Singapore Deputy Prime Minister Lee Hsien Loong Sunday called on Singaporean businessmen to actively venture away from home to invest in China's growth.

"That way, we make China a growth engine for the Singapore economy," the deputy prime minister said at yesterday's official launch ceremony of Raffles City Shanghai.

The project, close to the downtown People's Square, is the single largest property investment led by a Singapore consortium, at a cost of US$350 million.

Lee said China has created "a friendlier business environment" for Singaporean businesses due to its effort to clarify laws and simplify government procedures.

"Therefore, investing in China is no longer a daunting proposition that involves climbing mountains and crossing oceans," he said.

"It is within reach of most businessmen if they have the drive and the acumen."

Today, about 10 percent of Singapore's investments into China are made by Temasek-linked companies, such as CapitaLand. Temasek Holdings is one of the largest investment holding companies in Singapore.

But the great majority is by other Singapore-based investors, including small- and medium-sized enterprises, and multinationals based in Singapore.

While meeting with Chinese Premier Wen Jiabao on Friday, Lee said Singapore has decided to recognize the full market economy status of China.

He highly valued the fast development of bilateral relations, saying the leaders of the two nations decided on major co-operative fields two years ago have produced fruitful results.

Wen also said that Singapore has been an important economic partner of China.

"It can be said that the cooperation of the two countries has a clear direction, a sound mechanism and a bright future," Wen said.

At present, Singaporean investment in China had reached US$24 billion while the number of Chinese enterprises in Singapore has topped 1,100.

They are involved in developing industrial parks, building shopping centres, manufacturing high-tech products, growing grapes and making wine.

CapitaLand Ltd President and CEO Liew Mun Leong said the company will put more investment into Chinese market by launching new projects over the next several years.

"We are fully confident about the Chinese market and its robust economic growth," Liew said.

CapitaLand has invested more than 5 billion yuan (US$600 million) in China, which will be doubled within two to three years, said Lim Ming Yan, CEO of CapitaLand China based in Shanghai.

In addition to Shanghai, CapitaLand's investment focus will be placed on Beijing and Guangzhou by establishing business institutions, Lim said.

"We are showing strong interest in the Shanghai market which has a favorable business environment," he said. Singapore has become the fourth-largest investor country in Shanghai.

He said that the company is looking for new investment opportunities in the city to find sites for its next projects.

(China Daily May 17, 2004)