Progress of Chongqing Connectivity Initiative Project

Mr Speaker, Sir, Singapore and China enjoy strong and substantive ties and our multi-faceted cooperation have continued to evolve with the times, deepening and broadening over the years. The China-Singapore (Chongqing) Demonstrative Initiative on Strategic Connectivity (CCI) is a long-term Government-to-Government (G-to-G) effort that serves as a key priority demonstration project associated with China's Belt and Road Initiative. Launched in November 2015, it has made good progress in catalysing the economic development of western China and Southeast Asia by enhancing connectivity in the areas of financial services, aviation, transport and logistics and information and communications technology (ICT).

Under the CCI Financial Services Pillar, cross-border financing deals totalling RMB 25.3 billion, or around S$5.2 billion, have been completed to date, providing Chongqing corporates with more financing options and raising their international profile. Aviation connectivity has also grown significantly, from five flights to 14 flights per week between Singapore and Chongqing.

The CCI-Southern Transport Corridor (CCI-STC) project was established under the CCI in 2017. The corridor aims to link Chongqing to Qinzhou or Beibu Gulf, Guangxi, in the south by rail and from Qinzhou to Singapore and beyond by sea, thereby enhancing multi-modal connectivity between western China, Southeast Asia and to the rest of the world. The CCI-STC has been referred to by China’s President Xi Jinping as the international land and sea trade corridor or 国际陆海贸易新通道 that connects the overland Silk Road Economic Belt with the 21st Century Maritime Silk Road.

For example, the CCI-STC will significantly reduce the amount of time needed to transport goods between Chongqing and Singapore to about a week. This is a third of today’s alternative routes and will result in savings in logistics costs. Since December 2017, three block train services have been commissioned between Chongqing and Guangxi per week. As volumes grow, this is expected to become a daily service. Singapore’s port operator, PSA, and home-grown shipping line Pacific International Line (PIL) are also working to create more seamless rail-sea connectivity that will also help Singapore’s transshipment flows and services, for trade between western China and Southeast Asia.

Mr Speaker, Sir, as opposed to the earlier G-to-G projects which had geographical boundaries, the CCI’s emphasis is on building networks. The CCI-STC is an open platform and I am glad that Chongqing’s neighbours Guangxi, Guizhou and Gansu have all come on board to jointly develop this trade corridor. We will continue to work with our Chinese counterparts, especially MOFCOM and the Chongqing leadership to engage more provinces in western China to expand this network.

Improved connectivity between regions enables companies from both sides to export and import goods more efficiently to and from Southeast Asia and other parts of the world. As cross-border trade activities increase, demand for related services like finance, legal and other professional services will also increase. These, in turn, create more opportunities for our businesses and our people. For instance, Moneymax Financial Services and AP Oil International have launched a suite of financial leasing services. WiseNet Asia has also entered Chongqing to provide HR recruitment services. I am glad to note that a Singapore agri-tech startup, SmartAHC, has also developed solutions for deployment in Chongqing.

Through the CCI, we hope to improve the overall business environment in western China. Companies from both sides can look forward to expanding their presence into western China and Southeast Asia. International Enterprise Singapore, together with trade associations and chambers, such as the Singapore Business Federation and the Singapore Chinese Chamber of Commerce and Industry (SCCCI), have actively engaged our companies, from MNCs to SMEs, to explore opportunities in western China. SCCCI has recently set up a representative office in Chongqing to serve Singapore businesses in Chongqing. We have seen keen interest in sectors like healthcare, tourism, eldercare and food and beverages. I hope that more companies will use the CCI platform to venture into western China.

I thank the Minister for the reply. I would like to enquire whether the pace of development of the CCI project is coming along as planned, given senior leadership changes at the Mayor's level on the Chinese side; and, secondly, what has been the feedback from our Singapore business community for pursuing projects in Chongqing. For instance, has local Chinese government support been forthcoming?

Mr Speaker, Sir, the answer to the first supplementary question is, yes, we are on track. The answer to the second question is, yes, we have been getting support from the local Chongqing authorities, including the neighbouring provinces that have joined the CCI-STC recently. We are also working closely with the central authorities, especially MOFCOM, to bring in more partners.