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China’s BRI a ‘major game changer’ that will shape next phase of Asian development: Lawrence Wong

SINGAPORE — As the biggest trading partner of the Association for South-east Asian Nations (Asean), China’s transformation over the past 20 years has been a major boost to regional trade and investment, said Minister for National Development Lawrence Wong. He was speaking at this year’s Singapore Regional Business Forum organised by the Singapore Business Federation (SBF) held on Tuesday (Aug 15).

At this year’s Singapore Regional Business Forum, Mr Lawrence Wong highlighted Singapore’s advantageous position and readiness to partner China in the project, which seeks to pump investment into infrastructure projects along the corridor of the Silk Road region. TODAY file photo

At this year’s Singapore Regional Business Forum, Mr Lawrence Wong highlighted Singapore’s advantageous position and readiness to partner China in the project, which seeks to pump investment into infrastructure projects along the corridor of the Silk Road region. TODAY file photo

SINGAPORE — As the biggest trading partner of the Association for South-east Asian Nations (Asean), China’s transformation over the past 20 years has been a major boost to regional trade and investment, said Minister for National Development Lawrence Wong. He was speaking at this year’s Singapore Regional Business Forum organised by the Singapore Business Federation (SBF) held on Tuesday (Aug 15).

China’s Belt and Road initiative (BRI) is a “major game changer” that will shape the next phase of Asian development, said Mr Wong. As a result, Asia has a stronger economic outlook with more resilient and sustainable growth than ever before, he added.

Mr Wong highlighted Singapore’s advantageous position and readiness to partner China in the project, which seeks to pump investment into infrastructure projects along the corridor of the Silk Road region.

“Singapore’s position on the Belt and Road is very clear. We are fully supportive of the BRI and we stand ready to partner China to build the Belt and Road.”

Chongqing and Singapore can be the two hubs in Asia, enlarging possibilities for connectivity across both regions. The Republic is already a major infrastructure financing centre with 60 per cent of projects in South-east Asia tapping project finance and advisory services from Singapore-based banks, according to Mr Wong.

“Good infrastructure is critical for developing Asia to advance and avoid the middle-income trap. The challenge is to make these projects bankable … A lot need to be done with regards to project selection, preparation and structuring. This is where Singapore can play a role,” Mr Wong added, noting the infrastructure gap in Asia is over S$1.7 trillion a year through 2030.

Singapore companies are natural partners as Chinese firms expand their global presence. Beyond financing, Singapore is home to a full suite of professional services including project advisory, dispute resolution and legal services.

“We can tap on each other’s complementary strengths and co-operate in projects in third party markets,” Mr Wong said, citing as an example the joint venture between Surbana Jurong and the China Highway Engineering Consulting Corporation to pursue highway and infrastructure related projects in BRI countries.

At the event, the SBF and China Enterprises Association (CEA) jointly announced the launch of BRI Connect — a platform to bring together businesses keen on BRI projects. The platform will serve to strengthen partnerships, concretise and implement BRI projects in Singapore, China and countries along the Belt and Road, the SBF said.

Mr Teo Siong Seng, chairman of the SBF, said Singapore will continue to position itself at the heart of the BRI initiative as a connector for the region and beyond. According to the SBF, contracted BRI projects steadily increased since 2016 to a combined revenue of US$75.97 billion (S$104 billion), up 9.7 per cent over the previous year.

“Even though Singapore’s developed infrastructure would not need additional BRI investments, Singapore’s openness, strategic location at the crossroads of East-West trade and familiarity with cross-cultural communication, make it an ideal base for companies seeking to tap potential BRI projects in the region,” said Mr Teo.

The SBF also released the findings of its BRI regional survey in collaboration with the Economist Corporate Network, which found that four out of five viewed the BRI as a business opportunity. While three-quarters of respondents expect demand growth for their company’s products or services as a result of the BRI, more than half expect to develop partnerships with Chinese companies or to implement significant new investments.

Some 30 per cent of respondents’ companies are either currently involved in a BRI-related project or expect to be involved in one within the next 18 months. However, concerns remained over governance, transparency, political risk, financial risk and operational challenges.

At the sidelines of the forum, Pacific International Lines signed an agreement with the Port of Singapore Authority and IBM to develop disruptive innovation in supply chain using blockchain, while the SBF and the Philippine Chamber of Commerce and Industry agreed to enhance regional partnerships.

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