Top Stories Hard-headed policies necessary to tackle challenges: Chuan-Jin Source: Today Online / Singapore SINGAPORE — Citing the foreign manpower issue and the clamour by some for more cycling paths as examples, Manpower Minister Tan Chuan-Jin yesterday echoed Prime Minister Lee Hsien Loong’s recent remarks about the need for the Republic’s policies to be hard-headed at times, as it balances between the head and the heart in addressing society’s different needs. Speaking at a dialogue with about 180 Keat Hong residents during his ministerial community visit to the constituency, Mr Tan noted that the tightening of the foreign manpower policy has made it challenging for businesses here. He said: “While we want to look after the interest of Singaporean businessmen to (help them) build the stage … at the same time, there is also the broader challenge of congestion and numbers, and you want to keep that growth at a much more sustainable rate. What is the correct nuance?” At the same time, some are calling for further tightening to protect Singaporeans and their jobs, he said. But this “seemingly pro-Singaporean” mindset is but a fallacy. “The truth is, competition is happening whether the foreigners are here or not. Jobs are being outsourced to other countries … So this is a very clear dilemma of how you balance head and heart,” he added. The Government faces a similar dilemma in expanding cycling path networks: To carve out space for bicycles, people must be prepared to forgo space for cars, pavements and grasslands, said Mr Tan. Speaking at the National University of Singapore Society (NUSS) 60th Anniversary Lecture earlier this month, Mr Lee said that while the Government of late has been lauded by people for “showing more heart rather than head”, the country must not shy away from hard-headed policies when it comes to tackling challenges such as retirement adequacy, healthcare financing, immigration and the inflow of foreign workers. “We must never be hard-hearted, but we must never shy away from being hard-headed,” Mr Lee had said. During the 80-minute dialogue yesterday, the Keat Hong residents made presentations to Mr Tan on topics such as helping the elderly and the less fortunate, as well as promoting community spirit. It was followed by a question-and-answer session with the minister that was dominated by municipal concerns such as the constant congestion problem at the Choa Chu Kang MRT and LRT stations. To relieve congestion on the overall MRT network, Mr Tan pointed out, the Government is increasing the number of MRT lines, and is also looking at increasing the number of trains and their frequency. Choa Chu Kang GRC Member of Parliament Zaqy Mohamad, who is also Adviser to Keat Hong Grassroots Organisation, cited two factors contributing to the overcrowding: Ageing sleepers, which have resulted in trains having to slow down, thus reducing the frequency, and the fact that Bukit Panjang is currently not served by an MRT line. The congestion will ease when the sleepers are replaced by the middle of next year, said Mr Zaqy. The Bukit Panjang MRT station — which is along the Downtown Line — will also open in the next two years or so. The Jurong Region Line, expected to be completed by around 2025, will further improve the situation, he added. During his ministerial visit, Mr Tan launched Care on Wheels, an initiative to ferry needy residents — such as the wheelchair-bound and those who cannot afford transport — for medical appointments. The service is currently run by 14 resident volunteers, and more have signed up.
He also abseiled from the 11th storey of a block of HDB flats, as part of a new adventure interest group, Project Cliffhanger, set up by the Lam Soon Community Club. -By Kelly Ng http://www.todayonline.com/singapore/hard-headed-policies-necessary-tackle-challenges-chuan-jin Trade-offs 'considered' in decision-making Coming up with right policy requires one to be hard-headed: Tan Chuan-Jin Source: Straits Times / Top of The News THE trade-offs that society has to make were at the core of a dialogue yesterday, where Manpower Minister Tan Chuan-Jin explained some of the hard-headed considerations the Government must contend with for a balance in policies. There are numerous solutions to issues as diverse as foreign labour quotas and carving out more cycling paths. But each also has its own trade-offs, he said. Mr Tan, speaking at a dialogue with residents after touring Keat Hong ward in Chua Chu Kang GRC, raised the issue of the delicate balancing needed on foreign labour as an example of the kind of trade-offs the Government considers when making decisions. "While we want to look after the interests of Singaporean businessmen who feel the pinch... the broader situation is that you'd want to keep the growth (of foreign labour) at a more sustainable rate," he said to those seeking a relaxation of foreign labour quotas. "At the same time, you have some Singaporeans who... want jobs for Singaporeans only. Ultimately that's a fallacy because we hurt only ourselves. "Competition is happening whether foreigners are here or not. Jobs are being outsourced, and if the company isn't here, the jobs are not even in Singapore." Trying to balance such diverse views and come up with the right policy requires one to be hard-headed, Mr Tan said, echoing what Prime Minister Lee Hsien Loong said in a speech to the National University of Singapore Society earlier this month. PM Lee had said that Singapore must be good-hearted but also hard-headed. Policies must keep facts in mind, and deal with stark realities like the rapidly ageing population and low fertility rate. Yesterday, Mr Tan said that even on some straightforward issues, decisions are often hard to make, as resources are finite. Citing a resident's request for more cycling paths as an example, he asked how many of the nearly 200 residents present would not be willing to give up a car lane or two to make space. Most raised their hands. They were also unwilling to give up green spaces, or do away with pedestrian walkways. Mr Tan said: "We must care about the community. But we also have to care about the practical realities." He challenged residents to step up and play their part where they can, to deal with such constraints. Recalling suggestions for the People's Association or welfare organisations to hold more activities for the lonely elderly, he said: "(We) cannot absolve our own roles in this... There are not enough social workers around to do the heavy lifting." Most present also raised their hands when asked if they were interested in serving the community. Calling this a good starting point, he said: "If everyone is able to contribute to his constituency in whatever way he can, the country will undergo real change." Earlier, Mr Tan was the star attraction at a family carnival when he abseiled 11 storeys down a Housing Board block. He did so with Chua Chu Kang GRC MP Zaqy Mohamad and Residents' Committee zone leader Alex Seo to promote an abseiling interest group. He also launched "Care on Wheels", a programme where volunteers ferry residents who are wheelchair users to hospitals and clinics for appointments. There are 14 volunteers already, many of them taxi drivers, said Mr Zaqy. Mr Tan was also accompanied on the visit by Chua Chu Kang GRC MPs Gan Kim Yong, who is Health Minister, Alvin Yeo and Alex Yam. Senior Minister of State for Health and Manpower Amy Khor, who is MP for Hong Kah North, was also present. -By Rachel Au-Yong All eyes on Fed meeting this week Investors to also keep tabs on banks' Q3 results due out later in the week Source: Straits Times / Money BANK and property counters helped fuel a three-day rally on the local market last week, lifting the benchmark Straits Times Index (STI) above 3,200 points - a support that was breached the previous week following a mini wobble in financial markets globally. Even as investors look out for the third-quarter earnings results of index heavyweights DBS Group Holdings, OCBC Bank and United Overseas Bank (UOB), they are also expected to keep an eye on the upcoming US Federal Reserve's policy meeting, which is set to take centrestage this week. The STI closed at 3,222.55, up 1.7 per cent for the week. OCBC and UOB are due to release their results on Thursday, with DBS to follow a day later. Also due out this week are the results of Raffles Medical Group, SMRT Corp, Singapore Post, Sheng Siong Group and Eu Yan Sang International. Some major players in the real estate investment trusts (Reits) and business trusts sector, including Starhill Global Reit, OUE Commercial Reit, Hutchison Port Holdings Trust and CDL Hospitality Trusts, are slated to release their results, too. The United States Federal Open Market Committee (FOMC), scheduled to meet tomorrow and Wednesday, is widely expected to end its bond-buying programme after reducing monthly purchases to US$15 billion (S$19 billion) last month from US$85 billion two years ago. But what the market is really watching for are signs that the Fed is concerned a slowdown in Europe and elsewhere may hinder US economic recovery. It is widely believed that these concerns will influence the Fed's timetable in raising its interest rates. Soft inflation data released last week had fuelled expectations that the Fed may have more leeway to keep interest rates low for a while. Some analysts have pushed back their expectations for rate hikes to late next year or 2016. Just a few weeks ago, they had pencilled in a rate hike in July. "The FOMC meeting may weigh on trading decisions for the whole of this week. There may be a knee-jerk reaction to the termination of QE announcement," said remisier Alvin Yong, referring to the US quantitative easing or money printing programme. "If they end the buying of bonds but don't raise rates until 2016, then the market may not be so badly hit. But if rates start to go up in 2015, then it will hit the market, particularly Reits and property counters, hard," he said. The market is also watching for US gross domestic product data and the weekly initial jobless claims report this week as these are important gauges the Federal Reserve employs in evaluating its QE programme. A Bloomberg survey estimates the US economy to have grown at 3 per cent annualised in the third quarter, a pick-up from the 1.2 per cent growth in the first six months of this year. This is probably fuelled by stronger business investment and a narrower trade deficit. Meanwhile, strong corporate results from Microsoft and Procter & Gamble helped US shares rally last Friday as initially skittish investors shrugged off news of the first person testing positive for Ebola in New York. The Dow Jones Industrial Average closed up 0.76 per cent at 16,805.41, while the S&P 500 closed up 0.71 per cent at 1,964.58, and the Nasdaq Composite closed up 0.69 per cent at 4,483.72. Whether the rebound can continue this week will depend on earnings from Dow components such as Chevron Corp, Exxon Mobil Corp, Visa Inc, DuPont, Pfizer Inc and others. Also reporting this week is Facebook Inc, the world's largest social network, which is expected to post an increase in quarterly net income on surging advertising revenue on mobile phones, according to a Bloomberg survey. -By Grace Leong Singapore Economy Doubts over S'pore's restructuring push While the costs are clear, the benefits are still clouded; economists say policy fine-tuning is necessary Source: Business Times / Government & Economy IT'S an uncomfortable question that's being asked. With heightened costs and yet unclear benefits, whether Singapore's economic restructuring policy is working out is an issue that is increasingly coming to the fore. The recent weeks have seen preliminary Q3 GDP growth estimates falling short of expectations, the unusual situation of core inflation surpassing headline inflation, and a pointed International Monetary Fund (IMF) report flagging the threat to Singapore's competitiveness. And still, the latest round of economic restructuring, with its stress on lifting productivity and curbing cheap foreign labour, is well into year five without yielding significant countable gains. As the Monetary Authority of Singapore (MAS) issues its Macroeconomic Review - the central bank's bi-annual report on the economy - on Tuesday, policy watchers will be looking for answers to the conundrum. The IMF's take on Singapore's "ambitious" restructuring plan is finding resonance with most private sector economists. The policy could usher in a "new era of sustainable growth", but how and when desired productivity gains materialise is unpredictable. For now, growth and competitiveness will fall below potential, with the prospect of higher costs with no productivity gains opening a Pandora's box of risks: business closures, layoffs and a rise in non-performing loans, should unemployment rise, cautioned IMF. To some, the risks have to be taken. Mizuho Bank economist Vishnu Varathan can see why "anyone taking a hard-nosed finance view of this will argue that the expected present value may not be worth our while" but thinks that calculating "expected returns" applies only when there are options. "The reality of our situation is that of global economies, not just Singapore, running out of options to spur growth via monetary and fiscal policies. Circumventing restructuring is perhaps not an option, if one is serious about lifting growth potential," he says. Singapore's rapidly ageing population demands a shift in gears, and necessarily one towards higher productivity because of the physical and resource constraints. "It would be short-sighted, if not delusional, to kick the can down the road. There will be precious little runway for productivity to take-off if we choose that path," he adds. Other reasons put forward for slowing foreign worker inflow, such as reducing social tensions from the strain on public infrastructure, have economic impact too. "Populism certainly did not over-rule economic sense. Fact is, socio-economic factors are aligned with hard-nosed economic needs," says Mr Varathan. For now though, the pain is showing but not the gains. Labour productivity growth averaged just 0.1 per cent from 2011 to Q2 2014, and 0.4 per cent if construction - often cited as a productivity laggard - is excluded. The target announced in 2010 was for productivity growth of 2-3 per cent a year. Meanwhile, unit labour costs are still on the rise - no surprise, given the tight foreign labour policy - and have shown up in higher core inflation. In fact, the MAS said in its recent monetary policy statement that some food and other services firms are not done passing on cost increases, so core inflation will keep rising till the second half of 2015. Then, there was the disappointing Q3 GDP growth performance, which was attributed by the MAS to weaker external demand but has raised questions over whether self-inflicted restructuring pain is compounding external challenges to crimp Singapore's growth further. The central bank noted that manufacturing firms face supply-side constraints and falling product prices, while services firms reliant on labour could see profit margins squeezed. At a forum last month, Prime Minister Lee Hsien Loong said that achieving 2-3 per cent growth annually over the next decade would be "not bad" for Singapore. This is under the 3-5 per cent annual growth rate from 2010-2020 set out by the Economic Strategies Committee in 2010 and, assuming labour force growth is kept constant, implies labour productivity growth of less than the 2-3 per cent target, noted UOB economist Francis Tan. The government's aim therefore seems to be to "shape the type of growth - inclusive, productivity-driven - rather than to hit a target number", he says. Bank of America Merrill Lynch economist Chua Hak Bin, who said in August that restructuring is failing and that "a pause may be in order", welcomed the Prime Minister's comments earlier this month that he does not expect "any further measures to tighten foreign worker numbers". "We think the pause, and re-assessment of the impact so far from the restructuring, is timely," Mr Chua says, especially since the macro indicators still do not speak of restructuring success. Even with no further tightening, the schedule of foreign worker levy hikes and stricter Singaporean-foreign worker ratios will continue till next year. These are unlikely to be reversed. The IMF report noted that Singapore's authorities would consider recalibrating macroeconomic policies as part of their normal decision-making processes - for instance, if a rise in G3 demand pushes core inflation out of their comfort zone - but "would be more guarded in reconsidering the implementation pace of the restructuring plans". To Mr Varathan, the key question is whether there are benefits from slowing the pace of restructuring. He thinks not, given that global demand remains tepid. "In a demand constrained world, the benefits of slower restructuring may not be that compelling. So pressing on with targeted fine-tuning may be a superior alternative, in terms of consistency of messages and medium-term economic outcomes." Where there is broad agreement is that policy fine-tuning is necessary. DBS economist Irvin Seah thinks that finer measurements of productivity gains are needed. While the government has pointed out that certain sectors have enjoyed higher productivity figures, these are not immune to the effect of cyclical demand pulling output higher too. "Perhaps we should develop industry-specific productivity indices, based on indicators relevant to industries, such as table turnover for the F&B sector and man-hours per square foot for the construction industry," he says. From the business sector too, initial emotive pleas for a reversal or slowdown of foreign manpower policies have been replaced with calls for continual calibration. Says Singapore Business Federation (SBF) chief executive Ho Meng Kit: "With more feedback, after almost five years of restructuring, on how SMEs in different sectors are responding to restructuring, policies can be more sector-specific." For instance, Singapore can consider allowing start-ups to hire foreign talent without penalising them through the existing framework which uses salary levels as a criteria for foreign work-pass eligibility. "Start-ups are important shoots of our entrepreneurship and their employees are not remunerated by salary alone," he says. One encouraging sign is that more companies are tapping on grants to upgrade productivity and improve processes, going by industry surveys. Some 17,000 companies have benefited from productivity initiatives, with 7,000 companies participating in 2013 alone, according to government data. The Productivity and Innovation Credit scheme was tapped on by 40 per cent of all companies in Singapore last year. But if the restructuring push continues to yield no outcomes, will manpower policies be tightened further, or will more incentives be dished out, asks DBS' Mr Seah. "There is some leakage in giving out incentives. In looking at how to help companies improve productivity, it can't just be about higher utilisation of the PIC. That can be exploited and not actually put to good use."
"From the start, this was a 'short-term pain before long-term gain' kind of policy," he says. "But in this instance, long-term gain is still a question mark. We need to cast aside the mindset that this is about 'no pain, no gain'. If we push the economy over the edge, then whatever gain you get going forward may not justify the short-term pain." -By Teh Shi Ning http://www.businesstimes.com.sg/government-economy/doubts-over-spores-restructuring-push Singapore Real Estate Adjustment pains for construction sector More payment issues along with major infrastructure project delays due to cost overruns and a shortage of skilled manpower with foreign worker curbsSource: Business Times / Government & Economy AS manpower shortage and higher operating costs pound away, the construction sector is undergoing tough times. The stress is evident in payment and project delays. "Construction demand is expected to continue with many big projects such as the MRT line extensions, Changi Airport expansion, but a shortage of workers means projects may cost more and take longer to complete. Construction companies that I speak to say their biggest concern is manpower shortage with the tightening of foreign workforce measures," said Teo Han Jo, partner, building sector, at KPMG Singapore. Payment delays in the construction industry rose 3.8 percentage points to 51.4 per cent in Q2. This means that only slightly more than two in five payment transactions within the sector were prompt, according to the Singapore Commercial Credit Bureau (SCCB), a body which tracks the credit history of local enterprises. Prompt payment is defined as a situation in which at least 90 per cent of total bills are paid within the agreed payment terms; payments are considered slow when more than half of total bills are paid later than stated in the agreed credit terms. High levies, particularly for basic skilled workers, remain a bugbear for the industry even as companies send their workers for training in an effort to upskill their workforce. On the ground, this has translated into business disruptions. A local subcontractor involved in the Downtown Line 3's Upper Changi Station project is facing a potential shutdown, with its workers being taken over by its main contractor following lapses in paying foreign worker levies. The subcontractor, who declined to be named, told BT it had lapsed in paying foreign worker levies on three instances due to a squeeze on cashflow. It had since arranged for payments to be made, and was now behind by one payment only. If the foreign worker levies continue to be unpaid, the work permits in question would be revoked, said a Ministry of Manpower (MOM) spokesman. "Works on the DTL3 (Downtown Line 3) Upper Changi Station are progressing as normal. The sub-contractor . . . has foreign worker levy arrears and the main contractor, Samsung C&T Corporation, is in the process of taking over (its) workers. There is no impact to the schedule of the project," said a Land Transport Authority (LTA) spokesman. But not all projects have been spared. The Ng Teng Fong General Hospital, which was originally due to open in December, for instance, is now slated to open in the middle of next year. Main contractor GS Engineering and Construction blamed the delay on a shortage of skilled construction manpower here. Cost overruns are a major concern for the industry, said Singapore Construction Association Ltd (SCAL) president Ho Nyok Yong. It is for this reason that he urged members to be careful in tendering for new projects at the SCAL annual dinner in September. "Stronger ones will stay put but I can see some smaller ones having financial difficulty," said Dr Ho. "There are some companies facing financial difficulty . . . eventually, they have to face the issue . . . some of (it) is because of cost overruns, and this is where being vigilant comes in." It's not all bad news, though. The construction sector got a S$55 million boost via the Construction Productivity and Capability Fund earlier this month, bringing the total funding to S$335 million. And construction demand remains robust. "We urge members to quickly get funded, upgrade equipment and overcome the shortage of workers. If you don't, you're against the tide anyway," said Dr Ho. Noted KPMG's Ms Teo: "In my opinion, the outlook for the construction sector actually looks good, with abundant projects driven by government infrastructure projects in the long- term pipeline. Government agencies are also placing more emphasis on quality rather than just prices when awarding projects. The net effect of this for the construction industry is good over the longer term, as it raises overall quality and helps construction companies maintain healthy margins." The construction sector has been a laggard in productivity improvement. Construction productivity has been declining since 2010. It was -2.7 per cent last year, -0.7 per cent and -2 per cent in Q1 and Q2 this year, respectively. *Local players target regional construction wave -By Mindy Tan http://www.businesstimes.com.sg/government-economy/adjustment-pains-for-construction-sector Local players target regional construction wave Despite the value of construction export projects constituting less than 5% of domestic contracts, a few local firms have surpassed the industry averageSource: Business Times / Real Estate The building and construction sector is not known for being export-oriented as it typically has its hands full with ongoing local projects. However, a handful of players are beginning to eye contributions from abroad - and some are even aiming to garner almost half their annual revenue from foreign contracts. -By Chan Yi Wen http://www.businesstimes.com.sg/real-estate/local-players-target-regional-construction-wave Breaking new ground More than 6,000 visitors witnessed new construction technologies aimed at boosting the built environment sector's productivity.Source: Business Times / Hub Game changing technologies and new incentives to help companies in the built environment sector become more productive were the highlights of this year's Singapore Construction Productivity Week (SCPW). Hosted by the Building and Construction Authority (BCA), more than 6,000 visitors attended the SCPW's various events held at the Singapore Expo earlier this month. -By Francis Kan http://www.businesstimes.com.sg/hub/construction-productivity/breaking-new-ground Global experts discuss productivity issues Source: Business Times / Hub Leading up to the SCPW, a panel of local and international experts from the built environment industry met to discuss ways to improve construction productivity in Singapore. In particular, the meeting of the third International Panel of Experts (IPE) on Construction Productivity and Prefabrication Technology held on Oct 9 and 10 sought to review Singapore's Construction Productivity Roadmap. The panel was made up of 12 local and seven overseas experts from developers, consultants, builders, public agencies and academia. HDB seeking to channel sunlight into basements TODAY reports: HDB is on the search for solutions to slash energy costs as it explores constructing underground basements for public housing blocks.Source: Channel News Asia / Singapore SINGAPORE: The Housing and Development Board (HDB) is calling for proposals that will tap sunlight as lighting or energy sources for underground spaces, as it explores the idea of constructing underground basements for public housing blocks in land-scarce Singapore. Chinese daily Lianhe Zaobao reported on Sunday (Oct 26) that HDB put up the Request for Proposal (RFP) on government procurement website GeBIZ earlier this month. The RFP documents said HDB is looking for new solutions that can slash overall energy costs by half, reduce the need for artificial lighting in the day and the space required for a lighting system, as well as solutions that provide the same or better light distribution as compared with existing LED options. “As there are no off-the-shelf solutions, HDB proposes to work with the private sector in developing the system for daylighting solutions for underground spaces,” the documents added. The solutions could harness daylight to power artificial lighting or bring in natural sunlight for underground spaces. The RFP will close on Nov 7. Apart from improving the energy efficiency for underground spaces, the documents said the proposed solutions will also help town councils reduce operation and maintenance costs of these spaces. The RFP is part of the Public-Private Co-Innovation Partnership, a platform for the Government and Singapore companies to co-develop innovative solutions to meet government needs. While the project is open to all companies, more support will be given for small and medium enterprises based here. Last year, National Development Minister Khaw Boon Wan said a subterranean statutory land use plan could be on the cards, signalling for the first time that urban planners are exploring the possibility of large-scale underground developments. The minister is also chairing an inter-ministerial committee to study and coordinate underground developments. Last month, detailed plans for Punggol Northshore, an upcoming district in Punggol eco-town, were announced. HDB blocks in the district will have underground car parks, among other features. Currently, countries such as Japan and Korea adopt light pipe systems – which help reflect sunlight from the rooftop – to channel natural daylight into underground spaces. The Building and Construction Authority’s Zero Energy Building also uses a similar system to transmit daylight indoors. -TODAY/cy http://www.channelnewsasia.com/news/singapore/hdb-seeking-to-channel/1436872.html HDB seeking to channel sunlight into basements Source: Today Online / Singapore SINGAPORE — The Housing and Development Board (HDB) is calling for proposals that will tap sunlight as lighting or energy sources for underground spaces, as it explores the idea of constructing underground basements for public housing blocks in land-scarce Singapore. Yesterday, Chinese daily Lianhe Zaobao reported that HDB put up the Request for Proposal (RFP) on government procurement website GeBIZ earlier this month. The RFP documents said HDB is looking for new solutions that can slash overall energy costs by half, reduce the need for artificial lighting in the day and the space required for a lighting system, as well as solutions that provide the same or better light distribution as compared with existing LED options. “As there are no off-the-shelf solutions, HDB proposes to work with the private sector in developing the system for daylighting solutions for underground spaces,” the documents added. The solutions could harness daylight to power artificial lighting or bring in natural sunlight for underground spaces. The RFP will close on Nov 7. Apart from improving the energy efficiency for underground spaces, the documents said the proposed solutions will also help town councils reduce operation and maintenance costs of these spaces. The RFP is part of the Public-Private Co-Innovation Partnership, a platform for the Government and Singapore companies to co-develop innovative solutions to meet government needs. While the project is open to all companies, more support will be given for small and medium enterprises based here. Last year, National Development Minister Khaw Boon Wan said a subterranean statutory land use plan could be on the cards, signalling for the first time that urban planners are exploring the possibility of large-scale underground developments. The minister is also chairing an inter-ministerial committee to study and coordinate underground developments. Last month, detailed plans for Punggol Northshore, an upcoming district in Punggol eco-town, were announced. HDB blocks in the district will have underground car parks, among other features.
Currently, countries such as Japan and Korea adopt light pipe systems — which help reflect sunlight from the rooftop — to channel natural daylight into underground spaces. The Building and Construction Authority’s Zero Energy Building also uses a similar system to transmit daylight indoors. -By Siau Ming En http://www.todayonline.com/singapore/hdb-seeking-channel-sunlight-basements Global Economy & Global Real Estate Singapore, China mark 20 years of ties in Suzhou Success of joint industrial park 'testament to positive collaborations' Source: Straits TImes / Top of The News THERE is a "special significance" to holding high-level meetings between Singapore and China this year at Suzhou city because the success of the Suzhou Industrial Park (SIP) is testament to the positive collaborations between the two sides over the years, Vice-Premier Zhang Gaoli said. The SIP, the first government- to-government project set up in 1994, and Tianjin Eco-City, a government-led project that was launched in 2008, both showcase the pioneering spirit and innovation that have marked Sino-Singapore bilateral ties and injected vitality into them, he added. Mr Zhang was speaking at a welcome dinner in Suzhou last night, ahead of today's meeting of the 11th Joint Council for Bilateral Cooperation (JCBC), the highest- level mechanism for bilateral cooperation. He co-chairs the JCBC with Singapore Deputy Prime Minister Teo Chee Hean. "It is of special significance to us to hold the JCBC in Suzhou. It is the best commemorative event for the 20th anniversary of the SIP," Mr Zhang said at the dinner attended by both Chinese and Singapore officials and businessmen. While the SIP occupies just 3.3 per cent of Suzhou's land and holds 7.2 per cent of its population, it generates 15 per cent of the city's economic growth and 20 per cent of the city's trade, he pointed out. The park was designed to allow Singapore to share its industrialisation experiences with China. DPM Teo noted the SIP's "solid international reputation as a modern industrial park" that has been replicated across China, for instance, in the western Xinjiang region and eastern Anhui province. He also touched on the "close and substantive" relationship between the two states, which has seen Singapore become China's largest foreign investor and China turn into Singapore's largest trading partner. "This is a reflection of Singapore's confidence in China's continued growth and future prospects. Our wide-ranging cooperation has evolved with China's developmental needs," Mr Teo said in his toast at the dinner. Both leaders later attended a cultural performance at the Suzhou Cultural and Arts Centre to mark the SIP's 20th anniversary. At their meeting earlier in the day, Mr Zhang touched on a proposed third government-to-government project that is expected to be located in one of three western cities: Chongqing, Chengdu or Xi'an. Elaborating publicly for the first time on the project that he suggested to Singapore in October last year, he said that such a project in western China would be closely connected with the country's push to develop a "21st-century Maritime Silk Route" - a major strategy that Beijing is already working on. Proposed by President Xi Jinping last year, it is intended to revive a trade route running from China through South-east Asia and the Indian Ocean to Europe. "In whichever area Singapore chooses, whether it is modern connectivity or modern services, this will be a new platform of cooperation for our two countries," Mr Zhang added.
Apart from the JCBC meeting, Mr Teo is scheduled to co-chair the meetings of the 16th China-Singapore SIP Joint Steering Council and the Seventh Sino-Singapore Tianjin Eco-City Joint Steering Council today. He leaves for Beijing tomorrow. -By Esther Teo, China Correspondent in Suzhou DPM Teo visits China as Suzhou park marks 20 years Source: Straits Times / News Singapore's Deputy Prime Minister Teo Chee Hean kicks off a three-day visit to China today as both countries mark the 20th anniversary of the Suzhou Industrial Park (SIP) and engage in a series of high-level bilateral meetings. He will spend two days in Suzhou in eastern Jiangsu province to attend the 11th Joint Council for Bilateral Cooperation (JCBC) - the highest-level mechanism for bilateral cooperation - and SIP commemorative activities before wrapping up his trip on Tuesday in capital Beijing. Mr Teo is co-chair of the annual JCBC together with Chinese Vice-Premier Zhang Gaoli. The meetings are held in Suzhou this year in conjunction with the 20th anniversary of the SIP, Singapore's Ministry of Foreign Affairs said in a statement yesterday. Apart from the JCBC, both men will also co-chair the 16th China-Singapore Suzhou Industrial Park Joint Steering Council and the 7th Sino-Singapore Tianjin Eco-City Joint Steering Council meetings, also in Suzhou. They will review the progress made in the two flagship government-to-government projects and discuss the direction of future cooperation, the statement added. Meetings are also scheduled with Jiangsu Governor Li Xueyong and Suzhou party secretary Shi Taifeng. A visit to the National University of Singapore (Suzhou) Research Institute is also planned. It will showcase bilateral cooperation in new areas such as research and development and policy studies. On Tuesday, Mr Teo will travel to Beijing where he will meet Central Military Commission vice- chairman Fan Changlong and State Councillor Yang Jiechi. Mr Teo is accompanied by National Development Minister Khaw Boon Wan, Education Minister Heng Swee Keat, Minister in Prime Minister's Office Grace Fu and Minister for Social and Family Development Chan Chun Sing.
Senior Minister of State for Trade and Industry and National Development Lee Yi Shyan, Senior Minister of State for Finance and Transport Josephine Teo and Minister of State for Trade and Industry Teo Ser Luck are also part of the delegation. -By Esther Teo, China Correspondent in Suzhou S'pore, China looking at new areas of cooperation: DPM Teo Source: Straits Times / Asia SINGAPORE and China are seeking fresh areas of cooperation such as social governance and human resource development as they define new needs in their forward-looking relationship, said Deputy Prime Minister Teo Chee Hean. And high-level bilateral meetings such as the annual Joint Council for Bilateral Cooperation (JCBC) provide the platforms for exploring new ways to deepen bilateral cooperation, he added. "One of the good things about Sino-Singapore relations is that through the JCBC and other platforms, we have always been able to be forward-looking and to define these new needs," Mr Teo said in an interview with the official Xinhua news agency, published yesterday, on bilateral cooperation since diplomatic ties were set up in 1990. His comments come just days before the 11th JCBC - the highest-level bilateral mechanism - kicks off in eastern Suzhou city on Monday. The annual meeting is co-chaired by Mr Teo and Chinese Vice-Premier Zhang Gaoli. "Apart from finding new and innovative ideas in existing areas, particularly economy and finance, I believe we will be able to develop cooperation in new areas such as social governance, developing the financial services sector and human resource development," said Mr Teo. On furthering economic and financial cooperation, he cited the growing offshore yuan clearing facility in Singapore that now averages three trillion yuan (S$625 billion) a month. It is also the largest yuan centre outside Hong Kong. "We believe that enhancing both the efficiency and the liquidity of renminbi trading internationally is useful not just to China but for the region and the world," added Mr Teo. "Singapore, being a well-regulated and very sophisticated financial centre, we hope we are able to help play a role in this area." He also noted that various recent initiatives like cross-border yuan transactions in the Suzhou Industrial Park and Tianjin Eco- city bilateral projects have gained traction. Loans worth about one billion yuan, for instance, have been made by banks in Singapore to firms in both parks. China is pushing through a series of tough economic and financial reforms that include internationalising the yuan, also known as the renminbi, and liberalising its interest rates. The JCBC meeting will also be closely watched for further details of a third government-to-government project proposed by China. It is expected to be located in one of three western cities: Chongqing, Chengdu or Xi'an. But on that front, Mr Teo said that it is too early to talk about the sites for the third project as talks are ongoing. He added that this project would differ from the Suzhou and Tianjin projects, which are developments in a particular city or locality. The two sides are exploring the areas of modern connectivity and modern services for this project and "when you talk about the western region, we are talking about connectivity within the region... and outside the region". "So, it needs to look a bit wider than a specific locality. I think that's one of the differences between the western region project and the other government-to-government projects that we have done," he said.
Mr Teo also touched on the "good and positive" relationship between China and Asean, and how Singapore will strive to contribute to these ties in its role as coordinator of the China-Asean Dialogue from July next year. -By Esther Teo, China Correspondent in Suzhou |