FOREIGN INVESTMENTS (Promotion)

Mr Leong Horn Kee asked the Minister for Trade and Industry, in view of the expected decrease in foreign investments into Singapore in the near future, what are the measures the Government plans to take to promote and attract more foreign investments into Singapore.

BG George Yong-Boon Yeo: Mr Speaker, Sir, the Government is committed to keep Singapore an attractive location for foreign investments. However, the slowdown in regional economic growth has caused some companies, which rely on regional markets, to re-evaluate their investment plans.

The Government has been proactive in encouraging foreign companies to locate their operations here. For the short term, the Government has sought ways to keep costs down. JTC had announced in March that it would freeze its posted rentals until June 1999. In cases where the market has dropped, JTC will lower its rentals accordingly to be in-line with market conditions. The Government will continue to keep industrial land prices and rentals competitive and respond to the changing economic conditions so as to create a conducive business environment for investors. We will also continue to invest in infrastructure projects like the reclamation of Jurong Island.

EDB is intensifying its efforts to promote investments from the major regions to ensure that investments in the pipeline are committed on schedule. EDB officers have been stepping up their promotional efforts both in Singapore and overseas, closely monitoring the needs of companies and continuing to spot opportunities to attract investments into Singapore. More investment promotion trips involving EDB's senior management are being conducted this year.

In the meantime, EDB will continue to co-invest with companies to help share risks and provide equity funding for strategic projects. Recently, the EDB also introduced an Industry 21 (I21) initiative. One of the thrusts of I21 is to promote world-class capabilities by encouraging MNCs to base world-class facilities here.

Mr Leong Horn Kee (Bishan-Toa Payoh): I would like to ask the Minister whether it is also worthwhile for Ministers to lead some business delegations overseas so that they can bring along local businesses to attract foreign investments into Singapore.

BG George Yong-Boon Yeo: The answer is yes.

Mr Jeyaretnam: The Minister said that the Government will take measures to keep costs down. May we know precisely what measures have been taken up to the present moment?

BG George Yong-Boon Yeo: Mr Speaker, Sir, if the NCMP can be a little patient, with only 4 hours 15 minutes before the Finance Minister's statement on off-Budget measures to be taken, he will also highlight the inadequacy of some of the measures taken so far in view of the current economic slowdown.