PM sees opportunities for S’pore firms in China’s second-tier cities

HONG KONG — His week-long work trip has brought him to China’s first- and second-tier cities such as Guangzhou, Shenzhen and Nanning, and Prime Minister Lee Hsien Loong could not help but observe the vibrancy and rapid development at these places.

But instead of seeing them as threats to Singapore, Mr Lee believes that the Republic can prosper together with these up-and-coming cities, with its businesses taking advantage of the opportunities there.

“The Chinese have moved forward considerably,” said Mr Lee in an interview with the Singapore media to wrap up his visit to southern China and Hong Kong. “If you don’t move, of course, it’s a threat, but if you continue to move, then we prosper with them,” he added.

Citing the examples of New York, London and Paris, he noted: “They are advanced, developed cities and their people come and live and work in Singapore, our people go and live and work there. It works both ways.”

Mr Lee noted that Singapore businesses are taking the China market very seriously. Some have ventured into Guangxi, which is less developed and less well known than the major China cities. Having met Singapore businessmen in Guangxi as part of his trip, Mr Lee said they told him that there is an advantage being there because there are more untrodden paths where you can break new ground and find new opportunities.

Opportunities also abound in the major cities. Senior Minister of State (Trade and Industry and National Development) Lee Yi Shyan, who accompanied Mr Lee on the China leg of his trip, said Guangzhou and Shenzhen are moving towards higher value-add industries and Singapore companies in the infocomms and technology sectors may find opportunities there. The two cities are also increasing their air and rail links into the inner provinces of China, and Singapore companies can use these cities as bases for their operations, he noted.

During the interview, the Prime Minister also provided updates on the proposed third government-to-government project in the western part of China. The idea was first mooted last year by Chinese Vice-Premier Zhang Gaoli. The Singapore and China governments had collaborated on the Suzhou Industrial Park and the Tianjin Eco-city previously.

After a meeting between Mr Lee and Mr Zhang on Monday, Chinese media reports said connectivity and modern services could be the focus of the third project. Commenting on the reports, Mr Lee said these are areas that could be considered, as aspects such as information technology, financial services and logistics are important factors to link a region. “These are things that we’re studying and discussing with the Chinese side, and we hope we’re able to come to a conclusion soon. The Chinese side is very keen and we’re taking it very seriously,” he said.

Asked if a decision will be made by next month’s meeting of the Joint Council for Bilateral Cooperation (JCBC) — the highest platform for Sino-Singapore bilateral exchange — Mr Lee said that would be an ambitious target. Starting a new project is a big decision that has to be considered carefully, he noted.

As part of his trip, Mr Lee met several Chinese officials, including Guangdong party secretary Hu Chunhua, who is seen as a rising star in Chinese politics. Asked for his take on these up-and-coming leaders, Mr Lee said they are capable people, and some will rise to very senior positions in time.

He added that they are very anxious to get ahead and to make an impact in their area. They are also on the lookout for ideas and would like to work with Singapore, he said. “Our brand name is good. They think it’s a plus to be associated with us (and) to have projects where they can say — this is a Singapore project.”

Mr Lee also spoke candidly on the changes he observed following China’s crackdown on corruption. “If you look at the way they serve you the meals, in the old days, you used to have very elaborate meals. Now it’s good quality meals but … fewer courses. Which actually I’m very happy with and I suspect some of them are very happy with too,” he quipped.