MEDIA RELEASE

To be embargoed till 5.30pm on Thursday, 2 September 2010

Singapore and witnessed the signing of MOU on Strategic Cooperation Framework for the engagement of Changxing Island in Liaoning,

• 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 , 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 Changxing Island, city, Liaoxi Bay Coastal Economic Zone (comprising Jinzhou Xihai Industrial Zone and the Huludao Beigang Industrial Zone), 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 , and with a natural deep harbour, Liaoning has the largest economy in . 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- Business Council; the Singapore-Sichuan Trade and Investment Committee; the Singapore-Zhejiang Economic and Trade Council, the Singapore- Economic and Trade Council, the Singapore-Jiangsu Cooperation Council and the Singapore-Guangdong Collaboration Council.

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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

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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 (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 enterprises.”

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IE Singapore Media Release - 2 September 10

Bilateral trade and investment

Liaoning Province 16. From January to June 2010, bilateral trade between Singapore and Liaoning province reached US$1.79 billion, an increase of 15.5% over the same period in 2009. Exports to Singapore amounted to US$1.70 billion (+14.9%) while imports from Singapore is recorded at US$95 million (+35.3%). (Source: Liaoning Department of Foreign Trade & Economic Cooperation)

17. In the first six months of 2010, Liaoning approved 14 Singapore projects with a contractual amount of US$103 million (-28.7%). Actual investments during this period totalled US$111 million (-31.9%). Singapore’s cumulative actual FDI into Liaoning reached US$2.16 billion with 813 projects in 2009, making Singapore Liaoning’s 7th largest foreign investor. (Source: Liaoning Department of Foreign Trade & Economic Cooperation)

Business Mission 30 August to 2 September 2010

18. During the mission, courtesy calls were paid on Liaoning Province Party Secretary Wang Min and Governor Chen Zhenggao, Dalian Vice-Mayor Cao Aihua, Yingkou Party Secretary Xue Heng and Mayor Gao Jun as well as Shenyang Mayor Chen Haibo.

19. Minister Gan visited Changxing Island and other sites of Singapore projects including the Dalian Ascendas IT Park, Brothers’ Holdings’ “Singapore City” project in Dalian and Sembcorp’s water project in Shenyang.

Annex 1 : Information about MOU / agreement signings Annex 2 : Minister Gan’s Closing Speech at the 5th SLETC meeting Annex 3 : Chinese terms

---End---

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IE Singapore Media Release - 2 September 10

Note to Editor Please use ‘IE Singapore’ or ‘IE’ if an acronym for ‘International Enterprise Singapore’ is required. In addition, unless otherwise stated, the use of statistics cited in our media releases, website or Statlink, should be attributed to IE Singapore.

Issued by IE Singapore on behalf of SLETC. For media enquiries, please contact:

Ms AW Xiuxing Manager Corporate Communications Group DID : + 65 6433 4722 Fax : + 65 6337 8136 Hp : + 65 9155 0433 Email : [email protected]

About International Enterprise Singapore

International Enterprise (IE) Singapore is an agency under the Ministry of Trade and Industry spearheading the development of Singapore’s external economic wing.

Our mission is to promote the overseas growth of Singapore-based enterprises and international trade. With a global network in over 30 locations and our 3C framework of assistance – Connections, Competency, Capital, we offer services to help enterprises export, develop business capabilities, find overseas partners and enter new markets. At the same time, we work to position Singapore as a base for foreign businesses to expand into the region in partnership with Singapore-based companies. Please visit www.iesingapore.com for more information.

About the Singapore-Liaoning Economic & Trade Council The Singapore-Liaoning Economic & Trade Council (SLETC) was established on 18 November 2003. The launch of SLETC was witnessed by then Singapore Prime Minister Goh Chok Tong and Chinese Premier Wen Jiabao. The Council is to promote economic exchanges and cooperation between Liaoning Province and Singapore. It is formed by leaders, government officials and private sector representatives of Singapore and Liaoning.

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IE Singapore Media Release - 2 September 10

The Council shall endeavour to achieve its objective through the following means:

a. exchange of economic data and information, and familiarize each other on the respective economic policies; b. promote, guide, and assist in bilateral trade and investment; c. organise exchange activities in the areas of economic, trade, and investments; d. coordinate and help businesses solve problems in joint businesses; e. other work that are mutually beneficial for economic and social development.

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IE Singapore Media Release - 2 September 10

ANNEX 1 PROJECT SIGNINGS AT THE 5TH SLETC MEETING, 2 SEPTEMBER 2010

1) Singapore Changxing Island Memorandum of Understanding on Strategic Cooperation Framework (SCF) signing between IE Singapore and Dalian Changxing Island Administrative Committee The Singapore Changxing Island Memorandum of Understanding on Strategic Cooperation Framework encompasses three main areas of collaboration. In sequential order, these include 1) Master planning, 2) Industry positioning and 3) Training of Changxing Island officials. The SCF was signed by Mr Ignatius Lim, China Group Director of IE Singapore (新加坡国际企业发展局, 中国司司长，林瑞光先生) and Mr Xu Changyuan, Director General of Changxing Island Administrative Committee (大连长 兴岛临港工业区管委会主任，徐长元先生).

2) Contract signing between Pacific International Lines (PIL), Dalian Shipbuilding Industry Corporation (DSIC) and An Gang Steel Company This is an expansion to an existing project of a ship repair yard between PIL and DSIC on Changxing Island. The project is now expanded to include environment-friendly ship breaking services. The contract was signed by Managing Director of PIL, Mr Teo Siong Seng (新加坡太平船务集团董事总经理, 张松声先生), Vice President of DSIC, Mr Yu Feng Ping （大连船舶重工集团副总经理，于逢平先生）and representative from An Gang Steel Company (鞍钢集团公司代表).

3) Framework agreements between Sembcorp Industries’ utilities business and Shenbei New District Municipal Government as well as Shenyang Water Group Co. Sembcorp, a leading provider of and energy and water to industrial and municipal customers, is signing two agreements with Shenbei New District Municipal Government and Shenyang Water Group Co respectively, to explore projects to increase Sembcorp’s business in Shenyang. The two potential projects are primarily in the area of water and wastewater treatment, as well as in the provision of other utilities such as steam supply and district heating services. These projects are on top of Sembcorp’s existing presence in Shenyang, which includes: three water works facilities and a water intake system and distribution network in the Shenyang Economic & Technological Development Zone, as well as water supply operations in Xinmin City under Sembcorp’s subsidiary Cascal. The first framework agreement with Shenbei New District Municipal Government was inked by Dr. Jeffrey Chen, CEO of Sembcorp’s China operations（陈明信博士，胜科中国区首席执行官), and Mr Li Peng Yu, District Representative of Shenbei New District (李鹏宇先生，沈北新区人民政府

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IE Singapore Media Release - 2 September 10

代区长). The second framework agreement with Shenyang Water Group Co was signed by Dr. Jeffrey Chen and Mr. Zhang Guoxiang, Chairman of Shenyang Water Group Co (张国祥先生，沈阳水务集团有限公司董事长).

4) Agreement signing between Crestar Preschool with Yingkou Hui Ming Fang Property Development Crestar Education Group is signing an agreement with Yingkou Hui Ming Fang Property Development (营口汇明房地产开发有限公司) to set up a Kindergarten of about 3,000 sqm. The Kindergarten will have 9 classes to cater to about 270 students. It is located within the Economic & Technology Development District in Ying Kou, Liaoning, in a 2,000 household residential project, at Ping An Road. The agreement was signed by Saw Chaik Beng, Executive Director of Crestar Education Group and Li Jie of Yingkou Hui Ming Fang Property Development (营口汇明房地产开发有限公司总 经理, 李杰).

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IE Singapore Media Release - 2 September 10

ANNEX 2 演讲前禁止发布

新加坡-辽宁经济贸易理事会（SLETC）第五次会议 新辽经贸理事会新加坡联合主席总结致词 颜金勇 新加坡人力部部长

沈阳，辽宁省，中华人民共和国 9 月 2 日 2010 年

尊敬的辽宁省省长陈政高先生， 各位来自辽宁和新加坡的经贸理事会成员， 女士们、先生们，

大家下午好。

1. 首先，我谨代表新加坡代表团和经贸理事会成员，向陈省长表示衷心的感 谢，以及感谢您的各省级和市级领导过去四天给予我们的热情款待。此外， 我也非常感谢您和您的团队的支持与协助，使得新加坡-辽宁经济贸易理 事会第五次会议今天能够圆满举行。

2. 这是我自 2008 年从尚达曼部长手上接过联合主席职务后，第一次举办的 新辽经贸理事会会议。我刚才在会议上听取了令人鼓舞的报告，说明新加 坡与辽宁在多项合作上取得长足的发展，并继续向前迈进。在 2008 年下 半年至 2009 年充满挑战的大环境下，这确实是个不小的成就。

新辽坚固的经济联系

3. 当全球经济活动于 2009 年放缓之际，新辽双方的贸易总额却稳健增长， 并在去年达到 33 亿 1000 万美元，增幅为 8.2%。新加坡在辽宁的实际投 资也在同年增加 140 万美元，达 2 亿 6400 万美元。这不仅意味着新辽两 地之间的交往日益频繁，更重要的是，它凸显出双方之间坚实而牢固的联 系。

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IE Singapore Media Release - 2 September 10

4. 展望未来，根据此次会议的规划，新加坡将更深入参与辽宁沿海经济带及 各主要城市的发展，两地之间的经济活动也将进一步提升。新加坡企业已 经注意到辽宁的发展潜力，并有兴趣探讨合作机会。据我所知，新辽经贸 理事会会议在今天结束前，将签署 5 份谅解备忘录，其中的合作项目涵 盖多个领域，包括海事、教育及环境服务等，在在证明了新加坡企业对辽 宁省的投资兴趣。

新加坡—长兴岛临港产业示范城战略合作框架

5. 在今天即将签署的谅解备忘录当中，我想特别提及有关 “新加坡-长兴岛 临港产业示范城战略合作框架”的签订。

6. 这是新辽双方经过好几个月商谈的成果，最终能够顺利签订这项合作计划， 有赖辽宁省对外贸易经济合作厅的积极促进，以及大连长兴岛临港工业区 管委会（长兴岛管委会）的不懈努力。在此，我要向这些团队表示敬意和 感谢。

7. 在中国，长兴岛的发展日益受到重视。今年四月，长兴岛临港工业区正式 升级为“国家级经济技术开发区”，并于今年六月纳入成为“综合改革试 验区”。

8. 同样的，新加坡企业也正把目光转向长兴岛。至今一些主要的新加坡投资 项目包括裕廊国际集团的总体规划项目、万邦集团在海港、造船及海事工 程的开发与投资、以及太平船务的修船及环保船舶拆卸厂。

9. 今天签订的这项合作协议，标志着我们下一段合作过程的起点。未来，新 方经贸代表团秘书处将同长兴岛管委会紧密合作，共同探讨合作机会，为 长兴岛谋求更大的发展。总的来说，新加坡-长兴岛临港产业示范城战略 合作框架主要涵盖三个合作范围，分别是总体规划、产业定位及长兴岛公 务员培训。新辽双方的经贸理事会秘书处将积极寻求更广泛的合作并鼓励 新加坡企业利用长兴岛的投资商机，而长兴岛管委会则将在多方面给予这 些新加坡企业所需的援助。

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IE Singapore Media Release - 2 September 10

10. 在辽宁和新加坡双方的大力支持和全情投入下，我有信心长兴岛计划将取 得成功。通过双方的努力，我们希望鼓励及推动长兴岛的投资，最终能为 中国“振兴东北”战略作出贡献。

经济领域外的合作关系

11. 除了经济合作外，我也很高兴新辽之间的伙伴关系已扩展至非经济领域的 合作范围。

12. 在今年7月，新加坡旅游局同辽宁省旅游局签署了紧密合作协议，致力于 增加入境新加坡和辽宁的游客人数。据我所知，两地的旅游局接下来还将 展开进一步合作，为旅行社和媒体提供更多机会，让他们更深入了解新辽 两地的各个旅游景点。此外，它们也将在新加坡和辽宁举行联合展销会， 鼓励新加坡人到辽宁旅游，同时也诚意邀请来自东北的朋友到新加坡观光。

13. 我们希望借着不同的合作项目，开启新辽关系的新篇章，不仅推动新加坡 企业在辽宁的商业活动，也进一步促进两地的民间交流。

总结

14. 最后，让我再次感谢大家参加今天的新辽经贸理事会会议。理事会成员在 早前的讨论会上积极参与，令人鼓舞。我期待双方之间能有更深入和广泛 的合作，并在下次会议上交出同样亮眼的成绩。最重要的是，我热切期待 明年能够欢迎陈省长以及在座的所有朋友到新加坡来。谢谢大家！

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IE Singapore Media Release - 2 September 10

ANNEX 3

Chinese terms

Mr Gan Kim Yong 颜金勇先生 Minister for Manpower 新加坡人力部部长

Co-Chairman 联合主席 Singapore-Liaoning Economic & Trade 新加坡-辽宁经济与贸易理事会 Council 陈振泉先生 Mr Sam Tan Parliamentary Secretary for Trade & 新加坡贸易及工业部兼

Industry, and Information, Communications & the Arts, 新闻、通讯及艺术部政务次长 Mr Wang Min 王珉先生 Liaoning Party Secretary 辽宁省委书记

Mr Chen Zhenggao 陈政高先生 Liaoning Governor 辽宁省长

Co-Chairman 联合主席 Singapore-Liaoning Economic & Trade 新加坡-辽宁经济与贸易理事会 Council Mr Chen Haibo 陈海波先生 Shenyang Mayor 沈阳市市长 Ms Cao Aihua 曹爱华女士 Dalian Vice-Mayor 大连市副市长 Mr Xue Heng 薛恒先生

Yingkou Party Secretary 营口市委书记

Mr Gao Jun 高军先生 Yingkou Mayor 营口市市长 Liaoning Department of Foreign Trade & 辽宁省对外贸易经济合作厅 Economic Cooperation Singapore-Liaoning Economic & Trade 新加坡-辽宁经济贸易理事会 Council International Enterprise (IE) Singapore 新加坡国际企业发展局（简称：企发局）

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