OVERSEAS TRADE (Plans for expansion)

Mr Philip Tan Tee Yong asked the Acting Minister for Trade and Industry what is the Trade Development Board's plan to expand the overseas network, and how local businesses can benefit from it.

The Minister of State for Trade and Industry (Dr Lee Boon Yang) (for the Acting Minister for Trade and Industry): Mr Speaker, Sir, since its establishment in 1983, the Trade Development Board has expanded its overseas network in Singapore's major markets. As at end-1985, it had 13 overseas offices, compared to only seven in 1983. Two offices, one in Bombay and the other in Shanghai, were set up in 1985 in response to new market opportunities in India and China. In 1986, this network will be further expanded with new offices in Jakarta, Paris, Washington and Geneva. Future plans to open offices in Latin America and Eastern Europe are also under consideration.

TDB's overseas offices provide timely and accurate information on trade developments in our export markets and help local companies seek out new trade opportunities. Last year, over 700 companies participated in 69 fairs and missions organized by TDB's trade offices. In addition, the offices provided on-the-spot assistance to 850 companies that were on overseas marketing trips. Total export sales generated from the activities of these offices amounted to almost $76 million. Another $320 million worth of possible sales are under negotiation.

TDB's overseas offices will continue to aggressively promote Singapore's exports. Ofices in the developed countries will concentrate on exports of manufactured products, while offices in India, China, Middle East and in other developing countries will focus on exports of services. In addition to organizing fairs and missions and cultivating trade contacts, TDB will encourage international purchasing offices to locate in Singapore to source more of their requirements from our companies.

In view of the increasingly hostile trading environment, TDB is stepping up its efforts to safeguard local companies' business interests. The offices in Geneva and Washington will be on the alert for any protectionist moves affecting Singapore and will seek immediate remedies for our companies.

Dr Augustine H.H. Tan (Whampoa): Two supplementary questions, Mr Speaker, Sir. What was the expenditure last year on the 30 or so overseas offices of the Trade Development Board? The second question is: of the 69 fairs and missions, how many were abroad and how many were in Singapore?

Dr Lee Boon Yang: Mr Speaker, Sir, I do not have the details concerning the expenditure of the overseas offices with me now. If the Member is interested in knowing these details, I would be very glad to send them to him.

Regarding the 69 fairs and missions, I believe most of these were overseas participation. The missions particularly were selling missions which bring Singapore exporters to potential markets and TDB's overseas offices arrange for the contact between local businessmen and potential buyers.

Dr Augustine Tan: Does the Hon. Minister of State not agree with me that we should be concerned about the cost-effectiveness of our offices abroad, because he mentioned the figure of new export sales of $76 million? I did a little calculation and found that, if our exporters make 5% on that, it would only be about $3 1/2 million. But if we spent much more than that, in terms of the overseas offices, then obviously we are not being cost-effective.

Dr Lee Boon Yang: Mr Speaker, Sir, trade promotion and market development takes time to achieve the full results. As I have indicated, the immediate sale from these marketing efforts was $76 million but there are another $320 million worth of exports sale in the pipeline, and our local exporters will have to continue to pursue these opportunities which have been made available through the TDB's overseas offices. I agree entirely with the Member for Whampoa that we must not forget cost-effectiveness in promoting our exports, and I can assure the Member that TDB will keep on emphasizing cost-effectiveness in its marketing and promotional efforts.

Mr Philip Tan Tee Yong (Paya Lebar): Mr Speaker, Sir, will the Minister of State tell us whether this amount of exports that has been done so far are all goods manufactured in Singapore?

Dr Lee Boon Yang: Mr Speaker, Sir, yes, all the exports are from Singapore manufacturers.