Speech by Minister Chan Chun Sing at the 3rd Singapore-China Trade And Investment Forum (SCTIF)

Ambassador Lui Tuck Yew, 
Mr. Ho Meng Kit, CEO of Singapore Business Federation (SBF),
Distinguished Guests,
Ladies and Gentlemen,

1. To everyone attending in person from Shanghai or virtually around the world, a very good afternoon from Singapore. 

2. This is my third time participating in the Singapore-China Trade and Investment Forum (SCTIF) and I would like to be there in person, if not for the global COVID-19 situation.  The strong participation at this year’s SCTIF, despite COVID, is a testimony of our determination to survive and thrive in a COVID world, and not be defeated by COVID.

3. This is also the 30th Anniversary of the official establishment of bilateral ties between Singapore and the People’s Republic of China.  Over all these years, Singapore has broadened and deepened our partnership with China in more and more areas – from economic cooperation to social management, legal cooperation and cultural interactions.

4. The key reason for Singapore to be able to continue to do this is the deep understanding of China’s fast evolving developmental needs and trajectory at different points in history.

a. We started with Suzhou Industrial Park in the 1990s when China was industrializing.

b. Then Tianjin Eco-City when China was concerned with sustainable township development.

c. Then Chongqing Connectivity Initiative as China seeks to accelerate the western region development and connect with the world.

5. Now, as China moves onto the next stage of their development, Singapore must closely and deeply understand China. This must be a never-ending task.

6. We see three areas of opportunities for the next lap of cooperation:

a. First, China’s rebalancing of the drivers for its growth between domestic and exports.

b. Second, China’s diversification of its markets and supply chains to strengthen the resilience of its economy.

c. Third, China’s changing demographics and the demand for new products and services.  By demographics, I mean the mix between young and old, urban and rural, East and West, North and South. 

7. President Xi Jinping has spoken about the “Dual Circulation Strategy” of late.  This is a natural evolution of the Chinese economic development, where the previous export-led development model will be rebalanced with and complemented by a domestic-consumption model.  This presents many opportunities for the world given the size of the Chinese market.  This is also a reason for the CIIE being held regularly.  However, to seize the new opportunities, we must deeply understand the complexities and diversity of the Chinese market. Different cities, provinces, age groups and education profiles have their unique needs, and we should never mistake the Chinese market as monolithic or homogenous.

8. A few years ago, China was already taking about “going out” [走出去].  Increasingly, Chinese companies want to secure their supply lines across the world.  Chinese companies want to have the world as their markets.  They also want to build a more resilient production and supply chain system across the world, to serve different markets and guard against disruptions by natural disasters and man-made policies.  This is no different from any other global companies.  Therein lies opportunities for Singapore companies to partner Chinese companies in this quest to diversify their supply chains and markets in third countries beyond China and Singapore.  

9. Finally, China’s population is ageing fast.  The middle-income class is rising fast.  The urban population is growing fast.  The western region is catching up fast.  The demand for quality products beyond meeting basic needs have also grown in tandem.   All these present many new opportunities for our companies to see how we can partner Chinese companies in meeting the emerging needs of the new Chinese demographics.

10. In this time of both crisis and opportunity, there is much that SBF can build on from its decades of work in helping Singapore businesses access the international markets beyond Singapore.  

11. Today’s participation in the CIIE is an example of how SBF helps our companies to access the international markets.  I am heartened to see that the SBF has led a sizeable Singapore delegation of 44 exhibiting companies on site in China and 50 buying companies which will participate online, for the 3rd CIIE. 

12. I would also like to thank SBF for organising this forum to provide valuable networking opportunities for Singapore companies, amidst the challenging circumstances. I hope our Singapore companies can explore partnerships and collaborations with Chinese companies and other foreign companies interested to expand into China’s huge market, or to work with Chinese companies to expand into markets beyond China. 

13. Beyond participation in exhibitions and organization of forums to share knowledge and contacts, SBF together with economic agencies like EDB and ESG can also organise our overseas network of offices and contacts to better help new Singapore businesses to understand the overseas markets.  To this end, SBF, the government agencies and the overseas business chambers like SingCham will need to work closely together to achieve this goal of Singapore companies helping one another and hunting together as a pack. 

14. I hope that everyone will have a fruitful time today, whether online or offline. I am confident that the business opportunities and networks that you established during this CIIE will go beyond Shanghai and China. I look forward to having you join us in Singapore’s continuing partnership with China, as we continue to deepen and broaden our economic cooperation with China for the next 30 years and beyond. Thank you.