Chairman of the Egyptian Businessmen's Federation, Mr Adel Gazarin,
Distinguished Members of the Egyptian Businessmen's Association,
Ladies and Gentlemen,
1 I thank you for your kind invitation to address the Egyptian Businessmen's Association (EBA) this afternoon. Since the EBA's establishment in 1975, it has maintained its reputation as Egypt's premier business group. I am pleased that the EBA has forged a close and productive working relationship with the Singapore Business Federation. Business opportunities do not materialise from mere visits by political leaders. Presidents, Prime Ministers and Governments can help by opening doors and creating a conducive political and economic environment for business. However, ultimately it is through direct contact among businessmen that concrete business partnerships can materialise.
2 I am delighted to be making my first State Visit to the Middle East to Egypt. Egypt is an old friend of Singapore. We are celebrating 40 years of diplomatic relations this month. This may not seem long for Egypt. But for Singapore, it is our entire history as a sovereign nation. We will always remember that Egypt was the first Arab country to recognise Singapore's independence in 1965. Since then, we have worked closely together in many areas. As maritime and logistics hubs in our respective regions, we share a common interest in promoting free and unimpeded trade. We have also become strong partners under the Asia-Middle East Dialogue which serves as a platform for Asia and the Middle East to exchange ideas and promote greater understanding. While such dialogues tend to involve government officials and academics, the business community's role assumes greater importance with globalisation and assumes critical importance for Trade and Services. By nature, many business people are global in outlook and open to new ideas and challenges. In this respect, they serve as a good model for international collaboration.
3 I have had very good discussions with President Mubarak and Prime Minister Nazif. We talked about how we can further strengthen economic relations. Since 1997, bilateral trade has increased by about two-and-a-half times to reach S$731 million in 2005. While this is not large going by the size of your economy, it nevertheless reflects a positive trend. Not too long ago, Singapore Technologies Telemedia partnered Qatar Telecom to bid for Egypt's third mobile phone license. While the consortium was unfortunately not successful and eventually came in third, it demonstrates that there is growing business interest by Singapore companies in Egypt. The next time a Singapore company bids for a major project in Egypt, I am hopeful it will succeed. Companies like Neptune Orient Lines and Portek are already involved in the logistics and port sector in Egypt.
4 I mentioned to President Mubarak that the Singapore Government has been actively engaging the Middle East and encouraging our private sector to look seriously at the opportunities in the region and in particular in Egypt. We have just signed a Declaration of Intent to negotiate a Comprehensive Economic Cooperation Agreement (CECA). I am confident that this agreement which reflects our serious intention to translate into results will, when concluded, further deepen economic ties between our two countries and spur greater bilateral trade and investment flows. Egypt and Singapore are both well-placed to serve as each other's gateways into our respective regions.
5 In recent years, Egypt has made good progress in economic reforms to transform its economy into a market-driven one, and has moved ahead with the privatisation of state-owned assets. Such changes are never easy, particularly in a large country like Egypt with its complex problems and priorities. However, in this globalised world, it is worth reminding our businesses that all governments are finding it increasingly difficult to protect their local companies from foreign competition. With new advances in IT and modern communications continually being made, the trend towards competition seems unstoppable. As trade barriers and business costs go down in many countries, the sky appears to be the limit for astute businessmen. They are spoilt for choice and countries are all chasing the same investment dollars. Businesses will naturally look at the potential risks and returns of any investment decision. This will also apply to our respective situations,
6 It is therefore important that Singapore companies take advantage of activities planned by organisations such as EBA and SBF to explore opportunities for themselves in Egypt. I was glad to know that there was a good turn-out at the business session on Egypt organised by SBF on the sidelines of the Global Entrepolis@Singapore Conference last month. I hope that both organisations will look for more ways to further their collaboration in the years ahead.
7 Let me conclude by reiterating my appreciation to the EBA for hosting this lunch. I wish the Egyptian business delegation present a good and fruitful discussion with their Singaporean counterparts.
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