中文版

Mr Lu Hao, Beijing Vice Mayor (Foreign Investments),
Distinguished Guests,
Ladies and Gentlemen:

I am very pleased to join you all for this official launch of CapitaLand (China) Investment Co (CICC).

With the strong support of the Beijing Investment Promotion Bureau as the co-organiser for today’s event, the theme of “Growing with Beijing” is especially meaningful and auspicious.

Personally, it is great to be back in Beijing with spring in the air.

When I visited Beijing in May last year, she was already an attractive capital city.

Clean wide streets, extensive tree planting, gave an open hint to determined and swift transformation that was taking place, as Beijing made confident strides towards the 2008 Olympics.

Spring is here again. The pulse of life in Beijing reflects the rapid growth of China and Asia.

Asia On the Move

In the 70s, the Asia Miracle was Japan. The 80s saw the emergence of the four Asian Tigers – Korea, Hong Kong, Taiwan and Singapore.

In the early 90s, China broke past its economic inflexion point, stepping up the pace of her bold reforms and market friendly policies. This has provided her people with a deep well of hope and opportunities.

China is now well plugged into the global markets, with record foreign reserves and a robust currency, serving also as an important Asian engine. She has gained a well-earned reputation for farsighted political leadership and rational economic management. China has taken over the role of Asean as the principal manufacturing base of the world. Private enterprise is flourishing, while people are eager to learn and deliver.

Her companies are beginning to spread their wings across the world, even as the state begins to restructure its business units and divest its non-core holdings. A decade-old commitment to leadership renewal across all levels has taken shape, with young leaders given responsibilities early. China 10 years from now, will undergo yet another complete facelift as policies filter downwards and westwards, as well as to the old industrial bases in the northeast, under youthful, progressive and highly competent leadership.

India too has begun to stir. Interest rates and inflation are down, while foreign reserves are at a record high, exceeding US$ 100 billion or about one quarter of China’s foreign reserves.

Indian companies too have restructured dramatically in the late 90s. They are also beginning to invest abroad. Her corporate elites in the private sector think of new India as a global player with dynamic entrepreneurship, wealth creation, and technological capabilities.

Like China and other Asia-Pacific economies, India too is liberalizing and reforming its economy and market policies.

As a small indication of the vibrant intra-Asia trade links, the compounded annual growth rate (CAGR) for Singapore trade with China and with India reached 18% and 11% respectively, over 10 years between 1993 and 2003, with nary a pause during the 1997 Asia financial crisis. The potential for intra-Asia trade is still growing.

Singapore’s trade growth last year was a robust 31% with China, and a solid 16% with India. This year, China (US$22b in 2003) is likely to overtake Japan (US$26b) as Singapore’s third largest trading partner, after Malaysia (US$45b) and USA (US$38b).

Asean too is recovering from the depths of the financial crisis, bolstered by strong oil prices, a rich base of natural resources, including the vitality of 500 million people. Like China and India, Thailand, Malaysia, Singapore, and Indonesia all achieved record foreign reserves consecutively over the last few years. Vietnam too is stirring, with more than 30% growth in handphone sales annually. She is likewise moving towards a market economy.

Exchange rates improved, while interest rates and inflation went down, fueled by Asia’s continuous economic growth, and regional restructuring and transformation. All five Asean countries expect to see stronger economic growth (from over 5% to 8%) this year.

Capitaland – Building People to Build for People

It is against this backdrop of a resurgent and dynamic Asia, that CapitaLand is emerging as an Asian real estate business.

It is no accident that a Singapore-listed company like CapitaLand now enjoys 2/3 of its earnings from outside Singapore.

Through its predecessor companies, Pidemco Land and DBS Land, CapitaLand is one of the early investors in China, based on its strategy of focusing on gateway cities of the world, from London to Tokyo, from Beijing to Sydney.

In China, the group currently has about RMB 5 billion of investments, and a workforce of about 1000 staff. Total projects undertaken amount to RMB 12 billion in China. CapitaLand is a builder of award-winning premier homes and world class commercial properties. Both the Ascott and Raffles Holdings enjoy an outstanding reputation of service and excellence in China.

CapitaLand was proud and honoured to be accorded the coveted “Wholly Foreign-Owned Enterprise” status (WFOE), by the Chinese government in 2002. This has enabled the Group to operate as a local player in China, with flexibility in capital flows and administration.
This year, CapitaLand celebrates 10 years of business in China. It is fitting that they celebrate their 10th anniversary in China with the launch of CapitaLand (China) Investment Co in Beijing, the first real estate WFOE investment company.

An innovative and quality player, CapitaLand believes in building people to build for people. It is this philosophy of building people and building for people, that enables CapitaLand to participate in as well as contribute to Asia’s growth and development. Led by professional and dedicated management, CapitaLand itself is built on a bedrock of integrity, excellence and meritocracy.

I congratulate CapitaLand for their success and for the launch of the CCIC today. With their experience and expertise, underpinned by their philosophy of building people to build for people, I am confident that the next ten years will see CapitaLand “Growing with Beijing”, playing her part to grow in Beijing as well as with the people of China as they strive together to build their future.

Lastly, on behalf of the shareholders and management of CapitaLand and CapitaLand China, I take this opportunity to wish Vice Mayor Mr Lu Hao, the Beijing Investment Promotion Bureau and all the guests present today good health, prosperity and peace. It is also my sincere hope to see Singapore working with China in the years ahead, to create a bright future together for our people and our next generations.

Thank you.