IE Singapore unlocks business opportunities for Singapore firms in Guangzhou

IE Singapore partners Singbridge International and Guangdong Development District to explore thematic projects at Knowledge City.

The third Singapore-Guangdong Collaboration Council (SGCC) meeting convened in Guangzhou on Wednesday with the following highlights: 

• Singapore companies were encouraged to explore business potential in the western Pearl River Delta (PRD) region, which aims to catch up with the eastern PRD region. 
• International Enterprise (IE) Singapore will work on thematic projects with Singbridge International and Guangzhou Development District, generating downstream opportunities for Singapore-based companies in the Guangzhou Knowledge City (GKC). 
• New Working Committee was set up to promote development of the GKC. 

The SGCC meeting was co-chaired by Singapore Minister for Transport and Second Minister for Foreign Affairs, Mr Lui Tuck Yew, and Guangdong Vice Governor Zhao Yufang. Minister Lui is in Guangdong on a business mission organised by IE Singapore with 59 representatives from Singapore-based companies. IE Singapore, the agency driving Singapore‟s external economy, is the Singapore Secretariat to the Council, while the Guangdong Foreign Affairs Office is the Guangdong Secretariat. 

Since the SGCC was set up in March 2009, Singapore investments into Guangdong amounted to US$980 million with 152 projects as at April 2011. These projects spanned a range of sectors including transport and logistics, modern services and integrated developments. Singapore-based companies that have invested included Keppel Corporation, CapitaLand, Mapletree as well as SMEs such as Crestar and Bee Cheng Hiang. 

Said Minister Lui, “The cooperation between Singapore and Guangdong has progressed beyond economic sectors, to include non-commercial activities in media, culture and education. We encourage Singapore-based companies to build on this strong relationship and explore opportunities in different geographies and sectors. We are also looking at exciting thematic projects for the Guangzhou Knowledge City, which will help generate more business opportunities for Singapore-based companies and contribute to Guangdong‟s economic restructuring and industry upgrading efforts.” 

Following the meeting, Minister Lui and Vice Governor Zhao witnessed 13 project signings. The Singapore-based companies / organisations included Ascendas, IDA International, Jurong Consultants, NetPower International and ST Kinetics, etc.

Business opportunities in western PRD cities

While the PRD is developed as one single region, the western PRD is considered to be weaker than its eastern counterpart in terms of economic size and pace of industry upgrading. With the implementation of the “Outline Plan for the Reform and Development of the Pearl River Delta4 (2008 – 2020)” to increase economic and social development in the PRD, the western PRD has been seeking to accelerate and coordinate their economic development. This raises business opportunities for Singapore-based companies beyond the traditional cities in eastern PRD.

The western PRD has strengths such as effective transport systems and social stability. During a recent visit, Guangdong‟s Party Secretary Wang Yang urged the region to pursue a sustainable model for industrialisation and urbanisation. This provides opportunities for Singapore-based companies in environmental services and transport and logistics, according to an IE Singapore report.

Foshan and Zhuhai stand out as cities with good business potential in the western PRD. For example, Foshan is working with Guangzhou to integrate the two cities, with plans to share resources and integrate infrastructure facilities such as transport systems and telecommunication network. Zhuhai‟s tourist-friendly environment shows potential for tourism-related industries, while its deep water port provides opportunities in port and logistics. 

GKC generates downstream opportunities

The GKC is a key project under the ambit of the SGCC. To generate more downstream opportunities for Singapore-based companies, IE Singapore, together with the anchor company of GKC, Singbridge International and Guangzhou Development District, is working on several thematic projects. These include an integrated e-commerce hub to provide e-fulfilment and automated logistics services and a design and innovation centre to serve as a platform for potential collaborations between international and local design organisations in the GKC.

IE Singapore has been exploring the feasibility of the projects with relevant parties from Singapore and Guangdong. Some of the efforts have made good headway today with the signing by ST Kinetics and Hitachi to form the Guangzhou Knowledge City Electric Vehicle Alliance. An alliance comprising Singapore and Chinese technology companies as well as the foreign MNC, it will collaborate with the GKC to develop a roadmap for electric vehicle development and deployment. The Alliance, to be co-led by ST Kinetics and Hitachi, will contribute expertise across the electric vehicle value chain, including vehicles assembly, power charging, smart grid technology, battery technology and fleet management. 

To promote the GKC's development, a “Guangzhou Knowledge City Project Working Committee” has been established. Jointly led by Mr Yew Sung Pei, Assistant Chief Executive Officer of IE Singapore and Mr Fu Lang, Director-General of Guangdong Foreign Affairs Office, the Committee will strengthen communications between Singapore and Guangdong, and resolve problems that may arise during project development.