SINGAPORE: Singapore companies remain bullish on the China market, even when faced with strong competition and rising costs, according to the inaugural China Business Climate Survey by International Enterprise (IE) Singapore.
In a survey of about 400 senior executives of Singapore companies, 86 per cent of the respondents said they are not considering moving their Chinese investments to up and coming markets in Southeast Asia.
However, four in 10 respondents said they are on a lookout to build up presence in the West and Central provinces of China due to government incentives and infrastructure developments in these areas.
Meanwhile, key challenges faced by local companies include a complex bureaucracy and inconsistent regulations.
IE notes that Singapore companies should leverage on the strong Singapore branding, which conveys quality, safety, reliability and trustworthiness, in order to stay relevant.
Law Chung Ming, group director at IE Singapore, said: "We are also encouraging companies to cluster together, band together, form consortiums or complimentary groupings whereby in such a way one plus one will be bigger than two, so they can offer a more holistic and comprehensive suite of products and services to the Chinese market and these two aspects will enable us to have an edge over the competition."
According to IE Singapore, Singapore was China's third largest trading partner in 2012, with S$103.82 billion worth of total trade recorded between the two countries.
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