Speech by Minister Chee Hong Tat at Business China's Chinese New Year Dinner

Mr Lee Yi Shyan, Chairman of Business China,
Board Members and the Business China team,
Distinguished guests,
Ladies and gentlemen,

Introduction

Good evening, and I'd like to wish everyone 新年快乐！ I wish you a happy and prosperous Year of the Horse - 马到成功，一马当先，龙马精神，生意兴隆!

Geopolitical Context

We gather tonight in a fundamentally changed world. At the heart of this transformation are the world's two largest economic and strategic powerhouses - the United States and China.

In a recent dialogue with local and foreign journalists, I said US and China are like two strong wrestlers testing each other's strength - probing, adjusting, pushing for advantage. After the initial exchange, they realised that neither side can easily "finish off" the other without inflicting serious harm on themselves and the rest of the world, so they must learn to co-exist.

We know the United States today is not the same as before, and China is also not the same China as before. Both have evolved in their strategic outlooks, priorities and global engagement.

Strategic competition between these two major powers is reshaping global politics and trade flows. Just in recent weeks, we have seen renewed trade and technology restrictions and heightened geopolitical flashpoints, reflecting deeper shifts.

Countries everywhere are reassessing their economic and strategic positioning in response to a more fragmented and uncertain global order. In Singapore, we're doing the same.

These changes represent something more profound than cyclical shifts in international relations. During an interview with Zaobao, I said this is not a case of winter giving way to spring, but is more akin to climate change. 不是冬去春来，而是气候变化.

So we cannot just "tahan" for a few years, and hope that things will return to what we used to have in the past.

We have to accept it is a changed world, and we need to adapt to this new environment.

For a small and highly open economy like Singapore, we must position ourselves carefully and wisely. We must be principled and firm, and yet adaptable and flexible. We cannot assume that past approaches will continue to carry us forward in this new and more uncertain reality. We must constantly rethink and refresh our strategies to survive and thrive in this changed world.

In doing so, we must also take a clear-eyed view of developments in key economies - especially China, which remains both a major global power and an important partner for Singapore.

China's Economy

While China remains a significant engine of global growth, a key trading partner, and an influential participant in global efforts on development, climate and technology, it is navigating a period of significant adjustment domestically.

The conditions that supported its rapid expansion in the past are changing, and the Chinese economy needs to recalibrate towards a new growth model.

This transition has not been without challenges.

The property market downturn has weighed on growth and business confidence. Youth unemployment and under-employment are pressing concerns. These factors, coupled with ongoing global changes, have dampened domestic consumption, and they present challenges for the Chinese economy.
At the same time, China's rapid expansion into high-tech manufacturing has led to over-capacity in certain industries. Intense domestic competition and excessive "involution" have driven Chinese firms to seek out overseas markets aggressively, sometimes selling products at very low prices. The Europeans are very concerned. They call this dumping, anti-competition. Other countries are concerned too. .

For Singapore companies, it depends on which sector you are in. If you are looking to buy robots, batteries or solar panels from China, you are able to benefit from very good quality technology at lower prices than before. However, if you are competing against the Chinese firms as a supplier, they can be formidable rivals.

Taken together, the above factors are reshaping the environment in which businesses operate.
Businesses must carefully weigh commercial risks, regulatory conditions, and geopolitical uncertainties before making investment decisions. In fact, I think that geopolitical uncertainties is the one that is causing the greatest amount of worry.

It is certainly for China to decide how it wants to manage its domestic policies. As a close partner, Singapore will assess the developments objectively and respond in a manner that focuses on our long-term interests, as well as our strategic and extensive partnership with China that we have built up over decades, and we hope that this partnership can continue to deepen.

Singapore's Strategic Perspective

I have commented publicly that despite the Chinese economy facing some near-term headwinds, Singapore remains optimistic about China's longer-term potential.

China continues to possess formidable strengths - a vast domestic market, deep capabilities in technology and innovation, and a large and highly-skilled talent pool.

Singapore's approach must therefore be to remain engaged, and to look for areas where we can add value and bring about win-win outcomes for both countries. Because China remains important to us, and China will continue to matter on the global stage and in this region.

In the spirit of 不忘初心，与时并进 - staying true to our principles while moving forward with the times - we see opportunities to collaborate with China in a few areas, but we have to evolve the way we work.

First, we are going beyond helping Singapore companies to invest in China, to working with Chinse companies who want to invest overseas, as well as investing together with Chinese companies in third countries.

Many Chinese enterprises are internationalising and establishing operations abroad, including in Southeast Asia, where our companies can partner Chinese companies to use Singapore as a hub or as a springboard to the region.

Our reliability, openness and connectivity to Southeast Asia position us well to play the role of a trusted regional hub.

In other words, the future goes beyond "Made in China" to "Made with China", in collaboration with Singapore and other partners from the region.

Second, we are strengthening Singapore's role in providing high-value services to business owners and high-net-worth individuals, including those from China.

In a more uncertain global environment, businesses and high-net-worth individuals are seeking stability and diversification. In fact, I would argue that the more uncertain the world is, the greater the trust and stability premium will be.

Singapore offers these high-net-worth individuals and business owners political stability, transparent regulatory frameworks, a trusted financial system, and connectivity to global markets. At the same time, we offer a safe, familiar and comfortable living environment for their families. And I think the last point is important. It's not just a place to do business but a place to call home. It is a place that they can bring their families and their children can grow up here.

In recent years, we have taken steps to strengthen our capital markets. In 2024, we established the Equities Market Review Group to enhance the competitiveness of our stock market ecosystem and improve access to public capital for growth companies. This is still a work in progress. One big initiative that is coming up in the middle of this year is the tie up that we have with the Global listing board between SGX and NASDAQ.

Building on this, the Prime Minister recently announced the establishment of a Growth Capital Workgroup. The Workgroup, comprising government and industry representatives, will develop strategies to strengthen Singapore as a leading centre for growth capital, including venture capital and private equity. I hope to count on your support and contributions for this review.

These efforts aim to enhance our attractiveness not only to Singapore firms, but also to overseas entrepreneurs and investors who value a stable, trusted and business-friendly environment.

The third area is talent development. People-to-people exchanges remain central to Singapore's collaboration with China.

Singapore will continue to welcome people from China, including students, entrepreneurs and professionals. Many have contributed to our research ecosystem, and to different sectors in our economy such as technology, supply chain management and AI, just to name a few.

Some may choose to build their lives here, becoming new immigrants and part of Singapore's evolving nation-building journey. Their children will grow up here and attend school in Singapore, serve National Service (NS) and some may get married to locally born Singaporeans. Over time, the integration will become stronger and tighter, especially for the younger generation.

At the same time, the government is investing heavily in preparing Singaporeans for this new world - upgrading their skills, supporting digital transformation and lifelong learning, so that Singaporeans can continue to do well and be ready to venture abroad, including to China, and work alongside global talent confidently and competitively.

Collaboration is also about mutual understanding. We hope that more young Chinese will visit Singapore and the region, and at the same time, we are encouraging Singaporeans - especially our students and young people - to visit China, experience its cities and communities firsthand, and deepen their understanding of China. Business China has many programmes to support this objective. Together, we can build a better understanding and stronger friendships between our people.

In today's digital age, narratives can be shaped by algorithms and headlines. It is important that we do not rely solely on media reports to understand each other but to have direct exchanges, to have friendships, and to have lived experiences that can help build deeper trust and more nuanced perspectives.

This combination - global openness, strong local capabilities, and sustained people-to-people ties - has long underpinned our success. And it must continue to anchor our cooperation with China in the years ahead.

Business China's Role in a New Environment

In this evolving landscape, Business China must also evolve to stay relevant.

Our value-add to the Chinese cannot rest solely on speaking good Mandarin, or understanding Chinese history and culture. These are helpful bilateral bridges, but they are not our unique advantage or value proposition, as China already has many of its own who can speak excellent third languages and have a good understanding of other cultures. So, if we want to add value, we cannot stop there.

Our strength lies in remaining trusted, competitive and open, and being a credible intermediary that connects China with Southeast Asia and the wider world.

Our value comes from Singapore continuing to do well as a country, so that the Chinese will view us as a positive example and find it useful to continue engaging us and learning from our experiences. Of course, we also benefit from learning from them as they have strengths in many areas. It is mutual learning for mutual benefit.

If we are clear about our strengths and continue sharpening our value proposition, I'm confident that we will remain relevant to like-minded partners, not just China but also other countries. And Singapore can then continue to be an attractive destination for investments, capital and talent.

Conclusion

Please allow me to conclude. Adjusting to a changing world will require Singapore to continue relying on our clarity of strategy, consistency of policy, and the trust we build with our partners and stakeholders around the world. China is one of the like-minded partners we work with.

Let us continue to strengthen the collaborations between Singapore and China, and create value together. Let me end by once again wishing everyone good health, good fortune, and a prosperous and successful Year of the Horse.

Thank you.