Domestically we are investing heavily in the education and training of our people. We are encouraging new mindsets that foster greater efficiency, initiative and creativity, while preserving our traditional values of hard work, family and societal unity. We are equipping the Singapore workforce with the knowledge and skills to harness the latest technologies, and increase their productivity. Second, we are diversifying the economy into new growth areas, like biotechnology. Third, we are bringing down business costs: government fees, taxes, land costs and rents, and statutory contributions to workers’ Provident Fund (1). Singapore is making painful, but necessary adjustments so as to compete successfully in today’s crowded marketplace.

On the international front, we are pursuing better market access for companies based in Singapore, through multilateral trade negotiations in the World Trade Organization, and also bilateral and regional free trade agreements (FTAs). In the last three years, we have concluded FTAs with several important economies, including Japan, New Zealand, the European Free Trade Association, Australia and the United States.

On November 30, 2002, the Japan-Singapore Agreement for a New Age Partnership (JSEPA) came into force. For Singapore, the JSEPA is a significant agreement, not only economically, but also strategically. It anchors Japan in our part of the world. Japan’s involvement in ASEAN is crucial to the continuing stability, growth and prosperity of our region.

Singapore is in FTA negotiations with several other markets including Canada, India and Jordan. In addition we are negotiating an ASEAN-China FTA and a three-way FTA with New Zealand and Chile. Our goal is to create a web of FTAs to give Japanese and other foreign companies distinct advantages to be based in Singapore. From here they will be able to export under the most competitive conditions to the markets of our FTA partners.

We now live in a fast-changing and competitive world. In this world, the greatest determinant of success will be the ability to adapt and adjust rapidly to the new environment. It requires too, that countries work together to tackle common challenges for mutual benefit, rather than go it alone. Japan and Singapore, two long-standing friends with many shared interests, should pursue closer cooperation. This will benefit no only our two peoples, but also contribute to peace and prosperity in East Asia.”