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May 27, 1999




Sacramento - Governor Davis met today with Singapore Prime Minister Goh Chok Tong to discuss trade and investment between California and the country of Singapore. The two leaders signed a Memorandum of Understanding reaffirming an agreement to facilitate ties between private industry sectors from both regions in order to encourage new economic alliances between California and Singapore.


"Singapore and California have long been partners on the front lines of economic progress," Davis said. "It has been a privilege for me today to sit down with the Prime Minister and discuss what we can do together to forge a more prosperous future - for our two great economies and our two great people.


"Singapore is one of three countries with which California has established a formal relationship between governments for the exchange of technology opportunities," Davis continued. "Today, we have agreed to continue to this landmark technology exchange accord and to build upon its success."


Governor Davis and Prime Minister Goh signed a Memorandum of Understanding (MOU) to reaffirm a formal relationship that began last year between Singapore's Economic Development Board, the National Science and Technology Board, the Trade Development Board and California's Trade and Commerce Agency. The MOU provides for shared information and coordination when possible, in order to foster technology, business development and investment opportunities in the public and private sectors in instances where both California and Singapore would benefit.


Governor Davis also welcomed news that Singapore recently announced the creation of a $1 billion venture capital fund that will serve as a catalyst for new growth opportunities in the area of electronic commerce and information technology.


Singapore represents California's sixth largest export market. California provides more than 30 percent of the total exports from the U.S. to Singapore.


A copy of the Memorandum of Understanding is attached.

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Recognizing that we live in an era of growing interdependence where collaborative partnerships are important for global competitiveness;


Noting the common desire of the signatory parties to promote economic growth and encourage development;


Conscious of the close ties that the Republic of Singapore ("Singapore") has with the State of California ("California"); and


Taking into account the shared goal of Singapore and California to promote high technology industries;


Private industry sectors from both regions continue to make new economic alliances for mutual benefits. It is the intention of this agreement to facilitate these ties, and to broaden their impact for a faster and more substantive linkage between Singapore and California.


This agreement reaffirms the MOU signed on March 16, 1998, to establish a formal relationship between Singapore's Economic Development Board, the National Science and Technology Board, the Trade Development Board and the California Trade and Commerce Agency in order to foster technology, business development and investment opportunities, through business interaction in the public and private sectors where there is identifiable common ground and aspirations;


To that end the parties agree:


To keep each other informed of important economic and civic issues


To provide information, liaison and support to prospective businesses interested in technology, investment, trade and business opportunities, so as to facilitate access to each other's markets


To encourage coordination of economic missions with our respective areas and collaboration with other levels of government when appropriate, at home and in third markets


To provide for and publicize business link entry points in each community, these links or contact points may be provided by public and private sector bodies, reflecting the respective systems and cultures of the communities


Furthermore, in order to give initial focus to business growth and cooperation, The Republic of Singapore and the State of California have identified the following areas of cooperation:


1.      Technology Development and Networking - Efforts should be made to match technology-intensive companies in areas of mutual interest such as telecommunications and information technology, microelectronics and materials, healthcare, environmental and biotechnology, and where appropriate the customization of technologies to the respective regions. Additionally in this context, relevant California organizations could be consulted for ideas on technology financing strategies.


2.      Trade and Investment Links - Singapore and California should strive to carry out activities aimed at promoting trade and investment links between the two sides through missions and seminars, visits by officials, matching business opportunities, and the exchange of information on each other's markets. California could tap into Singapore's knowledge of and links with the markets in the Asian region. Singapore, on the other hand, could take advantage of California's pre-eminent position in high technology industries in the United States of America to develop commercial opportunities for private companies in the high technology area.


In witness whereof the parties have executed this Memorandum on this 27th day of May, 1999.


___________________________ __________________________

Goh Chok Tong Gray Davis

Prime Minister Governor

Republic of Singapore State of California