By The Straits Times | Created at 2024-11-28 16:21:12 | Updated at 2024-11-28 18:42:06
2 hours ago
SHANGHAI – Singapore’s brand name and its cultural, business and personal connections with China have allowed the two countries to work together and learn from each other.
It is something that “we have to hold precious”, especially in current troubled times, Senior Minister Lee Hsien Loong told Singaporeans at a reception in Shanghai on Nov 28.
The statesman is wrapping up a six-day official visit to the country, where he met President Xi Jinping and other leaders, visited Chinese tech companies and marked the 30th anniversary of the Suzhou Industrial Park, Singapore’s joint project with China.
Speaking to a roomful of nearly 450 Singaporeans who live in China, Mr Lee said: “Our Singapore brand name is worth a lot in China. People know about us, they admire us, and they would like to know us better and to do more with us. And I think that is something which is very valuable.”
Much of that comes down to the Singaporeans who are working or studying here, he said. He had, in a meeting earlier in the day with Shanghai’s top official, Mr Chen Jining, described them as “our ambassadors”.
While many are ethnic Chinese, they are different from the Chinese from China. “But because we are different with different experiences, we can learn from each other, and there is something which we can contribute to each other’s experience and success,” he said, to many nods in the ballroom at the Mandarin Oriental hotel.
Shanghai, especially, has been at the forefront of this exchange. Based on figures by the Shanghai Commerce Commission, there are about 4,000 Singapore companies in the financial hub, which is an important port of call for Singapore firms looking to enter the Chinese market.
In the first half of 2024, trade between the two cities grew 15 per cent to 61.57 billion yuan (S$11.4 billion), fuelled by strong growth in exports from Shanghai to Singapore.
Singapore is Shanghai’s largest foreign investor as of June 2023, with cumulative actual investments hitting US$25.99 billion (S$34.9 billion) in the first half of 2024.
As at end-2022, Shanghai is also Singapore’s second-largest investment destination in China, behind Jiangsu province.
The strong economic links have given Mr Chen, Shanghai’s party chief, confidence to tell Mr Lee that there were “great prospects” for his city and Singapore for closer collaboration.
Trade between the two cities has grown 20 per cent since a Shanghai-Singapore Comprehensive Cooperation Council was established five years ago, said Mr Chen, who hosted Mr Lee to a lunch on Nov 28.
For Singapore companies with an eye on expanding into China, Shanghai-based Singaporean entrepreneur Tina Ng said: “Take baby steps and understand the culture. Don’t come in and think you’re very smart. And don’t be over-positive.”
With the country caught in an economic slump, companies looking to set up shop in China will have to be prudent, said Ms Ng, who runs Naturie Enterprise, a food import and export company.
“We’re helping some Singapore brands land. But we’re very careful. We don’t want them to come in and then can’t survive after six months,” said the 52-year-old businesswoman, who is also vice-chairwoman of the Singapore Chamber of Commerce in Shanghai.
SM Lee, in his remarks at the reception, said that while the Chinese economy may be facing difficulties, it is still growing and crucial to the world.
“And for us in Singapore, it is going to be a big part of our region, of our landscape, and we have to get along with China, and best of all that we can also benefit from China’s growing environment, and, therefore, happily co-exist with one another,” he said.
China’s growth target of around 5 per cent this year is in question as the world’s second-largest economy faces multiple headwinds with a property crisis and weak business confidence.
Singaporean Moonesh Shibdoyal, 43, who does digital transformation at Deutsche Bank in Shanghai, believes that even with the prospect of another trade war by the incoming Trump administration, the Chinese will adapt quickly.
“Yes, there will be tariffs. Yes, there will be geopolitical tensions. Can the Chinese overcome it? Absolutely. They will figure it out. And this is something we need to learn from them,” he said.
Earlier in the day, Mr Lee met Singapore business leaders based in Shanghai and the neighbouring cities. He also visited Shanghai robotics start-up Agibot, which built its first humanoid robot in August 2023.
Mr Lee returns to Singapore on Nov 29.
