Small and medium enterprises in Singapore are increasing their presence in the services sector of Tianjin, a city in northern China.

As Tianjin develops, its economy will grow more services-oriented, Minister of National Development Khaw Boon Wan told a bilateral meeting on Wednesday at the Shangri-la Hotel.

He said at the sixth Singapore-Tianjin economic and trade council meeting that Singapore firms can share their expertise in areas such as retail, healthcare and business services.

One local firm that has made inroads is food manufacturer Tee Yih Jia, which on Wednesday signed a Memorandum of Understanding with Tianjin bun maker Goubuli Group to distribute their buns across the Asia Pacific region.

Singapore companies have inked contracts worth a combined US$789 million in 22 projects in Tianjin in the first eight months of this year, according to the Tianjin Commission of Commerce.

Over 80 per cent of those projects were in the services sector.