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WHILE there will always be people who lack confidence in China’s future, Singapore companies should take a long-term view and not see the country as monolithic.

Making this point was Chan Chun Sing, the minister-in-charge of the Suzhou Industrial Park (SIP). This government-to-government project, which marks its 30th anniversary this year, was started to build confidence in China, said Chan, who is also Singapore’s minister for education.

“The role of Suzhou as a beacon for China’s connection with the world continues to remain relevant, and if anything… It is more relevant than ever before,” he said in a recent media interview.

Given today’s geopolitical tensions, it is even more important to build such confidence, he added.

“The greater the tensions, the greater the potential that the world is splitting into different blocks, the greater the need for China to remain connected, and to have projects that continue to signal China’s intention to connect with the world and to build confidence,” he said.

Singapore has not gone into China for short-term benefits, but to build a long-term relationship, he added. The Republic is neither optimistic or pessimistic about China’s growth, but realistic about its potential and challenges.

Asked what Singapore companies could do amid the current global uncertainties, Chan said they should “play the long game” and remember that China is not monolithic.

“China is a very big country. Even in the best of times, there will be challenges. But even in the worst and most challenging of times, there will also be opportunities.”

Different parts of China will present different challenges and opportunities, he added.

On the Singapore government’s part, cooperation does not happen between central agencies on both sides, he noted. Rather, government agencies treat each province differently, working on projects based on their different priorities.

Evolving collaboration

Established in 1994, the SIP was the first government-to-government project between Singapore and China, designed to pilot economic reforms and industrialisation.

Including not just industrial facilities but also residential housing, the SIP has since grown to a population of 1.1 million.

The SIP “is more than just an industrial park”, serving as a model of development, said Chan.

Cumulatively, the SIP has attracted over 5,000 foreign investment projects, with actual foreign investment utilisation surpassing US$40 billion. It accounted for 368.6 billion yuan (S$68 billion) or about 14.9 per cent of Suzhou’s gross domestic product in 2023.

The industrial make-up of the park will evolve, Chan said, highlighting new areas of focus such as biopharma, green energy and digital technology.

But the basic theme remains unchanged, he added.

“Suzhou is a pioneering environment that continues to contribute to the development of China, not just on the industrial side but also on the social side, including its governance and so forth,” he said.

Efforts to promote two-way internationalisation have also progressed.

The A*Star Partners’ Centre, established in 2020 at the SIP, has helped over 30 Singaporean startups enter the Chinese market.

The SIP also acts as a gateway for Chinese companies expanding into South-east Asia through its International Business Cooperation Centre in Singapore, launched in 2021, with more than 110 firms already using this platform.

Neutral party

Beyond the SIP, there are new ways for China to connect to the world. While previously, foreign investment mainly flowed into China, its businesses are now looking to go overseas – creating opportunities for Singapore, too.

Singapore can work with China on “third-country projects” in other markets, said Chan. “We are looking at that, to see what are the new opportunities for us in the next lap on collaborations between Singapore and China.”

While China is much more developed now, there will always be a role that Singapore can play in its development, said Chan.

First, Singapore is a neutral party. “We are principled in our ways, and I think the Chinese appreciate us for who we are.”

Second, Singapore’s small size makes it easy to pilot projects here, which China can then consider for scaling up.

“We never take for granted that whatever has been done in the past will remain relevant going forward. We will have to constantly reinvent our value proposition to China, find new projects, find new avenues to collaborate going forward,” he said.