PARTICIPATION IN INTERNATIONAL TRADE FAIRS

Mr Teo Chong Tee asked the Minister for Trade and Industry whether our businessmen participate in international trade fairs overseas; if so, what were the products normally promoted at these fairs; and how successful were they in securing sales of these products in terms of revenue subsequently earned from exports for 1984, 1985 and 1986.

The Minister for Trade and Industry (BG Lee Hsien Loong): Mr Speaker, Sir, Singapore companies are increasingly promoting their products and services at international trade fairs and on overseas missions. The number of companies participating in TDB-organized fairs and missions more than doubled, from 375 in 1984 to 773 in 1986. In addition, many companies participate on their own in more specialized international fairs; so far, 106 of them have received Market Development Assistance Scheme grants from TDB for this purpose.

The products which they have promoted include industrial products like electrical goods, electronic components, machinery and building materials; consumer products like personal computers, apparel, jewellery, footwear, food and beverages; and also furniture and timber products. Services such as construction, engineering consultancy and exhibition management have also been promoted.

International fairs are not consumer events. Companies participate in them to establish new business contacts, understand market conditions and to assess the competition, rather than to get on-the-spot orders. Revenues are generated not only from the trips themselves, but also by subsequent follow-up actions over many months. These revenues are therefore difficult to estimate precisely. Nevertheless, sales concluded on-the-spot at TDB-organized fairs and missions have risen from $25 million in 1984 to $39 million in 1985, to $116 million in 1986, while potential orders have also increased from $62 million in 1984 to $332 million in 1985, to $435 million in 1986.