Ian Goodenough (Moore, Liberal Party) Share this | Hansard source

I rise to support the Customs Tariff Amendment (Singapore-Australia Free Trade Agreement Amendment Implementation) Bill 2017, which is part of a suite of measures designed to facilitate trade and investment between our nations. The proposed legislation will simplify administration and reduce compliance costs for traders operating under the agreement by introducing new product-specific rules of origin for goods that are imported into Australia from Singapore. This is simpler than the existing 50 per cent content rule that requires businesses to record all production costs. Goods which satisfy the new rules of origin in the amended agreement will be able to enter Australia at preferential rates of customs duty.

Procedures for claiming the preferential treatment will be modernised and traders will now be able to self-certify that their goods meet the rules of origin. These procedures will also provide exporters with flexibility to continue to have goods certified by third parties. The new rules will operate as an alternative framework for goods claimed to be the produce or manufacture of Singapore for a transitional period of three years, after which the framework for produce or manufacture of Singapore will be repealed, and only eligible goods that are determined in accordance with the new rules of origin will be subject to preferential rates of customs duty.

The amended agreement will enter into force after the governments of both Australia and Singapore have completed their respective domestic treaty approvals processes, having exchanged notes confirming the completion of their respective domestic procedures. At this time both countries are working cooperatively to facilitate the entry into force on 1 December 2017.

In 2016 Australian investment in Singapore reached $61.5 billion, while Singaporean investment in Australia amounted to $99 billion. In terms of services, Singapore is our third-largest trading partner, with international services amounting to $10 billion annually. Singapore is our 11th-largest trading partner in terms of merchandise trade, with combined imports and exports totalling $12.6 billion in 2016.

I attended the Australia Singapore Exchange Conference, which was held at Suntec City in Singapore between 28 September and 1 October. Delegates from Australia travelled to Singapore to network with representatives of the Singaporean business community, the objective being to strengthen the trade and investment relationship between our nations. The Australian Deputy High Commissioner to Singapore, Ms Kate Duff, was in attendance. I would like to acknowledge the visionary and proactive work of the organising committee, in particular Mr Roy Yeo, Faith Tay, Paul De La Cruz, Nicholas Tay, Clinton Cheng, Yang Ping, Sim Lai Ngin, Chong Rong Rong, Shaun Aw, Helen Qin, Lily Phua, Denise Twigger and Jon Szeto. Mr Yeo and his dynamic team are committed to developing stronger business links between Singapore and Australia.

I was pleased to participate in pre-conference visits with two local chapters of Business Networking International—a tour of the Beyonics Advanced Manufacturing facility; a visit to the Singapore Cruise Centre to see the passenger facilities for the cruise ship industry; and a visit to the Metro department store chain, which stocks a number of Australian-sourced items, such as canned abalone, honey and cosmetic products.

I delivered the keynote address at the conference, promoting sectors of the Western Australian economy that are attractive for Singaporean investment, including mining, resources, and energy; hospitality and tourism; retail and wholesale; property development and land subdivision; agriculture, food processing, agribusiness, fisheries; and the development of northern Australia.

The Singapore-Australia Free Trade Agreement is in the process of being comprehensively updated, with a greater focus on services and improved exchanges in the areas of innovation, science, education and the arts. Under the upgraded arrangements, Australian industries, including education, law, financial and professional services, will gain improved access to Singaporean markets. Australia and Singapore will establish a framework to support mutual recognition of professional qualifications. Exciting new updates will provide greater certainty for Australian lawyers and law firms operating in Singapore. Australia has locked in existing opportunities in the legal sector, including the ability for Australian lawyers to practise Singapore law and to work in international commercial arbitration. There will also be scope to have Australian qualifications recognised by Singapore, giving lawyers, engineers, accountants and medical professionals greater certainty to practise in Singapore.

Singapore will also recognise Australian tertiary qualifications, including juris doctor degrees, as well as those in allied health, such as physiotherapy, occupational therapy and speech therapy, from a number of Australian universities. Finance firms will also be able to provide a range of services on cross-border transactions with Singapore. This includes investment advice, portfolio management services and brokerage services for insurance of maritime, aviation and transport-related risks. Australia will raise the Foreign Investment Review Board screening threshold for private Singaporean investment in non-sensitive sectors from the current $252 million to $1,094 million, consistent with the approach taken in the Trans Pacific Partnership and North Asian free trade agreements.

Australia will locate one of its five start-up landing pads in Singapore to promote innovation and entrepreneurship. This initiative will support emerging Australian technology companies to gain a foothold in Singapore and the wider Asian market. Furthermore, the Singapore-Northern Australia Agribusiness Development Partnership will involve an ongoing program of activities focused on encouraging and attracting Singaporean investment to develop northern Australia.

Singapore and Australia have made commitments on work rights on a reciprocal basis: Australians will enjoy longer lengths of stay for independent executives, contractual service suppliers and their families, up from two months to three years. Longer lengths of stay will apply for intracorporate transferees and their families, up from two years to three years with a new maximum stay of 15 years. A more streamlined process will be implemented to facilitate temporary entry and work permits for Australian professionals and business people. Similarly, Singaporeans will have exclusive access to a new long-term, multiple entry visa option by 1 January 2018, making it easier to travel to Australia for business and pleasure. The Visitor (Subclass 600) visa will allow travellers, with just a single application, to visit Australia for up to three months at a time over a six-year period. The new visa option was announced during the Prime Minister's official visit to Singapore and will further strengthen ties between our countries. There are currently an estimated 7,578 Singaporean students studying in Australia. In terms of tourism, 709,000 Singaporeans visited Australia in 2016 and about one million Australians visited Singapore.

Located at the heart of Asia, Singapore offers Australian businesses access to global markets. Strategically located to serve the Asia-Pacific, one of the world's fastest-growing regions, Singapore's well-established business infrastructure, global connectivity and trade linkages enable investors to access the approximately four-billion-strong Asian market within a radius of seven hours flight time. Singapore continues to be well regarded as a AAA-rated economy with strong growth potential and a sound and stable location for business expansion and investment.

The 2018 ASEAN summit will be held in Australia, with Singapore as the chair. Australian businesses, including firms in my electorate, will benefit from greater access to the Singaporean market through increased trade and investment. Australian companies are already winning high-value contracts with the Singapore government in sectors such as road transport, construction and engineering. This legislation is part of a suite of measures designed to facilitate trade and investment between our nations. It seeks to achieve this by simplifying administration and reducing compliance costs. The future looks promising, with improved cooperation and stronger ties between our nations. I commend the bill to the House.

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