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Singapore Firms' Interest to Tap New Developments in the Middle East MEDIA RELEASE To be embargoed till 5.30pm on Thursday, 2 September 2010 Singapore and Liaoning witnessed the signing of MOU on Strategic Cooperation Framework for the engagement of Changxing Island in Liaoning, China • Changxing Island project enters next phase of development • Singapore companies continue to ink deals in the urban solutions and modern services sectors under the ambit of SLETC MR No.: 051/10 Singapore, Thursday, 2 September 2010 1. The Singapore-Liaoning Economic and Trade Council (SLETC) witnessed the signing of “Singapore Changxing Island Memorandum of Understanding on Strategic Cooperation Framework” (SCF) at the 5th SLETC meeting held in Shenyang, China today. This brings Changxing Island, which is located in the “Liaoning Coastal Economic Belt” (formally ‘5 points, 1 line’ strategy1), onto its next phase of development. 2. As the Liaoning government seeks to encourage strong growth for the province particularly in the Liaoning Coastal Economic Belt and its key cities including Shenyang, the SLETC also agreed to explore further business opportunities for companies from Singapore and Liaoning in these areas. The SLETC will continue to strengthen collaboration in focus sectors of: i) Urban solutions including environmental services, marine and port- related infrastructure, and 1 In the “5 points, 1 line” strategy (五点一线), the “5 points” refer to Dalian Changxing Island, Yingkou city, Liaoxi Jinzhou Bay Coastal Economic Zone (comprising Jinzhou Xihai Industrial Zone and the Huludao Beigang Industrial Zone), Dandong city and Dalian Huayuankou Industrial Zone, while the “one coastal belt” represents the 1,443 kilometres coastal highway that will link these five nodes. Nothing in connection with this communication should be regarded as IE Singapore or its employees rendering, or holding out as rendering, auditing, accounting, tax, legal, advisory, consulting or other professional service or advice. This communication is made by IE Singapore and its employees in good faith but without any representation or warranty of any kind as to its completeness, correctness, accuracy, suitability, reliability or otherwise. Neither IE Singapore nor its employees shall be held responsible for any consequence or action arising out of or in connection with the use of the contents of this communication. IE Singapore Media Release - 2 September 10 ii) Modern services like education and BPO, as well as iii) Internationalisation of Liaoning enterprises. 3. The meeting was chaired by SLETC Co-Chairmen, Liaoning Governor Chen Zhenggao and Singapore’s Minister for Manpower Mr Gan Kim Yong. Minister Gan is currently in Liaoning on a business mission organised by International Enterprise (IE) Singapore. He is accompanied by Mr Sam Tan, Parliamentary Secretary for Trade & Industry, and Information, Communications & the Arts, and by a business delegation of 30 representatives from 20 Singapore-based companies. 4. IE Singapore is the Singapore Secretariat to the Council 2, while the Liaoning Department of Foreign Trade and Economic Cooperation is the Liaoning Secretariat. 5. Following the meeting, Minister Gan and Governor Chen witnessed five MOUs / agreement signings between Singapore and Liaoning parties. The Singapore- based companies / organisations include Sembcorp Industries, Pacific International Lines (PIL) and Crestar Education Group. (Pls refer to Annex 1 for information on the signings). Singapore Changxing Island Memorandum of Understanding on Strategic Cooperation Framework (SCF) 6. Located at the strategic Bohai region in close proximity to Korea and Japan, and with a natural deep harbour, Liaoning has the largest economy in Northeast China. Its GDP of RMB1506.56 billion was the 7th highest amongst Chinese provinces last year. 7. As part of the revitalisation plans for Northeast China, the Liaoning Coastal Economic Belt Development was elevated by the China State Council on 1 July 2009 as a national-level strategy to develop the country. Located within this belt is Changxing Island (长兴岛）, which is made up of five islands with a total land area of 349.5 sqkm. With support from the SLETC and Changxing Island Administration Office, Singapore companies have invested in various projects on the Island. One 2 IE Singapore is also Secretariat to six other bilateral councils: the Singapore-Shandong Business Council; the Singapore-Sichuan Trade and Investment Committee; the Singapore-Zhejiang Economic and Trade Council, the Singapore-Tianjin Economic and Trade Council, the Singapore-Jiangsu Cooperation Council and the Singapore-Guangdong Collaboration Council. Page 2 of 13 IE Singapore Media Release - 2 September 10 of the more recent being the joint venture between PIL and Dalian Shipbuilding Industry Corporation for a ship repair yard. 8. Changxing Island was elevated to a “National Economic Development & Technological Zone” in April 2010, and included as a “Comprehensive Reform Experiment Zone” two months later, in June 2010. Plans are in place to further expand Changxing Island to include another 850 sqkm of inland area in the next five years. Additionally, the local government is also looking to improve road connectivity to the Island from Dalian and Shenyang – Liaoning’s two main economic centres. Existing railroads in North-eastern China will be upgraded to include Changxing Island as well. 9. The SCF lines out three main areas of collaboration for the next phase of development of the Island: i) Master planning – IE Singapore will play the key role of facilitating Changxing Island’s master planning in phases. This can be done in the form of setting up a business consortium for the engagement with support from the Liaoning government. ii) Industry Positioning – Subsequent to the completion of the master planning, as well as the urban and industry positioning of the Island, IE Singapore will support and facilitate Liaoning’s efforts in the areas of investment promotion and marketing. Within the scope of China’s national policies, Liaoning government and the Changxing Island Administrative Committee will provide the investments supported under the SCF with the necessary incentives such as preferential taxes and land use policy. iii) Training of Changxing Island’s Officials – IE Singapore will facilitate training programmes/training providers, on commercial terms, for Changxing Island’s officials in relevant areas that support the Island’s economic activities and development. Liaoning will select and send officials to undergo these training sessions. Liaoning’s developments offer opportunities in various sectors 10. Apart from the Liaoning Coastal Economic Belt Development, other key cities in Liaoning are also set to benefit from China’s “Revitalisation of the Northeast” strategy. For instance, the Shenyang Economic Region which occupies an area of 75,000 sqkm has been approved by the State Council as the eighth experimental Page 3 of 13 IE Singapore Media Release - 2 September 10 reform region in April this year. The Big Hunnan (大浑南) area, which is situated within this region, will be developed via an e-city concept. The area has also been selected to host China’s national 12th Sports Meet (第十二届全运会) in 2013. Located to the north of Shenyang, the Shenbei New District (沈北新区) will see the development of a modern International Eco-City. 11. With the elevation of Liaoning Coastal Economic Belt and Shenyang Economic Region, the Yingkou Beihai New city located at the intersection point of these two areas now becomes a core area in the rejuvenation of Northeast China. Key plans in the pipeline for Beihai New city include the development of a green and high- tech real estate and machinery manufacturing. 12. As Liaoning looks towards these developments, Singapore’s expertise in urban solutions will come in relevant. Singapore’s development years have equipped its companies with capabilities in long-term master planning, infrastructure development and environmental services such as green technologies integration, etc. Collaborations in the urban solutions sector have made good headway today with two projects signing by Singapore-based company Sembcorp Industries at the SLETC meeting. (Please refer to Annex 1 for details of the MOU signings) 13. In addition, the developments in Liaoning have spun off demand for skilled local workers from foreign investment companies, thereby opening up further opportunities for Singapore players to provide education and training services to Liaoning’s workforce. Already, Singapore-based company Rotary Engineering is setting up a technical training centre in Dalian and relocating its China office there. 14. In addition, Crestar Education Group is setting up a preschool in Bayuquan, Yingkou with Yingkou Hui Ming Fang Property Development. Due to the growing economic activities, an increasing number of expatriates are locating in Liaoning with their families. This has resulted in a corresponding growing demand for children’s education providers. Eton House International has also expressed strong interest to have a stronger foothold in Liaoning. 15. Said Minister Gan, “It is exciting to see the positive developments in Liaoning as the Chinese government continues to focus efforts to ‘revitalise the Northeast’. These developments provide good growth potential for the respective cities and promise good commercial opportunities too. I am pleased to see keen interest from our companies to contribute to these developments, and hope to see more Singapore-based companies explore potential collaborations with Liaoning
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