Deputy Prime Minister Mr Lawrence Wong
Minister for Manpower & Second Minister for Trade and Industry, Dr Tan See Leng
Senior Minister of State, Ministry of Manpower, and Ministry of Sustainable Development and Environment, Dr Koh Poh Koon
Senior Minister of State, Ministry of Finance, and Ministry of Transport, Mr Chee Hong Tat
Business China’s Former Board Adviser, Mr Khaw Boon Wan
Ambassadors, Board members
Distinguished guests, ladies and gentlemen,
A very good morning to all!
1. Firstly, I would like to warmly welcome all our guests who are here with us and those joining virtually. Today’s forum is the first large-scale event that we have been able to hold since the pandemic started in 2020 without the safe management measures. Our guests present can experience the lively atmosphere and interactive energy.
2. Since April 1, Singapore’s borders were open to all international visitors who have been vaccinated. So far, the number of tourists arriving in Singapore has risen for seven consecutive months, reaching 729,000 in August. Singapore Tourism Board forecasts that the number of tourists will reach 4-6 million this year.
3. Last week, Formula 1 Singapore Grand Prix held as scheduled, which has set a new record in attendance with more than 300 thousand fans attending the three-day event.
4. Over the next few months, Singapore will continue to host a number of international conferences and exhibitions. The filled calendar of events signifies that our tourism and related industries are on the path to full recovery.
5. However, as we step out of the shadow of COVID-19, the global economic outlook is clouded with uncertainties and heralds challenging times.
6. Firstly, many countries are facing global inflation, the most severe in 40 years. In the past two years, many economies contracted, investments shrank, industries stopped production and some even closed down. Coupled with the circuit-breaker, the “just in time” model in international supply chain could not function properly, resulting in rising costs, insufficient and unstable supply.
7. Second, many countries are hiking interest rates rapidly to control money supply and flow. While higher interest rate would tame inflation, it might also result in families and consumers not able to repay their car loans and mortgage loans. Small and medium enterprises could shut down due to rising costs.
8. The debt burden of many developing countries and local governments has also increased, reducing their ability to introduce further stimulus measures to spur investments and consumption. Hence, the prospect of an imminent wide-spread recession.
9. Third, the protracted war between Russia and Ukraine has led to escalating energy and food prices. The war itself is full of danger, variables and deeply troubling. Many are worried about accidental incidents and mis-judgement which could lead to a full scale war, repeating the painful mistakes of history. Besides, the world’s most pivotal US-China relations is not showing sign of easing.
10. By comparison, after World War II, countries learned their lessons. They laid down weapons, rebuilt economies, established multilateral organizations, drafted international laws, traded, invested in and developed a globalised economy. Each country did what they could, and took what they needed, from a shared prosperity and in peaceful development.
11. Recently, the World Bank warned that the world may face a global recession next year triggered by aggressive tightening policies in various countries.
12. It makes us wonder, whether the most glorious period of human prosperity and economic advancement since WWII is coming to an end, brought about by the various trends mentioned above, which are complex, intertwined and destructive to international peace and cooperation. We ask if the globalized economy is about to break up, following geo-political fragmentation and antagonism?
13. The theme of today’s forum is “Stability Amidst Turbulence”. Through the various panel discussions and breakout sessions, we aim to gain greater insights into today’s complex world. Perhaps we could find hope beyond the immediate crisis.
14. Entrepreneurs among us are very concerned about the surrounding markets, including the development of Southeast Asia, industry trends, supply chain restructuring, technology application and market bifurcation. At the same time, we have our eyes on the development and opportunities, of China’s economy under the “Dual Circulation” policy, and the progress of China’s economic integration with ASEAN. This is the main content of the first breakout session of today’s forum, “Capital Bifurcation: Role of Chinese FDI in Southeast Asia”.
15. While there are many thorny issues ahead, we must not lose sight over medium to long term development opportunities, including the green economy and green financing.
16. With increasing consensus amongst the international community to achieve carbon neutrality and emission targets, and society’s changing attitude to embrace green consumption, enterprises must adapt and revamp their business models, taking in green technologies to produce greener products and services. Therefore, the third breakout session of the forum will explore the latest developments in green economy and green financing.
17. In addition, we also need to prepare ourselves for the rapidly growing Web 3.0 industry, building a bridge to transition from the current Web2.0 to the future 3.0. While Web 3.0 is still at its nascent stage, many large corporations have begun investing heavily in Web3.0 technologies. The breakout Session 2 of the forum will explore the blue ocean of the metaverse, its development, opportunities, challenges and security issues in the coming years.
18. The mission of Business China is to cultivate a group of bilingual and bicultural talents, so that Singaporeans can better understand and grasp the development opportunities in China. Therefore, we are also honored to have Vice Governor Fang Wei from Jiangsu Province, China to share with us development strategies and opportunities in Jiangsu through video streaming.
19. As the world’s second largest economy, China’s impact on the region is huge and far-reaching. Hence, we keep a close watch on the direction of its economy. In August, China’s industrial output and retail sales exceeded economists’ forecasts, reaching a five-month high. Its unemployment rate is also showing sign of moderation.
20. In the last 4 months, the Chinese government has announced 50 policy measures to boost the economy. China’s economic growth in the first half of the year was 2.5%, and the full year is expected to be 3.2%. Many are interested in the pace of economic recovery for China next year. How will the properties sector crisis be resolved? When will China fully open up? For foreign companies, how they could participate in the new and rapidly growing industries? These are many of the questions we hope to find answers for.
21. I would like to express our gratitude to our Guest of Honour, Deputy Prime Minister, who is also Board Adviser to Business China, Mr Lawrence Wong, for taking time out of his busy schedule to address us. We would also like to thank SMS Koh Poh Koon for delivering the keynote speech “Enhancing Societal Stability and Sustainability in a Turbulent World” this afternoon. This evening, we are also delighted to have RADM Teo Chee Hean, Senior Minister and Co-ordinating Minister for National Security, as our Guest-of-Honour at our gala dinner and fireside chat.
22. Finally, I would like to thank you all for your interest in and support for Business China’s programs all these years. We are indebted to our loyal sponsors, corporate and individual members for your unwavering support. We shall endeavor, working with our partner organizations, to strengthen our comprehensive engagement with China, ASEAN and regional partners to bring about greater mutual trust and win-win cooperation. It is our earnest hope that out of the current turbulence, we will together find stability and a path to the future!
23. Thank you all very much.