1. Looking Beyond Grey Skies Mrs Lim Hwee Hua Minister (Prime Minister’s Office), 2 nd Minister (Finance and Transport) Singapore 6th APEC Transportation Ministerial Meeting (TPTMM6) 27-29 April 2009, Manila, Philippines

2.  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% Global Economic Outlook & The Importance of Transport MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

3.  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) Global Economic Outlook & The Importance of Transport MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009

4. Global Economic Outlook & The Importance of Transport MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009  P rotectionism 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

5. MANILA, THE PHILIPPINES 2009 6 th APEC Transportation Ministerial Meeting 27-30 April 2009  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 Global Economic Outlook & The Importance of Transport

6. MANILA, THE PHILIPPINES 2009 6 th 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

7. MANILA, THE PHILIPPINES 2009 6 th 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

8. MANILA, THE PHILIPPINES 2009 6 th 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  Design of the Changi Terminal 3  Share of Public Transport  Curbing population through Vehicle Quota System and of congestion through Electronic Road Pricing Changi Airport Terminal 3 Electronic Road Pricing

9. MANILA, THE PHILIPPINES 2009 6 th 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