Among the Singapore companies tapping the potential in Guangxi, China, is STX Multifeed, a firm that has developed a patented gasification system.

It signed a Memorandum of Understanding (MOU) with Guangxi’s Provincial Government and Chauson Wood Development Co yesterday to develop a wood gasification plant to convert waste wood into pipeline-quality natural gas, which is cheaper than liquefied natural gas by at least 10 per cent.

Explaining why the company chose to invest in Guangxi, managing director Ace Gueh noted the similarities between the region and Singapore, such as its advantageous geographical location — it is the only seaport in that part of China and also has a lot of resources, such as plywood.

Disposable incomes in Guangxi are also starting to grow at rates similar to other big cities. “We’re not going to confine (ourselves) to Guangxi province, but we see that as a pilot, a springboard, to the rest of China,” he said.

Singapore’s Six Capital also signed an MOU with Guangxi University of Finance and Economics yesterday to develop a China-ASEAN Finance and Taxation Talent Development Hub in Nanning.

The plan is to build a university town on a 20ha piece of land to train finance and taxation professionals in China and ASEAN countries, so as to upgrade their skills to global standards, said its founder Patrick Teng. JOY FANG