Speech By Minister At The 2nd Singapore-Jiangsu Cooperation Council Meeting

28 Nov 2008

By Khaw Boon Wan

Your Excellency Party Secretary Liang Baohua,

Your Excellency Ambassador Zhang Xiaokang,

Your Excellency Vice Governor Zhang Weiguo,

Distinguished Council Members,

Ladies & Gentlemen,

Good morning!

1 Let me extend a very warm welcome to Party Secretary Liang, Vice Governor Zhang and all delegates from Jiangsu, to our second Council meeting.  I particularly appreciate Party Secretary Liang’s involvement, personally leading the Jiangsu delegation to Singapore.  We are especially glad to see you back in Singapore since your last visit in 1998.  

Global financial turmoil

2 When the Council last met in Nanjing, there were initial signs of a slowdown in the world economy.  But no one could have predicted the collapse of Lehman Brothers and the near collapse of AIG and Citigroup.   What started as a bust of the US property bubble has gone on to cause a financial tsunami, sweeping through the global economy.   The seriousness of the global financial turmoil cannot yet be ascertained.   We do not know as yet how long and how deep the downturn will last.  

3 The current turmoil reminded us of the 1997 Asian Financial Crisis and the constructive role then played by China.   By keeping reminbi stable, China created a useful calming effect on an otherwise turbulent sea.  

4 This time round, China would again play a constructive role as it pushes through its 4 trillion yuan stimulus package to keep its own economy and local consumption growing.   Its richer provinces have also indicated their intent to augment the national stimulus package with their own local provincial stimulus packages.   I am sure Jiangsu Province will be a major player in this effort to save old jobs, create new jobs and avoid a collapse of the economy.

5 These are extraordinarily trying times, but they are also times for exercising wise leadership, fixing existing structural weaknesses and investing for the future.   The financial turmoil is not the end of the world and the global economy will eventually recover and roar again.   The countries which wisely position and better prepare themselves for the recovery will emerge from the turmoil stronger and ahead of the pack.   This must be the focus for the government leaders as they formulate stimulus packages and economic recovery strategies.   Jiangsu and Singapore have much to share in this effort.   This is the backdrop against which our second council meeting is being held.   

6 The economic turmoil will not stop our bilateral collaboration.   In fact, our partnership is even more important during downturns.  Our businessmen know this.   Hence, despite the decline in the economic environment, both sides have turned in a remarkable report card for bilateral cooperation for 2008.  This is because of the solid foundation that we have built over many years, strongly anchored by the Suzhou Industrial Park project.    

Achievements for 2008

7 This year, Jiangsu remains Singapore’s top destination for investment in China.  There are now more than 3,000 Singapore projects in Jiangsu, with actual investments amounting to US$14 billion.  This year, there were 87 new Singapore investments in Jiangsu amounting to US$1.3 billion.   While trade between Singapore and China grew at a slower rate of 4.8%, trade between Jiangsu and Singapore grew by 15.11%, three times higher.  This reflects the strength and depth of our collaborative relationship.

8 The Council Secretariat will shortly give a comprehensive report, but I must highlight a few especially noteworthy projects. 

9 Under Business Process Outsourcing (BPO), we have just launched the iHub project by Ascendas in Suzhou.  When completed, the 33-hectare integrated park project within SIP will provide R&D and office space for Suzhou’s growing BPO and IT businesses, and also provide amenities like retail and commercial space.  This will create the right infrastructure to attract BPO and services-related investments into Jiangsu.   Our companies are also active in training Jiangsu’s workforce with BPO skill sets.   

10 Under the environmental sector, we launched a demonstration project for the treatment of wastewater in the printing and dye industry by Salcon, in Wujiang.  Later today, several MOUs will be signed to mark SembCorp’s collaboration with Nanjing Petrochemical Park, as well as Hyflux’s wastewater treatment project in the Lianyungang Economic and Technological Development Zone. 

11 Under port and logistics, IMC is entering into a partnership to develop and operate two mineral ore terminals in Lianyungang, one with 300,000-ton capacity and the other with 150,000-ton capacity. 

12 Under education sector, Singapore’s Etonhouse has opened a new branch in Wuxi, commissioned a new school building in Suzhou, and will shortly sign MOUs with district governments in Nanjing and Changzhou. 

13 Besides facilitating individual projects, both sides have also been creative in forging meaningful platforms to raise our collaboration to new heights.   Under this approach, I would highlight two initiatives.

14 First, the proposed Nanjing Eco High-Tech City, an integrated development of about 3-5 sq km.  The plan is to create an ecologically friendly work-live-play environment that would attract high-tech investments to the city.  The feasibility of the project is being studied by the Nanjing government, IE Singapore and the 3 lead companies: Yanlord, Surbana and SembCorp.  Party Sec Liang and I will shortly witness the signing of the MOU between IE Singapore and Nanjing government, to signify our support for the feasibility study. 

15 Second, the proposed collaboration between Suzhou Industrial Park and Nantong authorities to jointly develop an industrial zone and township on a 40-sq km site.  This rides on the connectivity created by the newly constructed Sutong Bridge, which spans the Yangtse River and links the Suzhou region with Nantong.  This marks the first major step by the SIP authority to replicate itself and bring its expertise beyond Suzhou.   I welcome this development. 

Further collaboration

16 In the area of environmental management and wastewater treatment, I see opportunities for further collaboration under this approach.  

17 Currently, our collaboration in this sector runs along two tracks.  On one track, the Council Secretariat identifies suitable projects within Jiangsu cities and recommend them to Singapore companies for follow up.  On the other track, under software transfer, Singapore provides environment-related training to Jiangsu’s provincial and municipal agencies. 

18 We may achieve more if we can combine the two tracks.  Many Jiangsu cities are keen to speed up their achievement of their environmental KPIs.  Our companies are keen to help them achieve this at a reasonable cost, if they can secure multiple water treatment projects in one city.   Cost is reduced through greater economies of scale, thus delivering greater value to local city government and the consumers.  For cities that wish to embark on such multiple-project collaboration with our companies, we can customise a Singapore-based environment management training programme, jointly organized with our universities.  This will promote subject-specific expert exchanges in an area that is of interest to the city government. 

19 This new model of public-private partnership in environmental cooperation between Jiangsu and Singapore is potentially a win-win proposition for all parties.  The government, people and investors of the cities involved will all benefit from the timely delivery of good environmental projects.  If the council members find this idea interesting, we can try it out in say a couple of Jiangsu cities, assess the impact before we extend it to other cities. 

Closing

In closing, let me congratulate council members and the secretariat for putting together a promising workplan for 2009.   The year ahead will be challenging, but is also full of new opportunities.   I look forward to the discussions and activities planned for the rest of the day.  Thank you!