Your Excellency Mr Li Changchun, Politburo Member, Central Committee, Communist Party of China (CPC) and Party Secretary, Guangdong Provincial Committee.

Distinguished Guests.

Ladies and Gentlemen.

I am delighted to join all of you here this morning for the opening of the Guangdong-Singapore Economic and Technical Cooperation Forum. This Forum reflects the strong economic, political and social relationship between Guangdong and Singapore.

Guangdong province has been at the forefront of China’s economic development, accounting for nearly one-third of accumulated foreign direct investment in China. Last year, Guangdong’s exports of US$92 billion was 37% of total Chinese exports.

When I called on party Secretary Li in Guangzhou last October, he told me that Guangdong province produced 30% of the world’s hard disk drive. Singapore is also one of the world’s major production bases for hard disk drives. This shows the increasing similarity between our two economies which opens up new areas for two-way trade and investment.

We should strengthen our cooperation especially in electronics and other hi-tech sectors. There are also good business opportunities in the supporting industries and in logistics. Many of our electronics contract manufacturers have either set up or are in the process of setting up operations in Guangdong.

Over the years, the bilateral economic links between Guangdong and Singapore have grown from strength to strength. At the end of last year, direct investment from Singapore in Guangdong reached US$2.33 billion. In 2000 alone, over 75 projects were set up by Singapore businesses with a total commitment of US$465 million. Singapore is now Guangdong’s sixth largest source of foreign investment. Our investments are concentrated in electronics, petroleum, biological engineering, paper and pulp, light industry, food and real estate. Among Singapore’s investments in Guangdong are 38 large projects with contractual investment exceeding US$30 million each.

A good example of the opportunities for cooperation between Singapore and Guangdong is the Guangzhou Container Terminal project. It is a joint venture between the Guangzhou Harbour Bureau and PSA Corporation. I would like to thank the Guangdong provincial government and the Guangzhou municipal government for their strong support of this project.

We are honoured by the presence of Party Secretary Li Changchun at this Forum. In 1994, Dr Goh Keng Swee asked me to invite Party Secretary Li, at that time the Party Secretary of Henan province and the youngest party secretary in all of China, to visit Singapore which he graciously accepted. When he was Party Secretary of Henan, Senior Minister Lee Kuan Yew visited the province twice. Party Secretary Li is a good friend of Singapore and knows us well.

I am confident that, under Party Secretary Li’s leadership, today’s Forum will give Singapore businessmen a better understanding of investment opportunities in Guangdong and encourage business leaders from both sides to explore more areas for cooperation. Many Singaporeans are descended from immigrants who came from different parts of Guangdong province. Our close cultural and historical links are a precious business asset.

I congratulate Party Secretary Li and the Guangdong provincial government for the fine organisation of this Forum, and wish all conference participants fruitful discussions and success in your business ventures.

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