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IE Singapore Signs MOU with Sichuan (Chengdu) Free Trade Zone to Help Singapore Companies Gain Early Mover Advantage for Business Collaboration

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IE Singapore Signs MOU with Sichuan (Chengdu) Free Trade Zone to Help Singapore Companies Gain Early Mover Advantage for Business Collaboration M E D I A RELEASE IE Singapore signs MOU with Sichuan (Chengdu) Free Trade Zone to help Singapore companies gain early mover advantage for business collaboration MR No.: 027/17 Singapore, Wednesday, 28 June 2017 1. In continuous efforts to strengthen Singapore-Sichuan economic ties, International Enterprise (IE) Singapore signed a Memorandum of Understanding (MOU) with the Commission of Commerce of Chengdu today to help Singapore companies expand their presence in Sichuan (Chengdu) Free Trade Zone (FTZ), specifically in Trade and Logistics, Financial and Professional Services, and Information Technology (IT) and Innovation. IE Singapore is the first foreign government agency to partner Chengdu’s Commission of Commerce on the FTZ, following China’s announcement on its third batch of seven FTZs, which includes Sichuan (Chengdu)1. 2. This MOU is the result of IE Singapore’s close consultation with the Chengdu local authorities and further enhances the strong economic relations established by the Singapore-Sichuan Trade and Investment Committee (SSTIC) co-chaired by Minister for Education (Schools) Ng Chee Meng. Building on the SSTIC’s work over the years, the MOU will explore collaboration beyond modern services, modern living and modern manufacturing. It will also benefit the Singapore-Sichuan Hi-Tech Innovation Park (SSCIP)2, which is situated in the FTZ and focuses on hi-tech and services industries. 3. Said Mr Lee Ark Boon, Chief Executive Officer (CEO), IE Singapore, who is currently leading a Singapore business delegation on a two-day mission to Chengdu, “Singapore was Chengdu’s second largest foreign investor in 2016. IE Singapore’s FTZ partnership builds on these existing close ties with Chengdu. As its market liberalises, we see potential for new partnerships and deeper knowledge exchange between Singapore and Chinese companies. Through our MOU, 1 The other six FTZs are Chongqing, Henan, Hubei, Liaoning, Shaanxi and Zhejiang. 2 Led by Sembcorp and Yanlord. IE Singapore Media Release 28 June 2017 we hope to make it easier for more Singapore companies to engage the local authorities and access business opportunities.” 4. IE Singapore will work closely with Chengdu’s Commission of Commerce on: a. Promotion of trade and logistics services, which will enhance air, rail and road connectivity; b. Promotion of financial services, especially company listing and risk assessment; c. Promotion of trade in services; d. Industry and IT development, especially technology transfer and talent exchange programmes; e. Promotion of hi-tech and services industries by leveraging the SSCIP. 5. Sichuan FTZ, the coordinating gateway between coastal and inland China, covers three areas3 totalling 120 sq km across Chengdu and Luzhou cities. Chengdu takes up close to 100 sq km and forms the core area for Sichuan FTZ. In Chengdu, Tianfu New Area will focus on developing aviation technology, logistics and connectivity, and financial services. The Chengdu Hi-Tech Zone, which houses the SSCIP, resides within the Tianfu New Area. Northeast of Tianfu New Area, the Chengdu Qingbaijiang District will focus on customs clearance and freight between Europe and Chengdu, as well as road-rail intermodal logistics. Chengdu – Strong potential for future growth 6. Singapore companies have shown strong interests in Chengdu over the years. In 2016, Singapore was the second largest foreign investor for cumulative investments in Chengdu, after the United States. The number of Singapore projects grew from over 280 in 2011 to over 430 in 20164, spanning infrastructure, transport and logistics, food services, technology, finance and education. Examples of Singapore’s business interests in Chengdu include Memiontec and Ademco setting up their regional offices in Chengdu to provide water and security solutions respectively. VeriTAG has also set foot in Raffles City Chengdu, bringing 18 Singapore food brands such as Nanyang Old Coffee and Fassler Gourmet to the city through veriHUB, its one- stop solution platform comprising food caravans and vending machines. 7. Chengdu is Sichuan’s provincial capital and its most prosperous city, housing 278 Fortune 500 companies5 as of March 2016. Its GDP reached RMB1,200 billion in 2016, a 7.5% growth from 2015. Chengdu’s industrial strengths lie in the IT and automotive manufacturing sectors. The Chengdu Hi-Tech Zone is the base for many global IT and R&D companies, and Business 3 The three areas under Sichuan FTZ are Tianfu New Area (90.32 sq km), Qingbaijiang District (9.68 sq km) and Luzhou Port (19.99 sq km). 4 Chengdu BOFCOM 5 Information from “Overview of Chengdu”, Chengdu Investment Guide 2016, Chengdu Investment Promotion Commission Page 2 of 3 IE Singapore is the government agency promoting international trade and partnering Singapore companies in going global. IE Singapore Media Release 28 June 2017 Process Outsourcing (BPO) centres, while renowned automotive MNCs have also set up manufacturing bases in Chengdu. The Chengdu government has outlined plans for the city to be the largest innovation and entrepreneurship community in the Mid-Western region of China with more than 100 investment funds, 400 innovation carriers and 200,000 entrepreneurships by 2020. It also aims to build an international core city for logistics, finance, ICT, business services, retail, tourism, cultural creativity and healthcare, projected to account for 54.5%6 of Chengdu’s GDP (RMB980 billion) by 2020. Get story leads from IE Singapore’s Twitter (@IESingapore) and Facebook (IESingapore) accounts. --End-- For media enquiries, please contact: Ms Corinne Fu Senior Manager, Media Corporate Communications Group DID : +65 6433 4769 Email : [email protected] ________________________________________________________________________ About Singapore–Sichuan Trade and Investment Committee The Singapore-Sichuan Trade and Investment Committee (SSTIC) is a bilateral economic framework aimed at strengthening Singapore's economic relations with the Sichuan Province. It was formed in May 1996 and comprises public and private sector members from Singapore and Sichuan. Mr Lim Swee Say, Minister, Ministry of Manpower, and Mr Yin Li, Sichuan Governor, are Advisors to the committee while Minister Ng Chee Meng Minister for Education (Schools) and Second Minister, Ministry of Transport, and Mr Zhu Hexin, Sichuan Vice-Governor, are Co-Chairmen of the SSTIC. IE Singapore is the Secretariat to the SSTIC in Singapore. About International Enterprise (IE) Singapore IE Singapore is the government agency that promotes international trade and partners Singapore companies to go global. We attract and anchor global trading companies in Singapore by promoting our unique advantages as a global trading hub. Today, Singapore is home to a complete ecosystem for the energy, agri- commodities and metals & minerals trading clusters. Through our network of over 35 overseas centres and comprehensive assistance programmes, we partner Singapore companies to strengthen their global competitiveness. Visit www.iesingapore.gov.sg for more information. 6 Chengdu’s 13th Five Year Plan Page 3 of 3 IE Singapore is the government agency promoting international trade and partnering Singapore companies in going global. .
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