MEDIA RELEASE

More trade and connectivity opportunities for Singapore companies in province Modern services and sustainable development are also key areas of interests

MR No.: 067/19 Singapore, Thursday, 31 October 2019

1. Singapore companies are pursuing more opportunities in trade and connectivity, modern services and sustainable development in Shandong. These areas of collaboration were discussed at the 21st Singapore-Shandong Business Council (SSBC) meeting in Singapore today, co-chaired by Mr Chee Hong Tat, Senior Minister of State for Trade & Industry and Education, and Ms Ren Airong, Shandong Vice Governor. Mr Chee and Ms Ren witnessed 12 project signings at the meeting.

2. Said Mr Chee, “Shandong is transforming its economy and encouraging its businesses to internationalise. This creates opportunities for Singapore companies in trade and connectivity. We can also partner Shandong companies as they look to expand into Southeast Asia, using Singapore as a regional hub.”

Exploring more trade and connectivity opportunities in Shandong

3. In the first half of 2019, bilateral trade between Singapore and Shandong grew 3.9% to reach RMB7.28 billion 1 . There is potential to strengthen the two-way trade linkages between Singapore and Shandong.

4. One potential growth area is the trading of food products. Shandong is the leading agricultural province in , and the top exporter of agricultural produce to Singapore among the Chinese provinces. Key products exported to Singapore include apples, pears and Chinese cabbages. There is opportunity for Singapore traders and distributors to import a wider range of produce from Shandong that are in demand in Singapore,

1 Source: Shandong Department of Commerce.

especially premium fruits and vegetables such as cherries and black garlics. For example, Singapore company Siji Trading is collaborating with NTUC Fairprice to promote Shandong fruits and vegetables in their outlets.

5. At the same time, there are more opportunities for Singapore logistics companies to offer end-to-end services to facilitate trade flows. Earlier this year, GSH Corporation Limited entered a joint venture with a company to set up the Qingdao Timi Supply Chain Co. to handle frozen meat trading and supply chain financing.

Modern services and sustainable development remain key areas of collaboration

6. Shandong enterprises looking to expand overseas can tap Singapore’s network of professional services. One way they can do so is through the business services platform, which will include interested Singapore companies such as OCBC, UOB, Rajah & Tann and SGX. This platform, projected to launch in the first half of 2020, is a result of the collaboration between Enterprise Singapore and the Qingdao Bureau of Commerce. The interested companies will offer expertise in financing, listing and legal advisory to support Shandong enterprises’ overseas expansion into Southeast Asia.

7. Singapore companies can also partner Shandong in sustainable development, as the province steers its traditional industries such as oil & gas towards more environmentally sustainable practices. These include water and waste management, optimisation of energy utilities and the upgrading efforts of refineries to improve operational efficiency and quality of products. For example, Singapore Vac-Tech Engineering is partnering ’s oilfield services company, Jereh Group, to customise an advanced tank cleaning solution to achieve greater efficiency. The solution is currently undergoing test-bedding on Singapore’s Jurong Island, and will potentially be deployed in Shandong and other markets.

Strengthening cooperation with Qingdao

8. Accounting for 16% of Shandong’s GDP in 2018, Qingdao city is a key logistics and business hub in the region. To step up collaboration between the two cities, Enterprise Singapore signed a Memoranda of Understanding (MOU) with the Qingdao Municipal People’s Government to work on partnerships in five strategic areas – innovation, connectivity, modern services, food and sustainable development. To raise awareness about Qingdao’s product offerings and promote trade, Enterprise Singapore

Page 2 of 13

and the Qingdao Municipal People’s Government are supporting the Qingdao Bureau of Commerce to organise an inaugural Qingdao Festival in Singapore. Happening from 31 October to 1 November at Clifford Square, the Festival will feature products from about 15 Qingdao companies, including Laoshan mineral water from Qingdao Beverages Group, Qingdao Beer and smart household appliances by Haier.

9. Over 180 Singapore and Shandong government and business representatives attended the council meeting today. After the meeting, Mr Chee and Vice Governor Ren will officiate the opening of the Qingdao Festival. Vice Governor Ren is currently in Singapore on a four-day business mission with more than 90 officials and company representatives from Shandong.

Annex 1: List of project signings at the 21st SSBC meeting Annex 2: Speech by SMS Chee Hong Tat at the 21st SSBC meeting Annex 3: Background on Shandong and Singapore-Shandong economic relations

-End-

For media enquiries and/or photos, please contact:

Ms Karen KOH Business Partner Corporate Communications DID : +65 6279 3628 Mobile : +65 9889 8816 Email : [email protected]

About Enterprise Singapore

Enterprise Singapore is the government agency championing enterprise development. We work with committed companies to build capabilities, innovate and internationalise.

We also support the growth of Singapore as a hub for global trading and startups, and build trust in Singapore’s products and services through quality and standards.

Visit www.enterprisesg.gov.sg for more information.

Page 3 of 13

About Singapore–Shandong Business Council (SSBC)

The Singapore-Shandong Business Council (SSBC) is the first bilateral business council formed between Singapore and a Chinese Province. Inaugurated in November 1993, the Council aims to promote economic exchanges and cooperation between Singapore and Shandong Province. Mr Chee Hong Tat, Senior Minister of State (SMS) for Trade & Industry and Education and Shandong Vice Governor Ren Airong, are the Co-Chairmen of the Council.

Comprising leaders, government officials and private sector representatives from Singapore and Shandong, the Council shall endeavour to achieve its objectives through the following means:

a. exchange of economic data and information, and familiarise each other on the respective economic policies; b. promote, guide and assist in bilateral trade and investment; c. organise exchange activities between Singapore and Shandong to expand cooperation in various areas / sectors; d. resolve difficulties encountered in collaborative projects, establishing an excellent cooperation merchandise and an environment conducive for cooperation; e. other forms of work that both parties think are beneficial for economic and social development

Page 4 of 13

ANNEX 1

List of project signings at the 21st SSBC meeting

S/N Project Description

1 Enterprise Singapore – Qingdao Municipal Government MOU to facilitate partnerships between Singapore and Qingdao enterprises in 5 key strategic areas – innovation, connectivity, modern services, food and sustainability

2 Add In Technologies Pte Ltd – Qingdao Yimu Group Co. Ltd Partnership to set up businesses in China and ASEAN markets, focusing on areas including interior design, decoration, engineering, cross-border e-commerce, furniture and home furnishing

3 Bamboo System Technology Pte Ltd – Qingdao Weidong Education Cloud Ltd Collaboration to develop an online training platform for driving, targeted at driving school students and people working in the transport industry

4 ST Electronics Pte Ltd – Qingdao Weidong Education Cloud Ltd Partnership to develop a new system that will be mainly used for transportation in the Oil & Gas and electricity industries. The system will incorporate the use of advanced technology such as Artificial Intelligence to improve operational efficiency

5 Tyrone Enterprise Pte Ltd – Qingdao Beverage Group Limited Joint investment in a manufacturing facility with the aim to increase the presence of Laoshan mineral water in Southeast Asia region

6 Mapletree Huaxin Management Consultancy Co Ltd – Prior Zone for Replacing Old Growth Drivers with New Ones Partnership to build central kitchen and warehouses targeting sectors in need of cold chain and urban logistics

7 Nanyang Technological University – Shandong University – Shanda Dareway Software Co Ltd – Jinan Zhangqiu Government Agreement to embark on a partnership programme to: a. Research and develop technologies for the healthcare sector; b. Build a service platform for elderly care, rehabilitation and medical care; and c. Facilitate exchanges and training of talents.

8 The Place Holdings Ltd – Jinan Prior Zone for Replacing Old Growth Drivers with New Ones – The International University Innovation Alliance – Guoran Capital Cooperation to set up a cross-border fund to acquire and invest in emerging strategic sectors such as advanced manufacturing, education and healthcare

9 CITIC Envirotech Ltd – Yantai Government MOU for Singapore CITIC to participate in the expansion works of a wastewater treatment plant in Muping District

Page 5 of 13

10 Nanyang Technological University – Shandong Commercial Group Co., Ltd Collaboration to set up an executive training programme in areas such as smart city, enterprise management, retail, culture and tourism

11 ChemOne Holdings Pte Ltd – Huatai Group Co., Ltd Collaboration to construct a world scale PTA production facility. The PTA produced at the plant will be supplied to the regional polyester producers

12 Nanyang Technological University - Shandong Sport University - Peony Group A joint project to build international e-sports partnership, nurture e-sports talents and develop the e-sports value chain and ecosystem

Page 6 of 13

ANNEX 2

SPEECH FOR MR CHEE HONG TAT, SENIOR MINISTER OF STATE FOR TRADE & INDUSTRY AND EDUCATION, AT THE SINGAPORE-SHANDONG BUSINESS COUNCIL MEETING ON THURSDAY, 31 OCT 2019, 10.05AM, AT SHANGRI-LA HOTEL SINGAPORE

Vice Governor Ren Airong, Distinguished Council Members, Ladies and Gentlemen, Good morning.

1. It is my pleasure to co-chair the 21st Singapore-Shandong Business Council (SSBC) meeting with Shandong Vice Governor Ms Ren Airong ( 任爱荣). On behalf of the Singapore Council members, I would like to extend our warmest welcome to Vice Governor Ren and her delegation to Singapore. I would also like to thank representatives from Singapore companies and government agencies for their presence here this morning.

2. Singapore and China enjoy a deep and growing partnership. At the Joint Council for Bilateral Cooperation (JCBC) meeting held earlier this month in , Singapore’s Deputy Prime Minister Heng Swee Keat and Chinese Vice Premier Han Zheng reaffirmed our strong ties.

o Over the years, our two countries have embarked on three Government-to- Government projects, namely, the China-Singapore Industrial Park, the Sino- Singapore Eco-City and the China-Singapore (Chongqing) Connectivity Initiative. o Since 2013, China has been Singapore’s largest trading partner, while Singapore has been China’s largest foreign investor for six consecutive years. o Singapore and China will commemorate our 30th anniversary of diplomatic relations next year. As we embark on our next phase of development, our collaborations will continue to progress with the times and scale new peaks.

Key Message 1: Singapore and Shandong have enjoyed a long and fruitful economic partnership. Amid the rise of protectionism today, it is important for like-minded partners to foster closer ties.

3. Our strong bilateral relationship is underpinned by collaborations between Singapore and key Chinese provinces like Shandong. We established the first provincial business council with Shandong in 1993, and our economic relationship has grown from strength to strength over the last 26 years.

4. During the 20th SSBC meeting last year, Vice Governor Ren and I agreed to focus on three key thrusts:

Page 7 of 13

(a) support Singapore companies to participate in Shandong’s economic transformation; (b) promote the internationalisation of Shandong enterprises through Singapore, including companies who want to enter Southeast Asia using Singapore as a regional hub; and (c) strengthen people-to-people exchanges.

5. Many Singapore companies have established their presence in Shandong, ranging from infrastructure companies like CapitaLand and Mapletree to logistics players like Jurong Port, PIL and YCH Group. As of first half 2019, Singapore’s cumulative investment in Shandong has reached almost RMB 80 billion and accounts for more than 1,500 projects.2

6. A growing number of Qingdao enterprises like Haier （海尔）and Qingjian Group（青建 集团） have also set up offices and anchored their regional bases in Singapore. Nanyang Technological University and Shandong University also started research and development collaborations last year.

7. These exchanges reflect Singapore and Shandong’s active and productive collaboration. Against the current global economic environment, we need to reaffirm our commitment to global trade, and demonstrate how like-minded partners can work together to achieve win- win outcomes.

Key Message 2: Singapore and Shandong will focus on facilitating economic collaboration in three key areas: namely (i) Connectivity and Trade, (ii) Modern Services and (iii) Sustainable Development. Singapore will strengthen the two-way trade linkages to help boost trade flow between Shandong and Singapore, as well as between the two regions of North China and Southeast Asia.

8. As our economies continue to transform, our Council’s work must also evolve in tandem with the development priorities.

9. We will focus our efforts in three key areas. They are:

(i) Connectivity and Trade; (ii) Modern Services; and (iii) Sustainable Development.

Connectivity and Trade

10. First, we are looking to strengthen the two-way trade linkages between Shandong and Singapore, and between the two regions of North China and Southeast Asia.

11. Our bilateral trade was RMB 7.28 billion in the first half of 2019, a growth of 3.9% over the same period last year. At the courtesy call earlier, Vice-Governor Ren shared with me that

2 Source: Shandong Department of Commerce

Page 8 of 13

the growth rate in our bilateral trade from January to September is even higher. There is potential to promote trade in more areas such as food products.

12. Shandong is China’s leading agricultural province. In fact, Shandong currently ranks first among all Chinese provinces in terms of exporting agricultural produce to Singapore. However, the exports are currently largely focused on produce such as apples, pears and Chinese cabbages. There is opportunity to diversify the range of exported produce from Shandong, including premium fruits and vegetables like cherries and black garlic.

13. We are encouraging Singapore traders and distributors to explore Shandong as a potential source market for higher value produce. For example, a Singapore trader, Siji Trading (四 季贸易), is in partnership with NTUC Fairprice, one of our largest supermarket chain, to run promotional activities for Shandong fruits and vegetables in NTUC stores island-wide. Siji Trading is also exploring opportunities for unique products from Shandong like hawthorn berry（山楂）and winter jujube (冬枣) in other overseas markets.

14. We are also putting in place the infrastructure to facilitate trade flow. A number of Singapore’s logistics companies are already in Shandong. For example,

o YCH Group is setting up a logistics park in Qingdao; o Mapletree Logistics has ongoing projects in Jinan, Qingdao and Yantai; o Jurong Port has been in for years, and recently did an IPO together with its Rizhao partners; o Most recently, GSH has entered into a joint venture with a Qingdao company and formed Qingdao Timi3 (青岛提米供应链) in February this year to handle frozen meat trading and supply chain financing.

15. As we continue to support Shandong’s development in connectivity, we will also look at fostering partnerships among Singapore companies with complementary logistics and warehousing capabilities, to provide end-to-end support in Shandong.

16. Such connectivity projects will complement Shandong’s economic transformation. China recently announced the formation of six new Free Trade Zones (FTZ) and Shandong is one of these locations. I understand that there will be a sharing on the Shandong FTZ during today’s SSBC meeting, and I look forward to an active discussion on how more Singapore companies can explore business opportunities arising from the development of the Shandong FTZ.

Modern Services

17. Second, we will strengthen our existing collaboration in business services, legal and financial services. This will support companies from Singapore and Shandong to expand into each other’s markets. In the case of Singapore, we can also serve as an innovation

3 Qingdao Timi commenced operations in June 2019; GSH owns 51% of the joint venture. Currently, Timi focuses on frozen meat trading and supply chain finance. Their source of imported meat is mainly from Denmark, Germany, Brazil and Chile.

Page 9 of 13

hub and a gateway to Southeast Asia for Shandong companies who are interested to invest in this region.

18. As a start, I am happy to share that Enterprise Singapore and the Qingdao Bureau of Commerce will be working with an alliance of Singapore companies - including OCBC, UOB, Rajah & Tann and SGX - to create a professional services platform. The platform will help participating companies reach out to Shandong companies that are looking to internationalise, and offer a holistic suite of support services ranging from financing, listing and legal advisory. The alliance is working to launch the platform by the first half of 2020. We are open to explore similar partnerships with other cities in Shandong.

Sustainable Development

19. Third, Shandong is transforming its traditional industries such as oil and gas. Sustainable development is a key priority in this transformation. o This is an area where many Singapore companies have experience and expertise to collaborate with Shandong. o One example is Singapore Vac-Tech Engineering’s partnership with Yantai’s oilfield services company, Jereh Group （杰瑞集团）, on advanced tank cleaning solution. Vac-Tech is customising Jereh’s tank cleaning technology to achieve greater efficiency. I understand that the solution is currently undergoing test bedding on Singapore’s Jurong Island, and will be deployed in Shandong and other markets when ready.

20. Besides oil and gas, we have been working with innovative Shandong companies like Haier to collaborate on sustainable development solutions.

o Last year, Haier set up its Singapore Innovation Centre. o Enterprise Singapore has introduced 12 Singapore companies to Haier. I am glad to note that three of the companies are now working with Haier to test-bed their solutions – including Century Water that specialises in nano-filtration, as well as BBP and Evercomm that provide energy optimisation solutions. o This year, Enterprise Singapore has on-boarded Haier as the first Chinese partner for the Singapore Week of Innovation and TeCHnology (SWITCH). Haier will launch innovation calls for solutions in areas such as sustainable new materials, resource efficiency and food freshness during the event.

21. We will be working closely with the Shandong government to facilitate more collaboration between Singapore companies and Shandong companies such as Haier and many others in the sustainable development and innovation space.

People-to-People Exchanges

22. Beyond economic linkages, we want to continue to grow people-to-people exchanges. At the SSBC in 2018, Singapore’s Nanyang Technological University (NTU) and Shandong University (SDU) signed a pact to explore opportunities in joint research and faculty exchange. I am happy to see that they have made progress on this collaboration.

Page 10 of 13

o First, the two universities will facilitate the training and exchange of about 50 students and postdoctoral fellows each year. They will focus on research and development in AI technologies for active health and aging. Ageing society is a common challenge for both Singapore and China, and technology and research can help us to find new tools and solutions to tackle this challenge. This may also spin off new commercial opportunities for our companies. o Next, NTU and Shandong University have operationalised this initiative by launching the SDU-NTU Centre for Artificial Intelligence Research (C-FAIR) in July 2019. The research outcomes will be test-bedded and incubated in both Singapore and Jinan.

23. There will be more opportunities for exchanges between Singapore and Shandong come 2020. Singapore’s Ministry of Education and China’s Ministry of Human Resources and Social Security signed an agreement for a Singapore-China Youth Interns Exchange Scheme at the recent JCBC on 15 Oct. This agreement targets to benefit 500 students from each country every year, by giving them opportunities to take up internship positions of up to 6 months in China and Singapore. The Youth Interns Exchange Scheme will be administered by Business China, under its Go East sub-committee which I chair. I look forward to students from Singapore and Shandong tapping on this scheme to build closer relationships and deepen our mutual understanding.

Key message 3: Singapore is stepping up collaboration with Qingdao, a key economic engine of Shandong. There is strong potential for companies on both sides to collaborate, in both Shandong and in Southeast Asia.

24. During my last visit to Shandong earlier this June, I met with the Qingdao Party Secretary Qingxian. We agreed to strengthen collaborations between Singapore and Qingdao.

o Qingdao is a centre for international businesses in North China, and is also home to many innovative enterprises that I mentioned earlier, such as Haier and Hisense. As of 2018, there are more than 3100 high-tech enterprises in Qingdao, and they have contributed more than 5% of the city’s GDP. o Qingdao is also a major logistics hub in North China. Qingdao Port is the eighth largest container port worldwide, and it is developing the new Jiaodong international Airport.

25. Singapore and Qingdao’s mutual strengths as business and logistics hubs make us natural partners. I am pleased to announce that Enterprise Singapore and the Qingdao Municipal People’s Government will be signing an Memorandum of Understanding to work together to encourage more Singapore and Qingdao enterprises to conduct business in both markets. Vice-Governor Ren and myself will be witnessing the MOU signing this morning.

26. To kick off this enhanced partnership, the Qingdao government has organised the first Qingdao Festival here in Singapore. The festival is happening right now at the Clifford Square near Marina Bay, and I encourage everyone to head down for a visit. I understand there are about 15 Qingdao companies including:

Page 11 of 13

o Qingdao Brewery (青岛啤酒), Qingdao Beverage Group (青岛饮料集团), and Qingdao Xiwowo Food (青岛喜我我食品) that specialises in steamed food products from North China. These companies will bring a slice of Qingdao’s food and culture to Singapore. o Innovation companies like Haier, Qingdao Bangyun New Energy (青岛邦运新能源) and Qingdao Kaineng Environmental Protection Technology (青岛凯能环保科) will also be showcasing their solutions.

Conclusion

27. In line with Jinan FTZ’s focus on tech and innovation, I understand that Jinan will also be holding a seminar this afternoon to share about their innovation ecosystem and solutions. Jinan is a major city in Shandong, and it also presents many business opportunities for our companies. Vice-Governor Ren and myself will be attending the seminar, to give our support for the event and to learn more about the opportunities in Jinan.

28. In conclusion, Singapore and Shandong have established strong relations under the SSBC over the years. We will build upon this strong foundation, and continue working to identify new peaks and scale them together. I would like to thank Vice Governor Ren for her support and all Council members for your participation and contributions at this meeting.

29. With that, I wish everyone good health, happiness and successful ventures. Thank you.

Page 12 of 13

ANNEX 3

Background on Shandong

● Shandong is the second most populous province in China with about 100 million people. ● In 2018, Shandong’s GDP grew 6.4% to reach RMB7.6 trillion4, which is the third largest GDP amongst provinces in China, after and . ● Shandong is also one of the largest consumer markets in mainland China. In 2018, retail sales increased by 8.8%. ● In 2018, Shandong’s total trade also increased by 7.7% to reach RMB1.93 trillion. Key exports include mechanical and electrical products, agricultural products, high tech products, textile, garments and tyres.

Background on Singapore-Shandong economic relations

● In 2018, bilateral trade between Singapore and Shandong reached RMB15.61 billion. In the first half of 2019, bilateral trade between Singapore and Shandong grew 3.9% to reach about RMB7.28 billion5 ● There are over 1,500 Singapore projects in the province, with cumulative actual investments of RMB79.8 billion as of the first half of 20196. ● In 2018, Singapore is Shandong’s fourth largest foreign investor country, after South Korea, the United States and Germany. Singapore’s investments in Shandong cover various sectors, including manufacturing, wholesale and retail, transport, logistics and real estate.

4 Source: Shandong Department of Commerce 5 Source: Shandong Department of Commerce 6 Source: Shandong Department of Commerce

Page 13 of 13