Speech by Prime Minister Lee Hsien Loong at the Opening of Temasek Holdings' New York Office, 26 June 2014

Mr Lim Boon Heng

Chairman, Temasek Holdings

Board and management of Temasek Holdings

Distinguished guests, ladies and gentlemen

Introduction

I am happy to open Temasek’s office in New York.  This office strengthens the longstanding and multi-faceted partnership between the US and Singapore. It also reflects Temasek’s confidence in the dynamism and vibrancy of US companies and the US economy.

US-Singapore Bilateral Relations

Temasek’s interests are part of Singapore’s broader relations with the US. The US presence in the Asia-Pacific since the Second World War has underpinned stability in the region, and enabled countries to progress and prosper. US investments in, and trade with, the region have grown. Singapore exemplifies this regional picture. We enjoy excellent and wide-ranging relations with the US – from defence and security cooperation, to educational, cultural, scientific and people-to-people links, and of course economic ties.

The US is a major export market for us, whether we are talking about consumer electronics, digitally animated movies or Prima Taste spices to prepare chicken rice (which I used to send to my sons when they were studying here). US companies are long term investors in Singapore. Total US investments in Singapore in 2012 exceeded the US’ investments in any other Asian country, which is remarkable given our small size!

Over 2,000 American companies have their Asia or regional headquarters in Singapore. Some have been with us for over a century, such as ExxonMobil, which recently opened its largest petrochemical plant worldwide in Singapore. Others are tapping Singapore’s growing R&D capabilities. For example, Proctor & Gamble operates a major innovation centre in Singapore, creating shampoos and cosmetics for Asians. Citibank, Goldman Sachs, JP Morgan and other financial institutions serve the region out of Singapore. These investments have helped Singapore become a major petrochemicals, R&D and financial hub. We are glad that these companies are benefiting from our strategic location, skilled workforce and good infrastructure. We are confident that as they expand regionally and globally, they will not only deepen their presence in Singapore, but also create more jobs in the US and even greater benefits for the US economy.

Singapore companies, including Temasek’s portfolio companies, are also active in the US.  For example, when Deepwater Horizon exploded and sank in the Gulf of Mexico in early 2010, the undersea oil gusher was eventually plugged with the support of three rigs built by Temasek companies Keppel Corporation and SembCorp Industries.

Smaller Singapore firms like CSE Global Limited also provide engineering services to the US oil and gas sector out of Houston, Texas.  In Mobile, Alabama, and San Antonio, Texas, VT Aerospace carries out maintenance, repair and overhaul services for the aviation industry.  Singapore companies are also involved in logistics, telecommunications and other sectors in the US. Altogether, Singapore companies have supported about 40,000 jobs in the US so far.  

USSFTA and TPP

We are strengthening bilateral relations on these solid foundations. One essential strategy is to promote free trade, which will prosper our economies and companies. The US-Singapore Free Trade Agreement (USSFTA) is a good example. This year marks its 10^th anniversary. We celebrated this milestone on Tuesday in Washington at the US Chamber of Commerce.  The USSFTA was the first free trade agreement between the US and an Asian economy. It boosted trade and investments between our countries, and catalysed further economic cooperation between the US and Asian countries. 

One follow-on to the USSFTA is the Trans Pacific Partnership (TPP), which involves 12 Asia Pacific countries, including the US and Singapore.  The TPP will be a game-changer. It will integrate economies accounting for 40% of the world’s GDP and one-third of global trade. It will help create 700,000 new jobs in the US by 2025, and be critical to the US’ strategic rebalancing to Asia. Once the TPP negotiations are completed, hopefully soon, I ask you to lend your considerable influence to work with the Administration and encourage Congress to support and ratify the TPP.

Temasek’s US Office

Against this backdrop of Singapore’s strong ties with the US, and the US’ vital role in Asia and the world, Temasek is opening its office here in New York. The US economy is looking up again. Job creation is gaining momentum, unemployment has come down to pre-crisis levels, and confidence is palpably returning. Shale gas and technological advances are making the US economy more competitive, especially for manufacturing.  

The US economy will no doubt continue to progress, notwithstanding the challenges. Yours is a resilient and dynamic society, which has always overcome difficult periods and bounced back. Talent from around the world continue to gather in cities like New York and San Francisco, drawn by the excitement and opportunities in Wall Street and Silicon Valley. Companies like Apple and Google are global leaders in innovation and enterprise. Above all, Americans never say die, and are always chasing the next opportunity.

This indomitable spirit of possibility is what makes us confident of America’s long term prospects. Singapore has backed our conviction with our investments. Both Temasek and GIC have invested a significant proportion of their portfolios here. Many other Singapore companies have similarly invested in the US.

Temasek’s US office will anchor Temasek’s interest in the Americas, and be the focal point for Temasek to invest in and prosper with promising companies in the US. It will bring Temasek closer to its portfolio companies here, and facilitate its investments in new growth sectors such as energy, healthcare, new media and technology. It will help Temasek access the deeper capital market and talent pool in New York, and link up with Temasek’s offices in Mexico City and Sao Paulo to seize opportunities across the entire American continent.

Conclusion

The opportunities are plentiful, but to realise them we need the support of the broader business community. I am therefore delighted that so many of you are here tonight. Some of you are old friends and have seen your investments prosper with Singapore. Others are new partners, whose friendships we will nurture. With your support, I am confident that Temasek’s US office will deepen Temasek’s engagement of the Americas, and enhance Singapore’s longstanding economic cooperation with America.

Congratulations to Temasek on the opening of its US office, and all the best for a successful and prosperous future!

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