Introduction and welcome

Welcome and introduction

Finally, we are up and running with the Sweden-Southeast Asia Business Summit 2016!

The Ambassador of Sweden in Singapore, Mr Håkan Jevrell opening speech: Welcoming all guests, he is very happy to see so many with South East Asia (SEA) – Sweden (SE) perspective! Hope, development and a prosperous future in the region gives Sweden and Singapore a common goal: working together in a smart and innovative way

Mrs Ylva Berg, CEO Business Sweden opening words; happy to see so many attending - Summits are a great way to learn new things in new region. Smart cities – there is a need for collaborations that both SE and SEA can use. SE can expand in SEA, Singapore (SG) can invest and expand in SE. SEA is the fastest growing region in the world. There are many possibilities and solutions in the areas of automation and digitalization. Development in SEA is incredible rapid, SG is the 4th highest ranked country in the world in regards of connectivity; data, communication and cross boarder connections. Half of the population under 30 years of age in Indonesia and the need for infrastructure and home capital development is huge. There is a seamless market of goods, services and people. Business Sweden can help open up markets - we believe in this region! So take this opportunity to tie business relations!

Mr Jan Djerf, President of the Swedish Business Association of Singapore. Established since 1992 SBAS in SG helps Swedish Companies in this region. There are 250 SE companies in SG. 630 million people live in ASEAN. As the 7th largest economy and the 3rd largest labour force, EU has been actively working for a free trade between ASEAN and EU. SG stands out with regards to i.e. infrastructure and business orientation.

Mr. Mikael Damberg, Minister for Enterprise and Innovation (Sweden).

“Singapore is the easiest place to do business in!”

SE and SG share similarities: they are small countries, export oriented, focused on research and innovation, high tech solutions. Both with the view; key to success is productivity.

SE is a top exporter of music and one of the top three countries of innovation globally. SE has the Nobel prize, and is the most sustainable country in the world. We can see here that Innovations can change growth dimensions. This is why there is a perfect match between SE - SG! Sweden has a long tradition of innovation due to industrialization, innovation, technology and start-ups. The start-up scene in Sweden still growing! Skype, Spotify, Klarna – has similar conditions to Silicon Valley; there is long tradition in engineering, free higher education and infrastructure is greatly developed as well as the trading systems. “What you really need is a black belt in effective change”.

The Swedish Government believe in change. Ours is a feminist Government - equality is important for SE, “Companies with gender equality have a higher innovation growth than their competitors”.

Trade is important for SE, while EU is the biggest trading partner the world is changing. We need to be more present in the Asian market, which is becoming stronger as a critical partner to China and India.

Mr Damberg mentions that the opportunities for Swedish companies in this region are plentiful - a population of 650 million and a rapidly growing middle class. The Swedish Government has a new export strategy to promote Swedish export and internationalization in this region. This business summit will be the beginning of a huge business exchange. A new beginning of a new successful collaboration between our countries.

Mr. Lim Hng Kiang, Minister for Trade and Industry (Trade), Singapore.

Welcome to Damberg and his delegation – “This marks a 50-year diplomatic relationship between Sweden and Singapore”.

Sweden has about 300 companies present in SG and it is the largest concentration of Swedish businesses in Asia. SEA economic growth is higher than the rest of the world, 6% compared to 4%. GDP can rise more than fivefold in the coming years, we see huge opportunities for consumer goods. ASEAN formed last year has created a more compelling market.

Swedish companies have a long tradition of using SG as a business platform for expanding in the region.

As in SE, SG acknowledges innovation as an important component to stay competitive, SG as a Smart Nation wants to harness new technologies.

SG 2020 plan is to invest 90 million dollars in R&D to remain a global destination for investors. SG welcomes more Swedish business to be based here.

Mr Marcus Wallenberg, Chairman of the Board, SEB

Seeing is believing; SE has a series of years as an export nation. To a global stage SE has been successful in establishing in Asia. ASEAN has about 600 million people, this market will develop substantially. “We have not made enough!” It appears to me that Swedish companies are not reaching their full potential.

We have to be aggressive, ready to invest into this region with latest technology. We have to be present, not only with marketing but with technology and production. We have to be established with a long term commitment to be able to build business. This summit is an excellent start!

Mr. Piyush Gupta, Chief Executive Officer and Director of DBS Group.

Mr Gupta refers back to Mr Wallenberg; our banks are similar - SEB and DBS.

China is slowing down more than people think, but it is contradictory as service is growing by 9-10% but manufacturing only by 3-4%.

Firstly; structural reforms in China are on going for a more consumption driven economy. Although it will take time.

Secondly; we are seeing a supply set reform to clean up manufactory sectors, where we have an over-capacity in certain areas. The let go of jobs is not happening fast enough, but the intent is there.

Thirdly; China is moving towards a market oriented economy. Market has to be led by prices. This is proceeding faster than thought; capital inflow etc. - opened up to fast! Smothering it with policy measures, anti-corruption, one child policy.

So, China’s economy is being stabilized, the impact of the reforms will soon be visible.

India is growing at 7-8%, although private is investment slow, Prime Minister Modi is doing well with his reforms.

SEA has been the factory to the world the last 30 years, but is quickly becoming a market place with a rapidly growing middle class who is prepared to consume and spend money. This presents a great possibility for western brands.

Urbanisation and infrastructure, SEA has capacity now. The fiscal position today after 15 years of surpluses is much better and stronger. SEA are able to do more and this is a great opportunity for Foreign Direct Investment.

The ASEAN region is very diverse which could create challenges, therefore it is important for SE companies who would like to enter SEA to have an appropriate strategy for each market!