China and Singapore have elevated their bilateral partnership, marking a significant milestone in economic cooperation.
In 2023, China-Singapore relations reached new heights with the elevation of their partnership to an “All-Round High-Quality Future-Oriented Partnership.” This enhancement underscores the robustness of their ties and highlights the importance of economic collaboration between the two nations.
Singapore businesses are enthusiastic about this upgraded relationship, anticipating substantial trade and investment opportunities. Riding on this positive momentum, the Singapore Business Federation (SBF) led a delegation of over 500 senior business representatives from 56 Singaporean companies to participate in the sixth China International Import Expo (CIIE), marking the largest Singapore presence since 2020.
Opening Doors at CIIE
During the opening ceremony of the sixth CIIE, Chinese Premier Li Qiang reiterated the Chinese mainland’s commitment to opening up its market for imports, promising structural policy and regulatory changes to facilitate business operations. This commitment is particularly significant given the current global economic conditions.
China’s transition from a production-based to a consumption-based economy, especially in sectors such as financial services, education, healthcare, and professional services, is driven by the demands of its growing middle class. This shift presents ample opportunities for Singaporean businesses to tap into new markets and consumer bases.
Success Stories and Growing Partnerships
A noteworthy success story from the CIIE is UGEL, a Singaporean beauty and skincare brand that has participated consecutively for six years. Starting from a modest 9-square-meter booth in their first CIIE, UGEL’s exhibition area expanded to 72 square meters by last year. Through the CIIE, they elevated their brand awareness in the Chinese market and established a fruitful partnership with the Chinese online-based duty-free shopping platform, CDF Sunrise Duty Free. This partnership led to UGEL’s products being listed on CDF Sunrise Duty Free’s online stores, garnering positive responses from consumers and culminating in a significant Memorandum of Understanding worth approximately 1 million Singapore dollars (about $0.74 million) this year.
The success stories at the CIIE extend beyond individual companies. Over the past five years, the SBF has brought 307 companies to the CIIE, with more than 60 percent being returning exhibitors. Despite challenges posed by the COVID-19 pandemic, over 40 companies returned yearly to participate as exhibitors from 2020 to 2023, signing 34 Memorandums of Understanding and reporting sales amounting to almost 23 million Singapore dollars (about $16.99 million) in value. These figures underscore the significance of the CIIE as a valuable platform for Singaporean companies to expand their businesses in the Chinese mainland.
Future Prospects
The strengthened partnership between China and Singapore, highlighted by the activities at the CIIE, signals a promising future for businesses in both nations. As China continues to open its markets and transition its economy, Singaporean companies are well-positioned to seize new opportunities, fostering economic growth and deepening ties between the two countries.
Reference(s):
China-Singapore ties intensify: CIIE sparks business insights
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