Singapore can play an important role in enhancing both physical and digital connectivity between Asean economies and China by opening up access and facilitating trade, said Trade and Industry Minister Gan Kim Yong yesterday.
Speaking at the FutureChina Global Forum, he cited the China-Singapore Chongqing Connectivity Initiative (CCI) as crucial in facilitating the continuous flow of essentials such as food and medical supplies amid the pandemic.
The CCI is Singapore's third government-to-government project with China, after the Suzhou Industrial Park and Tianjin Eco-City.
Mr Gan noted that under the CCI, a rail link, the New International Land-Sea Trade Corridor (ILSTC), "has catalysed trade and economic growth by reducing the time needed to transport goods between regions from three weeks to just one week".
"Despite disruptions caused by the pandemic, the CCI-ILSTC witnessed a 30 per cent year-on-year increase in cargo flows in 2020."
Increased connectivity and opportunities will help to drive economic recovery in the region, in a post-Covid-19 world where digitalisation will play a bigger role, said Mr Gan.
Singapore, he said, aims to bolster local companies' capabilities and competitiveness in Industry 4.0 supply chains that focus on automation and smart technology.
The Government has also been working with industry partners to develop a common data infrastructure to address inefficiencies in the current supply chain ecosystem, by reducing dependence on physical documents and facilitating secure data exchanges.
Similar opportunities to strengthen digital trade with China include an electronic data exchange system under the China-Singapore Free Trade Agreement upgrade signed in 2018.
The Asean Single Window platform, which expedites Customs clearance between its members, could also be linked with partners like China, said Mr Gan.
He described Beijing's participation in the World Trade Organisation's Joint Statement Initiative for E-Commerce as a positive step in developing global digital trade rules.
He noted that last year, trade volume between the 10 Asean countries and China had risen by 7 per cent to US$730 billion (S$986 billion).
Last year was also when Asean rose to become China's largest trading partner for the first time. China has been Asean's largest trading partner for 12 years in a row.
Singapore and the South-east Asian countries are also well positioned to facilitate the flow of goods, financing and investments between China and the rest of the world, Mr Gan said.
"As companies look to reorganise their global supply chains post-Covid-19, South-east Asia can be an attractive choice for companies considering a 'China Plus' strategy."
Justin Ong
