Singapore and Jiangsu ink 17 company deals worth S$3.3bn

The Chinese province continues to offer exciting opportunities for Singapore investors.

As the top recipient of Singapore investments in China, Jiangsu province continues to attract interests from Singapore-based companies with 17 Memoranda of Understanding (MOUs) and commercial agreements on projects signed at the 5th Singapore-Jiangsu Cooperation Council (SJCC) meeting Monday. The total investment value of S$3.3billion across all 17 signings is the highest amount, since the SJCC was established in 2007. This is also the first time both inward and outward investments have been endorsed on the SJCC platform. Jiangsu province accounts for a third of Singapore investments in China, according to an IE Singapore report. 

The 5th SJCC meeting, co-chaired by Education Minister Heng Sweet Keat and Jiangsu Governor Li Xueyong for the first time, concluded in Singapore Monday. Both are newly appointed as Co-Chairmen for the Council. Minister of State (MOS) for Trade and Industry Teo Ser Luck4 also led the meeting discussions as Vice Co-Chairman, together with Jiangsu Vice Governor Zhang Weiguo. The Singapore-Jiangsu economic ties were further strengthened with the company signings, which were witnessed by the above dignitaries. 

The SJCC, of which IE Singapore is the Singapore Secretariat to, sees rising opportunities for Singapore companies in Jiangsu. Highlights for this year are Jiangsu's 12th Five Year Plan (FYP) and developing northern Jiangsu cities5 through two state-level approved strategies: “Yangtze River Delta Region and the “Jiangsu Coastal Development Plan”. 

In line with the 12th FYP‟s focuses on improving Jiangsu‟s environment, science and technology sectors, the SJCC will enhance economic cooperation in service industries, exchanges in urban solutions, education, healthcare, talent development, science and technology. The strategic geographical locations and well-established port infrastructure of the three coastal cities in northern Jiangsu – Lianyungang, Nantong and Yancheng – offer wide-ranging opportunities for Singapore-based companies in areas such as port and logistics; while their rapid growth will spur the demand for modern services and urban solutions. 

Said Minister Heng, “As Jiangsu embarks on its 12th Five Year Plan, its economy, technology sector, environment and international competitiveness are set to grow rapidly. The SJCC is an important platform for Singapore companies to identify new opportunities in these areas and connect with potential partners. To sustain growth, Singapore companies must continually explore new areas, be it the relatively less-explored northern Jiangsu cities, or emerging industries like new energy, new materials, pharmaceuticals and software.” 

In 2007, Singapore‟s cumulative actual foreign direct investment in Jiangsu was US$11.44 billion with over 2,500 projects. As of end August 2011, the value has grown to US$18.19 billion with over 3,500 projects. In the first eight months of 2011, Singapore-Jiangsu bilateral trade increased by 28.8% to reach US$7.92 billion, compared to the same period in 2010. 

Opportunities from 2014 Youth Olympic Games (YOG) in Nanjing 

The announcement of Nanjing as the next host city for the 2014 YOG adds a new area of partnership to the multi-faceted Singapore-Jiangsu cooperation. As the host city for the inaugural YOG last year, Singapore companies can share their experience and exchange knowledge on the event. 

MOS Teo led a 18-member strong delegation to Nanjing from 11 – 13 October 2011 on a business mission trip organised by IE Singapore. The companies met with the Nanjing YOG Organising Committee and both sides had good exchanges on the potential collaboration areas, including training, consultancy and auxiliary services. The delegation also went on a guided tour of the proposed Nanjing YOG sports facilities. 

Said MOS Teo, “Singapore-based companies should take advantage of their experience in the inaugural YOG to pitch their capabilities and participate in the 2014 Youth Olympic Games in Nanjing. They should also tap into the platform projects under the SJCC such as the Singapore-Nanjing Eco High-Tech Island and Suzhou-Nantong Science and Technology Park to gain access into the market, test-bed their products and services, and build up a track record for themselves in preparation for expansion to other parts of China and beyond.” 

Singapore-Nanjing Eco Hi-Tech Island making good progress 

The two platform projects supported by SJCC, Suzhou-Nantong Hi-Tech Park and Singapore-Nanjing Eco Hi-Tech Island, have reported good progress. To-date, over 30 agreements and MOUs have been signed for the Singapore-Nanjing Eco Hi-Tech Island; and another 30 more signings will take place during the investment promotion seminar tomorrow. MOS Teo and Nanjing Mayor Ji Jianye will be the Guests-Of-Honour for the event. 

The Island will see a new development called “New One-North”, which emulates Singapore‟s One-North concept. It combines residential, retail and commercial elements, offering an integrated “work-live-play” experience. The JV company is seeking partners to collaborate in high-value and high-technology industries. When completed, the Island will be an iconic, world-class integrated showcase project for both Singapore and Nanjing. 

Visits by Jiangsu delegation 

The Jiangsu delegation that is in Singapore for the SJCC meeting comprises more than 70 officials from both provincial and municipal level as well as representatives from companies, including Jiangsu Governor Li Xueyong, Jiangsu Vice Governor Zhang Weiguo, Nanjing Mayor Ji Jianye and Suzhou Mayor Yan Li. As part of their stay from 23 – 25 October in Singapore, Governor Li and the delegation visited the Housing Development Board (HDB) and Seng Kang Community Club prior to the Council meeting, to learn more about Singapore's community engagement programmes that could be applied to the social development plans of Jiangsu.