Singapore aims to become Europe's gateway to Asia
Singapore aims to become Europe's gateway to Asia
SINGAPORE (AFP): Singapore Prime Minister Goh Chok Tong urged
Europe to step up investment in Asia, saying yesterday the
strategically-located island nation could serve as a bridge
between the two continents.
"Europe should be more strongly represented in Asia," Goh said
at the opening of a US$35 million German business center here.
"If European companies do not achieve a significant presence
in this region, they stand to lose out on their global
competitiveness," he warned, citing figures that showed Europe
lagged behind the United States and Japan in penetrating fast-
growing Asia.
Total European investment in the region reached $26 billion at
the end of 1993, behind the $39 billion invested by US companies
and $31 billion by Japanese firms.
"To illustrate, the foreign direct investment of German
companies in Asia was only half their investments in Spain," the
Singapore premier said.
German Chancellor Helmut Kohl has urged German firms to tap
opportunities in the huge and expanding markets of Asia, and Goh
said: "Singapore can add value to the efforts of German companies
when they invest in this region."
"We are strategically located at the heart of the Asia-
Pacific," he said. "Our cosmopolitan society, our multi-cultural
make-up, our Confucianist upbringing and western education enable
us to serve as a bridge between German and European companies and
Asian economies."
Partnership
Goh proposed a German-Singapore partnership to do business in
Asia, citing Singapore's efforts to build an external wing to its
economy by increasing investments in regional countries.
This tiny island nation has been at the forefront of efforts
to expand business ties between Asia and Europe. It took the
initiative in proposing a summit of leaders from the two regions.
The summit is to be staged in Thailand's capital Bangkok early
next year to provide a top-level impetus to trade and investment
links.
Goh said Asia and Europe were "vital to each other's future,
and new alliances can be formed to create prosperity for both
regions."
"For us, in Singapore, we wish to see a stronger European
presence and continued investment interest," he said.
The European Union is Singapore's third largest market,
accounting for $19 billion of the city-state's exports last year.
Europe accounted for $650 million of the 1994 manufacturing
investments here which reached $4 billion.
Erwin Teufel, prime minister of the German state of Baden-
Wuttemberg, was present at the opening of the German center in
Singapore's largest industrial estate of Jurong East.
More than 100 small- and middle-sized German companies have
moved into the multi-functional center which offers offices,
conference rooms, storage and workshop facilities.
Teufel said similar centers could be set up in other parts of
Asia, including Indonesia, South Korea and China.