Singapore is a mere speck compared with mainland China, but this huge contrast in size may shape economic relations between the countries. The city state is banking on its expertise in creating urban sustainability within a tiny area to boost trade with the world's most populous nation.
Bilateral trade between Singapore and China last year was dominated by integrated circuits, petrochemicals and primary chemicals. However, with China's urban population set to welcome another 350 million people by 2025, Singaporean companies are eyeing a potentially huge mainland market for sustainable living.
Yew Sung Pei, assistant chief executive of International Enterprise Singapore, the government agency responsible for promoting the country's external economy, says: 'China is moving towards an urban billion at an increasingly fast pace. Its local governments are seeking solutions to develop sustainable infrastructure to meet the needs of the growing urban population.
'As a country with limited land and resources, Singapore's development has been guided by long-term master planning that ensures sustainability. Singapore companies have the capabilities and experience to share with their counterparts in China.'
Yew says opportunities exist for Singaporean and Chinese companies to form partnerships in the urban solutions sectors, including master planning, water and wastewater management, waste management, energy management, transport and logistics and integrated developments.
According to a spokesman at Singapore's Ministry of Trade and Industry, Singapore advocates free and open trade by expanding its network of free trade agreements (FTAs). 'We regularly review our FTAs, especially those with key Asian economies, to ensure their relevance to businesses. Such international networks will enable businesses here to continue to enjoy lower trade barriers, better connectivity with global supply chains and an enhanced environment for doing business. In terms of trading partners, Asean is Singapore's largest trading partner. In 2010, Asean formed 27 per cent of Singapore's trade with the world.'
The spokesman says that China is Singapore's third-largest trading partner - if the European Union is taken as a single entity - with bilateral trade reaching S$95.3 billion (HK$585 billion) last year, an increase of 26 per cent over the previous year. From January to September this year, bilateral trade reached S$74.9 billion, an increase of almost 6 per cent from the same period last year.