Digital economy cooperation a key focus as trade between Singapore and Shanghai rise 7.8% in 2023

ECONOMIC ties between Singapore and Shanghai continued to strengthen, with total trade in 2023 increasing by 7.8 per cent year on year, Enterprise Singapore said on Tuesday (Jul 9).

The digital economy, which is a key priority for both cities, will be a new area of cooperation, said Minister for Culture, Community and Youth and Second Minister for Law Edwin Tong, at the end of the fifth Singapore-Shanghai Comprehensive Cooperation Council Meeting. 

Cumulative investments from Singapore into Shanghai exceeded US$25 billion across more than 6,300 projects for the whole of 2023, Tong said.

Most of these investments are in the real estate, financial services, manufacturing, lifestyle and consumer sectors, with Singapore companies continuing to see Shanghai as an attractive investment destination due to rising demand for mid-to high-end goods and services driven by Shanghai’s growing affluence. 

The new focus on digital economy comes as Singapore’s digital economy grew at a compound annual growth rate of close to 13 per cent since 2017, outpacing growth of the overall economy, while Shanghai’s digital economy is expected to reach three trillion yuan (S$557 billion) by 2025, accounting for more than 60 per cent of its GDP.

The collaboration between the two cities will involve the exchange of knowledge and technical expertise, and regulatory updates between government agencies and companies from Singapore and China. 

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The leaders agreed that Singapore and Shanghai should support pilot projects facilitating digital trade through the secured exchange of electronic Bills of Lading, which will ease the trading process for companies and enable more trade flow.

Besides digital economy, Singapore and Shanghai collaborate in five key areas – the Belt and Road Initiative, financial services, technology and innovation, urban governance and people-to-people exchanges.

During the fifth Singapore-Shanghai Comprehensive Cooperation Council Meeting, 15 agreements were signed between both cities, covering areas such as digital economy, urban planning and financial services.