‘Many possibilities’: Singapore, Shanghai eye closer cooperation as leaders meet

SHANGHAI: There is scope for Singapore and Shanghai to do more together and eke out greater gains for bilateral relations, as well as the larger Sino-Singapore relationship, their leaders agreed on Thursday (Nov 28).
“We see many possibilities for doing more things together,” said Singapore Senior Minister Lee Hsien Loong in a late morning meeting with Shanghai party chief Chen Jining at the Grand Halls complex in the heart of the Chinese financial hub. Mr Lee is on a six-day official visit to China.
“The international environment is troubled, but that simply means that between like-minded partners, we have to work harder to find opportunities to cooperate and make win-win arrangements come to life,” said Mr Lee, echoing his remarks on Tuesday when he met with Chinese President Xi Jinping in Beijing.
In his remarks, Mr Chen described Mr Lee as a “long-time friend” of the Chinese people, committed to fostering friendly bilateral cooperation over the years.
The Shanghai party boss noted how Shanghai plays a “key role” in China-Singapore cooperation. He pointed out the signing of a memorandum of understanding in 2019 that aimed to deepen cooperation in areas like financial services, technology and innovation, urban governance and people-to-people exchanges.
“Over the past five years, collaboration between Shanghai and Singapore has yielded fruitful results, with bilateral trade increasing by 20 per cent,” noted Mr Chen, who is an environmental scientist and holds a PhD from Imperial College London in civil and environmental engineering.
“As a local government, Shanghai is committed to making even greater contributions to the development of our bilateral relationship.”
As of June 2023, Singapore was Shanghai’s largest foreign investor. Cumulative actual investments reached US$25.99 billion in the first half of 2024. As of end-2022, Shanghai was also Singapore’s second-largest investment destination in China, behind Jiangsu province.
Both leaders affirmed the strong relations between Singapore and Shanghai, which are underpinned by close people-to-people ties, said Singapore’s Foreign Affairs Ministry (MFA) in a statement on Thursday evening.
“Secretary Chen updated Senior Minister Lee on the recent developments in Shanghai and the broader Yangtze River Delta region. They exchanged views on the opportunities and challenges in the region, and discussed ways to strengthen economic and financial cooperation between Singapore and Shanghai,” the ministry said.
Mr Lee remarked how he has visited Shanghai many times over the past 30-plus years. “And each time I have come back, I have been very happy to see the city prospering, developing, vibrant with new industries and new ideas and new possibilities,” he said.
The senior minister also noted the sizeable community of Singaporeans living and working in and around Shanghai, as well as the presence of Singaporean companies and firms with Singapore connections who use Shanghai as a base for their Chinese operations.
“They are the bridge connecting Singapore and Shanghai. And also they are ambassadors representing Singapore and helping Shanghai people to know Singapore better and to want to do more with Singapore,” said Mr Lee.
The senior minister met Singapore business leaders in Shanghai earlier on Thursday.
Investments from Singapore to Shanghai are largely concentrated in the real estate, financial services, manufacturing, lifestyle and consumer sectors. Prominent Singapore companies which have invested in Shanghai include CapitaLand, Keppel, and DBS. 
Later in the evening, the senior minister hosted a reception for Singaporeans based in and around Shanghai. Speaking to the roughly 450 people in attendance, Mr Lee remarked that their contributions have helped strengthen Singapore’s reputation.
“Our Singapore brand name is worth a lot in China. People know about us, they admire us, and they would like to know us better and to do more with us,” said Mr Lee, describing it as something “very valuable” that benefits both countries.
Mr Lee said much of this comes down to the Singaporeans in China – be it for study, work or other purposes – interacting with the Chinese and giving them an impression of what Singaporeans are like.
“Many of us are ethnic Chinese, but whether we are ethnic Chinese or not, we are not quite the same as the Chinese from China, different from them, and yet we respect them. and I think they look at us (a) little bit strange, but they respect us,” said the senior minister.
He pointed out that it is this distinction that provides the value-add.
“Otherwise, if it’s just another 3 million Chinese, just like the mainland Chinese, it doesn’t make a lot of difference … but because we are different with different experiences, we can learn from each other, and there is something which we can contribute to each other’s experience and success,” said Mr Lee.
The senior minister emphasised that such goodwill and dynamics are “precious”, particularly in the current turbulent geopolitical climate. He acknowledged China’s slower growth, pointing out challenges like the property downturn and local government issues.
But Mr Lee noted that the world’s No 2 economy is still growing and will be of increasing importance.
“For us in Singapore, it’s going to be a big part of our region, of our landscape, and we have to get along with China. And best of all, if we can also benefit from China’s growth and development, and therefore live happily, coexisting with one another … on that basis, we are in good shape,” he said.
Mr Sean Lim, 45, a business executive in the services and entertainment industry who has been working in Shanghai for the past 13 years, told CNA he has observed significant changes in the business environment since the COVID-19 pandemic.
“With the Chinese economy slowing down, businesses are spending more cautiously, and consumer spending is smaller in quantum than before. The business landscape has therefore become more complex as well,” he said.
At the same time, Mr Lim noted that since the pandemic, fewer foreign expatriates have remained in China, spurring efforts to train and groom local talent.
“Singapore’s good relations and frequent exchanges with China have facilitated the transfer of skills and know-how, enabling local talent to upskill quickly,” he added.
Mr William Chang, chairman of the Singapore Chamber of Commerce and Industry in China (SingCham), pointed out that while China’s growth has slowed, Chinese firms have become more competitive, posing challenges for Singaporean companies operating in the country.
Despite this, Mr Chang emphasised that Singaporean firms have managed to adapt and address these challenges.
“With stable relations between Singapore and China, Singaporean companies have been able to navigate the landscape to mitigate risk and uncover new opportunities,” he said.
Mr Lee wraps up his visit to China on Friday.