Looking Beyond Grey Skies

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6th APEC Transportation Ministerial Meeting
(TPTMM6) 27-29 April 2009, Manila, Philippines
Looking Beyond Grey Skies Mrs Lim Hwee
Hua Minister (Prime Ministers Office), 2nd
Minister (Finance and Transport) Singapore
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6th APEC Transportation Ministerial Meeting 27-30
April 2009

• Open Seamless Transportation System is the
• Cornerstone of all Economies
• Determines an economys 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

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6th APEC Transportation Ministerial Meeting 27-30
April 2009

• Transport Sector is badly affected
• Baltic Dry Index plunged from 11,000 points
• to a low of 700 points
• Aviation Industry losses of US4.7billion
• in 2009 (IATA forecast)

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6th APEC Transportation Ministerial Meeting 27-30
April 2009

• Protectionism 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

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6th APEC Transportation Ministerial Meeting 27-30
April 2009

• Transport services
• - substantial market contributor
• Exports amounted to US750 billion in 2007
• Accounted for 2-2.5of GDP and 5-8 of total
  jobs
• Faciliate trade, tourism and investment flows

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6th APEC Transportation Ministerial Meeting 27-30
April 2009

• 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

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6th APEC Transportation Ministerial Meeting 27-30
April 2009

• 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

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6th APEC Transportation Ministerial Meeting 27-30
April 2009

• 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
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6th APEC Transportation Ministerial Meeting 27-30
April 2009

• 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