Singapore and Shanghai strengthen economic ties as trade surges
- Trade between Singapore and Shanghai increased by 15 percent in the first half of 2024.
- Senior Minister Lee Hsien Loong discussed collaboration opportunities during his visit to Shanghai.
- Both cities are positioned for enhanced economic ties as they approach 35 years of diplomatic relations.
In the first half of 2024, trade between Singapore and Shanghai saw significant growth, increasing by 15 percent to RMB 61.57 billion (S$11.4 billion). This rise was largely driven by strong exports from Shanghai to Singapore. The robust economic relationship is underscored by the presence of over 4,000 Singaporean companies operating in Shanghai, illustrating a deeply entrenched partnership that has evolved over decades. Senior Minister Lee Hsien Loong, during a recent official visit to China, emphasized the need for collaboration between both cities, acknowledging the importance of Shanghai as a crucial gateway for Singaporean businesses seeking to penetrate the Chinese market. The financial hub of Shanghai has also become Singapore's largest foreign investment destination, with cumulative investments reaching US$25.99 billion (S$34.9 billion) as of June 2023. Both leaders recognized the evolving international landscape, highlighting the necessity for like-minded partners to work diligently to foster opportunities for mutual benefit. This ongoing relationship is particularly significant as China and Singapore prepare to mark 35 years of diplomatic relations in 2025, with Shanghai poised to play a vital role in enhancing bilateral ties going forward.