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Rising Opportunities for Singapore Companies in Sichuan's Emerging

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Rising Opportunities for Singapore Companies in Sichuan's Emerging M E D I A RELEASE Rising Opportunities for Singapore Companies in Sichuan’s Emerging Second-Tier Cities Six contract agreements and two MOUs inked in Luzhou during business mission led by Minister Lim Swee Say and Acting Minister Lawrence Wong Joint venture company of Singapore-Sichuan Hi-Tech Innovation Park signs MOUs with four companies at 15th Singapore-Sichuan Trade and Investment Committee (SSTIC) meeting today MR No.: 020/13 Singapore, Tuesday, 2 July 2013 1. In line with China’s new economic direction to distribute growth across the country, the Sichuan government has adopted a new “multi-polar, multi-support” strategy1 that is aimed at spreading economic development to second-tier cities within the province. Emerging second-tier cities such as Deyang, Luzhou, Mianyang, Neijiang, Suining and Yibin are set to become new engines of growth, given the support from the provincial government to attract foreign investments and balance economic development across more diversified sectors. 2. The rapid development of these cities present Singapore companies with growing opportunities within Sichuan, one of China’s fastest-growing provinces. Last year, the province’s GDP increased 13.3%2 to S$495.04 billion3 (2.38 trillion yuan) – this GDP growth was among the top ten in China. Potential areas of cooperation with Luzhou are aligned with Singapore companies’ areas of expertise such as urban solutions, logistics, education and hospitality services. 1 多点多极支撑发展战略 2 Source: Sichuan Statistics Bureau, Sichuan Department of Commerce 3 Converted based on https://secure.mas.gov.sg/msb/ExchangeRates.aspx on 21 June 2013 International Enterprise Singapore is the government agency driving Singapore’s external economy. IE Media Release 2 July ’13 3. The push to explore regional opportunities beyond Chengdu was discussed at the 15th Singapore-Sichuan Trade and Investment Committee (SSTIC) meeting held in Chengdu today. The meeting was co-chaired by Mr Lawrence Wong, Acting Minister for Culture, Community and Youth, and Senior Minister of State for Communications and Information, as well as Mr Gan Lin, Sichuan Vice Governor. The Singapore SSTIC Advisor, Mr Lim Swee Say, Minister, Prime Minister’s Office, was also present. In conjunction with the meeting, International Enterprise (IE) Singapore, Secretariat of the SSTIC, organised a business mission to Sichuan from 30 June to 3 July. 4. At the meeting, results of last year’s collaboration initiatives and a new Work Plan for 2013 – 2014 were discussed. The Committee agreed to focus on giving continuous support to the development of the Singapore-Sichuan Hi-Tech Innovation Park (SSCIP), the flagship project under SSTIC, and partnering Sichuan in its evolving development needs in the “Three Moderns4”. It will also work with Sichuan companies that are keen to internationalise through partnering Singapore. (Please refer to Annexes 1 and 2 for speeches by Acting Minister Wong and Minister Lim.) Second-tier cities in Sichuan present first-mover advantage for Singapore companies 5. Within Sichuan, Chengdu city alone accounts for about one-third of the province’s GDP. To spread economic development and boost the growth of second-tier cities in Sichuan, the provincial government’s “multi-polar, multi-support” strategy will focus on urbanisation to drive domestic consumption, development of modern services and improving connectivity through more efficient transport and logistics systems. 6. Said Acting Minister Wong, “Opportunities for Singapore companies are growing in tandem with Sichuan’s rapid development today. With the provincial government’s renewed commitment and support to enhance the business dynamism of Sichuan, it is timely to bring our cooperation to the next level by exploring opportunities in new sectors and cities beyond Chengdu. Singapore companies can contribute relevant capabilities and experience to Sichuan’s second-tier cities, especially in urban solutions, 4 The SSTIC supports collaboration between Singapore and Sichuan in the “Three Moderns”, which refers to the three broad aspects of Modern Services, Modern Living and Modern Manufacturing. By “Modern”, it refers to innovative or new offerings that Singapore companies can introduce to Sichuan. These areas are aligned to Sichuan’s key evolving developmental needs. *Examples of the “Three Moderns” (non- exhaustive): Modern Services - Professional services, Education, Hospitality, Retail, F&B; Modern Living – Infrastructure services, Environmental services; Modern Manufacturing – Production processes, Production technology, Production supporting services e.g. Logistics. Page 2 of 13 IE Media Release 2 July ’13 which are crucial for the early development of a city. Singapore companies that can access these markets quickly will enjoy first-mover advantage.” Six contract agreements and two Memoranda of Understanding (MOUs) mark deepening relations with Luzhou 7. As part of the mission, the delegation visited Luzhou, one of the key emerging economic hubs of strategic importance to Sichuan. In 2012, the city’s GDP grew 14.4% from the previous year to hit S$21.42 billion 5 (103.04 billion yuan) while urban disposable income grew 16.0% to reach S$4,3156 (20,746 yuan). Located in southeast Sichuan, Luzhou is an economy with increasing consumer spending power and where the largest river port in Sichuan is situated. The city is targeting to double the urban area and population to 200 sqkm and two million respectively by 2030, as well as improve infrastructure and transportation developments to cater to the needs of its urban dwellers. 8. Luzhou presents cooperation opportunities for Singapore companies in urban solutions, industrialisation, water management, port management and education. Attesting to the interests of Singapore companies, six contract agreements and two MOUs were inked in Luzhou during the trip. These were witnessed by Minister Lim, Acting Minister Wong, Luzhou Party Secretary Jiang Fuyi and Luzhou Mayor Liu Qiang. The contract agreements and MOUs span the education, master planning and water management sectors: a. Ednovation signed one contract agreement to set up its first pre-school in the city under its brand name known as ChildFirst Kindergarten. b. JURONG International (China) signed five contract agreements to partner the municipal government in industrial landscaping, positioning and master planning. c. Hyflux signed two MOUs to expand its operations into Luzhou through the development of water products and management projects. (Please refer to Annex 3 for more details.) Potential of Sichuan’s second-tier cities, outside of Chengdu 9. The interests of Singapore companies in opportunities within Sichuan’s second-tier cities are on the rise. Of the 461 Singapore projects in Sichuan as at end 2012, more 5 Converted based on https://secure.mas.gov.sg/msb/ExchangeRates.aspx on 21 June 2013 6 Converted based on https://secure.mas.gov.sg/msb/ExchangeRates.aspx on 21 June 2013 Page 3 of 13 IE Media Release 2 July ’13 than one third are in second-tier cities. Their presence in these second-tier cities spans a wide range of industries, including: a. Asiaphos (phosphate supply chain) in Deyang; b. Banyan Tree (hospitality) in Jiuzhaigou; c. CapitaMalls Asia (retail management) in Deyang, Mianyang and Yibin; d. GLP (warehouse facilities) in Guanghan; e. JURONG International (China) (urban solutions and master planning) in Suining; f. Rigel Technology (sanitary ware) in Luzhou; g. United Envirotech (wastewater treatment) in Neijiang. Singapore projects making good strides in Sichuan 10. At the SSTIC meeting today, the joint venture company of the SSCIP project, Sino- Singapore (Chengdu) Innovation Park Development Co., Ltd, signed MOUs with four companies, which will invest in the SSCIP development. They are Cubix International Pte Ltd, First Sponsor Capital Limited (an associate of Millennium & Copthorne Hotels plc (M&C)), Guangxi Coha Investment Group Ltd and Shenzhen PowerLeader Investment Holding Ltd. (Please see Annex 3 for more details.) 11. The SSCIP joint venture company reported good progress on the implementation of the project, having completed 95% of the resettlement of local residents. On-going construction of basic amenities and investment promotions are developing well. Of the eight pillar industries of SSCIP7, the company has completed mapping of the value chain and industry positioning for the biomedical and digital new media industries. Tomorrow, Minister Lim and Acting Minister Wong will officially open the newly- constructed SSCIP on-site investment promotion centre. 12. Today, the two Ministers also graced the inauguration ceremony of M Hotel Chengdu, developed by First Sponsor Capital Limited. The hotel is also a part of Hong Leong Group Singapore’s first mixed development in Chengdu. The newly opened hospitality property is one of three hotels under the M&C brand in Sichuan and its first M Hotel in China. 7 Eight pillar industries of SSCIP are: 1) IT, 2) hi-tech and precision manufacturing, 3) high-end services, 4) clinical research organisation (CRO) and medical device manufacturing, 5) creative industries, 6) bio- medical research and development, 7) green industries, 8) education and training, which will be a common theme supporting the above seven industries. Page 4 of 13 IE Media Release 2 July ’13 Annex 1: Opening speech by Acting Minister Lawrence Wong at the 15th SSTIC meeting Annex 2: Closing speech by Minister Lim Swee Say at the 15th SSTIC meeting Annex 3: Information on company signings
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