This Week in Asia

<![CDATA[Singapore and China eye deeper ties in Greater Bay Area project]>

Singapore has underscored its plans to enhance its involvement in China's Greater Bay Area project after the two countries signed a slew of agreements linked to the blueprint during Education Minister Ong Ye Kung's visit to Guangdong this week.

The deepened interest comes even as Hong Kong " a key part of the project " remains roiled by anti-government unrest, and analysts say the Lion City's continued keenness on the plan shows that the mainland is its "main engagement partner" in the mega integration plan for southern China.

Beijing rolled out the Greater Bay Area blueprint in February in a bid to turn Hong Kong, Macau and nine Guangdong cities, including Shenzhen, into a financial and technological powerhouse rivalling the United States' Silicon Valley by 2035.

Singapore's Ong concluded his three-day working visit on Tuesday after an itinerary that included meetings with Guangdong governor Ma Xingrui and the provincial party boss Li Xi.

The education minister chairs the Singapore-Guangdong Collaboration Council.

"Guangdong has always been at the frontier of economic reform in China, and in this current phase of China's development, the Greater Bay Area will offer many new and unprecedented opportunities," said Ong in Guangzhou on Monday at the council's 10th meeting.

"Many Singapore companies are beginning to be very active in the Greater Bay Area, and I am sure many more will follow suit," he said.

Among the freshly signed pacts is a deal that will see Singapore urban and infrastructure consultancy Surbana Jurong Group plan the development of a high-end industrial zone with the Jiangmen city government.

The island nation's state-owned power grid operator SP Group will also provide expertise on cooling and heating networks, as well as smart and clean energy solutions, to firms in Guangzhou.

Singapore's eyeing of business opportunities in the Greater Bay Area comes despite growing turmoil in Hong Kong. The past week saw unprecedented clashes between masked radicals and police officers at the Chinese city's university campuses.

Lye Liang Fook, a senior fellow at the ISEAS-Yusof Ishak Institute in Singapore, said a stable Hong Kong would have enhanced the attractiveness of the Greater Bay Area given its well-developed financial sectors, among other reasons.

However, he suggested the current situation would not dent Singapore's interest as China was its "main engagement partner".

"Perhaps it is even more important for Singapore to play a role in the Greater Bay Area to reinforce the message of the importance of pursuing common development for mutual benefit and prosperity," Lye said.

A clash between riot police and radical protesters on the Cheong Wan Road flyover on November 17. Photo: Sam Tsang alt=A clash between riot police and radical protesters on the Cheong Wan Road flyover on November 17. Photo: Sam Tsang

He added that the bolstered cooperation with Guangdong was part of Singapore's efforts to "stay relevant to China's development needs", adding that the Singapore-Guangdong Collaboration Council is one of eight provincial-level exchanges the city state has with China.

The other economic councils are with the provinces of Sichuan, Shandong, Liaoning, Zhejiang, Tianjin, Jiangsu and Shanghai, according to Singapore's foreign affairs ministry.

On a more macro scale, Singapore and China have also established three government-to-government projects, namely the China-Singapore Suzhou Industrial Park, the Sino-Singapore Tianjin Eco City, and the China-Singapore (Chongqing) Demonstrative Initiative on Strategic Connectivity.

Meanwhile, Chong Ja Ian, a National University of Singapore (NUS) professor who closely tracks Singapore-China ties, said the expanded economic ties with Guangdong provided an opportunity for the trade-reliant city state to enter the Chinese market.

"Guangdong makes sense for Singapore as a key source for cooperation since it is one of China's most economically dynamic regions," he said.

Among Chinese cities, Guangdong was Singapore's top trading partner in 2018 " the 30th consecutive year it has ranked in that position.

According to Enterprise Singapore, the government agency that helps local businesses establish international connections, there were about 1,000 new projects set up between Singapore and Guangdong firms from 2009 to 2018.

Singapore's education minister Ong Ye Kung. Photo: Handout alt=Singapore's education minister Ong Ye Kung. Photo: Handout

Singapore's cumulative actual investments there amounted to US$12.02 billion as of last year.

Chong from NUS suggested that since both Singapore and Guangdong faced uncertainties from the US-China trade war, they were likely to be looking for ways to push growth.

Education minister Ong has also emerged as one of the key point persons for ties between southern China and Singapore, experts say, as there was also an upswing in cooperation following his visits to Guangdong in 2017 and 2018.

Chong surmised that Ong was likely chosen for this role as his past experience with trade negotiations "may prove helpful".

Before Ong entered politics in 2015, he worked in the trade ministry as the deputy chief negotiator for the Singapore-US Free Trade Agreement, which was signed in 2003.

The ISEAS-Yusof Ishak Institute's Lye added that other younger Singaporean ministers, often referred to as the "4G leadership", have also made trips to Chinese cities in recent months.

He pointed out that prime-minister-in-waiting Heng Swee Keat visited Guangzhou, Shenzhen, and Hong Kong this year, which are all part of the Greater Bay Area region.

"What is important is that various Singapore ministers have a China portfolio which affords them the ability to work on concrete projects that add value to the bilateral relationships," Lye said.

"It is also part of Singapore's strategy to have as many of its younger generation of leaders be comfortable and confident in interacting with their Chinese counterparts."

This article originally appeared on the South China Morning Post (SCMP).

Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.

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