In NOK - purchasing power parity  US Norway Switzerland Ireland Denmark Iceland Canada Netherlands Austria Australia Germany Finland Sweden 0  100000  Sources: OECD and Norges Bank  200000  300000  The large cash flows from petroleum activities are reflected in official income figures. Measured by GDP per capita, Norway ranks high in the statistics. These figures do not, however, provide an accurate picture of value added. When calculating GDP and national income, the cash flow from petroleum activities is measured in the same way as all other income. Extracting oil and gas from the seabed is measured in the same way as all other production. This means that Norway’s income is overestimated. Oil and gas represent wealth under the seabed. When oil and gas are sold, this wealth is invested abroad. This transaction does not in itself generate income, even though it is posted as income in the national accounts. The income is not equivalent to the entire cash flow, only to the return on this wealth. Chart 14. Adjusted GDP per capita in 2000 In NOK - purchasing power parity  US Switzerland Ireland Denmark Iceland Canada Netherlands Austria Australia Norway Germany Finland Sweden 0  100000  200000  300000  Sources: OECD, Ministry of Finance and Norges Bank  A more accurate picture of Norway’s income is obtained when GDP is adjusted for the transfer of petroleum wealth to financial investments abroad.
All these make Singapore a natural gateway connecting India to ASEAN and East Asia, as well as a launch pad for products and services of the future. Conclusion These are exciting times in Asia. Countries have the opportunity to transform their economies, and substantially improve the lives of their people. For companies, many opportunities are opening up, which will surely be seized, if not by you then by your competitors. Globalisation is an unstoppable phenomenon, presenting opportunities to those who are prepared but threatening the unconverted. It will not be easy for countries to realise this promise of globalisation, and avoid its many hazards each on their own. They need to look beyond their borders to tap and leverage on one another’s strengths. I believe that Southeast Asia will rise to the challenge, hold its own as an attractive market and investment destination, and at the same time be an integral part of a booming Asia. India is a major part of the Asian story. I look forward to deepening and broadening the ties between these two regions, and in particular between India and Singapore, to the benefit of our economies, our private sectors, and our peoples. BIS Review 3/2004  5