Transcript Singapore Looking Beyond Grey Skies

6th APEC Transportation Ministerial Meeting (TPTMM6)
27-29 April 2009, Manila, Philippines
Looking Beyond Grey Skies
Mrs Lim Hwee Hua
Minister (Prime Minister’s Office),
2nd Minister (Finance and Transport)
Singapore
6th APEC Transportation Ministerial Meeting
27-30 April 2009
Global Economic Outlook &
The Importance of Transport
 Open & Seamless Transportation System is the
Cornerstone of all Economies
 Determines an economy’s ability to facilitate the flow of
goods and services
 Downturn is well upon us
 Global Trade Volume to shrink by 9%
 GDP of OECD economies to contract by 3%
MANILA, THE PHILIPPINES 2009
6th APEC Transportation Ministerial Meeting
27-30 April 2009
Global Economic Outlook &
The Importance of Transport
 Transport Sector is badly affected
 Baltic Dry Index plunged from 11,000 points
to a low of 700 points
 Aviation Industry losses of US$4.7billion
in 2009 (IATA forecast)
MANILA, THE PHILIPPINES 2009
6th APEC Transportation Ministerial Meeting
27-30 April 2009
Global Economic Outlook &
The Importance of Transport
 Protectionism will not help, will
delay response
 A 10% increase in trade is
associated with a 4% increase in
per capita income
 Governments must resist
protectionist measures
MANILA, THE PHILIPPINES 2009
6th APEC Transportation Ministerial Meeting
27-30 April 2009
Global Economic Outlook &
The Importance of Transport
 Transport services
- substantial market contributor
 Exports amounted to US$750
billion in 2007
 Accounted for 2-2.5%of GDP
and 5-8 % of total jobs
 Faciliate trade, tourism and
investment flows
MANILA, THE PHILIPPINES 2009
6th APEC Transportation Ministerial Meeting
27-30 April 2009
Transport Liberalisation within APEC
Economies
 Aviation sector remains regulated,
driven primarily by bilateral
agreements between governments
 98% of global air traffic is governed
by still restrictive bilateral
agreements, only 17% of traffic
originates from liberalised air
agreements
MANILA, THE PHILIPPINES 2009
6th APEC Transportation Ministerial Meeting
27-30 April 2009
ASEAN Multilateral Agreement on the
Full Liberalisation of Air Freight Services
and Air Services (RIATS)
 Provides competitive space for the expansion
of air travel within the ASEAN region
 Constitutes a solid foundation to negotiate and
conclude open skies agreement with key Dialogue
Partners
MANILA, THE PHILIPPINES 2009
6th APEC Transportation Ministerial Meeting
27-30 April 2009
Sustainable Transport
 Each economy has distinct
needs and considerations
 Singapore has implemented several
measures to reduce emissions
Changi Airport Terminal 3
 Design of the Changi Terminal 3
 Share of Public Transport
 Curbing population through
Vehicle Quota System and of
congestion through Electronic Road
Pricing
Electronic Road Pricing
MANILA, THE PHILIPPINES 2009
6th APEC Transportation Ministerial Meeting
27-30 April 2009
Conclusion
 The aviation industry has a significant multiplier effect
on the economy
 APEC needs to work towards a more liberalised aviation
regime so as to grow as a region economically
MANILA, THE PHILIPPINES 2009