SPEECH BY MR RAYMOND LIM, MINISTER OF STATE FOR FOREIGN AFFAIRS AND TRADE & INDUSTRY, AT THE OPENING OF THE CHINA ZHEJIANG CENTRE (SINGAPORE), MONDAY 17TH NOVEMBER 2003, AT 11.00AM, SUNTEC CITY LEVEL 2, BALLROOM 3
His Excellency Zhong San, Vice Governor of Zhejiang Province,
It gives me great pleasure to be here this morning to witness the auspicious opening of the China Zhejiang Centre in Singapore.
When then Vice President Hu Jintao visited Singapore last April, he raised with Prime Minister Goh Chok Tong a 4-point collaboration proposal between China and Singapore. One key point of the proposal called for Chinese enterprises to work with Singapore companies to go regional and international. The setting up of the China Zhejiang Centre is one mechanism to implement President Hu’ s vision.
The China Zhejiang Centre was first broached by Minister George Yeo when he visited Zhejiang last August. The Zhejiang provincial government responded positively. For about a year, our officials visited each other many times to study the feasibility and prepare for the setting up of such a center in Singapore. Amongst the many visits was Vice Governor Wang Yong Ming’s visit to Singapore in early March this year. Today, I am delighted to see that a year’s of hardwork has come to fruition. We therefore warmly welcome Vice Governor Zhong and his delegation at the opening of the Zhejiang Centre in Singapore.
Zhejiang-Singapore bilateral trade
Zhejiang-Singapore bilateral trade amounted to US$510 million last year, representing an increase of some 46% from 2001. Zhejiang exports to Singapore totalled US$313.4 mil, an increase of 33%, while Singapore’s exports to Zhejiang grew by a significant 74%, amounting to US$197 mil last year.
In terms of investment, Singapore companies have pumped in over US$600 million in the Zhejiang province, making Singapore Zhejiang’s 6th largest foreign investor.
Characteristics of Zhejiang Private Enterprises and Singapore Enterprises
Zhejiang has an economy that is unique amongst Chinese provinces. Unlike other provinces where State-Owned Enterprises (SOEs) are major players in the economy, 90% of Zhejiang’s enterprises are private enterprises (
民 营 企 业); accounting for more than 60% of the province’s GDP (Source: rough estimates by Zhejiang FERT). In less than two decades, a number of Zhejiang enterprises have grown to become billion dollar enterprises. In certain industries such as cigarette lighters, electric shavers, eyewear, electrical goods, garments, Zhejiang enterprises actually were amongst the world largest. Some of you might recall that the CEOs and founders of companies such as ChiNT (正 泰) and Sharmoon ( 夏 梦 ) were in Singapore to speak to Network China members.Zhejiang private enterprises are admired for their persistence and "never say die" entrepreneurial spirit, shrewd business acumen and the willingness to work hard. In addition, given the diversity of the country and complexity of their systems, they have shown themselves to be extremely resourceful and resilient in overcoming challenges.
As for Singapore enterprises, in spite of our small domestic market, Singapore enterprises have continued to be successful by adopting a global perspective. Our history and experience of working with global corporations has developed key strengths for our enterprises. Their understanding of key markets gives us the edge firstly, in terms of mapping out viable internationalisation game plans to penetrate the global market and secondly, in terms of marketing skills because we understand our global clients.
Given the complementary strengths, I believe Zhejiang and Singapore enterprises could work together to clinch new opportunities in China, Singapore and 3rd markets. This is well highlighted by how a Singapore agent helped Zhejiang-based Feiyue (
飞 跃) Sewing Machine Group penetrate the India market. The Chairman of Feiyue, Mr Qiu Jibao shared that in the early 90’s, in spite of a group of managers sent by Feiyue to India to enter the market, progress proved to be extremely slow. Nevertheless, when he later appointed a Singaporean agent, they were able to break into the India market with great success. Today, Feiyue’s sewing machines are selling briskly in India.Singapore’s Propositions
On our external trade alliance front, we have concluded Free Trade Agreements with Japan, New Zealand, Australia, EFTA and the US. These agreements provide the framework to boost trade and investment relations and promote greater market access to these markets for Singapore-based companies.
At our home base, we have a high concentration of 6,000 multinational companies and 10,000 foreign SMEs. They are involved in a wide range of activities from manufacturing, R&D, trading, marketing and professional services. They tap on Singapore’s world-class infrastructure and leverage her close proximity to a 2.8 billion market around the region.
Zhejiang Center Adds To The Depth Of Chinese Presence In Singapore
Zhejiang Center in Singapore itself serves as a strategic platform for two way collaboration between Zhejiang and Singapore. Zhejiang Center’s presence, will also add to the collective presence of many other governmental representatives in Singapore.
Already, 10 Chinese provincial and municipal government have representative offices in Singapore, namely, provincial government of Shandong, Henan and Hebei while those from the municipal government and others would include the Shanghai Foreign Services & Economic Cooperations, Shengyang City Foreign Affairs Bureau, Shengyang Municipal Government, Rizhao Development Zone, Yantai, Shijiazhuang and Chengdu
’ Service Centre for Administration of Foreign Investment. In addition, China Council for the Promotion of International Trade has also recently registered its representative office here.Announcement of International Enterprise Hub Initiative
To expedite the process of attracting more foreign economic and trade organisations from all across the world to set up their centres in Singapore, I am also pleased to announce the International Enterprise Hub Initiative by the IE Singapore.
Called IE Hub Initiative in short, it aims to attract foreign economic and trade institutional bodies as Singapore’s long-term partners to incubate their enterprises in Singapore under their centres. Examples of these centres in Singapore include Japan’s Business Support Centre, and Korean KVAC Centre as well as the upcoming Thai SME Centre and Vietnam House which were announced recently.
These IE Hub Initiative partners will be assisted through green lane assistance for government permits and licenses; and assimilation assistance to quickly integrate into the Singapore business and social communities through training, induction programmes and referral services.
The enterprises housed under these centers will benefit from the start up facilitation and services rendered by the Centre to gain quick and easy access to new market. They will also gain recognition as Singapore-based companies and may participate in business development programmes jointly with their Singapore counterparts.
In the next 3 years, we hope to attract another 20 IE Hub partners from around the world. Collectively, they could help attract and facilitate 200 foreign enterprises every year to do business with Singapore firms. In this way, foreign enterprises could continue to enrich our enterprise mix and enhance Singapore-based enterprises
’ global reach.
Conclusion
On this note, I would like to thank Vice Governor Zhong Shan and the leaders of Zhejiang for giving Zhejiang center in Singapore their very strong support. From Singapore, we will likewise give our best support to the center. The opening of the Zhejiang Centre would usher in a new era of cooperation between enterprises of the two regions. My congratulations to all who have made this idea possible.
Thank you.