Singapore and China have obviously become two of the most influential economies not only in the Asian Pacific region but the world at large, and most people serious about global finance in the future of the global economy have been paying very close attention to all of the moves that they are making – independently as well as with one another in partnership.
New research released by industry experts and insiders believe that the economic cooperation between Singapore and China is expected to expand dramatically in 2017 and beyond, with major new initiatives, programs, and sizable investments (going both ways) designed to bring these two nations even closer than they already are.
According to last year’s numbers, Singapore is the second largest investor in China, pumping nearly $6.18 billion in China alone in 2016. This number is expected to be even larger for 2017 and beyond, and many believe that by the time 2020 rolls around $10 billion or more will have been invested annually by Singapore into China.
China is just as invested in Singapore and its growth, contributing nearly $5 billion of investment capital into the Singapore economy in 2016. As China pulls out of the Australian property market (with investments down nearly 70% compared to the first quarter of 2016), a lot of that investment capital is being pushed into Singapore markets, Singapore businesses come in Singapore infrastructure.
To say that these two economic giants are interested in making sure that both are prosperous – especially together – is definitely an understatement!
Major new initiatives and programs are already in place to help improve the economic relationship that these two countries share with one another. Here are some of the biggest initiatives that are set to roll out in the near future.
The high-speed rail program in Singapore
Leaders from the Chinese government have been working hand-in-hand with leaders of the Singapore government to find new ways to improve the public transportation of Singapore, with Chinese experts in high-speed rail solutions spending a considerable amount of time – and a tremendous amount of capital – to make sure that Singapore has as modern a system as possible.
A new high-speed rail program designed to run from Singapore to the Malaysian capital of Kuala Lumpur is expected to break ground in late 2017, and will cost nearly $14 billion before operations begin in 2026. Both Singapore and Chinese investors are pouring money into this project. Many believe it to be one of the most significant infrastructure upgrades in the area in some time.
Government to government programs are expanding as well
Sincerely 1990s, both Singapore and China have invested jointly in three major government to government projects in China – major industrial parks near Shanghai, the “eco-city” in the Northeast of China, and the Connectivity Initiative in the Southwest.
New government projects are expected to be unveiled in the next two years (three new projects), with Singapore investors spending a considerable amount of capital to help these Chinese projects grow as quickly and as successfully as possible.
At the end of the day, this is merely the tip of the iceberg when it comes to the economic partnership between these two nations.