Distinguished Your Excellency Minister Chan Soo Sen, distinguished Vice President Lee Kam Yoon, board members, ladies and gentlemen,

I am very glad to attend the Inaugural Ceremony of the 22nd-Term Board of Directors of Singapore-China Business Association. I would like to express my warm congratulations and best wishes to all the directors of the new-elected board.
In its history of more than 30 years since it was founded in 1970, the Singapore-China Business Association has been playing an active role in uniting and leading the Singapore enterprises to contribute to promoting the Sino-Singaporean economic and trade cooperation. And the Association’s efforts are respect-worthy.
When looking back into the history of our two nations’ economic and trade cooperation, we are so inspired by the fast development speed. In 1990, the trade volume between the two countries was US $2,8 billion. After 10 years, the figure exceeded US $10 billion. Another two years later, it amounted to US $14 billion in 2002. Meanwhile, cooperation in the investment field also registered a rapid progress. Although the Singaporean investment to China once reduced after the Asian financial crisis, the investment under both sides’ joint efforts, bounced back since last year, when the contractual investment totaled US $2,7 billion with a 40% increase over the year before last, against the US $2,3 billion actual investment with a 9% increase. By the end of 2002, Singapore has invested in 10,700 projects in China, worth US $40 billion in term of contractual investment, with the actual investment of US $21,6 billion. These accomplishments are attributed to the efforts by both governments and peoples, including the distinctive contribution made by the Singapore-China Business Association, which has been engaged in promoting effective cooperation between entrepreneurs of both countries. We would like to express our heartfelt admiration and gratitude to the Association!
As we may find, the world is going through an eventful period when the 22nd -Term Board of Directors of Singapore-China Business Association took the leadership. You are facing a complicated world situation, and undertaking a demanding responsibility. Today’s world is peaceful, stable and eased as a whole, but some areas are still under political tension and turmoil, even wars take place occasionally. Conventional and non-conventional security problems arise one by one. Hegemonism takes a new form while terrorism prevails. While the Iraqi War still lasts, we suffer the unforeseeable catastrophe of SARS. SARS has obstructed the regular social and economic activities in China, Singapore and the whole region. It impacted the economic development severely, particularly tourism and other related industries, including aviation, hotelling, catering and retailing.
Fortunately the Chinese government and Singaporean government have taken effective and decisive control measures against SARS, and achieved distinctive effects. Serious as the current situation is, a favourable turn emerges. The Chinese government has showed its highly appreciation to Singaporean government for its efforts in combating SARS, at the same time, the Singaporean government has also given positive comments on the effective measures taken by the Chinese government. As the Singaporean government leaders said, anything could be done, as long as the Chinese government leaders have made up their minds to do it. Who really knows China? Singapore! And vice versa.

How serious on earth could the impact of SARS be? After analysing and researching, experts hold the common view that it is an economy-related crisis, but by no means an economic crisis. As long as we do a good job, the impact will be defined as temporary and limited, without overall or long-termed influence. As for China, who is still in the shadow of SARS, the bright perspective can be seen through the lifting mist. The World Bank predicts that China’s GDP will grow at 7.2% this year, and it could be as high as 7,3%, says the Asian Development Bank’. Averaging the all the forecasts of eight world-leading banks, including Morgan Stanley, Citibank, BNP PARIBAS, Standard Chartered, Merrill Lynch, Goldman Sachs and JPM, China’s economy will enjoy a 7.4% growth this year. In fact, from January to April, China’s GDP increased by 9.6% with a strong impetus. The first quarter alone has seen a US $13,07 billion FDI, up 56,7%. The fast growth is still going on.

Foreign investors are still in favour of China. They recognize China as a large real market more than a large potential market in the past. The investment environment has been noticeably improved, with distinctive quality enhancement of both services and infrastructures. China’s economic strategies of “Western China Development” and ‘Bringing in and Going Global’, together with preparation projects for hosting the 2008 Olympic Game and the 2010 World Expo will provide numerous business opportunities to the world. China enjoys the most abundant high-quality and low-cost labour resource in the world. Most importantly, after the success of the 16th National Congress of CPC last year, the 1st Session of the 10th National People's Congress and the 11th National Committee of CPPCC were held this year. After the meetings, the new collective leadership has taken office smoothly, and the ‘Three Represents’ Theory has become the guideline nationwide. The Chinese People are focused on the economic construction and development, and the gap between China and the outside world has been shortened. Still full of confidence on China's economic development, foreign investors would not let Sars affect their decisions. The Singapore enterprises have their unique advantages in carrying out business in China. Singaporeans are ‘Kiasu’ (scared to lose). In other words, they have a strong sense of crisis and urgency, which is a valuable quality. Those who fear to lose don’t lose. The Singaporeans never hesitate to lead or keep along with the time and tide. Emphasizing on promotion of the ‘entrepreneur spirit’, they started their business from scratch, achieving success one after another. At the mean time, they stress that one should learn to make a way from failure to victory. A large Singaporean population shares the same origin and speak the same language with the Chinese people. This fact facilitates the communication and understanding between each other. Through years of exchange, both countries’ entrepreneurs have placed a solid foundation, creating a favourable condition for further cooperation. We are fully confident that there will be a better future for the Sino-Singaporean economic and trade cooperation after the temporary difficulties are overcome.


The way of development is full of ups and downs, however the future is bright. I would like to express my sincere wishes that under the guidance of the new-term Board of Directors, the Singapore-China Business Association and its member entrepreneurs will make progress and achieve success in their business with courage, hard work and wisdom. Also I hope they will renew their contribution to the development of Sino-Singaporean economic and trade cooperation and friendship, and contribution to the prosperity of both countries!

Thank you.