3 key economic trends that will build opportunities for SG companies

Gan shared these trends at the Singapore-China Trade and Investment Forum.

Trade Minister Gan Kim Yong shared three key economic trends that will create opportunities for Singaporean companies in his keynote speech at the Singapore-China Trade and Investment Forum held on 6 November.

The first trend which Singapore companies will benefit from is China’s growing domestic market.

According to Gan, the prolonged pandemic has made young Chinese consumers from ages 20-30 more discerning on their purchases and have been spending on better quality products which Singapore is reputed for.

This makes Singapore “well-positioned to serve the Chinese market and cater to the Chinese consumers,” Gan said.

“Many of the Singapore exhibitors at the China International Import Expo (CIIE), such as Yeo's, Natura Biotechnologies, and Pearlie White, are developing and showcasing their innovative solutions and products that will lead to a higher quality of life. I urge you to find out more about them,” Gan said.

The second trend is the rapid digitalisation of the global economy.

The trade minister said digitalisation has accelerated around the world including Singapore which saw a 30% increase in its first-time digital services users.

The worth of the digital economy in China alone was US$6t in 2020, making up 38.6% of the country’s GDP. In Southeast Asia, it is expected to triple in size to US$300b by 2025.

Gan said Singapore is harnessing the growth opportunities in the digital economy by actively investing in digital infrastructure.

The trade minister said Singapore is also looking into cross-border e-commerce and trade financing.

Opportunities are also budding as the green economy continues to emerge, Gan sad.

The trade minister said being able to integrate sustainability in plans of government and business is core for long-term competitiveness.

This year, Singapore launched the Singapore Green Plan which aims to half the country's carbon emissions by 2030.

“The green economy presents opportunities for businesses to reinvent themselves and stay relevant. Those who embrace sustainability quickly will reap first-mover advantages,” Gan said, citing Sembcorp as an example.

“I encourage Singapore and Chinese companies to leverage the wealth of opportunities available in the green economy, including areas such as renewable energy, low-carbon technology, and green financing,” he added.