Benefits to Singapore from Setting Up of Singapore-Shanghai Comprehensive Cooperation Council

The following question stood in the name of Mr Desmond Choo –

To ask the Minister for Trade and Industry (a) how has the Singapore-Shanghai Comprehensive Cooperation Council benefited Singapore since its inception; and (b) what are the plans to deepen ties between Singapore and Shanghai.

Mdm Deputy Speaker, Singapore and Shanghai share strong and close relations. The Singapore-Shanghai Comprehensive Cooperation Council (SSCCC) plays an important and valuable role in fostering and deepening the ties and engagement between Singapore and Shanghai, as well as the broader Yangtze River Delta (YRD) region.

Established in 2019, the SSCCC continues to enhance cooperation between Singapore and Shanghai. Thus far, 37 agreements have been signed to promote collaboration across the six areas of financial services, technology and innovation, urban governance, people-to-people exchanges, ease of doing business, and the Belt and Road Initiative.

Notable partnerships include the establishment of the Singapore-China YRD Joint Innovation Call, which has received over 50 project applications from Singapore companies embarking on joint innovation projects with partners in Shanghai and the greater YRD region. Through the SSCCC, Singapore entities such as DBS, Raffles Hospital as well as home design and lifestyle brand Commune have expanded operations in Shanghai, while agencies like the Ministry of Health, Singapore Tourism Board as well as National Gallery Singapore have established closer collaboration and exchanges with their Chinese counterparts.

Singapore and Shanghai continue to actively advance collaboration in new growth areas such as the digital economy and green development. For example, at the fourth SSCCC meeting held in Singapore last month, Singapore's Infocomm Media Development Authority (IMDA) and the Shanghai Municipal Economy and Informatization Commission signed a Memorandum of Understanding (MOU) to explore initiatives in digital connectivity, digital utilities and innovation. Singapore companies such as RSP Architects Planners & Engineers (Pte) Ltd and Amtronic will be leveraging the SSCCC platform to explore green building projects in Shanghai.

As key financial centres and logistics hubs, there are also opportunities for Singapore and Shanghai to further deepen cooperation in these sectors. In the area of financial services, Shanghai-headquartered UnionPay International is partnering with Singapore banks, such as DBS and OCBC Bank, to facilitate cross-border payments, which will allow their customers in Singapore to make UnionPay QR Code payments at over 40 million merchants globally. To enhance collaboration in the transport and logistics sector, the Maritime Port Authority of Singapore (MPA) and Shanghai Maritime University are facilitating more talent and knowledge exchanges in areas such as maritime port management.

These collaborations reflect the deepened bilateral relationship between Singapore and China towards an "all-rounded, high-quality and future-oriented partnership" announced during Prime Minister Lee's visit to China earlier last month.

Mdm Deputy Speaker, on behalf of the hon Member Mr Desmond Choo, who is away on official business, may I ask the hon Minister of State how would the SSCCC benefit small- and medium-sized enterprises (SMEs) and Singaporeans, in relation to the areas for which MOUs have been signed, particularly the finance, digital and green economies?

Mdm Deputy Speaker, I want to thank the Member Mr Murali Pillai for asking the question on behalf of the Member Mr Desmond Choo. I think there are two parts to the question: how can SMEs and the people benefit from the SSCCC, as well as, I think, he asked for a bit more insight in three areas.

Allow me to share some trade numbers. I want to assure the Member that Singapore and Shanghai share strong economic relations that have continued to grow despite the COVID-19 pandemic. For example, last year, in 2022, total trade between Singapore and Shanghai increased 8% year-on-year to RMB100 billion. Exports from Shanghai to Singapore increased by about 20% year-on-year to about RMB53 billion. In terms of investment, Singapore was Shanghai's largest foreign investor last year, while Shanghai is Singapore's second largest investment destination in the People's Republic of China (PRC) as of end 2021.

Based on our interactions with the SMEs in Singapore, through the Ministry of Trade and Industry platform as well as the Enterprise Singapore platform, Singapore SMEs and companies see Shanghai as a very attractive investment destination and the key port of call – in fact, the first port of call – to expand their operations in PRC. As of end last year, there were more than 6,000 Singapore projects in Shanghai in sectors, such as real estate, financial services, manufacturing, lifestyle and the consumer sector.

I want to assure the Member that since the SSCCC was set up four years ago, and out of the past four years, for three years we were mired in the COVID-19 pandemic. And despite that, we managed to facilitate the inking of 37 agreements.

Certainly, the SSCCC has encouraged and contributed to the growth of business ties, and opportunities between Singapore and Shanghai; and certainly, generating economic spin-offs for our SMEs.

In the three areas that he asked about – and I touched on these in my original reply – allow me to share a little bit more insight. In financial services, for example, the SSCCC platform has improved market connectivity and business opportunities, as well as facilitated the expansion of Singapore and Shanghai's financial institutions in our respective market. A quick example, in 2021, even during the COVID-19 pandemic, the first Singapore-China Securities Joint Venture company was set up, which then saw DBS underwriting and trading onshore securities products. Singapore is now home to Shanghai-headquartered firms, such as Guotai Junan Futures, Bank of China Investment Management and, more recently, Green Link Digital Bank.

The Member asked about the new areas in the digital economy and the green economy. To grow our digital economy, the MOU between IMDA and Shanghai Municipal Economy and Informatization Commission will promote cross-border data flow, as well as paperless trade, which is a very significant milestone.

In the area of green finance, where Singapore and Shanghai have very complementary interests, we will certainly continue to foster more opportunities for partnership. For example, I shared at the recent SSCCC platform which was held in Singapore that Singapore's Marketnode, a digital market infrastructure operator, is collaborating with Fudan University and China Chengxin Credit Rating Group to set up a green bond platform.

So, I want to assure the Member that both Singapore and Shanghai are very committed to working closely together, leveraging the SSCCC platform to identify more opportunities to deepen our collaboration, generating economic spin-offs for our SMEs and Singaporeans.