Treasured island makes emerging presence

Singaporeans recognize that a new Asian strength is emerging. Having learned the rules of globalization, Singapore is today experiencing a new burst of energy and becoming Southeast Asia's financial, shipping and high-tech hub. In 2007, Singapore is set to build on its strengths and secure increased bilateral trade with China and the rest of the world.

Founded as a British colony by Sir Stamford Raffles in 1819, Singapore is today recognized as a highly developed and successful free-market economy benefiting from an open and corruption-free environment.

In addition, government initiatives regarding fiscal stimulus, low interest rates and internal flexibility motivated the London-based Intelligence Unit to vote for Singapore as "the best place to do business in the Asia-Pacific in 2005." So, it comes as no surprise that Singapore is home to some 7,000 multinational corporations and another 10,000 foreign enterprises.

Singapore's location is an important factor in the country's success. Its nearest neighbors - Brunei Darussalam, Cambodia, Laos, Indonesia, Malaysia, Myanmar, the Philippines, Thailand and Vietnam - comprise a market of around 500 million people. With those countries, Singapore makes up the Association of South East Asian Nations (ASEAN) whose objectives include the formation of a free trade area.

As a logistics hub, Singapore plays a vital role in connecting global markets. Changi Airport in East Singapore is served by 76 international airlines, linking 182 cities in 57 countries. Singapore's sea port is among the busiest in the world in terms of shipping tonnage, further cementing Singapore's role in Asia and the world.

As global companies look toward Singapore as an important market and a gateway to ASEAN, the country also has an important part to play in helping companies penetrate the challenging Chinese market.

Intimate ties

Singapore's strong bond with China has enabled the two countries to develop a deep respect for one another and both recognize the need to work ever more closely together.

"We have a very good relationship," says Singaporean Prime Minister Lee Hsein Loong. "We have established diplomatic relations since 1990. We have grown the relationship in many areas - trade and cultural exchanges, educational exchanges and also political exchanges. I think we understand each other well.

"We are different countries - Singapore is Singapore, China is China. We each have different vital interests, but I believe our fundamental interests do not conflict with one another and Singapore believes that China's development and progress are positive for the region and for the world. Therefore, we see many opportunities for cooperation."

One organization that has led the way in developing economic and cultural opportunities is the Singapore Chinese Chamber of Commerce and Industry (SCCCI). Lim Sah Soon, the SCCCI secretary-general, believes that the Singaporean business community's initial wariness of China's rapid growth has developed into significant opportunities for Singapore.

"At first, there was concern throughout the Singaporean business community with regards to China's growth due to their low labor costs. However, today many companies have benefited from the increase in business brought about by China's opening up. Singapore is in a unique position to benefit from China's development as much of its business is done in China," says Lim.

Alphonsus Chia Chung Mun, deputy CEO of International Enterprise Singapore (IE Singapore), is also dedicated to helping Singapore-based companies grow and internationalize.

"China will always remain a top priority for Singapore," points out Chia. "We would like more Chinese visitors to see what Singapore has to offer and expect further developments in both the tourism industry and business exchange."

There is continued optimism about Singapore as a place to do business, according to Ernst & Young Country Managing Partner Ong Hew Huat.

"Singapore plays a terrific facilitator role as a safe place with laws being enforced clearly and efficiently while allowing companies to get an overview and understanding of China without becoming 'lost in the woods,'" Ong says.

(China Daily 03/12/2007 page1)