Suzhou industrial park is a success

last SG · 2006-10-18T23:25:29+00:00

Give me the direct tangible benefits to Singapore. Give me the figures for the net returns to our investments. Give me cold and hard statistics, and I'll b...

boy in blues SG

THE United States has confirmed its participation in the Shanghai World Expo, event organizers said yesterday.

The early confirmation is a coup for the 2010 event. The US revoked its membership of the World Expo's international governing body in 2001, saying the event, which was first held in 1851, had no place in today's technologically advanced age.

It did not attend the Hanover World Expo in 2000 and was last to register for World Expo 2005 in Aichi, Japan.

The US Deputy Assistant Secretary Alina Romanowski, who told Zheng Zeguang, China's US ambassador, of the decision to take part, said the World Expo 2010 would serve as a new platform to strengthen communication and cooperation between the US and China.

"The US government attaches great importance to the World Expo 2010 and has decided officially to take part in the event," said Romanowski during her meeting with Zheng, according to a press release issued by the Bureau of Shanghai World Expo Coordination.

Franklin Lavin, the US undersecretary of commerce for international trade, said during his visit to China in July: "Many Americans are not familiar with China, but they have an urgent desire to know the country, which has so long a history and so splendid a culture. The World Expo 2010 will help to expand the influence of China in the US."

Zhou Hanmin, deputy director of the Bureau of Shanghai World Expo Coordination, said yesterday the US had made a detailed working plan for the Expo.

"The participation of the US shows that the World Expos are getting more attractive at the beginning of the 21st century," said Zhou. "It can also reinforce a constructive and cooperative Sino-US relationship."

He said the Expo would act as a platform to improve political, economic, cultural, technological, educational and environmental coordination between the two nations.

So far, 87 countries and international organizations have accepted the invitations, sent by Premier Wen Jiabao in March, to attend the event.

"It is rare in the World Expo's history to have so many nations and international organizations confirm their participation in such a short time," said Zhou. "The Bureau of International Exhibitions has awarded us a high evaluation."

The World Expo 2010 hopes to attract 200 countries and international organizations and more than 70 million visitors.

Atobe SG

As much as the Americans and the entire world has seen China to be a market of ONE BILLION CONSUMERS, and a place for low cost production, what is the benefit for Singaporeans for the Singapore Government to invests millions of our Singapore Reserves to built a Suzhou Indusrial Park that feature the same infrastructure of a typical Singapore Industrial Estate ?

If the intention was to get into the good books of the authorities and build up 'guanxi', perhaps the Singapore Government has scored, as part of the millions spent probably fell into the deep pocket of a Mao jacket.

In the course of the construction of Suzhou Industrial Park, the millions poured into the project has benefitted local Chinese contractors and became a boom for local Suzhou labor.

Unlike the manufacturing investments of other countries, there is little output that will generate profit by selling to the mass consumers, and the only source of income is at the end of the project when land is rented, and fees charged for utilities consumed.

Still what benefit is there for the average Singapore worker in Singapore ?

In creating a Suzhou Industrial Park that replicate a typical Singapore Industrial Estate with its superior infrastructure, will it not draw away potential investors from Singapore, reducing by as much the job opportunities that will otherwise be open to Singaporeans ?

Even with Singapore businesses taking the cue to invest, and find the benefit of paying higher for the infrastructure at Suzhou Industrial Park, it cannot possibly employ any significant number of Singaporeans when there are lower costs Mainland Chinese available in Suzhou.

What is the benefit to the average Singaporean worker ?

Is there any significance to any Singaporean, if the Suzhou Industrial Park is a success after almost a decade of work and misteps ?

Any trumpet blowing at this time, is merely self-serving in justifying in a twisted manner, the millions wasted in a useless project that brings no benefit to Singaporeans.

Hogzilla SG

Originally posted by Atobe:

As much as the Americans and the entire world has seen China to be a market of ONE BILLION CONSUMERS, and a place for low cost production, what is the benefit for Singaporeans for the Singapore Government to [b]invests millions of our Singapore Reserves to built a Suzhou Indusrial Park that feature the same infrastructure of a typical Singapore Industrial Estate ?

If the intention was to get into the good books of the authorities and build up 'guanxi', perhaps the Singapore Government has scored, as part of the millions spent probably fell into the deep pocket of a Mao jacket.

In the course of the construction of Suzhou Industrial Park, the millions poured into the project has benefitted local Chinese contractors and became a boom for local Suzhou labor.

Unlike the manufacturing investments of other countries, there is little output that will generate profit by selling to the mass consumers, and the only source of income is at the end of the project when land is rented, and fees charged for utilities consumed.

Still what benefit is there for the average Singapore worker in Singapore ?

In creating a Suzhou Industrial Park that replicate a typical Singapore Industrial Estate with its superior infrastructure, will it not draw away potential investors from Singapore, reducing by as much the job opportunities that will otherwise be open to Singaporeans ?

Even with Singapore businesses taking the cue to invest, and find the benefit of paying higher for the infrastructure at Suzhou Industrial Park, it cannot possibly employ any significant number of Singaporeans when there are lower costs Mainland Chinese available in Suzhou.

What is the benefit to the average Singaporean worker ?

Is there any significance to any Singaporean, if the Suzhou Industrial Park is a success after almost a decade of work and misteps ?

Any trumpet blowing at this time, is merely self-serving in justifying in a twisted manner, the millions wasted in a useless project that brings no benefit to Singaporeans.

[/b]

You still don't get what our dearest oxford mushroom is trying to say.

His meaning is: when the government go invest, you should go as well. Then you can kao bei. If you don't have the "foresight" of our government, please don't talk and diam!!.

Atobe SG

Originally posted by Hogzilla:
You still don't get what our dearest oxford mushroom is trying to say.

His meaning is: when the government go invest, you should go as well. Then you can kao bei. If you don't have the "foresight" of our government, please don't talk and diam!!.

Did you read my post in reply to OM, or that of the other participants ?

Some participants had asked how many Singaporeans from this population of 4.5 MILLION can invest in Suzhou Industrial Park by setting up manufacturing facilities ?

My question to OM was : how many Singapore owned manufacturing facilities have offered any IPO to Singaporeans to participate in the investment at SIP ?

My post is clear and simple, the Government investment in SIP is a useless waste of Singapore Reserves that BRING NO BENEFIT to Singaporeans in any manner.

OM claim that tax is collected from the profits of Singaporean owned manufacturing facilities in SIP; and I had replied that this can only happen in OM's pipedream as there is a 'Double Taxation Agreement' that help the investors from being faced with a Double Tax imposed on profits from their overseas investments.

Is it the foresight of our Singapore Government to waste MILLIONS OF OUR SINGAPORE RESERVES that bring no benefit to Singaporeans, and now with a smaller shareholding in the SIP - how quickly over the next few years, can the entitled share of the SIP Profit allow for the full recovery of all the Singapore Reserves poured into this SIP Project ?

Should we trust your personality to understand a mixed up Oxford Mushroom - " Hog-zilla " ?

drawer SG

Like some forumers say here,where is the figures of the profit?How much money we have dumped into the project?How much losses we have made compare to profit?Why our government refuse to disclose the figure?

Not only Suzhou industry park is making losses,i believe other government foreign investment also suffering losses.The most recent one is our investment in Thailand by the Temasek Holdings,which the Thailand government overthrown by the militia.The newspaper stated it might cause losses in the investment.

oxford mushroom SG

Originally posted by Atobe:

Did you read my post in reply to OM, or that of the other participants ?

Some participants had asked how many Singaporeans from this population of 4.5 MILLION can invest in Suzhou Industrial Park by [b]setting up manufacturing facilities ?

My question to OM was : how many Singapore owned manufacturing facilities have offered any IPO to Singaporeans to participate in the investment at SIP ?

My post is clear and simple, the Government investment in SIP is a useless waste of Singapore Reserves that BRING NO BENEFIT to Singaporeans in any manner.

OM claim that tax is collected from the profits of Singaporean owned manufacturing facilities in SIP; and I had replied that this can only happen in OM's pipedream as there is a 'Double Taxation Agreement' that help the investors from being faced with a Double Tax imposed on profits from their overseas investments.

Is it the foresight of our Singapore Government to waste MILLIONS OF OUR SINGAPORE RESERVES that bring no benefit to Singaporeans, and now with a smaller shareholding in the SIP - how quickly over the next few years, can the entitled share of the SIP Profit allow for the full recovery of all the Singapore Reserves poured into this SIP Project ?

Should we trust your personality to understand a mixed up Oxford Mushroom - " Hog-zilla " ?
[/b]

Temasek Holdings is the investment arm of the givernment. When Temasek Holdings earns revenue from its investments in Suzhou, those earnings go into the reserves of the nation, which can be drawn upon to balance the budget when the economy faces a downturn again. In years of budget surplus, the government distributed millions to Singaporeans by way of Progress Package and other schems.

Local companies like JTC, Keppel Land and Sembawang Industrial are Singapore-based companies, their head office in Singapore pays corporate tax to the government, their management and employees pay income tax to the governent. When these companies do well in their overseas investments like Suzhou, their Singaporean employees benefit, their stockholders benefit and Singapore benefits.

Those who choose not to go to Suzhou like JTC and Temasek Holdings cannot now blame the government because they do not benefit from this initiatiive...sound like sour grapes to me.

Hogzilla SG

Haiz~~~

I hate to belive your words, but from the looks of our OM's reply, it seems to be the truth.....

Atobe SG

Originally posted by oxford mushroom:

Temasek Holdings is the investment arm of the givernment. When Temasek Holdings earns revenue from its investments in Suzhou, those earnings go into the reserves of the nation, which can be drawn upon to balance the budget when the economy faces a downturn again. In years of budget surplus, the government distributed millions to Singaporeans by way of Progress Package and other schems.

For crying out loud, are you grabbing straws from thin air to prove your false position ?

Which Suzhou investments have Temasek got itself involved with, when the Government Investment Corporation has already sunk millions - if not Billions - from the Singapore Reserves into Suzhou ?

Since when has Temasek ever returned its excess funds to the National Reserves ?

Are you in any position to be privy to such 'classified information' when even the late President Ong Teng Cheong has not been able to get even an iota from his Government ?

If you are in no position to be privy to such information, what is the basis of your statement, if not just another one of your typical humbug effort to impress.

Local companies like JTC, Keppel Land and Sembawang Industrial are Singapore-based companies, their head office in Singapore pays corporate tax to the government, their management and employees pay income tax to the governent. When these companies do well in their overseas investments like Suzhou, their Singaporean employees benefit, their stockholders benefit and Singapore benefits.

How many more othe GLCs do you intend to link to save your sinking position ?

Fat hopes if the profits made by JTC, Keppel Land and Sembawang from their overseas investments will be subject to additional corporate tax by the Singapore Government.

What is new about the local management and employees being subject to income tax, when every other Singaporeans are also subject to the same income tax ?

In addition to the income tax, the monthly wages paid are also subject to all kinds of indirect taxes levied on every essential economic activities that result in an embarrassing revenue surplus windfall for the government.

Are these the result of the profits generated by overseas investments ?

Those who choose not to go to Suzhou like JTC and Temasek Holdings cannot now blame the government because they do not benefit from this initiatiive...sound like sour grapes to me.

How many of the average Singaporean earning an average monthly wage of between S$500 to $3,000 can actually "go to Suzhou like JTC and Temasek Holdings" ?

Are you perched on your ivory tower, or smoking pipe in Dreamland ?

From all your condescending posts belittling the average Singaporean, it certainly reinforce the likes of you to the current controversies of the elitist MP Wee and his petulant daughter.

Are you in any position to lecture and berate the average Singaporeans ?

Cindyfeh SG

I know of a much easier way to make profits of US$7.6m every year.

SACK all of the ministers and gov heads involved or are involving in that Suzhou project. Their yearly salaries cum benefits should well match that amount.

Easy right?

100% COMFIRM profit and no need to argue with the Chinese.

boy in blues SG

Singapore and China have started their first round of talks towards a bilateral free trade agreement.

The negotiations started just as Singapore Prime Minister Lee Hsien Loong arrived in China for a 6-day visit.

His first stop is the southern city of Guangzhou, the provincial capital of Guangdong.

Arriving in the late afternoon, PM Lee was greeted by Guangdong Vice Governor Tong Xing and Guangzhou Vice Mayor Chen Mingde.

Mr Lee's last visit to Guangzhou was 15 years ago in 1991.

This trip offers him a chance to be updated and get a complete picture of China's development.

Mr Lee also met Guangdong's Governor Huang Huahua.

Two-way trade between the province and Singapore makes up one-third of total Singapore-China trade.

Mr Lee said he would like to see this relationship with Guangdong blossom and grow in both directions.

He also invited Mr Huang, who last visited Singapore in 1989, to visit again.

The Prime Minister's six-day visit takes him through the economically vibrant cities of Guangzhou and Chengdu.

After these cities, he heads to Nanning in Guangxi for the China-ASEAN commemorative summit.

There he will meet Chinese Premier Wen Jiabao and other ASEAN leaders.

Mr Lee's visit coincides with the start of the bilateral Free Trade Agreement discussions in Beijing.

Officials from both sides discussed the negotiating mechanism and the scope of the agreement.

Singapore's Trade and Industry Ministry says the agreement will be a comprehensive one, moving beyond goods, services and investments to include cooperation initiatives in various areas.

It added that this bilateral FTA will also contribute to the development of the China-ASEAN free trade area.
Singapore's Prime Minister Lee Hsien Loong hopes his visit to Guangdong will expand bilateral cooperation and raise Singaporeans' awareness to opportunities in the southern Chinese province.

Mr Lee met Guangdong Party Secretary Zhang Dejiang on the first leg of his China visit.

Guangzhou's close proximity to Hong Kong has prompted many potential Singaporean investors to look elsewhere in China, due to the misconception that the province is the "territory" of Hong Kong businessmen.

But this looks set to change with the two-day visit of the Singapore Prime Minister.

Meeting the Guangdong Party Secretary, Mr Lee said with the province's rapid growth, business opportunities would multiply, creating more areas in which the two economies could collaborate.

Two-way trade between Singapore and Guangdong currently makes up one-third of total trade between Singapore and China.

As the economic centre of the Pearl River Delta, Guangzhou is one of China's leading commercial and manufacturing regions, but actual investments by Singapore companies in Guangdong accounts for only 2 percent of total Foreign Direct Investment.

This is a sign, perhaps, of the great potential yet to be tapped.

PM Lee took time to meet Singapore businessmen based in Guangdong, and was happy to report that they were bullish about the opportunities in the province.

Lim Chin Loon, Managing Director, Songming Machinery Industry (Shenzhen), said: "This is a rather lively and prosperous place. Actually, if friends from Singapore want to come to China, I will recommend Shenzhen and Guangzhou. Come and look for us!"

Currently, Singapore investments are largely focused on Jiangsu in the Southeast, Sichuan in the Southwest and Liaoning in the Northeast.

Guangzhou is growing at an average rate of 13 per cent annually, and it has a high-tech industrial zone called Science City, which Mr Lee visited.

At Vtron, a home-grown Chinese maker of high resolution digital display systems, Mr Lee tried out their star product.

Visibly impressed by the technology, he invited the unlisted company to consider listing on the Singapore Exchange.
TIES between China and the Association of South-east Asian Nations (Asean) have made much progress largely due to the booming Chinese economy.
.
There are now many areas of co-operation between China and Asean, ranging from trade and investments, education and culture to political and security issues.
.
"For the past 15 years, we have made a lot of progress because Asean has seen China's development as a positive trend for the whole region and for the whole world," said Prime Minister Lee Hsien Loong in an interview with China's media on Monday, ahead of his visit there.
.
"We believe that if China and Asean have a good relationship, Singapore will benefit from this. So, we would like to foster this relationship and, where we can, help it to move forward."
.
He also gave an update on the Asean-China free trade agreement (FTA), citing that "a lot of progress" has been made: The Goods Chapter under the FTA has been signed and the tariff advantages are being phased in.
.
Next up is the chapter on the trade in services and investment, even though this might be "harder to do", he added.
.
"Countries are worried because services usually affect a lot more employment and a wider part of the economy than goods," he said. "But the potential if we liberalise them will be great and I think the necessity to do that if you want an overall strong economy is compelling."
.
The Prime Minister pointed out that Asean's challenge is to develop "maximum advantage" from bilateral ties with China while strengthening its links with other parts of the world, including Japan, Europe and India.
.
"We would like all of these links to grow because we believe that it is best for the region to have an open configuration, an open framework of cooperation in which ... many countries can have a stake in the success of Asia."
.
On the status of Singapore-China ties, Mr Lee said that the two countries share "a very good relationship" despite their differing vital interests.
.
"I think we understand each other well. We each have different vital interests, but I believe our fundamental interests do not conflict with one another and Singapore believes that China's development and progress is a tremendous positive for the region and the world."
.
He reiterated Singapore's support for the one-China policy, and also stressed the importance of mutual trust and respect in order for Asean-China ties to develop further in future.
.
Mr Lee's remarks came ahead of his working visit to China today until Oct 31, during which he will visit three cities: Nanning, Guangzhou and Chengdu.
.
In Nanning, the Prime Minister will attend the Commemorative Summit celebrating the 15th anniversary of Asean-China ties on Oct 30 and 31. Mr Lee will also meet Chinese premier Wen Jiabao and hold talks with new Thai Prime Minister Surayud Chulanont the first such meeting since the latter assumed the position.
.
Prior to Nanning, Mr Lee will visit Guangzhou from Oct 26 to 27 and Chengdu on Oct 27 to 29 to update himself on the developments in these two provincial cities. He is also scheduled to meet Singapore businessmen and the Chinese provincial leaders.
.
The Prime Minister last visited Guangzhou, the capital of Guangdong province, in 1991, in his capacity as then-Deputy Prime Minister.
.
Investment and trade links between Singapore and the two provinces Guangdong and Sichuan have seen robust growth in the past decade. Singapore is the second-largest trading partner within Asean in Guangdong, as well as the fourth-largest foreign investor in Sichuan province.
.
Total trade with Guangdong last year hit US$10 billion ($15.7 billion) up 20 per cent from 2004. Similarly, investments from Singapore in Sichuan grew from US$57 million in 1995 to US$340 million last year.
.
Accompanying Mr Lee to China will be Foreign Affairs Minister George Yeo, National Development Minister Mah Bow Tan, Minister of State for Trade and Industry Lee Yi Shyan and senior Government officials.

boy in blues SG

in terms of Purchasing Power Parity [what is produced] China has already passed Japan and is well on its way to equaling the U.S.A.

During the past five years America has accounted for only 13% of global real GDP growth, using purchasing-power parity (PPP) weights. The real driver of the world economy has been Asia, which has accounted for over half of the world's growth since 2001. Even in current $ terms, rather than PPP, Asia's 21% contribution to the increase in world G.D.P. exceeded America's 19%. But current $ figures understate Asia's weight in the world, because in China and other poor countries things like housing and domestic services are much cheaper than in rich countries, so a $ of spending buys a lot more. If you want to compare consumer spending across countries, it therefore makes more sense to convert local currency spending into the $ using P.P.P.¡¦ rather than market exchange rates.

Asia is running a combined current-account surplus of over $400 billion, implying that it is contributing much more to world supply than to demand. If America's demand stumbles, the growth in Asia's exports and output would also plunge, so the story goes, but is this true?

Since 2001 the increase in emerging Asia's trade surplus has added less than 1% a year on average to the region's average growth rate of almost 7%. Contrary to the perceived view, the bulk of Asia's growth has been domestically driven.

It is true that domestic demand (investment and consumption) has grown more slowly than G.D.P. over the past year everywhere except in Malaysia (see chart 1). But in most cases the gap has been small, especially in China, India, Japan and Indonesia.

It is true that exports account for 40% of China's GDP, but those exports have a large import component; only a quarter of the value of China's exports is added locally. The impact of a slowdown in export growth would therefore be partially offset by a slowdown in imports.

It is therefore true that China's GDP growth has come mainly from domestic demand, which has been growing by an annual 9% in recent years!

Is China's consumer spending feeble? Several recent reports highlight that according to official figures spending has fallen from 50% of nominal G.D.P. in 1990 to 42% today. But this partly reflects an even stronger boom in capital spending. Real consumer spending has been growing at an average annual pace of 10% over the past decade¡Xthe fastest in the world and much faster than in America (see chart 2).

There is also good reason to believe that official figures understate consumer spending in China because of their inadequate coverage of services China¡¦s GDP was re-evaluated. Purchases of homes by the Chinese have risen rapidly since they were first allowed in 1998, but these are also excluded from the figures. If they are added in total household spending has not fallen as a share of GDP.

Is Chinese savings as high as we all believed? The savings of Chinese households has in fact fallen from 20% to 16% of G.D.P. over the past decade. The main reason why China's total national saving rate looks so high (at close to 50%) is that Chinese companies have been saving a much bigger slice of their profits.

The I.M.F. estimates that in Asia as a whole (including Japan as well as the emerging economies) real growth in consumer spending has averaged a healthy 6.3% a year in 2005 and 2006. This suggests that Asian consumers can help sustain fairly robust GDP growth in Asia even if America's economy takes a dive.

Not only is growth in China and the rest of Asia chiefly domestically led but America's share of Asia's total exports has fallen from 25% to 20% over the past five years. Regional trade links within Asia have also deepened thanks partly to growing Chinese demand. Goldman Sachs reports that five years ago China's imports for domestic use were only half as big as those for the assembly and re-export of products, but now they are roughly the same size. So strong domestic demand in China sucks in more imports.

China's exports to America have fallen from 34% of its total exports in 1999 to 25% now (adjusting for the re-exports which are made through Hong Kong). Chinese exports to the European Union are now almost as big as those to America and are growing faster.

H.S.B.C. estimates that slower American growth will hurt China, India and Japan much less than it will the smaller Asian economies, such as Singapore, Taiwan and Hong Kong, that are more dependent on foreign demand. China, India and Japan account for three-quarters of Asia's GDP and so, given the deeper regional trade links, they should help to support demand in the whole region. If America's GDP growth slows next year to 1.9%, from 3.5% in 2006, as HSBC expects, then Asia's growth is tipped to slow from just above 7% this year to just below 6% in 2007. Weaker exports will badly hurt some industries, but overall, the region will continue to grow at a reasonable pace.

Could Asia withstand a sharper American slowdown? Goldman Sachs estimates that if America's G.D.P. growth drops to zero by the end of 2007 then China's annual export growth could plummet from 26% in early 2006 to a decline of 2% by late 2007. After taking account of the impact of slower export growth on imports and domestic demand (i.e. slower growth in investment), Goldman Sachs estimates that China's G.D.P. would still expand by 8%. That is significantly down from this year's growth rate of over 10%.

China is today tightening policy so as to slow down its runaway economy: weaker external demand could be partly offset by reversing these measures.

if America suffers a slump, the economies of China and the rest of Asia would slow, but they are unlikely to be derailed. More importantly, the steady shift of wealth to the East has moved to the point where it is not only unstoppable, it can be self-sustaining. Therefore, the East has moved from dependence on the West to independence from the West, already.

boy in blues SG

Singapore's Prime Minister Lee Hsien Loong has arrived in the southwestern Chinese city of Nanning in Guangxi, a day ahead of the ASEAN-China Commemorative Summit.

He said ASEAN-China cooperation is of strategic importance and has opened up many opportunities.

Mr Lee is also optimistic about expanding Singapore-Guangxi collaboration.

Arriving on Sunday on his first visit to Guangxi, Mr Lee was given a red-carpet welcome at Nanning airport.

Guangxi's Vice-Governor Li Jinzao was there to receive Mr Lee.

Mr Lee then met Guangxi's Party Secretary Liu Qibao, who asked for Singapore's support to develop what he termed the "One Axis, Two Wings" strategy - a proposal which Chinese Premier Wen Jiabao is expected to elaborate on in the next few days.

One of the wings would involve setting up the Pan-Beibu Gulf Economic Cooperation Zone, stretching from Chinese Beibu Gulf south of Guangxi to several countries in Southeast Asia.

The other wing is the Greater Mekong Subregion Cooperative which includes China, Vietnam, Cambodia, Laos, Myanmar and Thailand.

As for the axis, the Party Secretary spoke of setting up an economic corridor from Nanning to Singapore with road and rail links.

Mr Lee said the proposal makes strategic sense and will be something Singapore will fully support.

But he pointed out that it will require effort as it involves a wide area.

Still, he said, it is something that can be progressed upon year by year.

As for the development of Guangxi's ports, Mr Lee said Singapore firms like Temasek Holdings are interested.

And, Singapore would like to explore how it can work with Guangxi to expand its port facilities.

Prime Minister Lee also met Yunnan Governor Xu Rongkai.

China hopes that investment and opportunities will come to Yunnan province and Guangxi, through Guangxi's links with ASEAN.

On Monday, leaders from the 10 ASEAN countries and China will meet for the first time in a commemorative summit.

They will take stock of developments and chart the course for future development, including the set-up of the ASEAN-China Free Trade Area.

When that is established in 2010, it will become one of the world's biggest free trade areas, with a combined market of 1.7 billion people.

China-ASEAN bilateral trade grew 20 percent annually over the past 15 years, reaching 130 billion U.S. dollars last year, 15 times the figure in 1991. China is now ASEAN's fourth largest trading partner and ASEAN is China's fourth largest as well.

The trade volume is expected to reach 200 billion US dollars by 2008, two years ahead of schedule, as construction of the China- ASEAN free trade area is surging ahead.

Under a free trade framework agreement, by 2010, China and six old ASEAN member nations -- Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand -- will impose zero tariffs on most normal products, while China and the other four new ASEAN members -- Cambodia, Laos, Myanmar and Vietnam -- will do the same in 2015.

The World Bank has predicted that China-ASEAN free trade area, upon completion, will turn to be one of the most influential powers in the Asia-Pacific economic rim.

China and ASEAN leaders are gathering in Nanning for a high-level summit meeting on Monday, with the aim to pursue regional free trade and enhance political mutual trust.

Chinese experts on international studies believe that the summit to mark the 15th China-ASEAN Dialogue Relations will push the China-ASEAN strategic partnership to a new level.

Six of the 10 ASEAN country leaders have already flown to the city by the press time for the summit include prime ministers of Cambodian, Singapore, the Laos, Myanmar, Malaysia and president of the Philippines. Leaders of the remaining ASEAN members are expected to arrive here late Sunday or Monday.

This is the first time leaders from China and the ten ASEAN member countries to convene in China. They are widely expected to chart a future direction of China-ASEAN relations in the coming years.

Chinese Premier Wen Jiabao will hold bilateral meetings with the ASEAN countries leaders respectively on the sidelines of the summit.

The third China-ASEAN Expo and China-ASEAN Business and Investment Summit are to kick off on Tuesday.

By 1991, China established diplomatic ties with all members of ASEAN. It became ASEAN's all-around dialogue-partnership country in 1996. Currently, China and ASEAN are bent on cementing the " strategic partnership oriented to peace and prosperity".

Hogzilla SG

+1.

I heard rantings and flamings from OM, but no figures on $$ spent on SIP.

Atobe SG

In the Straits Times, Tuesday, 7 November 2006, it was reported that China's Reserves will soon reach US$1 TRILLION, making it the only country to reach this position, and in such a short time of its history.

The World Bank had forcasted that China's Reserves will reach US$ 2 TRILLION by the year 2010.

What is the Singapore Government doing - with its move into China and taking over the various infrastructure and helping to IMPROVE these facilities so as to make China even more attractive, efficient, which ultimately make China more threatening to our own position in Singapore ?

Most of the efforts by the Singapore Government Linked Companies are in the running of ports, airports, and industrial parks, and all on short term lease - with the supposed altruistic intention of imparting management skills and the "Singapore Work Culture and Work Ethics" to the Maniland Chinese workers.

In the beginning, one could have seen this as a "Win-Win" Situation for China and Singapore - showcasing the characteristic LKY's philosophy of "Fill the Stomach, and Dull the Mind" - by helping a Communist Government to be less politically adventurous with its Communist Idealism, and concentrate on Economics.

Has the Singapore Government been too successful in its engagement with the Communist Government of Mainland China ?

It seems that while the Singapore Government has lessen the Political Threat of Communist Adventurism, it has instead help to raise a larger Economic Threat from Communist China, which it has no answer.

A China that remained Communist, richer ten times over, and more determined to maintain its Communist System; and with a growing Treasury that help to rebuild a new and technologically modern military.

The longer term threat to our own position seems to have been missed.

At the Basic Level, how has the Suzhou Industrial Park benefitted Singaporeans ?

Some other reports have indicated the immense resentment of the chinese workers towards the appointments of Singaporeans in middle management and supervisory positions; and that the chinese workers believe themselves to be as capable and should be entitled to those position at the same wages paid to Singaporeans.

It seems that job creations by foreign investments attracted to such Singapore managed Industrial Parks in China will actually result in one investment LESS for those industrial parks on Singapore's own soil.

As matters stand, Singapore's share of the SIP has now been reduced to a minority shareholdings, any profits from the success of SIP will be shared at a reduced level in proportion to the present minority share held by Singapore.

Is there anything to be trumpetted, or have we been outsmarted by the Mainlanders with a longer history of hosting foreigners and swallowing them ?

AnotherView SG

If Singapore, with a population of 3.5 million, can come out with a LKY,
how many 'LKYs' can China produce with a population of 1,500,000,000?

If only 1% of China's population is smart and intelligent,
the number of people of this category would be 15 million!

Hogzilla SG

Has China dream made everyone think that Singapore's SIP investment is a dream?

I haven't got the numbers for the $$ spent.....

justcooler SG

The increase in everything is the very first step to accumulate funds to buy into china

Old wet dream, just as the thai dream.. Cool

Hogzilla SG

Before I forget har.

+1. Where is the numbers for profits and losses?

eyebuzz SG

i... hor... don't get it la... hear hor... people sold HDB flat must top up CPF... lost shares values must make good CPF funds hor... why hor gahmen so special leh... can lose investment money hor... ever hear them top up huh? still wanna increase pay some more, why, they special breed issit? they really very clever to help people hor... Rolling Eyes

foomwee88 SG

PRC laughing 2 the bank!!

Stupid Sporeans!!!!

« Previous Page Next Page »