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Rt. Hon. Lord Mandelson, First Secretary of State, Secretary of State for Business, Innovation & Skills, Lord President of the Council
London, 03 June 2009
Charles, thank you, and thank you for your continued service to the UK – and for your leadership of the Asia Task Force.
The bad news is – as we are all fully aware –that there is a global recession on; the good news is this is affecting Asia to a lesser extent. These markets will be out of the recession earlier than others – and because of this, we must maintain our focus on them; and this is the purpose of today’s meeting.
To those early traders adventurous enough to take the risk, business in Asia meant access to cargoes of spices, silks and other rare luxuries that could make their fortunes.
Now, thousands of years later, economic power is again shifting east. And these markets offer businesses - battered by some of the toughest economic conditions that we are going though in living memory - an unrivalled chance to kick start growth and to enable us to pull our way out of recession and speeded towards recovery at the end of this year and into 2010.
Of course, at a time like this - battling one of the biggest slumps in world trade for over sixty years - it can seem counterintuitive to show confidence or commit to investment beyond our home market. But, actually, it’s the best time to do so.
A heads down, drawbridge up approach won’t protect us from the global challenges that we face. We have to take them on with all our capabilities and our skills, properly supported by the Government and UKTI. If we don’t do that, it would only succeed in cutting us off from the very investment and innovation that will create jobs and drive growth in the future.
Whether we’re tackling the most immediate issue of recovering from the recession, or putting in place the conditions for the UK’s economic future success, our response must be to draw on and develop those things that make our country strong.
That make us appreciated, that attract others to partner and do business with us. We have to draw on our special skills and our enterprise.
And one of the UK’s biggest strengths remains our ability to recognise and take up new business opportunities across the global economy. For hundreds of years, one of our best constituencies has been global – and now is the time to tap in to our historical strengths and our historical networks.
Which brings me to focus on the importance of Asia. Inevitably hit by sharp falls in output and higher unemployment, Asia’s economies, like the UK, have reacted quickly to tackle the economic fallout of the current crisis.
Substantial fiscal stimulus across the region is helping boost demand – and I don’t mean just in China. And tempered, but sustained growth in Asia’s biggest economies makes it likely, as I have said, that this region will lead the rest of the world out of the global recession – and we must be there, piggy-backing on that growth to enable our own businesses to grow and to lead the UK back to growth.
That drive - coupled with Asia’s continued economic rise in the future, with fast-growing populations, acquiring higher levels of income and increased spending power, with demand for goods and services that matches what we, the UK, has to offer - makes these markets that no company can afford to ignore.
I’m proud to say that UK companies are already succeeding there. And that’s businesses of all types and sizes – incidentally, I’m very glad that a similar event is being held in Manchester tomorrow, illustrating that the opportunities are not just for large companies in the metropolis – and that attendees at both events are broadly from small and medium sized companies, not just the large ones.
With recent deals signed by Turner Access and TM Lewin in Singapore, Software Radio Technology in China, Arup in Taiwan and Sheffield Forgemasters in India. I’m not going to list them all.
Despite the tough global conditions last year, UK exports of goods alone to key Asian markets totalled over £21 billion.
But still too many UK businesses don’t know about opportunities in this market. Today’s meeting is about raising that awareness and giving you the insider knowledge you need in order to get ahead.
Britain has the experience. We have the expertise in hi-tech, high-value sectors like energy, advanced engineering, the creative industries superbly, and others that are critical to Asia’s future, as well as our own.
They are markets which love our professional services, they love our construction, they love our design, all areas with a superb record of UK achievement and delivery, a record that shows that people in these markets look to the UK for their business relationships.
And the Government is committed to do all it can to help more UK businesses grow and prosper through trade with these lucrative markets.
Back in April’s Budget, we announced measures to help businesses currently struggling to get the credit they need to export – and I am not happy, incidentally, with the export credit guarantee system, which we have until now left to the market; but the market is now failing and the Government has to step in. We are examining this issue quickly and urgently and I will be seeking reforms.
Furthermore, we have provided a £10 million boost to help UKTI promote UK sector expertise across the world, and I would like to pay tribute to Sir Andrew Cahn and his staff at UKTI who, as I have seen on my own travels, are so well connected and committed in markets around the world – and it is a tribute to them that they deliver such a huge bang for bucks.
But we need to do more, and to do better, particularly where their support needs to be targeted to specific sectors even more than now.
UKTI can offer expert advisors and tailored guidance to help you tackle the issues associated with any new venture overseas, whether that is the cultural introductions needed and the discovery of norms in these markets; or making the connections with the right people; or educating companies to the different and differing legal systems in the markets; or the intellectual property regimes. UKTI provides in all these markets access to contact networks, targeted research and financial support.
Asia Task Force’s expertise and experience helps inform the work of UKTI. And I want to thank those involved in the Task Force and the commitment they bring to their work with us.
Power is shifting east in the global economy. And now is the time, when the competitive advantages and the substantial quantity and quality in the UK will enable businesses to benefit from these massive changes are taking place.
The UK has the knowledge and potential to succeed in this new world – this is not virgin territory for us. We have a strong platform on which to build. This is clear from the expertise, advice and support on show here today.
We are however facing tough competition. Britishness appeals in these markets – but there are others in these markets, and they are competing hard. We’re going need to do more to beat our competitors, who are just as eager to win. We have constantly to up our game.
This meeting’s important to take that work forward. And the entire Government – not just BERR and UKTI, but the FCO and their expertise – are there at your disposal. We are determined to secure the countless opportunities that are out there, to secure growth and innovation, and we are going to go out and achieve more, and do better in the years to come.
