4th SingCham Sustainability Forum - Ms Grace Fu

Collaborative Sustainability: Partnering to Bridge Singapore and China to Connect the World

1. Good morning. I am delighted to join everyone at this Forum. 

2. We meet at a challenging time for climate action. Climate action priorities are taking a backseat globally, as governments and businesses reassess their priorities in the face of political and economic headwinds. 

3. Yet climate change waits for no one. The effects of climate change are affecting countries around the world, destroying properties and threatening lives and livelihoods. These underscore the need to take rapid action to adjust and adapt to the devastating effects of climate change. The scale of the challenge means that government action alone will not be sufficient. Businesses, societies will need to play their roles as well. Only through collective action do we stand a chance to adapt to and overcome climate challenges.

4. This is why discussion and collaboration on sustainability is more important than ever. This is aptly embodied in the theme of today’s forum - “Collaborative Sustainability: Partnering to bridge Singapore and China to connect the world.”

Singapore - China’s Longstanding Partnership on Sustainability 

5. “Sustainable Development” aptly describes the relationship between Singapore and China. Both countries have a longstanding partnership on sustainability. This year, we celebrate the 35^th anniversary of our diplomatic relations. Over the past three decades, Singapore and China launched three national-level development projects: Suzhou Industrial Park in 1994, Tianjin Eco-City in 2008, and Chongqing Connectivity Initiative (CCI) in 2015.
   

6. These projects embody various facets of sustainable development arising from close collaboration between both countries. 
   

7. In particular, the Tianjin Eco-City project was launched at a time when sustainability and sustainable development were not yet  mainstream concerns in many countries. And yet, the project was built on a salt pan and polluted wasteland, and has since transformed into a model for sustainable urban living, housing over 170,000 residents and 43,000 market entities. Today, the city taps on renewable energy through solar power, ground source heat pumps and wind turbines to generate electricity. 
   

8. The Chongqing Connectivity Initiative also has a sustainable development dimension with its focus on connectivity and services that incorporates green initiatives. For example, the CCI actively promotes green finance by connecting financial institutions and policymakers to support sustainable projects. This is to aid countries and businesses with their commitments to achieve net-zero carbon emissions by 2050.
   

9. At our first Government-to-Government project Suzhou Industrial Park, a net-zero industrial district called the China-Singapore Green Digital Hub is currently being built. When completed in 2027, it will serve as a pilot zone for decarbonisation solutions.
   

10. The sustainable developments in G2G projects have been driven by three attributes: innovation, inspiration and impact.  

Innovation

11. First - Innovation. Businesses play a crucial role in driving sustainability through innovative products and services that create environmental and economic value. As we transit towards a low-carbon economy, there will be growing demand for new products and services, such as renewable energy solutions, green insurance and finance, and carbon tracking and trading. These present new opportunities for businesses. 
    

12. As a global business hub, Singapore supports new opportunities arising from the green transition. Companies like Neste are leading the way by producing sustainable aviation fuel at our Tuas facility, and Singapore is also fostering the growth of carbon services and trading to accelerate the development of Article 6-compliant carbon markets. Local enterprises are also pioneering urban farming technologies, waste-to-energy systems, and smart building solutions that reduce resource consumption whilst generating new revenue streams. These examples demonstrate how businesses can turn sustainability challenges into profitable opportunities through innovation.
    

13. China's rapidly expanding AI ecosystem across key cities also presents potential opportunities with Singapore and drive sustainability initiatives.
    

14. Beijing houses world-class AI research institutes and industrial parks, with its core industry approaching 350 billion yuan (US$48.6 billion). Shanghai is also rapidly expanding its AI capabilities beyond its reputation as a global financial centre. Besides hosting the World AI Conference in July this year, Shanghai announced 1 billion yuan (US$139 million) in subsidies to help local firms and start-ups adopt AI solutions. 
    

15. For Singapore companies, this market offers opportunities to collaborate with Chinese companies on AI applications in areas such as urban planning, fintech, transport, healthcare and sustainability. Singapore companies can forge partnerships that tap into China's scaling infrastructure whilst advancing responsible AI applications regionally.
    

16. For traditional products and services, digital transformations and smart technologies, such as Internet of Things and AI, can help businesses make data-driven and sustainable decisions. This increases productivity, reduces overproduction and minimises waste generation, resulting in optimal resource use. Where possible, businesses should integrate energy efficient Green-AI into their business models.

Inspiration

17. Second – Inspiration. The Suzhou Industrial Park was a landmark collaboration, offering both countries the opportunity to learn from each other’s expertise. The success of Suzhou Industrial Park inspired the confidence in both countries to venture forward with other transformative projects, such as the Tianjin and Chongqing. 
    

18. Since then, opportunities for Singapore-China collaboration are still abound. China’s rapid economic rise has transformed its domestic payment landscape. For example, today, it stands as the world’s largest cashless society, with consumers using digital wallets and e-payment apps daily for both in-store and online purchases. This means greater convenience for consumers, and greater traceability and transparency of transactions for businesses. It also supports financial inclusivity in society.  
    

19. The widespread adoption of digital payment methods in China has driven their usage beyond China’s borders, as more Chinese travellers use payment methods like WeChat Pay and Alipay when in Southeast Asia. This cross-border influence has in turn encouraged the growth of digital ecosystems in the region. Local businesses and financial institutions integrate and adapt to these payment technologies. According to Weixin, the number of merchants using WeChat Pay has increased from 600 in 2018 to more than 100,000 in 2024. 
    

20. Singapore’s banks and China’s UnionPay International have also embarked on discussions on potential remittance linkages between Singapore’s PayNow and UnionPay. Once realised, these would accelerate secure, convenient and cost-effective cross-border payments between the two countries, benefitting businesses and consumers.  
    

21. Breakthroughs in innovation can inspire other stakeholders in the industry to scale up or try something new. With different strengths and expertise, it is important that industry players leverage on each other’s competitive and comparative advantage to bring their initiatives to fruition.

Impact

22. Third - Impact. 
    

23. Businesses need to take proactive steps to track impact of operations on the environment. It should not be for regulatory compliance, but as a strategy to shape the sustainability of future operations. Measuring the impact of sustainable initiatives will help to identify areas for improvement and inform decision-making, which in turn generates increased efficiency, cost savings and contribute towards greater climate goals.
    

24. At the same time, as consumers become more discerning and eco-conscious, businesses need to be attuned to the changing needs and demands of consumers, and offer products and services that generate less carbon footprint.
    

25. What gets measured, managed and aligned with customer values will have lasting impact. 

Call to Action

26. Businesses have a critical role to play in the global effort of sustainable development. Together, we can Innovate, Inspire and create Impact with our sustainability efforts. 

27. Thank you very much for the opportunity to speak at this Forum. I look forward to our fireside chat later and a fruitful session ahead. Thank you very much for your attention.