Opening remarks at Norwegian business seminar in Singapore

It is a great pleasure for me to be here in Singapore and to be with you at the opening of this seminar - Norway - a Global Maritime Partner - here in Singapore.

For us Norwegians, it is natural to focus precisely on the maritime sector when in Singapore. We are a giant in maritime transportation. We are on the top of the world series in off-shore petroleum activities. Simply said, we are here in Singapore because we believe that Norwegian industries and services are highly competent, and competitive. Norway and Singapore are maritime nations with long maritime traditions.

Our cooperation started soon after Singapore's independence, focusing on your country's remarkable position at the crossroads of some of the busiest maritime routes in the world. We recognized this early. In fact Singapore was one of the first places in the world where Norway, soon after gaining independence in 1905, established a consulate of our own.

Since ancient times, Norwegians had to travel by sea to reach for new continents. The Vikings developed excellent seamanship a thousand years ago and made voyages to the Americas long before Columbus.

Norway, however, was not among the first overseas countries to engage more widely in this region. For centuries, our ships were westbound. In the 19th century, we built a sizable fleet of brigs, schooners and clippers. Norwegian sailors were competitive. They worked for low salaries, simple food and endured harsh conditions. Norway was among the poorest countries in Europe at the time, and our sailors experienced humiliations by other stronger countries as when the British Navigation Act required Norwegian vessels to be the first to signal when they met the Union Jack on the open sea. But the poor Norway struggled its way towards prosperity, and shipping was relatively more important to Norway that to any other country.

For Norway, the 20th century has been marked by industrialization and democratization. The two have gone hand in hand. We have developed our industry based on the exploration of abundant natural resources such as hydroelectric power, fish and oil and gas - and we have done so in a harsh Northern climate.

Our industry has gone through remarkable changes during this century, but one thing has not changed; our dependence on the sea. The length of the Norwegian shoreline is equivalent to one and a half times around the equator. Even today, 80-90% of Norwegian goods are transported onboard ships.

The maritime traditions in this part of the world are impressing. During the Ming Dynasty, the Chinese fleet sailed all the way to Eastern Africa. In the opposite direction, this region was regularly visited by Indian traders who also brought Islam to the shores of Asia. Today, the maritime sector - from shipbuilding to the maritime industry - plays a pivotal role in the remarkable process of growth in South East Asia.

Norway and Singapore are linked together in a maritime partnership. The impressive port of Singapore has become one of the most efficient and busiest harbours in the world. More Norwegian ships sail by Singapore than by the Norwegian coast, as more than 90% of Norwegian ships never call on Norwegian ports. In 1994, roughly 25% of Norwegian shipping measured in the gross tonnage that called on ports, was in Asia.

The maritime sector is probably Norway's most international business sector.

• Norwegian owners control the world's fourth largest fleet.
• Norway holds the world's second largest maritime offshore fleet.
• Norwegian producers of ship's gear have more than 10% of the world market.
• Two of the three largest shipbroker firms in the world are Norwegian.
• Norway is the world's second largest supplier of maritime insurance, serving 20% of the market.
• Det norske Veritas is one of the world's leading classification societies, classifying 14% of the world fleet.
• And Norwegian banks provide 10% of maritime banking.

To this we would have to add the more than 50 Norwegian shipyards of a top modern standard. The comprehensive oil and gas sector possess first class expertise in production, engineering, contracting, seismic tests, drilling, supply services, environmental services, environmental expertise and related shipping services.

A large number of the Norwegian companies present in Singapore belong to this maritime cluster. They have one thing in common; they are front-runners, representing the very best that Norway can offer. Their decision to opt for the challenging markets in South East Asia is not based on a quick search for profit. They are long term partners, who have seized the opportunities of Singapore as the gate to the region.

Today, about 110 Norwegian companies are present in Singapore. That is in fact the largest Norwegian business presence outside Europe and North America. Our trade relations with Singapore are our second largest in Asia after those with Japan. Singapore has indeed become a hub of Norwegian business interests in this part of the world.

The purpose of our seminar today is to explore the potential for further developing a fruitful cooperation between Norwegian and Singaporean interests in the maritime sector. Our cooperation has been successful in the past. It must remain so in the future.

For most companies, the bilateral cooperation with Singaporean partners has rapidly developed into triangular cooperation with Singapore's neighbouring states. This approach will continue to be of significant importance. Norsk Hydro's decision to base it's regional headquarters in Singapore speaks for itself.

The character of business alliances in the region changes as our partners in the region develop their own interests and expertise in the maritime field. They are seeking direct cooperation with foreign expertise as they seek to develop their own industries. This process is not without similarities with Norway's own experience when we started from scratch in developing our own oil and gas industry after we discovered oil in the late 1960's.

Norwegian companies are now engaging in cooperation with the emerging oil producing states in this region. 23% of Norwegian owned drilling and construction units were active in Asia as of 1 July 1995. As new oil and gas fields are being developed, Norwegian off-shore expertise will be made available.

Indonesia, Malaysia, Thailand and Vietnam - they too will give priority to the strengthening of their own industrial base. This seminar should focus on how we can take advantage of what we have done together so far and how our close cooperation should evolve in the future.

There is no lack of ideas. The potential in the energy sector is obvious. So is the development of the aquaculture industry. Even the most prudent and scientifically based fisheries management can not increase yields enough to meet rising demands. Much of the future lies in fish farming, which may increase yields immensely. The UN Food and Agriculture Organization estimates that, in order to meet global needs, fish-farming yields should be increased by 50 - 100 per cent by the year 2010. Much of that growth would take place in this region, and Norway has the knowledge and expertise to make a considerable contribution.

As the economies of South East Asia grow, there will have to be a growing focus on the environment. Environment and safety are no longer external dimensions to the Norwegian maritime sector, they are fully integrated.

Singapore also displays a growing awareness of these issues both as a result of natural concerns due to highly congested sea routes surrounding the Island State, as well as through the higher demand for environmental safety in an increasingly affluent and informed society.

I believe this region will see what we have seen in Europe: environmental skills - in management, services and industry - will be a growing competitive edge.

Norwegian regulations have fostered development of modern safety and environment related technologies which are not only advanced, but also cost efficient. An environmentally friendly and sustainable use of the oceans calls for further improvement of the environmental account of the industry.

Looking to the transport sector, there has been a reduction of spills and accidents over the last decade, but the world fleet is increasingly getting older. There are too many substandard vessels, unqualified seamen and substandard companies.

The United Nation's International Maritime Organization must be able to play an increasingly active role in further securing the quality of the maritime industries. It is only by internationally accepted standards that the environment really will be protected. Together with IMO, governments, industry, insurers, classification societies and their customers share this responsibility.

Pollution must never pay. Environmentally sound technology must.

This whole area opens up for new and profitable products and services. In Norway, Government and industry have gathered in a research program called the "Green ship" as well as maritime information technology projects aimed at increased protection of the environment.

A few years ago, Government and companies sat down together to devise a common approach towards Asia. My Government's ambition is to broaden and deepen the political dialogue with the countries in the region, including with Singapore, an old friend in the region. Increased trade and business cooperation contribute to these relations, making our political dialogue more substantial and meaningful.

I hope this seminar will lay new foundations for the development of a well established relationship. I am confident that this will be a fruitful session.

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