18 Apr 2012
Published on Apr 17, 2012
By Yunita Ong
SINGAPORE firms can capitalise on China's growing demand for high-quality services like health care, education and training, and environmental services, said trade agency IE Singapore yesterday.
The services sector, which makes up 43 per cent of China's gross domestic product, will spur the next wave of growth, said IE Singapore assistant chief executive Yew Sung Pei at a media roundtable.
'As Chinese cities develop and mature, and demand becomes more sophisticated, people will spend more on services than products,' he added.
But tough regulations make China a hard market to crack.
One example is the health-care sector, where steps have been taken only in the past year to allow wholly owned foreign enterprises to set up shop in China.
Previously, foreign firms had to partner local firms to enter the market.
Dr Ng Chin Siau, group chief executive of Q & M Dental Group, noted that the more well-heeled Chinese prefer to visit brand-name clinics with short waiting times and quality service, even though the Chinese government provides cheap dental services. 'There are many barriers to entry, but once you cross them, the market is yours,' he said.
Q & M has been in China since 2010 and runs four clinics in Beijing and Nanjing.
IE Singapore is exploring partnerships with international organisations like the World Bank and with companies here for an integrated health-care, wellness and tourism hub in China.
With the Chinese economy moving up the value chain, demand for education and training services is also growing.
Mr Gregory Lim, regional manager of training provider NTUC LearningHub China, which runs management and language courses in Chengdu, said demand for skilled talent is growing as foreign firms set up shop in China.
IE Singapore is developing new partnerships with education and training providers in the Republic to offer customised services in China.
The agency said the Chinese are also seeking environmental services from Singapore such as desalination, a relatively new concept in China.
The country aims to triple its desalinated water output from 640,000 cubic m a day last year to between 2.2 million and 2.6 million cubic m a day in 2015 .
The director for IE Singapore's China group, Mr Ignatius Lim, said: 'Today, China is looking beyond just having foreign firms bringing in money to invest. If you can invest and bring in solutions and add value, that would be much appreciated.'
Source: Straits Times