DOING BUSINESS IN CHINA

Mdm Ho Geok Choo asked the Minister for Trade and Industry (a) how can Singaporeans embrace the Prime Minister's and Senior Minister's visions on the need to focus on booming China in the context of engaging and doing business in China; and (b) as the window of opportunity can run out fast, what programmes or plans are there to realise these visions and help derive the maximum advantage for Singapore.

The Minister for Trade and Industry (BG George Yong-Boon Yeo): Mr Speaker, Sir, in July last year and, more recently, during the Committee of Supply debate on MTI's budget this year, I have outlined our China policy and what our economic agencies have been doing to help Singaporeans do business in China. I will provide an update today.

Singapore companies have invested in close to 10,000 projects in China, amounting to about US$20 billion to date. China has now become Singapore's largest overseas investment destination, overtaking Malaysia since 1997 in cumulative terms. Our businessmen have been positioning themselves to take advantage of the many opportunities in China.

Some of them have done well. For example, Khong Guan sold 300 million RMB (S$67 million) worth of its products in China last year. Education services provider TMC has attracted 1,000 full-time students in its Xi'an campus alone, thanks to its modern facilities and the quality of its courses. Smart Garments has grown from 280 workers in 1985 to 2,600 workers in its three Chinese factories today, producing 1.75 million suits a year.

Besides investing in China, our companies have also begun to partner with Chinese companies that are now seeking to internationalise in exploring other markets. For example, one of our local companies has successfully partnered Zhejiang-based Feiyue Sewing Machine Group to enter the India market.

We are steadily building up our China network. It is impossible to do business in China without good networking. Last month, we launched the Singapore Chamber of Commerce and Industry in Beijing. This, together with Network China that was launched in Singapore a year ago by DPM Lee Hsien Loong and Chairman of the Chinese People's Political Consultative Conference, Li Ruihuan, will provide a useful platform for companies operating in China to network, interact and share experiences and business ideas. Singapore Chamber and Network China provide a support base for Singapore companies operating in China.

When Chinese Vice President Hu Jintao visited Singapore in April this year, he raised a 4-Point Proposal with the Prime Minister, to cooperate with Singapore in (i) helping Chinese enterprises to go global, (ii) high-tech areas, (iii) development of Western China and (iv) human resource development.

Since April, we have been working on these four proposals with the Chinese Government. EDB recently set up a new office in Shanghai to attract Chinese companies to Singapore. China's Ministry of Science and Technology has announced its plans to set up an innovation centre for China's high-tech enterprises in Singapore. And during my recent visit to China, the Zhejiang provincial and city governments reacted positively to our proposal for the establishment of a Zhejiang Centre in Singapore, as a facility for Zhejiang companies to market, showcase and provide after-sales service for their products in the region. In Brunei recently, I also discussed the idea of a China Centre with the Chinese Minister for Foreign Trade and Economic Cooperation, Shi Guangsheng, to help Chinese companies use Singapore as a base to regionalise and internationalise.

Last week, the Chinese Ambassador announced that the China Council for the Promotion of International Trade will establish a regional office in Singapore.

We have relaxed our visa policies to facilitate the flow of Chinese tourists into Singapore, and PRC business travellers can now obtain multiple-journey visas for up to five years. We are also interested to participate in the development of Western China. Minister Mah Bow Tan visited Sichuan in May this year, and IE Singapore organised two business missions to Western China last year, focusing on education and infocomm technology.

Separately, ASEAN is negotiating a Free Trade Agreement with China within 10 years, and a Framework Agreement incorporating an Early Harvest is expected to be signed when the Leaders meet in November in Phnom Penh.

The private sector is the prime mover in seeking out business opportunities in China. The Government will play a supportive role. One area that the Government can help is in manpower training. 2.00 pm

Mr Speaker: Order. End of Question time.

[Pursuant to Standing Order No. 21(3), Written Answers to Question Nos. 17 and 19 are produced in the section, "Oral Answers To Questions Not Reached" (Cols. 1203-1208). Question No. 18 has been postponed to the sitting of Parliament on 2nd October 2002.]