Supporting Singaporean Businesses to Navigate Changing Economic and Trade Opportunities in Region

6 Mr Yip Hon Weng asked the Minister for Trade and Industry in light of the ongoing challenges in China's property sector and current economic uncertainties (a) whether the Ministry foresees increased trade opportunities for ASEAN countries, including Singapore, with China; and (b) how is the Ministry supporting Singaporean businesses to navigate these changing economic circumstances in the region.

The Minister of State for Trade and Industry (Ms Low Yen Ling) (for the Minister for Trade and Industry): Mr Speaker, Sir, China remains a vital key market for Singapore businesses. In 2023, China was Singapore's largest trading partner and top investment destination. China's long-term economic outlook remains positive due to its large and growing consumer market, skilled workforce and rapid technological developments.

To tap into the opportunities in China, Singapore has upgraded the Singapore-China Free Trade Agreement (FTA) to offer companies better market access for investments and services. We have also broadened our engagements with China, including signing memoranda of understanding (MOUs) on Digital Economy, Green Economy and E-Commerce Cooperation.

In addition, Singapore is strengthening its regional economic integration with China through the Regional Comprehensive Economic Partnership and the ASEAN-China Free Trade Area, the upgrade of which is currently under negotiation.

To navigate the evolving business environment and seize fresh opportunities, Singapore firms can tap on Enterprise Singapore's extensive network of overseas centres and the two Singapore Enterprise Centres in Shanghai and Chengdu operated by the Singapore Chinese Chamber of Commerce and Industry under the Global Connect initiative. In addition, Enterprise Singapore manages schemes, such as the Market Readiness Assistance grant, which helps our companies expand into new markets by defraying the costs of overseas market promotion, business development and set up. Business owners can also visit the GoBusiness portal for more information on the Government schemes.

Mr Speaker: Mr Yip.

Mr Yip Hon Weng (Yio Chu Kang): Thank you, Mr Speaker. I thank the Minister of State for her reply. Can the Minister of State elaborate on emerging opportunities that the recent Joint Council for Bilateral Cooperation (JCBC) meeting has opened up for Singapore companies? Which areas of growth potential have been identified by the leaders; for example, digital economy?

Ms Low Yen Ling: Thank you, Sir. I want to thank the Member Mr Yip Hon Weng for his two supplementary questions. Singapore and China are long-standing partners. Our bilateral ties are anchored on very frequent high-level exchanges, growing people-to-people ties and robust economic ties. I recall just last year alone, I mounted about seven work trips to China – some in support of Singapore Business Federation (SBF), bringing delegation of small and medium-sized enterprises (SMEs) to the 东博会, which is the China-ASEAN Expo in September. I recall SBF also led a huge delegation for 进博会, which is the Chinese International Import Expo (CIIE) in November.

Members in the House will recall, about one year ago, during Prime Minister Lee Hsien Loong's visit to China in March – first to Hainan and then to Beijing; both him and President Xi Jinping announced the upgrade in bilateral relations to an "all-around, high-quality, future-oriented partnership". In Mandarin, "全方位高质量的前瞻性的伙伴关系."

On the first supplementary question about the recent JCBC, which took place about three months ago, in the first week of December, Deputy Prime Minister Lawrence Wong brought a huge delegation. I had the privilege to join him in this delegation as well. He co-chaired the 19th meeting of the Joint Council for Bilateral Cooperation (JCBC) with China's Vice-Premier Ding Xuexiang. And during the JCBC meeting, we welcomed 24 deliverables, covering various areas: trade, renewable energy, environment, connectivity, finance, digital economy – cited by Mr Yip – and people-to-people exchanges.

All these deliverables offer fresh opportunities and will support our businesses and create more jobs for our people.

The Member asked about the digital economy. Allow me to elaborate how the digital economy will be a potential driver, key driver of grow for Singapore companies looking at the China market. China's digital economy is indeed the world's second largest and has nurtured many innovative companies. At the same time, Singapore's digital economy is also very significant and we have experienced substantial growth in recent years. For example, in 2022, our digital economy contributed 17.3% of Singapore's gross domestic product (GDP).

On the Member's second supplementary question on the digital economy, I recall that the Minister for Trade and Industry Mr Gan Kim Yong signed an MOU on digital economy with China's Minister of Commerce Mr Wang Wentao, 商务部部长, 王文涛部长. Both leaders have signed it and launched a digital economy working group to strengthen the cooperation in digital trade and data flows.

Other than the digital economy, another potential area is the green economy. On the green economy, we see that China and Singapore can cooperate on areas of complementary interests, including green trade, green investment, green services, renewable energy and carbon markets.

Mr Speaker: Assoc Prof Jamus Lim.

Assoc Prof Jamus Jerome Lim (Sengkang): Sir, in addition to the importance of China as an important bilateral trading partner, I am sure the Minister of State is also aware of how the United States (US) is also a significant investor and bilateral trading partner for Singapore.

In light of the possibility that there is a non-trivial chance of increased trade tensions and commercial tensions – between the US and China, how does the Ministry plan to advise Singapore businesses in how they manage their relationships and investments in China? I say this especially, since the US seems increasingly willing to exercise the tools of economic statecraft on their trading partners.

Ms Low Yen Ling: Mr Speaker, I want to thank the Member Assoc Prof Jamus Lim for his question. We want to say that despite the current economic uncertainties and increasingly challenging trade environment, what we want to share with our Singapore companies is: businesses should continue to seek opportunities, in particular, regionally, in a few areas. Specific areas of growing demand, specific technologies and also areas with upside potential.

China is facing challenges, as it was also mentioned in Mr Yip's Parliamentary Question, but it is also expected to be a major engine of growth, given its large and growing consumer market, its increasingly very-skilled workforce and also rapid technological development. Enterprise Singapore has a very extensive network and when I last looked at the numbers, we have about 37 overseas centres in 21 cities. [Please refer to "Clarification by Minister of State for Trade and Industry", Official Report, 28 February 2024, Vol 95, Issue 126, Correction By Written Statement section.]

All hands are on deck to support our companies, whether they are looking into expanding regionally, including into China, India or into US and Europe; or even into far-flung areas, like Africa and the Middle East.