NOTE FOR THE FILE
cc: Mr Paxman
Mr Hurley (to discuss para 8)
Reference
LORD CAITHNESS VISIT: CALL ON PHILIP YEO, CHAIRMAN OF THE ECONOMIC DEVELOPMENT BOARD (EDB), FRIDAY 3 MAY 1991
1. Lord Caithness called on Philip Yeo, accompanied by the High Commissioner and CC. Mr Yeo was accompanied by Ms Khoo Seok Lin, Deputy Director, Planning Division and Mr Peter Chiang, Industry Officer, Aerospace and Events, Industry Development Divison.
2.
General. It was explained that the job of the EDB had originally been to create jobs. In its early days the organization had therefore been involved in the foundation of the Jurong Industrial Estate, hotels and the DBS Bank. This role had been expanded into manpower development. Under this programme the EDB administers five institutes which include the French-Singapore Institute, the German-Singapore Institute and the Japan-Singapore Technical Institute. They offer two and three year full-time programmes to train manpower in advanced manufacturing technology or electronics.
3.
Investment in Singapore. The EDB's Deputy Chairman based in New York is responsible for EDB's investment policy for the US and Europe. Since 1986 the annual investment target has been S$2 billion. The target was breached in 1989 with investment of S$2.5 billion. The EDB's policy is to aim for a balance of investment from Japan, US and Europe respectively. If for example Japan is in the lead one year, the aim is to slow down Japanese investment to enable the others to catch up. EDB's policy was to try and encourage "skill" investment. The policy was successful and the recent investment by Texas Instruments worth US$ 330 million and which would create 500 new jobs, was one example.
4.
Mr Yeo went on to explain that government incentives to invest in Singapore were mainly based on tax breaks rather than loans. He instanced Glaxo who had used the tax incentives to fuel growth. Reinvestment was included in annual investment figures. Singapore had a mix of factory space being offered by the government and by the private sector. For example in the electronics sector where accommodation had been required quickly the EDB had provided flatted factories as a pump primer.
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