Singapore companies eager to tap into BRI

Singapore businesses are well-positioned to tap into China’s Belt and Road Initiative, but they must learn how to “hunt in a pack” and hone their expertise in their own region if they are to make the most out of the opportunities.

Those were the key points raised by business leaders at a Nov 2 business forum in Shanghai that was organized by the Shanghai Singapore Business Association. A host of speakers from different industries, including logistics, banking, arbitration and media, were in attendance to explain how the BRI could benefit companies.

“We will be viewed upon as a valuable partner if we sell our Southeast Asia advantage,” said Robert Yap, one of the keynote speakers, referring to how Singapore can play a role in facilitating the connection between China and Association of Southeast Asian Nations (ASEAN).

Yap, who is the executive chairman of logistics firm YCH Group, also noted that Singapore companies across different industries need to “hunt in a pack” and collaborate in order to maximize their gains. He said that the SinoSingapore Chongqing Connectivity Solutions Co Ltd, a joint venture by consortiums from Singapore and Chongqing, is an example to follow.

Launched last November, the joint venture is part of the Chongqing Connectivity Initiative which represents Singapore’s efforts to tap into opportunities presented by the Belt and Road Initiative. The venture’s objective is to develop transport modes connecting Chongqing to areas in western China and beyond.

Marc Dragon, chief executive officer of Y3 Technologies, a Singapore company that is also involved in the project, pointed out that the Belt and Road Initiative will stand to benefit all types of companies, and not just those in the supply chain, logistics, infrastructure, property development and finance sectors.

“As money flows into cities part of the Initiative, the standard of living in these places will increase and there will be more expenditure. Retailers, food and beverage merchants and consumer electronics firms should look into the opportunities that this presents. Everyone is actually affected by BRI,” he said.

According to official statistics, Singapore has since 2013 been the largest foreign investor in China. In addition, China’s investments in Singapore account for nearly onethird of its total investments in countries involved in the Belt and Road Initiative.

Despite the absence of Singapore’s Prime Minister Lee Hsien Loong at the Belt and Road Forum for International Cooperation in Beijing in May, the Southeast Asian country will nevertheless be a key part of China’s Belt and Road Initiative, said Zhang Miao, a research fellow at the University of Malaya’s Institute of China Studies.

“Singapore has been an active proponent of China’s growth since its opening-up and an important interlocutor of China’s dialogue with the Western countries. It was also an early supporter of the China-initiated Asian Infrastructure Investment Bank, and I believe this would be appreciated by their Chinese counterparts,” she said.

“Singapore’s well-governed and global-leading financial sector could provide muchneeded financial resources to support the infrastructure projects in ASEAN countries. The country’s expertise in project design and planning, dispute settlement and logistics could also play an important role,” she added.

Loh Tuck Wai, consulategeneral of Singapore in Shanghai, told China Daily that his government views the Belt and Road Initiative as “a very positive initiative”.

“With regard to bilateral relations, the Belt and Road Initiative is going to be a new highlight between Singapore and China,” he said. “Singaporean companies have experience in countries where our Chinese counterparts may not be as familiar with. This is where constructive collaboration can come in.”