Singapore, Sichuan companies sign 6 MOUs as bilateral trade hits record US$2.7 billion in 2022

SINGAPORE – Singapore and Sichuan companies signed six new memorandums of understanding (MOUs) at a trade and investment meeting in Chengdu on Sunday. These collaborations signal Singapore companies’ continued interest in Sichuan, said Minister for Manpower and Second Minister for Trade and Industry Tan See Leng.

Dr Tan was speaking at the 23rd Singapore-Sichuan Trade and Investment Committee (SSTIC) meeting, which was attended by Sichuan Governor Huang Qiang, who is the Sichuan adviser for the SSTIC.

Dr Tan co-chaired the meeting alongside Sichuan Vice-Governor Yang Xingping. The minister noted the “strength and resilience of Singapore-Sichuan economic relations”. Bilateral trade reached an all-time high of US$2.7 billion (S$3.65 billion) in 2022, growing 38.9 per cent year on year.

With cumulative actual investments of about US$4.2 billion across 737 projects, Singapore was also Sichuan’s largest foreign investor last year.

Dr Tan said that “good progress” has also been made in the SSTIC’s three themes.

First, in trade and connectivity, Singapore and Sichuan companies continue to tap new opportunities. Apeiron Bioenergy, for example, signed an MOU with Longchang Yuanjuon on Sunday to process used cooking and waste oil into biodiesel products for export to Europe.

Second, on the innovation front, Dr Tan said that the Singapore-Sichuan Hi-Tech Innovation Park “remains an entry point for Singapore companies’ expansion into China”.

He highlighted the partnership between InnoVen Capital China and Ziyang Major Industry Equity Investment Fund, which has committed to supporting high-growth technology and healthcare start-ups, and developing relevant industry chains in Sichuan.

“Third, Singapore SMEs (small and medium-sized enterprises) are optimistic about the growing business opportunities in Sichuan, especially in Chengdu as it develops itself into an international consumption centre,” he said.

The Singapore Chinese Chamber of Commerce and Industry’s Sichuan Representative Office has agreed to work with the General Association of Sichuan Entrepreneurs in enabling more business exchanges by co-organising events, delegation visits and facilitating business matching.

Other MOUs signed on Sunday also sought collaboration on first-class vehicle inspection services in China; joint investment, construction and operation of energy solution services in the Wuhou district; and the building of an international smart transportation exchange centre in west China.

“Singapore and Sichuan can deepen and broaden our strategic cooperation further,” Dr Tan said.

This can be done in areas such as trade and connectivity, with Sichuan becoming an “influential trade and connectivity node”, leveraging its position as a major agricultural production base, trading hub and consumption centre to connect western China to regions such as South-east Asia and Central Asia.

The two can also support each other in sustainable development “to co-develop renewable energy sources and low-carbon solutions”, he added.

“Singapore can share its experience and strong capabilities in urban planning and renewal to support Sichuan’s plan to accelerate urbanisation and drive green transformation.”

He also noted Sichuan’s role as a key producer of clean energy in China, and Singapore’s as one of the world’s leading energy trading hubs.

Besides trade and connectivity and the green economy, Dr Tan also highlighted potential partnerships in the constantly evolving and rapidly growing digital economy, and emphasised the importance of people-to-people exchanges – which can be facilitated through youth exchange and internship programmes between Singapore and Sichuan.

“Singapore and Sichuan economic relations have grown from strength to strength over the years despite the pandemic,” said Dr Tan, noting the SSTIC’s importance in fostering closer economic collaborations.

The minister said he also discussed with the Sichuan leaders the importance of enhancing connectivity, especially air links, which “could help to boost further trade and people-to-people exchanges from both sides”, benefiting enterprises as well as individuals.

THE BUSINESS TIMES