Question
Mr
Leon Perera: To
ask the Minister for Trade and Industry (Industry) (a) how many Singapore-based
companies have cumulatively invested in the Government's overseas industrial
park projects that enjoy G-to-G support such as the Suzhou Industrial Park and
Tianjin Eco-City; (b) how many of these are GLCs, SMEs and MNCs respectively;
and (c) what evidence has been accumulated by the Ministry as to the spin-off
benefits to the domestic economy and local SMEs of these Government-supported
overseas industrial parks.
Oral
reply (to be attributed to Minister for Trade &
Industry (Industry) Mr S Iswaran)
- Internationalisation
remains an important strategy to sustain Singapore’s growth by helping our
companies to develop beyond our domestic market. Government-to-Government (G-to-G) projects
such as the Suzhou Industrial Park (SIP), Tianjin Eco-city (TEC), Chongqing
Connectivity Initiative (CCI) and the Amaravati capital city project in Andhra
Pradesh, play an enabling role in paving the way for Singapore companies to
enter and scale up in fast-growing markets such as China and India.
- Over
the years, many Singapore companies have tapped on these G-to-G platforms to go
abroad. In the case of SIP, about 340 Singapore companies have established a
presence there as of end-2016. Of these, approximately 70% are small companies
with registered capital of up to S$1 million.
Cumulative contractual investments by Singapore-based companies in SIP
amounted to S$9.4
billion by end of last year. The National University of Singapore has also
established a Research Institute – the NUS (Suzhou) Research Institute – in SIP
which has served as a springboard for Singapore start-ups to incubate and scale
up in China. NUSRI is currently
incubating 37 Singapore and international technology start-ups.
- An
example of a company that has benefited from SIP and successfully scaled up is
PatSnap. Founded in 2007, PatSnap is a
Singapore company that offers innovative patent data analytics solutions. To
overcome the constraints of our small domestic market and to scale up globally,
Patsnap expanded into the SIP. PatSnap’s software today has been sold in over
40 countries to more than 1,300 clients.
In March this year, PatSnap announced its plans to invest S$22 million
in a Research and Development (R&D) centre in Singapore to further develop
its intelligence platform. To date, the
centre has hired more than 10 data scientists.
- The
TEC project was established in 2008, against the backdrop of rapid urbanisation
and heightened focus on sustainable economic development in China. As
of June 2017, 42 Singapore companies are registered in the TEC, with a total
registered capital of more than S$220 million. The companies include SMEs in a
range of sectors such as environmental services, property, education, urban
solutions and logistics.
- Singapore’s
newer G-to-G projects continue to bring our companies to new regions and
markets to help them gain a first-mover advantage. The Chongqing Connectivity
Initiative project, which was launched in 2015, has opened up business
opportunities in the less developed western region of China, and facilitates
the participation of Singapore companies in sectors such as financial services,
aviation, transport and logistics, and information and communications
technology.
- Similarly,
the Amaravati project to build a new capital city in Andhra Pradesh, will give
Singapore companies the opportunity to export our expertise, in urban solutions
and other domains. With our early
involvement in the initiative, our companies including SMEs will be
well-positioned to offer their services and participate in projects, within the
state of Andhra Pradesh as well as the broader Indian market.