Speech by Minister Lim Hng Kiang at the Singcham-Singapore Business Federation (SBF) Chinese New Year Networking Reception at Park Royal Hotel, William Ballroom

His Excellency Ambassador Duan Jielong
Mr Teo Siong Seng

Chairman, SBF

Ms Dorothy Ng

Chairperson, SingCham

Distinguished Guests

Ladies and Gentlemen

I am delighted to join you this afternoon to celebrate the Lunar New Year.  2015 is an important year for both Singapore and China. We will celebrate Singapore’s 50th National Day, and this year also marks the 25th anniversary of the establishment of diplomatic ties between Singapore and China. 

Bilateral Economic Relations

Singapore’s economic relations with China is strong, substantive and continues to grow. Singapore was China’s largest foreign investor for the second consecutive year in 2014, with investments amounting to US$5.8 billion in over 700 projects last year. This demonstrates the continued confidence of our business community in China’s growth potential. China was also Singapore’s largest trading partner last year, with bilateral trade in goods increasing by 5.4% to S$121.5 billion. I am also glad to note that our bilateral trade in services grew significantly in the first three quarters of 2014, with Singapore being China’s third largest foreign trading partner for trade in services.

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The strong growth in our investments and services trade is in line with the strategic direction of China’s growth. China underscored its commitment to liberalisation of its services sector and a consumption-led growth model at the Third Plenum in November 2013.  Since then, much progress has been made on reforms, with China’s Ministry of Commerce (MOFCOM) releasing a consultative draft on a revised Foreign Investment Law last month.  Singapore, being a services-oriented economy with strong players in the services sectors, can look forward to more opportunities to participate in China’s development.

IE Singapore has offices in nine locations across China which facilitate our companies’ investments into China, linking them up with local governments and potential local partners. Singapore also has a network of seven provincial business councils with China. These councils provide a platform for Singapore companies to network with the local leaders and business communities, and deepen cooperation at the provincial level. In order to further boost trade, services and investment, MTI is also working closely with our Chinese counterparts on a substantive review and upgrade of the bilateral China-Singapore Free Trade Agreement (CSFTA), which has been in force since 2009.

Business associations such as the Singapore Business Federation (SBF) and the Singapore Chamber of Commerce & Industry (SingCham) are important conduits for Singapore businesses seeking to operate in China.  I would like to thank SBF for its efforts in organising Singapore’s participation in past editions of the China-ASEAN Expo (CAEXPO pronounced as “cax-po”) and the China (Beijing) International Fair for Trade in Services (CIFTIS). In particular, Singapore was the Country of Honour at last year’s CAEXPO, with SBF leading Singapore’s most substantial representation at the event to date.

SingCham, one of the biggest foreign chambers in China, is another important association representing the interests of Singapore companies. With its membership growing to around 1,000 members and chapters in seven provinces

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in China besides Beijing, SingCham continues to play an important role in assisting Singapore companies to set up and expand their business in China. It serves as an important voice of Singapore businesses.

Conclusion

Under what President Xi Jinping has termed as “the new normal of economic growth”, China will offer many new opportunities for Singapore companies. As China transforms, it is no longer business as usual, and our companies will have to continually adapt to seize the opportunities arising from China’s development. Just as how you have continually adjusted and transformed in Singapore, I am confident that you will be equally nimble in China.

As we celebrate the Lunar New Year, I would like to take this opportunity to wish all a prosperous Year of the Goat, 喜 (xi3) 气 (qi4) 洋 (yang2) 洋 (yang2), 大 (da4) 展 (zhan3) 宏 (hong2) 图 (tu2)!

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After the United States and Japan.

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They are Fujian, Guangdong, Guangxi, Jiangsu, Sichuan, Tianjin and Shandong.