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Closer business ties for S’pore, China, as countries ink MOU for Belt & Road initiative

BEIJING — Singapore and China signed a pact on Sunday (April 8) to further collaboration between companies from both countries in third-party markets along China’s Belt and Road initiative.

Chinese Premier Li Keqiang talks with Singapore's Prime Minister Lee Hsien Loong during a signing ceremony at the Diaoyutai State Guesthouse in Beijing, China.

Chinese Premier Li Keqiang talks with Singapore's Prime Minister Lee Hsien Loong during a signing ceremony at the Diaoyutai State Guesthouse in Beijing, China.

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BEIJING — Singapore and China signed a pact on Sunday (April 8) to further collaboration between companies from both countries in third-party markets along China’s Belt and Road initiative.

Minister for National Development and Second Minister for Finance Lawrence Wong and Vice Chairman of China’s National Development and Reform Commission (NDRC) Zhang Yong signed the Memorandum of Understanding (MOU) at the Diaoyutai State Guesthouse in Beijing in the presence of Singapore Prime Minister Lee Hsien Loong and Chinese Premier Li Keqiang. The NDRC is China’s lead agency for the Belt and Road trade-and-infrastructure initiative.

As part of the agreement, a working group comprising officers from the Ministry of Trade and Industry (MTI), Enterprise Singapore, and the Chinese NDRC will be formed to identify sectors and markets of mutual interest. This group will also organise business-matching activities and forums to facilitate third-party market cooperation between Singaporean and Chinese companies along the Belt and Road. Both countries will also work with commercial and policy banks, insurers and financial institutions to support the financing and project structuring needs of third-party market ventures by companies from both sides.

Minister for Trade and Industry (Trade) Lim Hng Kiang said in a media statement: “This MOU will pave the way for closer partnerships between our companies in third-party markets, one of the key cooperation pillars that Singapore and China have identified under the Belt and Road Initiative.

“Singapore’s strength as a key infrastructure, financial and legal hub in the region will add value to Chinese companies expanding along the Belt and Road.”

In 2017, Singapore was China’s largest foreign investor and overseas investment destination, among countries along the Belt and Road. China was also Singapore’s largest trading partner and top source of tourists last year.

In May 2017, both sides also signed an MOU during the Belt and Road Forum to boost cooperation and economic ties via the initiative.

A second agreement was signed on Sunday between the National Heritage Board and China’s State Administration of Cultural Heritage to renew collaboration between both agencies for exhibition and loan exchange, exchange of information conservation, as well as managing collections, research, publication and retail opportunities.

Witnessing the signing of the two MOUs were among the first items on the agenda of Mr Lee, who is on a five-day visit to China under the invitation of Mr Li.

During his trip, Mr Lee will also visit the southern province of Hainan, where he will make his debut appearance at the annual Bo’ao Forum for Asia, before travelling to financial hub Shanghai.

Earlier on Sunday, Foreign Minister Vivian Balakrishnan said in a meeting with his Chinese counterpart Wang Yi that Singapore is looking forward to completing the upgrading of the China-Singapore Free Trade Agreement (FTA) this year.

Both countries signed the trade agreement on October 23, 2008. Over the decades, Singapore and China have also worked closely on three Government-to-Government projects in Suzhou, Tianjin, and most recently in Chongqing.

Another MOU on the joint training of officials in countries along the Belt and Road may also be in the pipeline, said Dr Balakrishnan.

He added: “This is a time in the world where the temptation to embark on unilateralism and protectionism, unfortunately, is rising. I think it is all the more important that China and Singapore double down on the importance of free trade and liberalisation. So our ability to upgrade the China-Singapore FTA this year will send a positive signal as well.”

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