27 November 2003

SPEECH BY MR THARMAN SHANMUGARATNAM, ACTING MINISTER FOR EDUCATION, AT THE CENTRAL PACKAGE GROUP'S 30TH ANNIVERSARY GALA DINNER AT THE SHANGRI-LA HOTEL, ISLAND BALLROOM, ON THURSDAY, 27 NOVEMBER 2003 AT 7:55 PM

Good evening. I am delighted to be here with you and to join you in celebrating Central Package Group's 30th Anniversary. This is a significant milestone for CPG, which has transformed itself since its pioneering days in Jurong and continues to transform itself as it embarks on its strategies to diversify its products and grow in new, rapidly changing marketplace.

2 Thirty years ago, Mr Anthony Chen, the founder and chairman of CPG, together with his partners, set up a carton factory in Singapore to manufacture corrugated boxes and industrial paper bags. It relied heavily on labour and skills development for its manufacturing plant. It basically mirrored the industrial needs of Singapore during that time.

3 30 years on, we face a far more competitive environment. It is also an environment that is rich with opportunities, in regional and international markets. It is a new landscape that is testing and recasting all our business models. It calls for flexible, but disciplined and focused growth strategies, to stay relevant in a more competitive landscape and to take advantage of new market opportunities.

4 CPG has over the years taken advantage of Singapore's best in class infrastructure and logistics connectivity. It has used Singapore as a platform to venture abroad and to tap the opportunities around us. Today, CPG operates 33 manufacturing facilities in Malaysia, Indonesia, Singapore and China, with over 3,000 staff throughout the region and group sales of S$150 million. I understand that the company's 16 factories in China, strategically spread across its key developmental zones, now account for two-thirds of its group sales.

5 CPG services an impressive base of over 2,200 customers from its regional headquarters in Singapore. It is testimony to the company's high quality standards that it has as its clients, global giants such as HP, Panasonic, Unilever as well as Singapore icons like Tiger Beer.

6 CPG illustrates also how Singapore's infrastructure, services and business environment have positioned it as a preferred gateway to the region for international companies, and a gateway to the world for regional companies. In 1999, the Swedish company SCA (Svenska Cellulosa Aktiebolaget) acquired 11 per cent of CPG shares. It assessed that they could leverage on an alliance with CPG to create the regional network required for long-term profitable growth in Asia. The advantage of this strategic alliance was immediately apparent. The new entity took advantage of SCA's design and technical knowledge and CPG's deep knowledge of the Asian markets.

7 Singapore's key economic strategy going forward is to plug into, and promote, the networks that will shape a new era of Asian prosperity - networks of trade, enterprise, talent and ideas. We will be a key hub in the increasingly dense network of human interaction that is emerging between China, India, Japan and Korea, and Southeast Asia - the interaction of entrepreneurs, financiers, professionals, tourists and students. Our cultural proximity to these diverse Asian regions will give us advantage, as much as our strategic location at the crossroads between China, India and Southeast Asia. We are already the most FTA-wired economy in Asia, with preferential access to the US, Japan, parts of Europe, and soon India and, together with ASEAN, preferential access to China. We are also the most trusted center to ensure protection of intellectual property.

8 And most important, we will be the most open, diverse and cosmopolitan city in Asia, and the most liveable city. Where people from all over the world can come to work, set up business, get an education or get advanced medical services, do their private banking and be entertained.

9 As we commemorate CPG's 30 years today, let me highlight two simple lessons that we can all draw from its success. First, from the outset, CPG recognised the need to internationalise and to expand its markets in order to grow. Second, while the company benefited from the availability of low-cost labour in Singapore during their early years, it knows that its competitiveness goes beyond labour costs, and cannot be sustained on low labour costs alone. CPG has sought to enhance its technology so as to remain competitive, and is making the connectivity and other advantages that Singapore offers.

10 In conclusion, let me extend my warmest congratulations to CPG and its management on turning 30. I commend the founders of CPG for their vision, drive and grit. No corporate strategies, no marketing plans, can replace that crucial ingredient for a company's success, which is the quality, entrepreneurship and energy of its leadership. I also congratulate CPG's strategic partners and shareholders, including SCA, Sekisui Plastics from Japan, Li & Fung based in Hong Kong, and Public Packages based in Malaysia.

11 I am confident that CPG will have the capacity and wherewithal to innovate and grow. I wish you another 30 years and more fruitful partnership with Singapore.