental in attracting an ever expanding number of
multinationals who are setting up their manufacturing base in the country. Be it
automobiles or computer hardware, consumer durables or engineering products, all
are being manufactured by multinationals in India. According to a report by the
Federation of Indian Chambers of Commerce and Industry, India is poised to become the global manufacturing hub for luxury brands over the next five years with manufacturing of luxury items becoming a US$ 500 million industry during this period.
SMa's Goal
7. Overall, SMa's goal is to enhance our members' competitiveness and expand their
presence locally and internationally in emerging markets. We hope to serve as a
springboard for members to take their businesses to the next level. With our strong
connections in India, SMa will be organising more exhibitions and trade missions to
different parts of India. This will be done with the partnership and support from IE
Singapore.
Closing Remark
8. Finally, I would like to thank our esteemed Guest Speakers: His Excellency Mr.
Tsewang Namgyal, Deputy High Commissioner of India, Mr. Terence Khi from IE
Singapore, Mr. Pradip Kumar Tagore from UCO Bank & Mr. K V Kartha from the
EEPC delegation.
I wish everyone to have a fruitful and informative session in today's event on Buyer
- Seller Meet.
Thank You.
Welcome Remarks by Mr.Teng Theng Dar, CEO of SBF, on 3 April, 2009, 8.30am - 1.00pm, at SBF Seminar Room 2.
Mr. Tsewang Namgyal (pronounced as "Che-Von Nam-g-yal"), Deputy High Commissioner of India to Singapore;
Mr. Gwee Seng Kwong, Secretary General, Singapore Manufacturers' Federation;
Mr. K V Kartha, Leader of the EEPC Delegation from India;
Distinguished speakers for the seminar
Distinguished Guests,
Ladies and gentlemen,
1. It gives me great pleasure to warmly welcome you to the "Buyer Seller Meet in conjunction with the visiting delegation from the Engineering Export Promotion Council of India (EEPC)" jointly organised by the EEPC (Singapore office), Singapore Manufacturers Federation (SMa) and Singapore Business Federation (SBF).
2. On behalf of the Singapore Business Federation, I would like to express our deepest appreciation to our visiting delegation from EEPC India, India High Commission (Singapore) and the Singapore Manufacturers' Federation.
3. I am very pleased to see a good turnout today as it indicates that there is a group of serious Singapore companies interested in exploring business opportunities in India which makes all our initiatives worthwhile. It is our objective to raise market awareness for emerging business opportunities in India and to facilitate business linkages between our companies.
4. Singapore always pays special importance on its ties with the government of India. Singapore is not just India's most important trading partner amongst the ASEAN countries, but also significant as India's gateway to ASEAN and China. Not only has bilateral trade soared between the two nations since the signing of the Comprehensive Economic Cooperation Agreement in 2005, Singapore companies have become increasingly involved in infrastructure and real estate projects in India and have ventured profitability into trading of commodities and consumers goods. India's reforms started in 1991 have already borne fruit, with growth averaging at 6 percent a year since the reforms started in 1991. One thing is now certain - there is no turning back. As Dr Manmohan Singh (India Prime Minister) has said, "No power on earth can stop an idea whose time has come".
5. Singapore imports from India grown by an estimated 35 per cent from 2007 to 2008. Singapore export from India grown by an estimated 12% in the same period. Total trade between Singapore and India reached S$28.7 billion in 2008, increased by about 21% from S$23.8 billion in 2007.
6. We are very encouraged that Singaporean businesses have turned their active radars on the Indian market. Local success stories such as National Aviation Company of India Ltd (NACIL), parent company of Air India, has gone into a 50-50 joint venture with Singapore Air Terminal Services (SATS) to provide ground handling services at major Indian airports, including Delhi and Mumbai. Through this, we hope it provides a greater impetus for Singaporeans to do business with Indian counterparts.
7. We wish to create more success stories of Singapore-based companies entering the India market where the diverse economy represents opportunities in different industries.
8. Today's Buyer - Seller Meet here in SBF signals our intent to organize platforms such as these to help create and generate new business to business and business for business deals for both Singapore and Indian enterprises. It is our sincere hope that through this enterprise exchange between Singapore and India, we can make the successful difference for our companies to survive and prosper in these current difficult and challenging economic times.
9. Without further ado, I wish to thank everyone for taking time off to be with us today. I believe your presence here is of utmost importance, as the exchange of ideas and information will not only strengthen social, cultural and economic ties but also create new frontiers for business collaborations between our two business communities.
10. In closing, may I take this opportunity to wish all have a successful business matching session, thank you!
Mr. Teng Theng Dar, CEO, Singapore Business Federation
Mr. Gwee Seng kwong, Secretary General, Singapore Manufactures Federation,
Mr Vijay Kartha, Leader of the Engineering Export Promotion Council
Delegate members from India and Singapore,
India - Singapore bilateral relations is underpinned by strong economic and commercial ties. Singapore is India's largest trade and investment partner in ASEAN. Signing of the Comprehensive Economic Cooperation Agreement in 2005 has made significant contribution to growth in bilateral trade and investments. The two-way bilateral trade has increased from Singapore $7.89 billion in 2003 to S$28.75 billion in 2008. While exports from India increased from S$2.5 billion in 2003 to S $11.9 billion in 2008, imports from Singapore rose from S$5.4 billion in 2003 to S$16.8 billion during the corresponding period.
The Engineering Export Promotion Council has played a crucial role in the growth of engineering exports from India. Engineering exports from India has steadily grown from US$10 million in 1956-57 to over US $ 33 billion in 2007-08. India's engineering exports to the ASEAN region increased from US$12.6 billion in 2006-07 to over $15 billion in 2007-08. EEPC has been instrumental in transforming the profile of Indian engineering exports from low value items to high-end engineering goods and services. Over the years there has been diversification both in terms of products and destinations. Since its inception in 1955, EEPC has grown to be the largest Export Promotion Council over time having membership amongst large Corporate Houses, State Trading Houses, SMEs , among others.
Singapore has emerged as the 2nd largest source of FDI inflows into India amounting to US$ 6.46 billion from April 2000 to December 2008, accounting for over 8% of the total FDI inflow. Singapore was the second largest source of FDI for India in 2008-09 with inflows amounting to US$ 2.1 billion during the period April-December 2008. For India, Singapore constitutes a bridge into the ASEAN as well as Asia Pacific. Combined with a positive business environment, strong air connectivity and the presence of a large Indian community, Singapore has emerged as the key offshore hub for many Indian corporates.
The global financial crisis and economic downturn has led to drastic contraction in industrial production and international trade. Both the countries should explore all opportunities for early recovery of our respective economies. Today's buyer-seller meeting should be looked in the broader context of enhancing our bilateral trade. I would like to commend the Engineering Export Promotion Council. Singapore Business Federation and Singapore Manufactures Federation for organsing the Buyer- Seller Meet and I wish you all a very successful meeting.
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