INVESTMENTS IN CHINA

Mr Chng Hee Kok asked the Minister for Trade and Industry if he will give the estimated value of investments by Singapore companies in the People's Republic of China and how these are affected by recent events there.

The Minister of State for Trade and Industry (Mr Mah Bow Tan)(for the Minister for Trade and Industry): Mr Speaker, Sir, on behalf of my Minister. Singapore's investment commitments in China are estimated to be about S$1 billion. Actual investments so far are less, about half of that. The bulk are in the property and hotel sector, and the rest mainly in manufacturing as well as in the service industries which are related to construction, consultancy and tourism.

Investments in hotels and tourism were immediately affected by the recent events in China, as the number of tourists going to China declined sharply. The occupancy rates of hotels in Beijing and Shanghai were reported to have declined substantially.

Investments in export-oriented manufacturing industries are likely to be less affected. So long as China's open trade policy continues, such investments are likely to continue, albeit at a slower pace. How investments in the industries producing goods for domestic consumption will be affected is at this moment still unclear. 1.30 pm

Mr Speaker: End of Question Time.

Pursuant to Standing Order 21(2), Written Answers to Questions Nos. 15 to 18 remaining on the Order Paper are reproduced at the section 'Oral Answers to Questions Not Reached' (Cols. 393-396).