9TH MARCH 2023, RAFFLES CITY CONVENTION CENTRE, SINGAPORE
“Opportunities for Cooperation between Singapore and China in the new era”
His Excellency YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of International Trade & Industry of Malaysia;
His Excellency Dr Kao Kim Hourn, Secretary-General of the Association of Southeast Asian Nations;
His Excellency, Dato’ Dr. Azfar Mohamad Mustafar, High Commissioner of Malaysia to Singapore;
Mr Chen Liang, Chairman of China Galaxy Securities;
Mdm Chang Yu, Chief Executive Officer of China Galaxy International Holdings Limited;
Distinguished guests, ladies and gentlemen,
Good afternoon!
1. First, I would like to thank the organisers of the CGS China-ASEAN Business Leaders Summit, for inviting me to address the audience.
2. The topic of my speech today is on the opportunities for cooperation between Singapore and China in the new era. By new era, I am referring to a post-COVID era, with the reopening of China. This is also one of the main reasons why we are all able to gather here today in person, and meet business leaders from China, Southeast Asia and around the world.
3. I would like to begin by acknowledging the many challenges, even threats, in the international economy today. These include, slowing growth, inflation, geopolitical tensions, climate change, just to name a few.
4. Despite these challenges, I believe there are strong opportunities for cooperation between Singapore and China, and between Singapore and China enterprises. What are the unique characteristics that drive Singapore-China economic cooperation? I would like to highlight 2 key characteristics.
Characteristics of Singapore-China Economic Cooperation
5. First, Singapore and China’s economic cooperation is driven by the market and businesses, and the trade and investment figures attest to this:
- Since 2013, China has been Singapore’s largest trading partner, while Singapore has become the largest foreign investor in China.
- Singapore is also amongst the largest outward direct investment destination of China, and had attracted US$60 billion of cumulative investment from China investors by end-2020[1]. China’s interest in Singapore as a business hub has been rising in recent years, as evident from the large numbers of Chinese business people here today.
6. Second, both governments have continued to lead, promote and facilitate the economic cooperation between Singapore and China, according of the needs of the particular period in history.
- Singapore and China have established 3 government-to-government projects at different points in our economic cooperation history. We started with the Suzhou Industrial Park in 1994, at a time where there was a strong drive by China to develop its industries and to attract foreign investment. Subsequently, Tianjin Eco-city was established in 2008 to demonstrate how ecology and township living could co-exist successfully. Then in 2015, Chongqing Connectivity Initiative was established to demonstrate and promote greater connectivity between Western China and Southeast Asia, in support of the Belt and Road Initiative. These connectivity initiatives were also launched in response to the needs of the transport and logistics, aviation, ICT and financial services.
7. When governments are working well with each other, and ministers and officials meet regularly during joint projects and platforms, there will be many opportunities to build rapport and achieve mutual understanding. This would usually result in a more favourable environment for business cooperation to flourish. I think this has been very true of the Singapore-China economic relationship.
Future China Cooperation
8. The strong fundamentals of Singapore-China cooperation therefore forms a good foundation for future Singapore-China partnerships in this new era.
9. I would like to highlight 2 broad areas with great potential for cooperation between the two countries.
10. First, as China and Southeast Asia continue to develop their digital economies, there are strong growth opportunities for companies, particularly in the Southeast Asia and Singapore markets. In fact, Southeast Asia’s digital economy is predicted to expand twice as fast as the GDP in most Southeast Asian countries and could reach US$1 trillion by 2030[2]. Singapore remains the region’s most popular digital economy investment destination. For instance, the trade and commerce ministries of Singapore and China have signed MOUs on cooperation in the Digital Economy and Electronic Commerce last year. Governments are also working together to develop systems for collaboration, and trade rules in this area to promote and guide businesses better.
11. Second, China and Singapore have ambitious carbon neutrality targets, and vast opportunities exist in the green economies of both countries. Singapore has the largest green finance market in Southeast Asia, with over 50% of ASEAN’s cumulative green and sustainability-linked bond and loan issuances[3]. Likewise, China is among the largest green finance markets, with total green loans balance and green bonds exceeding 20 trillion Yuan (approximately US$2.98 trillion) and 1.2 trillion Yuan (approximately US$179 billion), respectively[4]. Singapore and China have enjoyed a long-standing partnership in sustainable development via the Tianjin Eco-city. There has been further collaboration announced last year between Singapore and China[5] to enhance cooperation in environmental and water sustainability, green economy development, and green finance. All these initiatives will create new business opportunities in the green economy.
12. I would strongly encourage Singapore and China businesses to proactively participate in the various regional and bilateral economic integration initiatives and platforms.
Business China
13. Before I conclude, please allow me to speak a few words in Mandarin as I take this opportunity to give a short introduction of Business China.
14. 通商中国成立于2007年，由建国总理李光耀先生和当时的中国总理温家宝先生共同见证了启动仪式。 通商中国的宗旨是造就一批双语双文化的中流砥柱， 搭建联系中国文化及经济的桥梁。
15. 为此，通商中国积极接触年轻人、青年商业领袖和会员，培养融汇贯通东西方文化的人才，在新加坡与中国和其他国家的有效合作中发挥作用。我们也与政商两界紧密合作，推出优质项目，包括“通商中国高级领袖研修班”、“新加坡-中国青年实习交流计划 (YES)”。同时，通过我们的旗舰活动，如“慧眼中国环球论坛”(FCGF)以及一系列闭门分享会，汇集杰出的政商领袖、专家学者、政府官员 分享真知灼见，共襄盛举。我们今年的FCGF将在10月份在新加坡举办，欢迎来参会。
16. 我们很高兴 成为中国银河证券 中国-东盟商业领袖峰会的 支持伙伴，感谢主办方的盛情邀请。
Conclusion
17. In conclusion, let me wish the summit a major success and all present, fruitful discussions and networking over the next two days in Singapore. Thank you very much!
[1] Source: 2020 Statistical Bulletin of China’s Outward Foreign Direct Investment
[2] Source: 7th edition of e-Conomy SEA report by Google, Temasek, Bain published in 2022
[3] Source: Monetary Authority of Singapore
[4] Source: Agricultural Bank of China, at World Economic Forum 2023
[5] Source: PMO; 18th Joint Council for Bilateral Cooperation (JCBC), Nov 2022