Mr Francisco Dorneles, Minister of Labour,

Mr Anthony Garotinho, Governor of the State of Rio de Janeiro,

Mr Wagner Victer, Secretary of State of Energy, Shipbuilding Industry and Petroleum,

Mr Lee Ying Cheun, Singapore Ambassador to Brazil,

Mr Omar Peres, President of Maua Jurong S.A.,

Mr Heng Chiang Gnee, Deputy President of SembCorp Marine,

Distinguished guests, fellow Singaporeans, ladies & gentlemen,

A very good afternoon to all of you here. I am honoured to be here this afternoon to officiate the opening of this Brazil-Singapore shipyard here in Niteroi, in the beautiful State of Rio de Janeiro.

This is my second official ceremony today. This morning I was at Angra to officiate at the opening of another joint venture shipyard. These two major investments by Singapore companies in Brazil are the result of the revitalisation of the Brazilian shipbuilding and offshore construction industry. We in Singapore are proud that a small city-state thousands of miles away should be able to participate in this revitalisation.

The maritime industry in Singapore started about 40 years ago (in the 1960s), when the Singapore Government invited Ishikawjima-Harima Heavy Industries Company Limited (IHI) of Japan to establish a commercial shipyard. At that time, IHI, as part of Japan’s overall shipbuilding industry strategy, was looking for a strategic "after service station" between the Middle East and Japan. The Middle East is the main provider of oil for Japan.

This was the time that Singapore had just gained its independence in 1965. As part of the Singapore Government’s Industrialisation plan, the marine industry was promoted making use of facilities left behind by the British and Singapore’s strategic location. It turned out to be a correct decision, and the Government’s support for the industry has been a key factor in the success of the marine industry in Singapore.

Brazil has an even longer tradition in the maritime industry. In the early 1970s, Brazil rose to be the second largest shipbuilder in the World. Like Singapore, Brazil benefited from the inflow of foreign investment and technology and, coincidentally, part of this was also from IHI of Japan. In the 1980s and early 1990s, the industry here unfortunately suffered a series of setbacks due mainly to economic instability, high inflation and currency devaluation. In the last few years, however, because of good financial and economic policies, economic stability has returned and the Brazilian Government has started to revitalise the industry.

In sharp contrast to Singapore, Brazil is a huge country. It has vast natural resources, advanced technologies and 170 million people. Besides having a very long coastline, Brazil is strategically located in close proximity to the oil and gas production centres of the Atlantic, the Gulf of Mexico and the West African regions. It also has an indigenous oil and gas industry of its own that is known to be a leader in deepwater oil and gas business. Thus, the factors are ideal for the growth of the marine industry here. Brazil has the skills base, a large market in the region and conducive economic situation. I applaud the Brazilian Government’s effort to support and revitalise the local marine and offshore construction industry.

This morning in Angra I was informed of the quick progress that has been made in revitalising the shipyard there by another Singapore company. I am confident that this can be replicated here in Niteroi where the skills are also abundant.

When Jurong Shipyard was invited to come to Brazil, the Company, with its years of association with Brazilian companies, was delighted and proud to accept. This is the beginning of stronger economic ties between our two countries.

As with any joint-venture, the success depends greatly on the ability of the partners to work together and learn from each other. Singapore shipyards can share their experience of good management and good Management-Union relations. In Singapore, a tripartite structure of Union-Management-Government working together towards a common good has created a stable, well-trained and internationally competitive workforce. We are optimistic that the same camaraderie can be achieved here.

With the strong support of Federal and State agencies and the personal support of Mr Garotinho, Governor of the State of Rio de Janeiro, I am sure that your efforts to revive the marine industry will succeed.

I wish this Joint-Venture Maua Jurong shipyard great success.

Thank You.