M E D I A RELEASE

Singapore- Collaboration Focuses on Sustainability and Inclusiveness in Growth

Minister Khaw Boon Wan and Tianjin Mayor Huang Xingguo discussed economic collaboration and witnessed seven MOU signings at the 5th Singapore-Tianjin Economic and Trade Council meeting in Tianjin.

MR No.: 039/12 Singapore, Friday, 21 September 2012

1. Tianjin has emerged as a major economic driver for China in recent years. It clocked one of China‟s highest GDP growth of 16.5%1 in 2011 and 14.1%2 in the first half of 2012. Inclusive growth and sustainability will however be critical issues for Tianjin as it aims to become a global eco-city.

2. Minister for National Development Khaw Boon Wan and Tianjin Mayor Huang Xingguo, Co-Chairmen of the Singapore-Tianjin Economic and Trade Council (STETC), discussed these at the 5th STETC meeting today in Tianjin. International Enterprise (IE) Singapore is the Singapore Secretariat for the Council, while Tianjin Commission of Commerce is the Tianjin Secretariat 3 . Both leaders recognised the good progress STETC has made, highlighting the Tianjin Eco-City as a major catalyst, and stressed the need for continuous collaboration in Tianjin.

3. Said Minister Khaw, who also attended the 3rd annual Binhai Forum in Tianjin, “For its next stage of development, Tianjin will have to pay even greater attention to

1 http://www.china-briefing.com/news/2012/01/27/chinas-provincial-gdp-figures-in-2011.html 2 http://finance.chinanews.com/cj/2012/07-24/4053327.shtml 3 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- Collaboration Council, the Singapore-Jiangsu Cooperation Council and the Singapore-Liaoning Economic and Trade Council.

International Enterprise Singapore is the lead government agency driving Singapore’s external economy. IE Media Release 21 September 12

sustainable development and inclusiveness in its growth strategy. With higher expectations from a growing middle class, urban planning and other social management policies have to be even more sensitive to the aspirations of a better educated population. There is much that Singapore and Tianjin can share as we face very similar challenges.”

4. Seven project signings spanning education, environmental services, healthcare and lifestyle services were witnessed by Minister Khaw, Mayor Huang, as well as STETC Vice-Chairmen Vice Mayor Xuefeng and Tianjin Binhai New Area Deputy Party Secretary He Lifeng. (Please refer to Annex 2 for more details on the signings)

Sustainable Development beyond Tianjin Eco-City 5. The link between GDP and environmental indicators has grown more apparent in China over the years. Its 12th five-year plan targets to lower energy consumption and carbon dioxide emission per unit of GDP by 16% and 17% respectively, by 2015.

6. In Tianjin, the Sino-Singapore Tianjin Eco-city is a model for sustainable eco-living and environmental technology innovation. Across Tianjin, the municipality is working to improve air quality by 2020. Interim targets aim to treat 93% of municipal waste, retire an estimated 113,000 high pollution vehicles, and invest in 2,000 electric public buses by 20154. Tianjin also plans to invest US$1.5 billion (S$1.8 billion5) to replace its city centre‟s coal fired power plants with thermal and gas fired plants in the next five years.

7. The STETC will further collaborate in talent development. In line with China‟s plan to increase contribution of services to GDP from 43% to 47% by 2015, Tianjin has successfully increased its own services contribution from 41.5% to 45.3%, a target mapped out in its 12th Five Year Plan. This is expected to continue growing to 50% by 2015. A good talent base is necessary to support service-oriented sectors. Leveraging Singapore‟s development experience, Singapore Vocational and Technical Education (VTE) players‟ offerings, including structured training curriculums, can meet Tianjin‟s needs.

4 http://www.chinae-vehicle.com/index.php?c=news&a=view&id=315 5 Converted to SGD based on https://secure.mas.gov.sg/msb/ExchangeRates.aspx

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Creating Inclusive Growth in Tianjin 8. Tianjin needs to ensure the inclusive growth of its entire business community. Recognising this, ideas for mutual development of SMEs in both economies were explored.

9. To keep pace with rising business opportunities and attractiveness for overseas investments, both governments have initiated and supported various platforms to build SME capabilities and increase market access. In Singapore, SMEs are encouraged to sustain growth and expand by internationalising, innovating and raising productivity. Agencies like IE Singapore and SPRING Singapore provide the necessary support to help strengthen their capabilities and constantly review their assistance to them.

10. Tianjin launched its own initiative, setting aside some US$185.3 million (S$226 million6) eight months ago. The “科技小巨人成长计划” (directly translated as “Little Giant” Policy) aims to support more than 5,000 SMEs via interest-free loans, credit line guarantees and more7, and focuses on high-tech industries such as new energy and technology business, and new industries like eco-technology and culture. Singapore SMEs too can enjoy selected incentives of this policy, including tax incentives, preferential manpower and rental policies. This opens the door for Singapore companies to collaborate with other SMEs in Tianjin. The STETC will work towards leveraging the policy to promote more commercial exchanges between Tianjin and Singapore SMEs in tandem with the outlined sectors for focus.

Bilateral Trade and Investment 11. Singapore's trade with Tianjin increased 26.3% from 2010 to reach S$2.7 billion8 (US$2 billion) in 2011. In 2011, Singapore‟s actual investments in Tianjin increased 22.7% to hit S$894.6 million 9 (US$710 million), making Singapore the fourth largest foreign investor in the municipality. As of end 2011, cumulative actual investments reached US$4.4 billion (S$5.5 billion10) with 751 projects. Singapore's investments in Tianjin are concentrated in the logistics, real estate, environmental and electronics sectors. [Source of figures: Tianjin Commission of Commerce]

6 Converted to SGD based on https://secure.mas.gov.sg/msb/ExchangeRates.aspx 7 http://news.hexun.com/2012-09-04/145458427.html 8 Converted to SGD based on https://secure.mas.gov.sg/msb/ExchangeRates.aspx 9 Converted to SGD based on https://secure.mas.gov.sg/msb/ExchangeRates.aspx 10 Converted to SGD based on https://secure.mas.gov.sg/msb/ExchangeRates.aspx

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Annex 1: Minister Khaw’s Closing Speech at the 5th STETC meeting Annex 2: Information on MOU / agreement signings Annex 3: Chinese terms ---End---

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 STETC.

For media enquiries, please contact: Ms Denise NAH Corporate Communications Group DID : + 65 6433 4738 Hp : + 65 9476 9971 Email : [email protected] ______

About International Enterprise Singapore International Enterprise (IE) Singapore is the government agency driving Singapore‟s external economy. We promote international trade and spearhead the overseas growth of Singapore-based companies to grow Globally Competitive Companies.

IE Singapore attracts global commodities traders to establish their home base in Singapore. Today, Singapore is a thriving trading hub for the energy, agri-commodities and metals & minerals trading clusters.

Through our Global Company Partnership, we work with Singapore-based companies to customise total solutions in capability building, market access and financing for their internationalisation.

Our global network of overseas centres in over 35 locations provides the necessary connections in many developed and emerging markets. Visit www.iesingapore.com for more information.

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About the Singapore-Tianjin Economic and Trade Council

The Singapore-Tianjin Economic and Trade Council (STETC) was established on 25 January 2007, with the objective of promoting broader exchanges and cooperation between the business communities of Tianjin and Singapore. The launch of the STETC was witnessed by Minister for Trade & Industry Lim Hng Kiang and Chinese Vice-Minister of Commerce Ma Xiuhong.

Mr Khaw Boon Wan, Minister for National Development and Mr Huang Xingguo, Tianjin Mayor, are Co-Chairmen of the Council. The Vice-Chairmen are Mr Lee Yi Shyan, Singapore Minister of State for National Development and Trade and Industry, Mr He Lifeng, Tianjin Deputy Party Secretary and Mr Ren Xuefeng, Tianjin Vice Mayor. The STETC is formed by leaders, government officials and private sector representatives of Singapore and Tianjin.

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ANNEX 1 CLOSING SPEECH BY MR KHAW BOON WAN, MINISTER FOR NATIONAL DEVELOPMENT, & CO-CHAIRMAN OF THE SINGAPORE-TIANJIN ECONOMIC AND TRADE COUNCIL (STETC) AT THE 5H STETC MEETING, 21 SEPTEMBER 2012, TIANJIN

Honourable Mayor Huang Xingguo, Honourable Excellency Deputy Party Secretary He Li Feng, Honourable Excellency Vice Mayor Ren Xuefeng, Distinguished Council Members, Ladies and Gentlemen,

Good morning

1. Let me first thank the Tianjin Government for hosting our fifth Singapore-Tianjin Economic and Trade Council (STETC) meeting, despite being busy with the Summer Davos, China Tourism Industry Expo and Tianjin Binhai Forum. Yet you have made time to organise this event. What struck me is that besides your busy programme, today‟s proceedings have been organised in a highly efficient manner, with many events packed neatly in a short time. This reflects very well on the competence of your staff. On behalf of my delegation, I thank you for your warm hospitality and friendship.

2. Singapore and Tianjin enjoy a high level of bilateral cooperation. This year, for example, we have seen many high-level bilateral exchanges. Singapore‟s Prime Minister Lee Hsien Loong visited Tianjin three weeks ago, while Emeritus Senior Minister Goh Chok Tong was here last week. This is my second visit to Tianjin in two months.

STETC sees good progress

3. As visitors, we were all naturally impressed with Tianjin‟s rapid growth. Last year, your GDP grew 16%; against a general slowdown in the global economy and still clocked 14% in the first half of 2012. Bilateral trade with Singapore has grown by 26% from 2010 to US$2 billion in 2011. Singapore‟s investments into Tianjin expanded by 23% over the same period, hitting US$710 million in 2011.

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4. I note our good progress in various sectors. I would like to highlight three areas. The first area is ports and logistics. PSA made its largest overseas investment here, while our leading logistics players such as YCH, CWT, PIL and GLP have invested in multiple facilities.

5. The second area is urban development. The council witnessed just now, many MOU signings and over the years, groundbreaking ceremonies. Together, our companies are contributing to the transformation of Tianjin‟s urban landscape. Capitaland, Yanlord and Keppel Land are familiar names in Tianjin. Several Singapore developers have chosen Tianjin as their first project site in China. These attest to their confidence in the Tianjin market. Lian Huat and UOL are good examples. Their projects are progressing well, and I am glad to hear that UOL‟s Pan Pacific Hotel in Hongqiao District will begin operations next year.

6. The third area is environmental services. Our flagship Sino-Singapore Tianjin Eco- city project is the iconic example. From a salt marsh land to a green and liveable town, Tianjin Eco-city is a major catalyst for creating environmental solutions. Tri-Tech, Keppel Integrated Engineering and Singapore Technologies are some companies offering such services in the Eco-city. Many have also completed landmark environmental projects outside the Eco-city. For example, Hyflux operates a 100,000 tonne desalination plant in Dagang; this is the largest in Asia.

Future areas of collaboration

7. These achievements have given us confidence that our bilateral partnership will grow even stronger. To signal this level of confidence, Singcham set up its Tianjin Chapter last year. And more recently, Scoot launched a direct flight service between our cities. Scoot is a wholly owned subsidiary of Singapore Airlines. I hope that with this new direct airline connection, we will further boost the number of tourists between Tianjin and Singapore. I hope to take the Scoot flight for my next trip to Tianjin. However, as I prefer not to take a midnight flight, I took the Singapore Airlines flight to this time instead.

8. I support the Secretariat‟s proposal that for our next Work Plan, we will focus on sustainable growth, inclusive growth and new growth. Let me highlight two areas.

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SME Development 9. The first concerns SMEs. SMEs are important players in all countries. In Singapore, they contribute to 50% of our GDP, and employ 70% of our workers. They form the backbone of our economy. I am sure it is the same here in Tianjin. Therefore, I hope that the SMEs from both sides strive to partner one another for mutual benefits.

10. In Singapore, we have been encouraging our SMEs to expand overseas and to raise their capabilities. We help them do so in different ways, including assistance schemes. For example, we recently launched the Action Community for Entrepreneurship (ACE) Beijing Chapter, to specifically support our SMEs in China. Comprising entrepreneurs, the Beijing Chapter offers networking opportunities, access to mentors and investors.

11. This is also the reason why we have invited many SMEs in our delegation today. While chatting with Mayor Huang earlier, we spoke about Ma Kuang and their plans to set up 500 branches in Tianjin. This can never happen in Singapore. For SMEs, the way to grow is to expand overseas.

12. I am inspired by Tianjin‟s “Little Giant” policy, “科技小巨人成长计划”. This is a good reference. Every country tries to grow our companies, and perhaps we can start from grooming small giants and grow them to big giants later. Everyone is trying to find better ways to help SMEs grow, and it is not easy. Being small has its disadvantages but being small also brings some advantages. One can be more nimble and seize opportunities more quickly. It is important for companies to be alert to what the market wants and to evolve with it. This requires not just effort, but also smarter approaches. The work plan presentation and speeches highlighted the development of creative industries and other aspects of future development. Lifestyle changes open new business opportunities. Places with a long history like China have plenty of cultural assets. If one can find a way to package this for the global consumer, it will open up huge opportunities.

13. This is a dynamic process. Governments will be cheerleaders but enterprises must smell opportunities and seize them. We can cheer companies on, remove obstacles to their growth where applicable, formulate effective, cost-benefit programs to help them grow.

14. For example, in science and technology, we can cooperate to help potential small giants seize opportunities. I am inspired by companies like Apple, which have the largest market capitalisation. Apple is based on ideas and being able to smell out what people

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want. As users of iPhones and iPads, we know how user-friendly these devices are and what users want. This is how companies can seize opportunities and make big money.

Talent Development 15. The second area we should work on is talent development. Tianjin is shifting from an industrial to a knowledge-based economy. It is critical to maintain your competitive edge in manufacturing, while developing new advantages in high-tech industries and modern services.

16. Singapore will be happy to share our experience, for example in tertiary education and technical training. There is also scope for collaboration in talent development among our government agencies, training institutions and enterprises. Our mode of collaboration can begin as young as possible. There are already ongoing student exchanges between Tianjin and Singapore which is good for both sides. There can be more student, teacher and even parent exchanges to open their minds to see how the world has changed. Closing

17. In closing, let me thank the Tianjin government for supporting our Singapore companies operating here. This is my first council meeting in Tianjin and I am struck by the intensity of cooperation and the high level of friendship among the Council Members and the secretariat.. At the end of the day, this is really about friendship. Beyond making money, this is about making new friends and renewing old friendships. We are one big family. From collaboration in food, like Goubuli Restaurant, to joint ventures, our friendship must underline our strategic purpose of the council. This is how governments can evolve and collaboration between people to people can ensure global progress, peace and prosperity for all. Thank you.

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ANNEX 2

PROJECT SIGNINGS AT THE 5th STETC MEETING, 21 SEPTEMBER 2012

1) Agreement signing between Sino-Singapore Tianjin Eco-City Investment and Development Co., Ltd. (SSTEC) and Century Water Systems and Technologies Pte Ltd

Under this agreement, Century Water, a Singapore and advanced water treatment engineering firm, will establish its regional headquarters in the Eco-Business Park in the first quarter of 2013. The ultra-pure water treatment and waste water purification systems and technologies specialist will leverage Tianjin Eco-City as its strategic base for regional marketing and sales activities in Tianjin and Northern China. The agreement was signed by Mr Eugene Liu, Managing Director of Century Water (新加坡森特瑞水系统技术有限公司执行董事，刘军先生) and Mr Ho Tong Yen, CEO of Sino-Singapore Tianjin Eco-City Investment and Development Co., Ltd (新加坡森特瑞水系统技术有限公司总裁, 何东雁先生).

2) Cooperation Agreement signing between Sino-Singapore Tianjin Eco-City Administrative Committee (SSTEC) and Siemens Limited China (SLC)

Under this agreement, SSTEC and SLC will be setting up a joint venture company in the Tianjin Eco-City (named Siemens Eco-City Innovation Technologies (Tianjin) Co., Ltd,) for R&D and test-bedding of innovative sustainable urban solutions. This is part of the Eco-City‟s efforts to attract world class high technology companies to utilise the Eco-City as their base and platform for developing solutions that are applicable and replicable to other parts of China and beyond. In support of this investment, the Eco-City Administrative Committee (ECAC) would be signing a Cooperation Agreement with Siemens offering various levels of incentives and subsidies to assist its operations get off to a quick, successful start. The agreement was signed by Mr Yang Zhize, Vice Chairman of Sino-Singapore Tianjin Eco-City Administrative Committee (中新天津生态城管理委员会副主任, 杨志泽先生) and Dr Arding Hsu, Senior Vice President of Siemens Limited China and Head of Corporate Technology China (西门子（中国）有限公司 高级副总裁, 西门子中国研 究院 院长,徐亚丁博士).

3) Agreement signing between bYSI and Yangguang Group

Under the agreement, bYSI will set up its first store in Tianjin by the end of 2012. The agreement was signed by Mr Tan Yew Kiat, CEO of bYSI (bYSI 总经理, 陈友杰 先生) and Mr Li Rui, Assistant President of Yangguang Group (阳光新业地产股分 有限公司助理总裁兼北京瑞京阳光商业管理有限公司总经理, 李睿先生).

4) MOU signing between Ivy Group and Tianjin Haihe River Construction Development & Investment Co. Ltd

Under the agreement, the companies will carry out a strategic partnership on kindergarten programmes in Liulin Steel City Center. The agreement was signed by Mr Jack Hsu, Chief Executive Officer of Ivy Group (艾毅教育机构总裁, 许尚杰先生)

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and Mr Han Guanhua, General Manager of Tianjin Haihe River Construction Development & Investment Co. Ltd (天津市海河建设发展投资有限公司总经理, 韩冠 华先生).

5) MOU signing between Ivy Group and Overseas Chinese Town (OCT)

Under the agreement, the companies will cooperate to introduce kindergarten programmes and open the first OCT Tianjin Ivy Multiple Intelligences (MI) Kindergarten in September 2013. The agreement was signed by Mr Jack Hsu, Chief Executive Officer of Ivy Group (艾毅教育机构总裁, 许尚杰先生) and Mr Feng Liu, Deputy General Manager of OCT Tianjin (天津华侨城实业有限公司副总经理, 刘 峰先生).

6) Agreement signing between Ma Kuang Healthcare Group and Tianjin Binhai New Area Health Bureau

Under this agreement, Ma Kuang Healthcare Group will coordinate with the Public Health Bureau of Tianjin Binhai New Area to invest and set-up a chain of medical clinics in Xin Jia Yuan community, providing various medical services. The agreement was signed by Mr Huang Chuan Sheng, Managing Director of Makuang Healthcare Group ( 马光医疗投资管理公司总经理 , 黄 传 胜先 生 ) and Mr Yin Zhanchun, Chief of Tianjin Binhai New Area Health Bureau (天津市滨海新区卫生局 局长, 尹占春先生).

7) MOU signing between Singapore Exchange Securities Trading Limited (SGX) and State-owned Assets Supervision and Administration Commission of the Tianjin Municipal Government (SASAC)

Under the MOU, the State-owned Assets Supervision and Administration Commission of the Tianjin Municipal Government and SGX will cooperate to develop communication channels and foster ties in areas including information exchange and the listing of Tianjin State-owned enterprises on SGX. The agreement was signed by Ms Christine Lie, Chief Representative, Singapore Exchange Beijing Representative Office (新加坡证券交易有限公司北京代表处首席 代表，李晞禔女士) and Mr Li Qingyun, Vice Chairman, Tianjin SASAC Party Committee Member (天津市人民政府国有资产监督管理委员会市国资委副主任、市 国资委党委委员, 李庆云先生).

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ANNEX 3 CHINESE TERMS

Singapore-Tianjin Economic & Trade Council 新加坡-天津经济贸易理事会 (STETC) International Enterprise (IE) Singapore 新加坡国际企业发展局 (简称：企发局) Mr Khaw Boon Wan 许文远先生 Minister for National Development 新加坡国家发展部长 Singapore

Co-Chairman 联合主席 Singapore-Tianjin Economic & Trade Council 新加坡-天津经济贸易理事会 Mr Huang Xingguo 黄兴国先生 Tianjin Mayor 天津市市长

Co-Chairman Singapore-Tianjin Economic & Trade Council 联合主席 新加坡-天津经济贸易理事会 Mr He Lifeng 何立峰先生 Tianjin Deputy Party Secretary 天津市委副书记

Vice Chairman 副主席 Singapore-Tianjin Economic & Trade Council 新加坡-天津经济贸易理事会 Mr Ren Xuefeng 任学锋先生 Tianjin Vice Mayor 天津市副市长

Vice Chairman Singapore-Tianjin Economic & Trade Council 副主席 新加坡-天津经济贸易理事会

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