DEVELOPMENT PROJECTS IN RIAU ISLANDS OF BINTAN AND KARIMUN AND INVESTMENT IN GROWTH TRIANGLE

Dr Toh Keng Kiat asked the Minister for Trade and Industry (a) what is the current status of development projects in the Riau Islands of Bintan and Karimun; (b) whether our partners in the Growth Triangle have expressed any views or concern about the shift of interest by the Government and private sector to new investment areas; and (c) whether new measures and incentives have been proposed by them to rekindle and sustain investment interest in the Growth Triangle.

The Minister for Trade and Industry (Mr S. Dhanabalan): Mr Speaker, Sir, Phase 1A of the Batam Industrial Park covering 23 factory buildings and 70 hectares of land have been completed and all factory space is fully utilised. When Phases 1B and 2A are completed by August 1993 and December 1994 respectively, there will be another 66 factory buildings.

There are currently 37 manufacturing companies in operation at the Batam Industrial Park, employing 16,000 workers. This figure is expected to rise to 20,000 by the end of the year.

Over the past year, we have also witnessed smooth progress in projects in Bintan and Karimun. Ground breaking ceremonies were held for two Bintan tourist resort projects. There were also similar ceremonies for the Bintan Industrial Estate and the Karimun Industrial Complex.

The Government's interest and commitment in the Growth Triangle has not shifted. We believe that the Growth Triangle will continue to offer attractive opportunities for our businessmen, especially when they are more familiar with operating conditions in Indonesia and Malaysia. Geographically, Johor and the Riau Province are also much closer to Singapore.

Ultimately, private sector businessmen will invest in locations which they find most profitable. They will continue to invest in the Growth Triangle as long as the conditions remain comparatively attractive. Singapore and its partners must therefore recognise the challenge posed by the new opportunities elsewhere - in China, Vietnam, and India - and do their best to compete for the investment dollar. A conducive business environment with predictable regulations must also prevail to give investors more certainty in planning their investments.

During my visit to Indonesia last month, I had the opportunity to talk to a few of my counterparts in the Indonesian Cabinet. They too are conscious of the challenge posed by the new investment locations, and the need to ensure that Indonesia continues to be attractive.

We are certainly moving in the right direction. We are optimistic that the Growth Triangle will continue to attract its fair share of investments within an increasingly competitive marketplace.