The market coverage of these AIT and AOT companies extends to all the 5 continents. The international trading sector has also contributed greatly to the growth of other economic sectors like banking, finance and treasury, hedging, logistics and headquarter services. Caltex, one of the pioneer AOT companies, relocated its global headquarters to Singapore in 1998. It had already sited its global oil-trading operation here 10 years ago. The presence of major international trading companies encourages the establishment of foreign banks and the development of different kinds of trade financing.
International trading is knowledge-intensive.
Value is created based on a thorough understanding of clients, markets, products, financial instruments, trading methods, risk management and logistics. Looking back at the last 180 years, we have shifted from spices and opium, to rubber and tin, to ACUs and semiconductor. More and more, we have to be competitive not regionally but internationally. In the face of growing international competition, the Government is taking measures to bolster Singapore's position as an international trading centre like London and New York. We will continue to invest in the infrastructure needed to achieve our objective.