Hong Kong and Singapore are both small and densely populated, with a diversified population. Despite having virtually no natural resources of our own, our strategic locations and excellent harbours led to the rapid development of two most important trading hubs in Asia since the early 20th century.

It is against this background that the two places are receptive towards other civilisations and supportive of pluralistic cultures. With the advent of globalisation and knowledge-based economy, Hong Kong and Singapore recognise the significance of bringing about a social environment favourable for cultural innovation and appreciation. This sparks the desire of both places to promote cooperation in the field of culture and the arts.

As a matter of fact, in the past few years, there have been an increasing number of cultural exchange activities between Hong Kong and Singapore. To name a few: Singaporean violinist Min Lee performing with the Hong Kong Sinfonietta in 2003; the loaning of selected exhibits from Hong Kong Science Museum's "Flowers in Mirrors" Exhibition for a children's carnival in Singapore between late 2002 and early 2003; the loaning of films from the Cathay Organisation of Singapore to the Hong Kong Film Archive for special showcasing in 2002.

MOU a timely response to 21st century challenges

Indeed, the signing of the Memorandum of Understanding is a timely response to the challenges of the 21st century, an era where the concept and content of competitiveness is given new meanings. With the advent of globalisation, the power and influence of a city hinges not entirely on its military might or economic strength in its traditional sense.

The defining force has shifted gradually to cultural depth that a city is able to generate. In the absence of a strong culture, what we have achieved in economic terms would be ephemeral, fragile and vulnerable, lacking the depth and breadth to weather the storms and uncertainties that are part and parcel of a highly globalised world.

We need to build a community that is creative, cohesive and resilient through arts and culture, through preservation of our heritage and through articulation of our historicity, so as to provide us constant source of inspiration to propel our economy to thrive and advance in the face of fierce competition from different parts of the world.

Alliances help cities thrive

In the 21st century, competition is no longer one between country and country. Cities have become the dominant players. Except for those with substantial population and geographical areas, a single city alone is seldom sufficient to compete on its own. Alliance is called for. A cluster of cities with similar strength in economic and cultural terms is the answer to this challenge.

Such an alliance will provide the necessary critical mass to attract talents and nurture them, as well as to create a market that is large enough to achieve economy of scale and encourage diversity in products and services.

In the past, alliance of cities usually centred on economic co-operation, but this proves too narrow an approach in a globalised world where culture plays an increasingly pivotal role.

Cultural co-operation encourages cross-fertilisation

We need cultural co-operation to foster a closer and more vibrant city alliance, one that provides ample room for mutual appreciation, improvement and cross-fertilisation. I am sure the one that is entered into between Singapore and Hong Kong today will pave the way for the realisation of this vision.

The Memorandum of Understanding signed today will also represent earnest effort towards the objective of promoting the oriental culture. Indeed, it echoes with what Senior Minister Lee Kuan Yew has long been referring to as the Asian values.

Interchange of ideas between cities enhanced

In encouraging and facilitating the exchange of culture between two cities that are both oriental in origin, and yet are deeply influenced by the Western cultures and, through their wisdom and hard work, have achieved economic miracles, I believe the platform created by this Memorandum of Understanding will further enhance the interchange of ideas between the people of Singapore and the people of Hong Kong.

Hand in hand, I am sure we will be able to create synergy and spark innovative ideas, sowing the seeds that one day will bring forth long-term benefits to both places.

With the signing of this Memorandum of Understanding, the people of Singapore and Hong Kong have made one crucial step to strengthen the bond between us. We have much in common, but also a lot of differences in various aspects.

We are keen competitors but we also have great things to share with one another, and this could best be achieved through the platform created by this Memorandum of Understanding.

I look forward to exploring new ways to further develop this co-operative initiative and spirit and joining hands with Singapore to build a strong cultural alliance for the common good of our peoples.

Secretary for Home Affairs Patrick Ho gave this address at the signing of the Memorandum of Understanding on Cultural Co-operation between Hong Kong and Singapore.