Yahoo Finance Singapore takes 'long-term' view of China ties, hopes to 'value-add' as China's economy grows: Chan Chun Sing
“In any long-term trajectory, there will be ups and downs, whether it is bilaterally or in China’s growth.”
Singapore takes a long-term perspective to its relationship with China and its trajectory, says Minister for Education Chan Chun Sing. “In any long-term trajectory, there will be ups and downs, whether it is bilaterally or in China’s growth.”
Speaking on Jan 22 at an event organised by the Singapore Institute of International Affairs (SIIA), Chan notes “a certain natural momentum” given the size of China’s population and its economy.
“When the Chinese say that they are growing at 4% to 5%, people think that is a disaster. Yes, there are obvious challenges for the Chinese economy, because there’s a large number of young people coming through the system that need to find work, housing and so forth. But on the other hand, 4% to 5% growth for such a big economy is still quite respectable.”
Chan visited China in September 2023, where he co-chaired the 9th Singapore-China Forum on Leadership with Li Ganjie, Organisation Department Minister of the Communist Party of China.
There, Chan and Li affirmed the “longstanding and multifaceted relationship” between Singapore and China, which was upgraded to an “all-round high-quality future-oriented partnership”, according to a Sept 13 statement.
There is still “tremendous potential” in the Chinese economy, adds Chan, who served as Minister for Trade and Industry between 2018 and 2021. “We will see beyond the here and now and ask ourselves that in the next phase of China’s development, how can Singapore be a value-add, [a] partner to the relationship? That has always been the stance that we have taken over all these years.”
Chan cites examples of Singapore’s support through the decades. At the start of the 1990s, Singapore took a “long-term view” that it was in the region’s interests for China to be integrated with the global economy. “We were one of the few initially to support China’s entry into the WTO.”
In the 2000s, as the Chinese was evolving fast, Singapore worked on the next government to government (G2G) project — the Sino-Singapore Tianjin Eco-city. “At that point in time, maybe the word sustainability wasn’t as fashionable as it is now. But we took a long-term perspective,” says Chan.
In the 2010s, Singapore worked with the Chinese on the third G2G project — the China-Singapore (Chongqing) Connectivity Initiative (CCI). “How do you connect the western part of China, which is relatively less well-connected than the coastal provinces, in terms of logistics, data and finance, so that you can unleash the potential of western China?” says Chan.
Singapore wants to always stay close to the ground, to understand the perspective of the Chinese and see how the Republic can “value-add” in China’s next phase, adds Chan.
“The Chinese have obviously reached a stage of their development where many of their enterprises would like to go beyond China. That is natural… just by sheer momentum of where they need to find growth [and] diversify their portfolio. There are many opportunities for us to work together with them.”
Away from the coastal provinces, some areas in China are still relatively less developed. Chan sees opportunities here. “This is why I’ve always encouraged Singaporean enterprises and Singaporean students to go beyond the well-trodden part of the first-tier cities.”
Chan hopes Singapore can work with China on its evolving wealth management space. “The Chinese financial system is going into the next phase of development; there will be challenges, but equally, there will be opportunities for us to see how we can work with each other.”
Photo: Jovi Ho/The Edge Singapore, SIIA
Read Minister Chan’s other comments from the Jan 22 event:
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