SPEECH BY SENIOR MINISTER GOH CHOK TONG AT THE QATAR-SINGAPORE BUSINESS FORUM IN DOHA, QATAR, 30 JANUARY 2008, 6.30PM

1.         It is my pleasure to be with you today at the inaugural Qatar-Singapore Business Forum.

2.         Since my last visit to Qatar in April 2005, Qatar-Singapore ties have grown. Last October, we were honoured and pleased to welcome the Heir Apparent His Highness Sheikh Tamim Bin Hamad Al-Thani to Singapore. He led a high-level delegation for the second meeting of the Qatar-Singapore High-Level Joint Committee. The delegation included Prime Minister and Minister of Foreign Affairs His Excellency Sheikh Hamad Bin Jassim Bin Jabr Al-Thani and several other cabinet ministers. It was an important milestone in our relationship. Seven agreements were signed.  They will boost bilateral cooperation.

3.         At the G-to-G level, our aim is to build bridges, facilitate and create the right environment for the businesses from both sides to interact fruitfully. Such interactions between the private sectors from both sides will strengthen bilateral ties. Hence, I commend the Qatari Businessmen Association and the Singapore Business Federation for organising this event. Your effort will enhance the growing business linkages between Qatar and Singapore.

4.         Singapore companies are becoming more familiar with Qatar. They are upbeat about the business opportunities here. Several have joined me on this visit because they are keen to participate in and contribute to Qatar's growth. Keppel’s contract from Ashghal to design and build the largest Wastewater Treatment and Reuse and Sludge Treatment Facility in the Middle East is an example of how Qatar could leverage on Singapore’s strengths in urban infrastructure development.

5.         But seeking bilateral opportunities is only one dimension of the business relationship. Another dimension is cooperation to jointly take advantage of the opportunities in both our regions – The Middle East and Asia – which are the two fastest growing regions in the world. Today, I want to highlight developments in Asia and the opportunity for a strategic partnership between our two economies. I will address three "whys".

c)         Third, why does Singapore regard Qatar as an important gateway to the Middle East?

6.         Why turn to Asia? Very simply, Asia is the engine of global growth. Just China and India together would account for over 40% of global GDP growth in 2007. Not only that, they are respectively the 2nd and 4th largest economies in the world in PPP terms and they are growing at or near double digit levels. We will be wise to ride on their growth. Beyond China and India, there are other Asian success stories of sustained economic growth and rapid industrialisation. Governments in the region are embarking on massive infrastructural projects and investing heavily in developing human capital.

7.         When I was in Shanghai last October, I hosted lunch for a small group of Chinese businessmen. They had all studied in the West and worked with leading Western multinational companies. We conversed in English without interpretation. But what struck me was that although they could succeed in the West, they had all decided to return to China, not to take advantage of low-cost manufacturing, but to form knowledge-intensive companies. One of them had started a pharmaceutical and biotechnology R&D outsourcing company, employing more than two thousand scientific staff. Of the 10 largest pharmaceutical companies in the world, 9 of them have outsourced some R&D work to this company at one time or another. Many more such innovative companies are being formed in Asia, and they will increasingly be the source of global knowledge and wealth creation.

8.         Last month, I visited Vietnam. Singapore is sharing with Vietnam our experience in various areas, particularly investment, trade and personnel training. I was impressed by Vietnam’s progress and developmental drive. Today, Vietnam is the fastest growing economy in Southeast Asia, achieving an average rate of 7% over the past decade.

9.         In our region, ASEAN is working towards establishing an ASEAN Economic Community by 2015, and will become a single integrated market of 550 million people, with free flow of goods, services, investment, skilled labour and capital. These developments, together with the massive economic potential of China and India, augur well for the future of Asia. By 2020, Asia’s share of world GDP is expected to be 45%, up from the current 36%. This is why we are cautiously optimistic that Asia will be able to weather the current turmoil in the global financial markets and the possibility of an economic recession in the US.

10.       Next, why partner Singapore as you look east? As Singapore has no natural resources, we naturally have to make our living by being of service and value to others. If we do not, we are of no economic relevance. Singapore companies have for many years been active in Asia.  They have accumulated extensive experience and knowledge of the region. Today, Singapore is the second largest foreign investor in Vietnam, and the sixth largest in China. Singapore's strategic location in Asia, and our familiarity, experience and network will enable us to value-add to Qatari companies which seek to make inroads into Asia. Singapore companies also have a good international reputation as efficient, trustworthy and reliable business partners. The signing of the MOU between the Qatar Investment Agency and Keppel Corp of Singapore to jointly invest in an eco-city in China, which we will witness later, is a fine example of Qatar-Singapore partnership. Going forward, I believe there is much potential for more Qatari and Singapore companies to work together on joint ventures in Asian countries.

11.       For Qatari companies wishing to expand to Asia, Singapore offers excellent connectivity to the region through extensive air and sea links. But apart from physical connectivity, there is a thriving network of more than 7,000 MNCs and other international companies in Singapore. 60% of them are regional HQs, managing their regional functions from Singapore.  They locate in Singapore because we are the world’s easiest place to do business, as rated by the World Bank in 2007.

12.       Finally, why is Qatar Singapore’s natural gateway to the region? I think our similarities in terms of size, strategic outlook and geographical position offer a natural fit. More importantly, the Qatari leadership is committed to developing Qatar into a regional hub by investing in both physical infrastructure and human resource development. As a result, Qatar has achieved tremendous progress. Today, it is one of the fastest growing economies in the world and has one of the highest per capita incomes. Qatar is also the world's biggest exporter of Liquefied Natural Gas (LNG), and the first Arab country to host the Asian Games. As a region, the Middle East is also developing rapidly. According to one estimate, the GCC economies will spend US$1 trillion in planned public and private projects over the next six years. Hence, Singapore companies will be keen to work with Qatari companies to explore joint projects within the region.

13.       It is therefore timely that the Qatari Businessmen Association has decided to partner the Singapore Business Federation and SPRING Singapore to strengthen the links between our business communities. I am confident that Qatari and Singapore businesses will do well by working together in our respective regions.

14.       Thank you.

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