1.IntroductionChina’s one belt one road (OBOR) initiative was firstunveiled in 2013 by President Xi Jinping with aims to build internationalrelationships and strengthen overseas markets. A network of pipelines, railwaysand maritime routes will be created through this initiative. This will allow aflow of goods, labor and capitals between continents in Asia, Africa andEurope. Expected to be able to cover over one-third of the global GDP, it seeksto create one of the largest platform for economic cooperation.
This projecthas the potential to connect billions of people, through building ofinfrastructure and boosting trade ties. Singapore and China have strong bilateralrelationships in trade and investments. Singapore companies are also familiarin doing business with countries that are involved in OBOR.
It is no doubt thatthe Singapore government share the same interest with China in introducingeconomic growth, infrastructure development and bilateral ties. As soon as theinitiative was introduced, Singapore companies have been searching foropportunities and collaboration with Chinese companies in logistic and supplyand real estate developments. 2.
Singapore capabilities to capture opportunitySingapore companies can showcase our market knowledgeand capabilities in the infrastructure, connectivity and financial services.According to Singapore Home Affairs and Law Minister K. Shanmugan, Singaporeare highly supportive of the initiative and is well-positioned to gain from it.a) InfrastructureSingapore is an infrastructure hub with huge expertiseacross master-planning, smart city system and construction materials.
The workforceis capable of planning and operating complex infrastructure projects. Singaporehas a vast number of companies that are involve in smart city systems to expandtheir expertise in building, operating and sustaining. An example of a localcompany is Woh Hup Pte Ltd, Singapore’s largest privately own construction andcivil engineering specialist. Woh Hup along with other companies are involve inbuilding the city with environmental friendly materials that reduces pollutionand deploying sensory tracking to counter scarce resources such as waste andenergy management. Singapore is a smart city, which make use of technology asthe foundation to achieve economic sustainability.
b) ConnectivitySingapore exceptional infrastructure and connectivityopens huge potentials for trade flows and market access to companiesinternationally. The ports sector in Singapore is one of the busiest ports inthe world with global expertise in completing projects and managing ports usingautomation and intelligence system for smooth and continuous operations aroundthe world. Housing more than 120 international shipping companies, it is aleading ship repairs and conversion center.
International imports and exportstrading plays a huge role in contributing to the country economic growth. The aviation industry is important in so many ways,Singapore is one of the major player in aerospace maintenance, repair andoverhaul services with companies like ST aerospace and SIA engineering. ChangiAirport is also one of Asia’s major air hub with companies that provideexpertise in solutions such as food catering and fuel logistics. The growth oftourism industry and rapid transportation of goods and services relies so muchon the aviation companies in Singapore.
Logistic services expand together with technology andbusiness solutions with huge industry growth potential. Logistic helps reducetrade costs but also connect businesses and people in the market. According toThe World Bank, Singapore tops the list in logistics performance index againstthe ASEAN countries in year 2016. The logistic companies in Singapore effortsto sustain and improve operations efficiency helps maintain the pole positionas a leading logistic hub. c) Singapore as aFinancial CentreSingapore as one of the largest investor in China aswell as a place for Chinese investor. China’s one belt one road initiativescould tap on Singapore’s financial services when Chinese company plans toinvest in Singapore markets. Singapore is a leading financial hub with ahandful of multinational companies in the country.
This is due to Singaporeglobal recognition of a competitive, innovative and secured country. Singaporecompanies are well prepared to take part in the One Belt One Road initiativesprojects with the provision of banking and finance industry in Singapore. 3.Possible Challenges Ahead Faced by Singapore Companies