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The
Business Times, 29 Jun 04
S'pore must strengthen OECD links: BG Yeo
They remain our biggest economic partners despite rising China tide
By Chuang Peck Ming
THE rich industrial countries of the West, and Japan, remain Singapore's
most important economic partners - even as the city-state builds and
expands links with a rising China and India, Trade and Industry Minister
George Yeo said last night.
'They (OECD countries) will remain the major players on the global
scene for a long time to come because of their economic strength,'
Brigadier-General Yeo said at the Economic Society of Singapore's
annual dinner. He noted that the European Union and the US each have
a gross domestic product (GDP) of US$11 trillion, and Japan's GDP
is US$4.3 trillion. In comparison, China's GDP is just US$1.4 trillion
and India's is US$560 billion.
'We must therefore continue to strengthen our links to the advanced
countries,' BG Yeo said. 'They account for most of the inbound investments
brought in by Economic Development Board in knowledge-intensive industries.'
Singapore has, therefore, continued to push for free trade pacts with
the industrial economies. But BG Yeo said there's no denying that
the re-entry of China and India into the world marketplace is changing
global trade flows fundamentally. 'What we are seeing today is just
the beginning,' he said. 'The tides are changing and inexorably gathering
force. No continent is unaffected.' BG Yeo said Singapore is positioned
to ride on the growth of China and India if it makes adjustments to
its external and internal policies. In his words, 'remaking Singapore
into a New Singapore in a New Asia'.
Noting the many economic links Singapore has built up with China,
he said: 'As China's presence in South-east Asia grows, Singapore
will be an important base for Chinese companies.' Similarly, Singapore
will be a major hub for India in the years to come. Singapore has
also been building ties in the Middle East and pushing for the economic
integration of Asean. BG Yeo said: 'All these efforts we are making
to strengthen Asean and build links to China, India and the Middle
East will position Singapore well for the new tide flowing in Asia.'
'Good position is critical, he added. 'If we sail where the current
is flowing strongest, we will be carried along even if we don't do
everything right. If we are badly positioned, however, the most strenuous
efforts may still get us nowhere.' BG Yeo said Singapore has done
many things to get into a better position, including restructuring
its economy.
But there is still much to be done. 'We must remake Singapore in many
areas from the shortening of National Service and the establishment
of a private university to the idea of allowing a casino here,' he
said.
'Central to everything is our ability to make Singapore a talent capital
- both keeping our own talent and attracting others to join our ranks.
Without a large pool of international talent and a host community
which welcomes them, all our dreams will remain dreams.' |
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