Excellencies, Mr Zhang Yun and Mr Takaaki Kojima

My Parliamentary colleagues,

Minister of State Mr Othman Harun Eusofe,

Minister of State Mr Zainul Abidin Rasheed and

Member of Parliament Mr Zainudin Nordin

Mr Kwek Leng Joo, President of SCCCI

Council members of SCCCI and friends

Good evening.

          It is a real pleasure for me to join you at the Singapore Chinese Chamber of Commerce & Industry’s (SCCCI)’s Mid-Autumn gathering this evening.  Year after year, SCCCI brings together its members and friends from all ethnic groups, to enjoy the “harvest” with offerings of melons, round cakes and pomegranates presented in honour of the moon.

2       We have had a more successful harvest this year than in recent years, which is why most of us have received and given many more mooncakes to our good friends this year.  As we all know, our economy has recorded robust growth of 10% in the first half of 2004, with manufacturing, particularly the electronics and biomedical industries, taking the lead.  Within the electronics cluster, semiconductor output has now exceeded its peak levels during the IT boom four years ago.  The export recovery has also spilled over to the services sector, especially to the trade and transport sectors.  Tourism and the business and convention traffic have picked up strongly, and many of our hotels are full.  The employment picture is improving surely and steadily  -  more new hirings and a retreat in retrenchments.

3       The recovery in the local SME sector has however been uneven.  SMEs which serve the MNCs have benefited from the strength in exports.  And many local manufacturers have also been adapting well to the new environment of competition, by setting up production operations in lower cost centres like Malaysia and China to continue supplying their MNC customers at lower costs.

4       However, many SMEs serving the local market have not felt the full benefits of the export-driven growth we have enjoyed this year.  The domestic-oriented sectors have lagged the upturn.  Retail sales have yet to see convincing strength, although we are seeing some improvement in consumer sentiment.  Over time, we can expect this to strengthen.  As the economy continues to expand, and as wages and bonuses pick up towards the end of the year, we should see more strength in consumer spending, and a more broad-based economic growth.

5       However, while growth should continue, the pace is likely to slow, over the rest of the year and in 2005.  The US economy is expected to slow to about 3-3.5% next year, compared to expectations of around 4% for this year.  In China, there are some signs that the government's measures to cool the overheated segments of the economy are starting to yield the intended results.  On the best indications at this point, we are likely to see a soft landing in the economy, with growth likely to moderate to 8% over the next year.  This will mean that China will remain a powerful engine of growth for the rest of the region.

6       In the global IT sector, the expectation is for a fairly significant slowdown in global demand, especially in the second half of next year.  But the extent of the correction is not expected to be as sharp as that experienced during the downturns in 1996 and 2001.

7       Against this backdrop, Singapore’s GDP growth outlook for 2005 remains at 3-5%.  This is not very different from what we expect Singapore’s growth to be over the next 3-5 years, or what economists call ‘potential output growth’.  We will not be doing badly to achieve this.  It is above the rate of growth achieved in most similiarly developed economies and cities.  More importantly, Singapore is well positioned to take advantage of the huge opportunities that are developing in the region  -  in China, India and Southeast Asia.  Our entrepreneurs and businessmen should ride on this wave of growth, and identify niche areas in which they can compete effectively.  With the Chamber’s support, I am sure we can do more to push new economic and business relationships, and establish strategic alliances with companies in China, India and the region.

8       Although it is a business-oriented grouping with core commitments anchored in business and the economy, the Chamber also plays an important role as a custodian and promoter of Chinese customs and culture.  Through celebrations like this, it strengthens the appreciation of Chinese identity and heritage, while sharing Chinese culture and values with the wider community in Singapore.

9       Our future, and our relevance to the rest of the world, lies in being a multicultural society, a meeting place and bridge between the East and West.  For us to sustain and strengthen this position, we need to be culturally resilient and open.  It means keeping our mother tongue languages and cultures alive, because this is what gives each new generation a sense of connectedness and resilience.  That is a must for Singapore.  But it also means being curious about other cultures, within Asia and in the West, wanting to learn about them and to accommodate them.  It is by being both culturally resilient and culturally open, that young Singaporeans will flourish in the new tide of ideas, culture and business that is rising within Asia  –  between China, India and Southeast Asia  –  and between these emerging Asian regions and the world.

10     The Chinese Language Curriculum and Pedagogy Review Committee is looking into how we can adjust the school curriculum and examination system, to reflect the future needs of Chinese Singaporeans and Singapore.  We want to help every Chinese Singaporean to leave school with a natural and self-motivated interest in the Chinese language.  He must be willing to use the language after he leaves school, and keen to stay in touch with the culture.  He must be able to brush up or advance his command of the language for cultural enrichment or when he feels it necessary, for example if he has to work in China.

11     We can achieve this if we are flexible in our approaches and strategies to teaching the Chinese language, and likewise the other mother tongue languages.  We are encouraging those who are capable of mastering both English and the mother tongue to do so.  The new Bicultural Studies Programme (Chinese), which will take in its first students next year, is one way of doing this.  The Review Committee is also studying how to re-gear the Chinese language curriculum and teaching methods to help those from English-speaking homes to take an interest in language, and even develop a passion for it, even if not every student is able to reach a high level of competence.  What we have to avoid as we go forward is a one size approach to language learning, which only results in most Singaporeans having an average competence in both English and the mother tongue, and speaking mainly Singlish.

12     The Chinese language is also gaining popularity among adults, partly because of China’s emergence as a major player in business, tourism, education and other fields.  SCCCI has played an important role in meeting this demand.  Its training subsidiary, the Singapore Chinese Chamber of Commerce Institute of Business, has developed an excellent range of Chinese language courses, from rudimentary Chinese to highly regarded courses in Chinese culture and history, creative Chinese writing, Chinese linguistics, and business Mandarin.  It even offers an online e-learning course on the website, Gateway to Mandarin.  I encourage the Chamber to keep coming up with new and innovative ways to promote Chinese language and culture, both for business purposes and to ensure our traditions remain alive.

13     The SCCCI has also made a sustained contribution to education.  In 1997, the Singapore Chinese Chamber of Commerce Foundation established a Scholarship in business studies for graduate students from local tertiary institutions.  The scholars are selected on merit, and have indeed been awarded to ethnic Malay and Indian students in past years.

14     The joint Singapore Chinese Chamber of Commerce Foundation-MENDAKI Scholarship is another worthwhile initiative.  This evening, four Malay Muslim students pursuing business management and life sciences will be awarded these scholarships.

15     I congratulate each of the scholarship winners this evening for the recognition they are receiving from the community.

16     Beyond supporting our students, the SCCCI could also consider greater involvement in enhancing opportunities for our teachers.  In Nov last year, the Ministry of Education (MOE) implemented a Teacher Work Atttachment (TWA) scheme to enable teachers to broaden their experiences and perspectives through attachments outside their school environment, in business organisations or in the community.  Teachers who participated in the first run of attachments shared that these attachments enriched them.  They were able to bring their learning back to their schools to enrich their pupils’ learning.

17     SCCCI can certainly play an important role in helping MOE to grow the number of TWA opportunities, with its established business links and networks locally and overseas.  One area in which SCCI can contribute, for example, would be to open doors for our Chinese language teachers to gain overseas exposure and experience in both work and teaching environments that would benefit their schools and students on their return.

18     In closing, I commend the SCCCI on its good work and ongoing contributions in all aspects of doing business, and its sustained efforts in ministering to Singapore’s educational, cultural and community development.

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