Signaling crucial role of Singapore

A crucial part of the 21st Century Maritime Silk Road, Singapore is the foreign country that has invested the most in the Guangxi Zhuang autonomous region. Trade between the two sides soared to $700 million in 2013 from $20 million in 2004.

"Singapore plays a critical role in the Maritime Silk Road as an important hub for aviation and maritime transport, logistics, finance, as the second largest renminbi off-shore settlement center and a major commodity trade center," said Teo Siong Seng, chairman of the Singapore Business Federation.

Teo believes that China can use Singapore as a springboard to reach the rest of Southeast Asia, India and even Africa. The two countries may also collaborate to look for opportunities in other countries.

Teo is also the managing director of Pacific International Lines, among the first overseas shipping companies to do business with China.

He said that PIL noticed the potential of Guangxi's Fangchenggang Port three years ago because the port connects ASEAN members and China's southwestern provinces such as Yunnan, Guizhou and Sichuan.

Fangchenggang in the south of Guangxi by the Beibu Gulf is a major port in the province with an annual throughput of more than 10 million tons. It connects with more than 250 ports in over 100 countries, including the member states in ASEAN.

Following the route of the ancient Maritime Silk Road, PIL has been transporting goods from China to Southeast Asia, the Middle East and East Africa for decades. It is now the largest maritime transport company in Southeast Asia and ranks 14th in global container transportation.

Its business encompasses international shipping, container manufacturing and logistics. Fifty percent of its business comes from China.

Teo noted Guangxi Liugong Group Co Ltd, the largest wheel loader manufacturer in the world, has set up a transit hub in Singapore to explore overseas market.

"Guangxi's fast growth came after Chinese economy has thrived for years. As a result, the autonomous region is able to learn from the experience of the highly developed areas in Singapore to avoid a lot of detours," said Stanley Loh, the Singaporean ambassador to China.

"The labor costs and land prices are very high in the eastern coasts in China. Therefore, many Singaporean companies are switching to the middle and western regions - for which Guangxi can serve as a gateway - for lower costs," said Loh.

yangziman@chinadaily.com.cn