As the largest Singapore business community outside of the city-state country, Shanghai Singapore Business Association-Singapore Club Shanghai (SSBA-SCS) plays an active role in fostering closer business ties between Singapore and China.

Established in 1988, the SSBA-SCS has developed more than 1,000 members. With a kaleidoscope of events from monthly seminars, business tours to large forums, the association serves as a nurturing conduit for networking Singaporeans, other expatriates and the local communities.

On Saturday, the SSBA-SCS hosted a grand event to celebrate today's Singapore National Day, and Shanghai Daily had an exclusive interview with its club president Darren Wong Chong Nam.

Energetic and polished, Darren is an experienced businessman with many years of exposure in manufacturing. In the past two decades, he has visited many cities in the Chinese mainland. Two years ago, Darren settled down in Shanghai as a senior executive in a die-casting firm, and served as active volunteer in the association.

Having elected as the president of SSBA-SCS for a year, Darren expects to reach out to more Singaporeans in Shanghai, as there are more than 2,500 Singapore-invested firms in this metropolis and roughly 8,000 Singaporeans living here. Also, he hopes to continue to work closely with the Singapore Consulate General in Shanghai, the International Enterprise Singapore, Singapore Chinese Chamber of Commerce and Industry and sister Singapore communities, such as Singapore clubs in Suzhou, Wuxi, Guangzhou and Ningbo, as well as Singapore Chamber of Commerce Beijing and its affiliates to establish the close link.

Being neighbors, Singapore and China have developed a close business relationship since early 1980s. China was Singapore's second-largest trading partner in 2010, and the spreading impact of the China-Singapore Free Trade Agreement (CSFTA) is expected to further boost the trading volume between the two.

Inked in 2009, the CSFTA enhanced Singapore companies' access to 44 service sectors in the Chinese market. With effect from January 2010, 95 percent of Singapore's exports to China worth more than US$18 billion were exempt from tariffs. Key exports such as petrochemicals, processed foods and electronics benefited the most. It also facilitated the movements of goods, services and businessmen between the two countries, according to documents by the International Enterprise Singapore.

As a result of the agreement, bilateral trade between Singapore and China grew to US$95.3 billion in 2010, up from US$75.7 billion a year earlier despite a stumbling global economic recovery.

Singapore and China have different economic and business strengths that can complement each other, Wong said. He also elaborated on what benefits and challenges lay head with closer cooperation.



Shanghai Daily: What role does SSBA-SCS play in Singapore-China business dealings?

Darren: The SSBA-SCS is one of the oldest Singapore business communities in China. With a history of 23 years, our association has grown into an influential group that can connect Singapore investors with potential Chinese partners, and help them establish links with other Singapore firms who came earlier to share business resources and experiences.

For many Singapore investors, Shanghai is where their businesses in the Chinese mainland get started. It's always the preferred city when they travel to China. That's why our association has continued to gain influential position. We have a humble beginning since 1988, and grew to a sizable Singapore club. We combined both Business Association and Social Club in 1997. I strongly believe we will continue to obtain weight in a closer business tie between Singapore and China.



Shanghai Daily: How does SSBA-SCS cope with the fast-changing China?

Darren: The rapid economic evolution in China has offered many opportunities for Singapore investors. Back in the 1980s, we came mainly for cheaper labor costs and exported products manufactured here. But now, a vast Chinese market has attracted many investors in the non-manufacturing sectors. For example, bankers, commercial property developers and providers of food and beverage in Singapore increasingly invested in China, and the country gave a good return with the rising purchasing power of Chinese people.

However, higher production and labor costs have threatened the well-being of many manufacturers in China. Although Singaporeans mainly invest in advanced engineering to stay competitive and provide more added value, we faced the threat of lower profit margin. Some companies have responded by relocating their production factory to rural areas or even to other countries. In my opinion, Singapore companies should continue sharpening their edge in research and development ability, and maintain high efficiency to counter this challenge. After all, China's business infrastructure is getting much better, and the overall costs remain low.



Shanghai Daily: Can you tell us about the latest business cooperation between Singapore and China?

Darren: There are many examples of successful cooperation. Suzhou Industrial Park, after experiencing some difficult times, it's now well operated and profitable. It sets a good model for how two countries can work together. Since Singapore has developed its capability in urban planning, we have signed contracts with Chinese partners to initiate the construction of an eco-friendly city in Tianjin and a similar one in Nanjing, Jiangsu Province. As builders of a garden city, we are confident that we can introduce and share the latest environmental protection and energy preservation technology and concepts with China.



Shanghai Daily: As many global investors are keeping an eye on China for business opportunities, how do you differentiate Singapore investors from the others?

Darren : Because we belong to the same skin type and have similar source of culture, Singapore investors have a competitive edge in conducting business in China. Many Westerners thought they could accomplish in this country if they could speak Chinese. However, it is not the case at all. Learning the local language is important, but to understand the local culture and think like locals is the key success for many Singapore investors in China.



Shanghai Daily: Can you describe a distinctive characteristic of Singapore investors?

Darren: We are cautious and kiasu. Before making big decisions, we tend to consider twice or more till we are ready for all possibilities. It is a good merit because being conservative can help us avoid making huge mistakes. But at certain times, it deters us from grabbing opportunities in timely manner.



Shanghai Daily: What areas can be further explored to boost cooperation between Singapore and China?

Darren: There are great opportunities out there. The industry of MICE (meetings, incentives, conventions and exhibitions), finance, property, designing, advanced engineering, dining …and many more.



Shanghai Daily: Can you comment on China's current business climate for foreign investors?

Darren: China's foreign investment climate is improving. The government officials welcome foreign investments, and are actively assisting investors to start business. Recently, officials in Shenyang, Liaoning Province have had contacted us to seek cooperation. They see great potential from Singaporean companies, and hope to attract investments from Singapore. With China's market becoming more transparent, regulated and marketized, investors from Singapore are increasingly confident with their choice with China.

But there are further room for improvement. For example, Chinese authorities had better provide tax incentive schemes to attract foreign investors and offer more friendly approach toward expatriates working in China as well.