Minister Lawrence Wong’s Interview with Xinhuanet Prior to Attending Belt and Road Forum for International Cooperation on 13 May 2017

May 13, 2017

Qn: In February this year, Singapore's Deputy Prime Minister Teo Chee Hean led 11 ministers to attend the 13th meeting of the Sino-Singapore Joint Council for Bilateral Cooperation (JCBC). How do you evaluate the outcomes of this meeting? 

Minister: Several Cabinet colleagues including myself accompanied Deputy Prime Minister Teo Chee Hean to the 13th JCBC meeting in Beijing this February.  It was a good and fruitful meeting.  Apart from reviewing the wide-ranging areas of cooperation, including business and trade, financial services, sustainable and human resource development, both sides explored ways to take our cooperation to the next level.  In particular, we agreed that China’s “Belt and Road” initiative presents new areas for cooperation and should be a permanent item on the JCBC agenda.  

Our third and latest Government-to-Government project, the China-Singapore (Chongqing) Connectivity Initiative (CCI), has been designated as a priority demonstration project for the “Belt and Road” and will play a catalytic role in linking up Western China to Southeast Asia as well as across Central Asia and beyond.  

We want to build on the CCI, and that’s why I’m happy to be in Beijing again for the inaugural “Belt and Road” Forum.  I am confident that the forum will surface more opportunities for cooperation. 

Besides the CCI, we have two bilateral government-to-government projects, which are the Suzhou Industrial Park (SIP) and the Sino-Singapore Tianjin Eco-City (SSTEC).  we are continuing to deepen our collaboration in them.  

Taken together, the three government-to-government projects highlight our extensive and substantial cooperation and justify the characterisation of our relationship as an “All-Round Cooperative Partnership Progressing with the Times”.  

Qn: On November 7, 2015, China and Singapore signed the framework agreement on China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (CCI), focusing on financial services, aviation, transportation and logistics, information and communication technology. This third Sino-Singapore G-to-G project has been launched for more than a year now. How do you evaluate the achievements of the project over the past year? What are other latest developments in bilateral cooperation between China and Singapore? 

Minister: The Chongqing Connectivity Initiative is a priority platform to demonstrate and operationalise the “Belt and Road”.  The CCI encompasses not just the land and sea “silk roads”, but also financial, aviation and data connectivity.  These are “Belt and Road” elements of modern connectivity which will help to enhance Western China’s connectivity as a whole. 

We have seen good initial progress in the first year, especially in financial services and aviation.  Flights have increased considerably from 5 to 14 services per week. As of end-2016, US$3.22 billion worth of cross-border financing deals have been actualised.  These cross-border Renminbi channels have effectively lowered the financing costs of Chongqing corporates by 0.7 percentage points, which led to savings of Renminbi 152 million in total. 

Both parties are now working to jointly develop a new “Southern Transport Corridor” linking Chongqing to Singapore via Guangxi.  This will connect the overland Silk Road Economic Belt with the 21st Century Maritime Silk Road.  It also offers a shorter and more direct trade route between Western China and Southeast Asia, and beyond to Europe.  Companies from both sides have been very enthusiastic and they have inked several agreements on collaborations under the Southern Transport Corridor. This is a positive follow-up from the JCBC.  

The positioning for Chongqing is for it to be an inland node for international logistics, and a leading port of entry, and to be an important platform for the opening-up of the inlands. Through Chongqing, Southeast Asian companies can expand into Western China; likewise through Singapore, Chinese companies can venture into ASEAN. With Chongqing and Singapore as the two “mutual hubs” in Asia, we can enlarge the possibilities for connectivity and benefit businesses and people all over the region.

Qn: In May this year, China will hold “Belt and Road” Forum for International Cooperation, the first forum at the highest level since the “Belt and Road” initiative was proposed more than three years ago, and an important diplomatic event held in China this year. What are your expectations for this forum?

Minister: The “Belt and Road” initiative is a major initiative that can become the world’s largest platform for regional collaboration.  It can enhance connectivity and accelerate infrastructure development across the whole of Asia.  

Demand for infrastructure in Asia is huge.  Emerging Asia is expected to need US$26 trillion of investment between now and 2030 to develop power, utilities, telecommunications and transportation infrastructure.  

I look forward to fruitful discussions at the Forum on how the “Belt and Road” initiative can help to accelerate infrastructure development and encourage further economic integration amongst regional countries.  

While regional governments can set the overall framework, a significant part of the investments will be undertaken by the private sector, either on their own or through public-private partnerships.  I am therefore glad to see many private sector representatives attending this inaugural “Belt and Road” Forum.     

I am also interested to hear views on how the “Belt and Road” initiative and Asian Infrastructure Investment Bank (AIIB) can complement and support existing multilateral and regional projects, including those in ASEAN.  In particular, we see synergies between the “Belt and Road” initiative and the Masterplan for ASEAN Connectivity.  Through the Forum, we hope to harness more capital and ideas, and build stronger partnerships to realise our infrastructure goals in Southeast Asia. 

Qn: How do you view China’s “Belt and Road” initiative? What areas of the initiative are you interested in? 

Minister: Singapore is a strategic node on the age-old “Maritime Silk Road”.  We connect the movement of goods and people in Southeast Asia to the larger Asia and the world.  Looking ahead, we are doubling the capacity of our air and sea ports. This will reinforce our position as a major node in the 21st Century Maritime Silk Road, and support the growing number of Chinese companies venturing along the “Belt and Road”.  

As a regional financial centre, and the third largest offshore Renminbi centres, Singapore can foster deeper financial integration and address the financing needs of “Belt and Road” projects, particularly in Southeast Asia.  

One priority is to build a strong pipeline of bankable “Belt and Road” projects and attract more private sector financing for these projects.  Singapore is keen to work with multilateral development banks such as the AIIB and the New Development Bank (NDB), building on our experience working with other multilateral development banks.  We can also collaborate with Chinese and international insurers and reinsurers based in Singapore to develop risk management solutions, such as insurance pooling, for “Belt and Road” projects, especially the larger and more complex ones.   

Besides traditional bank-based financing, we should also tap on the capital markets and financing from institutional investors.  Several Chinese banks have already issued “Belt and Road” bonds in Singapore to finance projects.  We will continue to work with banks and companies to expand such financing efforts. We are also exploring mechanisms to transfer ‘brownfield’ (the concept of ‘brownfield’ was first suggested in America as early as in 1980s, and it was mainly to resolve issues of land pollution involving old industrial sites) infrastructure loans from banks to institutional investors.  This will allow banks to free up capital to lend to new projects, and harness more private capital to support infrastructure development in Asia.  

Singapore is home to high-quality professional services, including project advisory, dispute resolution, and legal services, which are all necessary to bring infrastructure projects into being.  We have an ecosystem that integrates infrastructure players along the whole value chain – engineering companies, multi-lateral banks, private financiers, professional services.  We can serve as an infrastructure exchange for the “Belt and Road”. 

Qn: What does Singapore think of the dividends from the “Belt and Road” initiative? What role will Singapore play in the construction of “Belt and Road”? How do you think the initiative will promote the win-win development of China-Singapore relations and reinvigorate the world economy?  

Minister: The “Belt and Road’ initiative creates many opportunities for closer cooperation between China and Singapore. Many Chinese companies are using Singapore as a launch pad to expand into the region. Singapore and Chinese companies can also work together on “Belt and Road” projects in third countries, in areas such as transport and logistics, utilities and infrastructure developments.  

Singapore and China can also explore providing joint training for officials from “Belt and Road” countries, which are in different stages of development. Singapore’s own experience in urban transformation may be of interest to others.  Over 50 years of rapid urbanisation, we have accumulated expertise in urban planning, and in operating infrastructure over a wide range of sectors. We are happy to share our experience and perspectives. Singapore can help other countries to develop their own long-term urban masterplans, and successfully plan and implement infrastructure projects.   

At a wider level, the “Belt and Road” will complement regional initiatives such as the ASEAN Economic Community and the Master Plan on ASEAN Connectivity, and the various FTAs that regional countries are currently negotiating, including the Regional Comprehensive Economic Partnership.  

Singapore stands ready to partner with China to build the “Belt and Road” as a major platform for regional collaboration.    

Qn: How would you evaluate the success of the Sino-Singapore Tianjin Eco-City project?  In implementing the Eco-city project, what are the experiences in environmental management and protection that are worth learning?  Aside from the environmental aspect, what are the industries that have successfully developed in the Eco-city, and how are their prospects?    
 
Minister: The Sino-Singapore Tianjin Eco-city project has made significant progress over a short span of nine years. It has transformed saltpans, barren land and polluted water-bodies into a vibrant township with beautiful and green homes for residents.  In April 2016, MOHURD Minister Chen Zhenggao and I officiated the ground breaking of the Z4 rail line in the Eco-city. When completed, the rail line will connect the Eco-city to surrounding regions, and Tianjin City and Beijing.   

Urban planning experts from both countries are also working together to review the Eco-city’s masterplan to align it to the broader development strategy for the Beijing-Tianjin-Hebei region. The updated masterplan will enhance the Eco-city’s value proposition, and prepare it for future developments. With the upcoming developments, I am confident the Eco-city will enjoy even greater vibrancy.

In terms of environmental sustainability, the Eco-city has several major achievements. We have rehabilitated a 2.6 km2 wastewater pond, provided green spaces for public recreation and leisure, tapped on renewable energy sources (wind, solar and geothermal energies), and developed green buildings and transport. The Eco-city also actively encourages its residents to adopt environmentally-conscious lifestyles.  

The high-quality living and working environment in the Eco-city appeals to investors and businesses. There are more than 4,700 registered companies in the Eco-city, with registered capital of RMB 201 billion. These companies span across industries such as creative and digital media, internet and information technology, renewable energy and modern services.

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