Opportunities for Local Businesses in Belt and Road Projects
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the strategies to help local businesses exploit Belt and Road (B&R) opportunities and the government's targets for related initiatives. Mr Zaqy Mohamad inquired about the addressable market, to which Minister for Trade and Industry (Industry) S Iswaran highlighted support through IE Singapore’s Internationalisation Finance Scheme and the Global Ready Infrastructure Talent Programme. The Minister noted that Singapore companies offer expertise in logistics and infrastructure, participating in Government-to-Government projects like the Chongqing Connectivity Initiative. He emphasized that Singapore is a founding member of the Asian Infrastructure Investment Bank and has signed a Memorandum of Understanding with China to bolster collaboration. These efforts, along with IE Singapore’s network, aim to connect firms with Chinese partners for ventures in China and third-party markets.
Transcript
34 Mr Zaqy Mohamad asked the Minister for Trade and Industry (Industry) (a) what are the Ministry's plans to help local businesses exploit opportunities in the various Belt and Road projects across Asia; and (b) what is the addressable market for local companies and what are the Ministry's targets in helping local firms engage in related Government-to-Government initiatives.
Mr S Iswaran: The Belt and Road (B&R) initiative opens up opportunities for Singapore companies to partner the growing pool of Chinese companies venturing into various countries across Asia. The Government agencies are helping our companies prepare themselves for these opportunities by enhancing their capabilities, internationalisation efforts and deepening their expertise in our region which is a key B & R market. For example, Singapore companies can tap on IE Singapore’s enhanced Internationalisation Finance Scheme (IFS) and the new Global Ready Infrastructure Talent (GRIT) Programme, which provide companies with greater financing, risk-sharing and talent support as they undertake mid-to-large scale infrastructure projects in the region. IE Singapore has also recently launched the "Go Southeast Asia" Award to match high-potential final-year undergraduate students with Singapore companies and support their internships in Southeast Asia.
ASEAN is a key B&R market for the internationalising Chinese companies. In 2016, Singapore was China’s largest overseas investment destination amongst countries within the B&R initiative, constituting 29% of China's total ODI in B&R countries1. Our local companies bring market knowledge of regional countries and have complementary strengths in the areas of transport and logistics, utilities, mixed-used park development, construction and financing. A recent example of such collaboration is the joint venture between Surbana Jurong and the China Highway Engineering Consulting Corporation to pursue highway and infrastructure-related projects in the B&R countries.
Within China, the Chongqing Connectivity Initiative (CCI) is a key priority and demonstration initiative that Singapore and China are collaborating on under the B&R. As part of this collaboration, IE Singapore actively introduces Singapore companies to partners and agencies in China to access opportunities in Chongqing and western China across different industry sectors. The Chongqing Logistics Development Platform (CLDP)2 and the Multi-modal Distribution and Connectivity (DC) Centre3, both of which involve Singapore and Chinese companies, are examples of such projects and opportunities.
Singapore has been an early supporter of China's B&R initiative. In June 2015, we became one of the founding members of the Asian Infrastructure Investment Bank (AIIB). In November 2015, China and Singapore launched the Chongqing Connectivity Initiative, the third Government-to-Government project between Singapore and China. More recently, Singapore signed an MOU with China in May to bolster our collaboration on projects and opportunities arising from the B&R initiative.
Through these efforts, our companies will have the opportunity to invest and participate in the B&R. IE Singapore will continue to connect Singapore companies with key Chinese and foreign companies to explore B&R ventures in China as well as in third-party markets through its network of overseas centres.