Thursday, March 29, 2012

Singapore's investors upbeat over China development

CHINA: Singapore investors are still confident in China's development, despite signs of a slowdown in its economy.

Singapore Minister of State for National Development and Trade and Industry Lee Yi Shyan said this in a recent visit to Beijing and Tianjin.

Singapore has invested cumulatively US$53 billion and more than 20,000 projects in China as of December last year.

That is expected to continue to increase, even though China has revised its economic growth figure downwards to 7.5 per cent this year.

Mr Lee said: "Their demographics, growing affluence, growing middle class, plus sizable number of people needing houses, cars, having children will actually create a lot of demand for consumption of all kinds of products and services.

"So in that sense, people are keen to come into this market, including Singapore companies."

But Mr Lee said the property sector may face a slowdown for some time, due to the restrictions the Chinese government has put in place to mitigate rising home prices.

Another challenge for Singapore businesses in China, is competition from other Chinese cities and companies.

Mr Lee, who visited Tianjin-Singapore Eco-city this week, said upcoming regional cities or towns in nearby Hebei and Beijing are potential competition for investments and businesses.

"Transportation connectivity is one key enabler very important for the Eco-city because this Eco-city is quite a distance away from both Tianjin city and Beijing," Mr Lee said.

"So we need connections from both directions. And railway connection is decided by the railway ministry. So I impressed upon our counterparts that they should help us to accelerate their plan."

Mr Lee said that is one way to attract more people to live and work in the Eco-city.

View the original article here

Source From Channel News Asia

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