Deputy Prime Minister Wong Kan Seng,

Mr. Chua Thian Poh,

Ladies and Gentlemen,

Dear Friends,

      Thank you very much for kindly inviting me to this dinner hosted by the Singaporean business community. I wish to take this opportunity to express my appreciation to all of you who have long been committed to promoting Singapore's friendship and cooperation with China.

      Since China and Singapore established diplomatic relations in 1990, our cooperation in various fields has grown rapidly, and our economic cooperation and trade have flourished.

      --Steady headways have been made in bilateral trade. Since 2004, the annual trade volume has surpassed US$ 20 billion, US$ 30 billion and US$ 40 billion respectively. The momentum of rapid growth in trade has continued this year, with the trade volume reaching US$ 34.6 billion in the first nine months of this year. Singapore is China's largest trading partner in ASEAN, and China is the second largest trading partner of Singapore. Our two countries have much to offer each other in trade, with huge potential to be tapped. The target of reaching a trade volume of US$ 50 billion by 2010 will surely be met ahead of schedule.

      --Two way investment is growing. Singapore has invested a total of over US$ 30 billion in China and is now one of the main destinations of investment by Chinese companies. By the end of last September, 130 Chinese companies had been listed in Singapore, accounting for 17.7% of all companies listed on the Singapore Exchange (SGX), and 8.4% of total market value. The "dragon chips" listed on the SGX are of keen interest to investors here.

      --Innovative progress has been made in bilateral cooperation. The Suzhou Industrial Park is a good example of China-Singapore business cooperation. In 2006, the Park produced RMB 68 billion of GDP, and its total import and export reached US$ 50 billion. Thanks to cooperation and development in the past 13 years, the major China-Singapore cooperation projects such as the Suzhou Industrial Park, the Wuxi Industrial Park and the Dalian Port Container Terminal have made significant contribution to China-Singapore business cooperation and China's economic development.

      --Cooperation at the local level is growing. Singapore has established business councils with six provinces in China, namely, Shandong, Sichuan, Liaoning, Zhejiang, Jiangsu, Hubei as well as Tianjin Municipality, which has deepened bilateral cooperation in various fields. Singapore is actively involved in China's endeavor to implement the development strategy of developing Western China and rejuvenating the old industrial bases in the Northeast. All this has expanded the scope of bilateral business cooperation.

      Ladies and Gentlemen,

      Dear Friends,

      China is now working to put into practice the Scientific Outlook on Development and build a moderately prosperous society in all respects. Singapore is also pursuing a strategy to "remake Singapore". These will create a rare opportunity for enhancing China-Singapore cooperation. However, I wish to draw your attention to the following areas which I believe are important for our cooperation:

      First, we should launch new flagship projects in bilateral business cooperation. The "Eco-City" project now under discussion between the two sides is of far-reaching importance. We will draw on Singapore's successful practice in urban development, environmental protection and water resource management in light of China's conditions and work to build a new city that is environment-friendly and resource-conserving and make it a new pace setter of China-Singapore cooperation.

      Second, we should jointly promote the building of bilateral free trade area. In just over a year since April 2006, four rounds of intensive FTA negotiations have been conducted, and the progress made in the negotiations reflects the sincerity of both countries to reach early agreement. On the basis of mutual benefit, reciprocity and friendly consultation, China will work with Singapore to make further progress in the negotiations so that our two peoples will enjoy the benefit of a free trade area at an early date.

      Third, we should provide better services to facilitate business cooperation. The Chinese and Singaporean companies are all eager to build stronger business ties, and we in the government should take various measures to support them. The trade ministries of the two governments should promote exchanges and cooperation between our business communities through the Singapore-China Economic and Trade Cooperation Website. We should also run trade and investment seminars to provide a platform for our companies to jointly open other markets.

      Fourth, we should expand cooperation in services. Singapore has a developed services sector and is an international leader in shipping, logistics, financing, environmental protection and tourism; and China has a huge market, a large pool of professionals and abundant labor resources. All these offer great prospects for our business cooperation. We should take more steps to deepen cooperation in services and draw upon each other's strength so as to increase mutual benefit.

      Ladies and Gentlemen,

      Dear Friends,

      To grow China-Singapore business relations not only serves the interests of our two peoples but also contributes to development and prosperity of our region. I hope that all of us, both in China and in Singapore, will seize the opportunity and work together to build stronger business ties.

      In conclusion, I propose a toast

      To the ever-lasting friendship between China and Singapore,

      To the prosperity of the peoples of China and Singapore, and

      To your health.

      Cheers!