Speech by SPS Tan Wu Meng at the Opening Ceremony of Shanghai Pudong Development Bank Singapore

REMARKS BY DR TAN WU MENG, SENIOR PARLIAMENTARY SECRETARY FOR TRADE & INDUSTRY AND FOREIGN AFFAIRS AT THE OPENING CEREMONY OF SHANGHAI PUDONG DEVELOPMENT BANK’S SINGAPORE COMMODITY CENTRE ON 26 OCT 2018, 1915 HRS, AT PAN PACIFIC HOTEL

His Excellency Mr Hong Xiaoyong（洪小勇 ）,
Ambassador of the People’s Republic of China to the Republic of Singapore,

Mr Liu Xinyi （刘信义）,

President of Shanghai Pudong Development Bank,

Ladies and gentlemen,

1.     It is my pleasure to join you here this evening at this significant event. Let me first congratulate Shanghai Pudong Development Bank （浦发银行）on the establishment of its Singapore Commodity Centre. Just last year, SPD Bank set up its first overseas branch in Singapore. SPD Bank’s rapid expansion with the centre’s opening is a clear sign of the bank’s internationalisation strategy bearing fruit.

Deepening Singapore–Shanghai Relations

2.     Bilateral relations between Singapore and China are strong and long-standing.

In particular, both countries have enjoyed broad and deep economic cooperation. In 2017, China was Singapore’s biggest trading partner, while Singapore was China’s largest foreign investor for the fifth consecutive year. Singapore and Shanghai also enjoy close economic relations: Shanghai was Singapore’s second largest investment destination in China, while Singapore was Shanghai’s second largest foreign investor in 2017.

3.     As a leading global financial centre in Asia, Singapore is well-positioned as a launchpad for Chinese companies, especially financial institutions, to establish their international footprint. Singapore was China’s largest overseas investment destination along the Belt and Road, having captured nearly one-quarter of the total investment outflow from China to Belt and Road countries. With strong support from Shanghainese companies such as SPD Bank, we hope to see more collaborations between Singapore and Shanghai companies on Belt and Road projects.

Singapore at the heart of commodity trade flows in the region

4.     China’s commodity demand is expected to remain brisk, driven by rapid urbanisation and rise of the middle class in the world’s most populous country. It is set to contribute more than one-fifth of the world’s primary energy demand growth until 2040. Demand for non-ferrous metals such as lithium and nickel has also risen as demands for batteries in lifestyle electronics and increasingly cars continue to grow.

5.     We also expect a boost in demand for commodities and hence growth in commodity trade along the Belt and Road region, as infrastructure demand and inwards investments increase. Commodity traders in Singapore are well-positioned to capture such opportunities due to our strategic location in the crossroads of key trade flows.

Singapore’s trading ecosystem welcomes new participants

6.      Singapore has developed a thriving ecosystem over the years. By bringing together traders as well as financial, legal and logistical providers, Singapore enables industry players to do business here quickly and conveniently. Coupled with the potential high growth in ASEAN, businesses looking to serve Chinese firms expanding into Singapore and ASEAN, and vice versa, can benefit from establishing their base here. I firmly believe that the opening of SPD Bank’s Commodity Centre will add even more vibrancy into this ecosystem, and reinforce Singapore’s position as a global commodity trading hub.

Closing

7.     I encourage everyone here to partner and stay connected to the Singapore ecosystem. 互相合作，共享共赢。Enterprise Singapore and the Monetary Authority of Singapore stand ready to partner you in capturing opportunities across Asia. Once again, congratulations to SPD Bank on the establishment its Singapore Commodity Centre. I hope that SPD Bank will continue to expand its presence here. On this note, I wish everyone a pleasant evening ahead. Thank you.