Mr Teo Chee Hean at the Installation Ceremony for Singapore China Business Association, 17 June 2011

Your Excellency, Mr Wei Wei, Ambassador of China,

Professor Phua Kok Khoo, President, Singapore China Business Association,

Ladies and Gentlemen,

Good morning. I am happy to be here today to witness the installation ceremony for the 26th Council for the Singapore China Business Association. I would also like to extend my congratulations to Professor Phua Kok Khoo, on his re-election as the president of the association for the next two years.

Singapore-China Economic Relations

Last year marked 20 years of diplomatic relations between Singapore and China. During this time, we have developed strong ties at all levels – be it at the government-to-government, business-to-business or people-to-people levels. Our warm ties can be observed in many ways, including our strong economic relations.Following the recovery from the global economic crisis, bilateral trade rose 25.9 per cent in 2010 from the previous year to reach S$95.3 billion

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. China is Singapore’s 3rd largest trading partner

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and top investment destination.Meanwhile, Singapore is China’s 7th largest investor and 11th largest trading partner

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.

The special ties between our two countries are best reflected in our two Government-to-Government flagship projects, the Suzhou Industrial Park and the Tianjin Eco-City. The signing of the China-Singapore Free Trade Agreement (CSFTA) in 2008 marked another significant milestone in our economic relations. There will be many more opportunities to further our ties.The annual high-level Joint Council for Bilateral Cooperation (JCBC) meetings, co-chaired by Singapore and China at the DPM-level, is an important occasion for both countries to explore these opportunities.

Key organisations such as the Singapore China Business Association have been playing a key role in helping to strengthen our strong bilateral economic relations. Indeed, long before diplomatic relations were established, the Association was already forging business links in China.Just last year, it celebrated its 40th anniversary and I am pleased to see the Association continuing to play an active and leading role in bringing businesses and people from both countries together

SCBA – Strengthening Singapore-China Business Links

The last few years have seen China’s economy grow at a phenomenal rate. As we know, in 2010, China overtook Japan to become the world’s second largest economy.Going forward, China looks set to maintain its strong growth in the coming years

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. China recently ratified its 12th Five-Year Plan, signalling its commitment to move to the next phase of development, with greater emphasis on quality growth that will benefit the masses.At the same time, Singapore is strengthening its position as a global business hub where MNCs and global mid-sized companies coordinate their business activities across Asia and the world.

With business opportunities rapidly emerging in both countries, the SCBA is well-placed to help businesses and people in both countries tap on those opportunities.SCBA’s extensive network and business knowledge of China would allow it to better help Singapore-based companies tap on China’s strong growth, especially in accessing the opportunities in its emerging regions. The SCBA already organises regular business missions to China which help Singapore companies better understand the Chinese markets and promote their brand names.I understand that just last month for instance, SCBA led a business mission to China that covered the emerging Chinese cities of Chaozhou, Shantou, Jieyang and Chongqing.

At the same time, the SCBA can serve as a bridge for China companies that want to use Singapore as a base for internationalisation. To date, Singapore is already host to more than 3,500 Chinese companies. I believe that the SCBA’s strong links with Chinese companies already based here will prove particularly useful to other Chinese companies looking to make their initial international forays through a familiar market. Our political stability, connectivity, access to talent, and cultural and language affinities with China make Singapore a compelling base for Chinese companies to expand to other parts of the world.

Hence, I am encouraged to note that SCBA has continued to strengthen its membership base, in particular, by including major Chinese companies in Singapore, such as the “Big Four” Chinese Banks, Baosteel, China Eastern Airlines and COSCO. I note that some of them are now Council members as well. These companies can be valuable partners to Singapore companies, both in and outside China. In addition, I understand that the new leadership team plans to roll out even more programmes in due course, including more business missions involving younger entrepreneurs, and more opportunities for Singapore companies to interact with Chinese government officials.

The SCBA is thus in a strong position to serve as a valuable platform for companies and businessmen from Singapore and China to network, explore new business opportunities and forge partnerships.

Conclusion

The global economy been through a tumultuous period over the last few years, but the economic climate has since improved. Asia in particular has done well, and the potential for further growth is very strong. To realise this potential, we need to help our companies make the most of these emerging opportunities. We need to continue to expand our outreach and ground presence. I am confident that the SCBA under the leadership of new Council will continue to play a significant role in deepening the business and people links between Singapore and China.

Thank you.

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Source: IE Singapore

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After the EU and Malaysia. If the EU countries are counted individually, China will be our 2nd largest trading partner.

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Source: PRC Embassy in Singapore

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According to Goldman Sachs, China’s GDP could potentially grow by 10 per cent annually between 2010-2020, and around 7 per cent annually between 2020-2030