Two Ways To Reach 2005 Target: Nurture Global Companies And
               Promote S'pore As Hub For International Traders

                SINGAPORE aims to import and export $500 billion worth of goods every
                year by 2005, said Trade Development Board (TDB) chief Barry Desker
                yesterday.

                This target to raise Singapore's foreign trade by about $150 billion will be
                achieved in two ways, said Mr Desker at a news conference to unveil the
                board's blueprint for boosting Singapore's external trade.

                The Trade 21 plan maps the paths the board will take to keep the trade
                engine humming as it is critical for Singapore's economic growth. Trade is
                three times Singapore's gross domestic product, a feat unparalleled by any
                other country.

                The two main steps are:

                 Turning Singapore companies into international enterprises; and

                 Convincing companies to use Singapore as the nerve centre for their trade
                activities and services.

                Other steps it would take are getting new markets around the world for
                Singapore's goods and services as well as pay more attention in the next five
                years to developing a world-class infrastructure for trade.

                Said Mr Desker: "The objective for trade development is to expand
                Singapore's global market share. We will seek new markets and distribution
                channels for the emerging knowledge-based products and services of
                Singapore enterprises."

                Economists interviewed are confident that the target could be reached
                because Singapore's total foreign trade in 1997 -- before it saw its first drop
                in 12 years -- was already $382 billion. Said Dr Yuwa Hedrick-Wong, head
                of research at Strategic Intelligence:

                "The strong growth in intra-regional trade in the post-crisis period will
                continue to benefit the country, even if demand from the US slows down."

                Agreeing, senior economist David Cohen at Standard & Poor's MMMS
                International said: "The target is not over-ambitious. We expect nice healthy
                growth in trade over the next few years." Economists expect 1999's total
                foreign trade to reach 1997's record level and to keep on going up in the next
                few years in tandem with the positive global trade outlook.

                Said Mr Desker: "Singapore's merchandise trade is expected to grow by 4 to
                6 per cent every year to reach $500 billion by 2005."

                The board also expects international traders based here to help give a fillip to
                offshore trade, which they carry out without the goods physically passing
                through Singapore.

                It sees offshore trade growing by 3-5 per cent, to reach $220 billion annually
                by 2005, up from $130 billion in 1998. Also targeted to rise is the export of
                services.

                The figure is forecast to expand by 5 per cent annually to $43 billion by 2005,
                up from $23 billion in 1998.

                The board is setting up an International Trade Advisory Panel with top
                executives of global companies to advise it on how to develop trade.

                     Adapted from The Straits Times, 5 Jan 2000.