Topic: Guangxi -- Chinas next hottest market?

Singapores bilateral economic relationship with Chinas Guangxi region continues to develop despite the global recession, with trade profits hitting US$186.1 million (SGD$257.9 million) in 2009, an increase of 29 per cent from the year before.

Guangxis strategic geography places it closest to the Association of Southeast Asian Nations (ASEAN), and it is the only Western region with open sea port facilities. This creates opportunities for Singapore-based companies that offer port and logistics services.

Although Singapore is currently the biggest ASEAN investor in Guangxi, Parliamentary Secretary for Trade & Industry and Information, Sam Tan, noted that there is still a lack of awareness of Singapores capabilities and opportunities in Guangxi.

To date, only four Singapore companies Hong Leong Asia, Sembcorp Utilities, ComfortDelgro and DBS Bank have invested in Guangxi.

He said, ...Singapores strengths in modern services can complement the regions (Guangxis) growth.

As Guangxi is a relatively new market to most Singapore players, some investors are hesitant.

The owner of Goh Furnitures, Goh Tat San, said, I have been thinking of entering the China market to expand on my business. However, if I were to choose between doing

Topic: Guangxi -- Chinas next hottest market?

business in Guangxi or the neighbouring Guangdong province, I would prefer the latter because it is a more established market for investing. Furthermore, there are trustable and reliable agents that I know from Guangdong.

A check with Shirley Heng, another potential investor from Heng Marine Fire Engineering, confirmed that Singapore investors are not fully convinced about the extra incentives that Guangxi provides.

Ms Heng said, While the open sea port facilities in Guangxi is exciting, I believe more needs to be done to attract investors. For example, the transport and support infrastructure have to be up to par before companies will even think about setting up operations and factories there.

Topic: Guangxi -- Chinas next hottest market?

Story Process Diary a) Original story idea: Guangxis and Singapores strong bilateral economic ties has generated a huge trade profit of USD$186.1 million; Guangxi is a potential investing ground for companies.

b) Origin of story idea: Many Singapore companies are exploring new markets in China.

c) Why is it of interest? China is the biggest up-and-coming market and investors would be interested in this.

d) Potential sources: Potential investors in China Investors in China

e) Actual sources: Goh Tat San, owner of Goh Furnitures Pte Ltd. Contact: 97437919 Shirley Heng, owner of Heng Marine Fire Engineering Pte Ltd. Contact: 90011608

f) Limitation: I could not find any China investors to interview. 3

Topic: Guangxi -- Chinas next hottest market?

g) Story evolution: The story was initially about introducing Guangxi as a potential investing place in China. However, the story evolved into comparing it with its neighbor Guangdong it showed that Guangxi, while it holds a lot of potential for investors, still has much to catch up on before companies would even consider investing there.

h) Other comments: Nil.