Why Singapore firms should invest in Shandong

Eastern China province offers lucrative projects in its nascent trillion-yuan marine industry.

In a release, IE Singapore said that in line with Shandong‟s marine economy strategy to boost the province's growth, the Shandong government has pledged to spend 1.4 trillion yuan by 2020 to modernise its marine industries. This point to business opportunities in urban solutions and modern services like healthcare for Singapore companies.

IE Singapore said the country can also partner Shandong enterprises as they seek to access growth opportunities in emerging markets around the region.

These collaboration areas were discussed at the 16th Singapore-Shandong Business Council (SSBC), co-chaired by Minister of State for Trade and Industry Teo Ser Luck and Shandong Vice Governor Xia Geng in Jinan, Shandong province.

"Centre to the marine economy strategy is the Shandong Peninsula Blue Economic Zone, one of three pilot zones to develop China‟s marine economy. It aims to promote marine-related industries including shipping, ports and logistics, coastal tourism, water supply and treatment, etc. In the first half of 2012, industries in the Blue Economic Zone realised a total output value of 1.04 trillion yuan, an increase of 11.7% over the same period in 2011," said IE Singapore.

"The strong growth of the marine industries translates into needs for supporting sectors such as urban solutions and modern services, where Singapore companies can offer their expertise. Collaboration in the water and healthcare sectors has made good headway with project signings by CNA Group and the National Technological University," it said.

"Shandong plans to modernise its industrial parks as part of the strategy. With 157 provincially-approved high technological and economic development zones, Shandong hopes to leverage Singapore‟s expertise in developing and managing world-class business and industrial parks," it added.

Commenting on the Shandong opportunities, Minister of State for Trade and Industry Teo Ser Luck said: “Singapore and Shandong have come a long way since the business council was set up 19 years ago. Our economic ties have strengthened over the years. In 2011, Singapore‟s trade with Shandong grew 29% to reach US$2.91 billion. The number of projects invested by Singapore companies also saw a jump of 48%. Singapore‟s future collaboration with Shandong will be aligned with its development, including the marine economy strategy. We will also deepen cooperation beyond economic areas, such as training, media, cultural and sports exchanges.”