Singapore and China sign MOU on SME Cooperation
Singapore signed a Memorandum of Understanding (MOU) on Small and Medium-sized Enterprises (SMEs) Cooperation with China in Beijing today. The MOU was signed by Minister of State for Trade and Industry Mr. Lee Yi Shyan and Vice Chairwoman of the Chinese National Development and Reform Commission (NDRC), Ms. Ou Xinqian. The MOU signing took place at the sidelines of the inaugural ASEM SME Ministerial Meeting held in Beijing from 30 to 31 October 2007.
This MOU seeks to promote cooperation and exchanges among Chinese and Singapore SMEs. Under the MOU, both parties aim to enhance policy exchanges and dialogues on SME development and collaboration, and jointly facilitate missions and events for SMEs. The MOU also provides a framework to support economic, technical, trade, investment and finance relations between SMEs of the two countries. For example, under this MOU, both sides will work together to facilitate business matching to promote partnerships.
MOS Lee said “This MOU aims to bring bilateral co-operation of Singapore and China SMEs to a higher level. China has over 40 million SMEs. There is much that our SMEs can learn from their experience and partner them in tapping into the Chinese market. Similarly, Chinese SMEs can tap on Singapore’s network of free trade agreements to access a larger market covering around half of the world’s economy. "
More Singapore companies are setting up their businesses in China. Singapore's Tung Lok group, known for its trendsetting and innovative dining concepts, is a hit in mainland China. In March this year, Tung Lok opened its third restaurant in China. Mr. Andrew Tjioe, Executive Chairman of Tung Lok Group felt that this MOU could potentially benefit business collaboration and bring about better understanding of business cultures and opportunities for both countries. Singapore's street-fashion retailer 77th Street owns the 77th Street Plaza, situated in Xidan shopping district in Beijing. It plans to open more retail outlets over the next three to five years. Ms. Elim Chew, founder and managing director of 77th Street said that she sees great opportunities for franchise and partnerships with Chinese SMEs in this venture.
Conversely, Chinese companies are also seizing the opportunity to further expand and develop their business in partnership with Singapore companies to tap on each other’s resources to expand their market share and presence in the region.
China Union pay, for instance, China’s only national electronic payment and interchange network operator first set up its office in Singapore in August 2006. This was following a deal signed with NETS (Network for Electronic Transfers Singapore Pte Ltd) in January 2005 that enabled Chinese visitors to use their credit and debit cards to make purchases and withdraw cash from ATMs throughout Singapore. Their presence in Singapore reinforces its commitment to expand its brand and services into the region.
Another example of a Chinese company in partnership with Singapore firm is Tee Yih Jia Food Manufacturing, a local leading frozen food manufacturer, and You can Food Group, an established frozen food manufacturer in Zhejiang. You can is able to tap on Tee Yih Jia’s marketing expertise and distribution network to expand internationally, while Tee Yih Jia leverages on its Chinese partner’s manufacturing and distribution base to expand into China.
SMEs make up more than 99 percent of all enterprises in Singapore and China. These enterprises contribute to 42 and 60 percent of Singapore’s and China’s GDP respectively. SMEs will continue to play a vital role in trade between China and Singapore, which reached a record of US$53.7 billion last year, an increase of 27.1 percent over 2005.China is now Singapore’s 4th largest trading partner, ranked after Malaysia, EU and the US, while Singapore is China’s 7th largest trading partner in 2006.
Ministry of Trade and Industry
30 October 2007