looking beyond grey skies mrs lim hwee hua minister (prime minister’s office), 2 nd minister...
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Looking Beyond Grey Skies Mrs Lim Hwee HuaMinister (Prime Minister’s Office), 2nd Minister (Finance and Transport) Singapore
6th APEC Transportation Ministerial Meeting (TPTMM6) 27-29 April 2009, Manila, Philippines
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
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 US$4.7billion in 2009 (IATA forecast)
Global Economic Outlook & The Importance of Transport
MANILA, THE PHILIPPINES 2009
6th APEC Transportation Ministerial Meeting 27-30 April 2009
Global Economic Outlook & The Importance of Transport
MANILA, THE PHILIPPINES 2009
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
MANILA, THE PHILIPPINES 2009
6th 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
MANILA, THE PHILIPPINES 2009
6th 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
MANILA, THE PHILIPPINES 2009
6th 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
MANILA, THE PHILIPPINES 2009
6th 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
MANILA, THE PHILIPPINES 2009
6th 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