For Chin Siat Yoon, the announcement on a black-and-white television of his country's independence on August 9, 1965 was more sombre rather than triumphal for there were so many uncertainties: How was a speck on the map with 2 million people to survive?

Forty years later, Chin, now Singapore's ambassador to China, saw how the speck survived and indeed prospered to become a colourful and dynamic country.

Celebrating Singapore's 40th National Day here in Beijing, the ambassador shares the strategic concept of the lion city country.

"First, an enlightened leadership with a keen sense of the global currents and a strong ability for political mobilization. Second, a population that was willing to sweat blood to overcome adversities. Third, a stroke of luck," Chin said.

Singapore's per capita gross domestic product (GDP) today is more than US$27,000, 22nd in world ranking. When people talk about the country, the first impression that comes to mind is no doubt that of Merlion and a stable, harmonious society and high standard of living.

The ambassador said Singaporeans are now shedding the image of a rigidly controlled society that is not just clean, green and safe, but also fun and culturally vibrant. "We cannot afford to rest on past laurels. If we allow the current prosperity to lull us into a sense of complacency, and into forgetting our inherent vulnerabilities, we stand to lose everything we have thus far achieved."

Singapore is retuning its education system and re-positioning itself by emphasizing new growth sectors such as biotechnology, nanotechnology pharmaceuticals, as well as healthcare, education and financial services to complement the manufacturing pillar.

Unique relations with China

Singapore has a special relationship with China bound by cultural affinity and historical links that long pre-date the establishment of formal diplomatic ties in October 1990. In the run up to the Xinhai Revolution which saw the end of the Qing dynasty, Dr. Sun Yat-sen made several visits to Singapore to rally support and raise funds. Dr. Sun's villa in Singapore, Wan Qingyuan, today stands as witness to this episode in the history of modern China.

"Over the years, relations between Singapore and China have deepened and matured into a multi-faceted one with extensive interactions between our two governments, business communities and peoples," Chin said.

Since former Prime Minister Lee Kuan Yew made his first visit to China in 1976, the leaders of the two countries have maintained regular contacts to exchange views on issues of common interest. The visit by Chinese top legislator Wu Bangguo in May, the scheduled visit by Vice Premier Wu Yi to Singapore in September and Singapore's Prime Minister Lee Hsien Loong's visit to China, expected in October, should be seen in this light, according to Chin.

On the economic side, Singapore and China are key partners. Singapore is China's largest trading partner among the ASEAN countries. Bilateral trade between them last year grew 44.4 per cent to reach US$53.3 billion. Singapore became China's seventh largest trading partner and eighth largest foreign investor in 2004.

China, on its part, is also rapidly becoming a key player in Singapore's economy. It was Singapore's fourth largest trading partner in 2004. As of the end of 2004, more than 1,400 Chinese companies have established a presence in Singapore, with 74 of them listed on the Singapore Stock Exchange so far. More than 880,000 Chinese tourists visited Singapore last year.

Last year marked a couple of major milestones in Singapore-China relations. The first significant event is the 10th anniversary of the Suzhou Industrial Park (SIP) project. Launched in 1994, the SIP is now commonly acknowledged as a resounding success, a model of sorts for other industrial parks in China.

The second milestone was the inaugural meeting of the Joint Council for Bilateral Co-operation (JCBC). The JCBC is the highest level forum between the two sides aimed at deepening bilateral co-operation.

Last May's meeting in Beijing, co-chaired by then Deputy Prime Minister Lee Hsien Loong and Vice Premier Wu Yi, was a major step in enhancing the bilateral relations. Both sides agreed to explore a series of initiatives to further the economic and people-to-people linkages.

"Singapore-China relationship is a symbiotic one premised on mutual benefit and mutual respect. There is much that Singapore and China can offer to and learn from each other," Chin said, noting that it is also natural for the two countries to have different opinions on some issues.

"But what is clear, however, is that Singapore wishes China well in its pursuit of peaceful and sustainable development. We see such a China as a boon to us and to the region."

A China-ASEAN FTA welcome

Singapore actively supports the establishment of a China-ASEAN free trade zone. In October 2001, the 11 leaders of ASEAN and China set the target of establishing a China-ASEAN Free Trade Area (FTA) by 2010.

Upon completion, the FTA will be the largest in the world, with a combined population of 1.8 billion. The Trade in Goods Agreement under the FTA was concluded last October. It came into force on January 1, 2005, and implementation of tariff reduction commenced on July 20. This means that goods manufactured in ASEAN and China would enjoy preferential tariff duties for each other's market, making them more competitive vis-a-vis the goods from other parts of the world. But beyond the mathematics of tariff savings, manufacturer can now source more freely in the region and build the most effective production value chain across the region. As for the services and investment agreements, negotiations are still ongoing.

"When these agreements are concluded, we can expect further opening up of the respective services sectors and stronger protection for investments," Chin said.

"Coupled with the benefits from the liberalization of goods sector, this FTA will generate greater intra-region trade and enhance the region's attractiveness to investments."

(China Daily 08/09/2005 page1)