In a significant development that highlights the evolving relationship between Singapore and China, both nations have unveiled an ambitious initiative allowing Singaporean tourists to utilize digital renminbi while visiting China. This announcement was made in Chongqing on December 15, during high-level discussions that resulted in an impressive total of 27 agreements across a wide range of sectors.
These agreements encompass various fields, including health, food, and the burgeoning digital economy, reflecting both countries' commitment to enhancing their partnership amidst ongoing geopolitical tensions and rapid technological advancements. As Deputy Prime Minister Gan Kim Yong emphasized at the Joint Council for Bilateral Cooperation (JCBC), it is crucial for Singapore and China to collaborate closely, proactively addressing challenges and seizing emerging opportunities.
Chinese Vice-Premier Ding Xuexiang echoed this sentiment, noting that despite increasing global tendencies towards unilateralism, the ties between China and Singapore have strengthened over time, yielding positive outcomes. He highlighted that trade between the two nations surged by 8.8 percent in the first eleven months of 2025 compared to the previous year, and air traffic has rebounded to levels surpassing those seen before the COVID-19 pandemic.
This year's JCBC meetings are particularly significant as they commemorate a decade of the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (CCI), a collaborative effort aimed at reinforcing connections between western China and Southeast Asia. Following nearly three hours of discussions, both leaders oversaw the signing of 27 memorandums of understanding (MOUs) and agreements, which set the stage for future cooperation.
Among these agreements, five focus on outlining the next decade of CCI activities, broadening collaboration into new domains like healthcare, education, green finance, and digital trade, while also building upon previously established areas such as financial services, aviation, transport and logistics, and information and communications technology.
A key development within these agreements is the designation of DBS Bank as Singapore’s second renminbi clearing bank, following the Industrial and Commercial Bank of China's Singapore branch. Ginger Cheng, CEO of DBS Bank China, remarked that participation in the CCI has significantly enhanced the bank's foothold in China’s offshore bond market, including the issuance of the first offshore renminbi bond under this initiative. Utilizing CCI’s cross-border investment channels, DBS has successfully led or participated in 44 offshore bank issuances worth a total of 57.3 billion yuan (approximately S$10.48 billion), working with clients from Chongqing and nearby provinces such as Sichuan, Hubei, and Shaanxi.
A particularly intriguing aspect of the recent agreements is the pilot program that will facilitate the use of digital renminbi by Singaporean travelers in China. Set to begin in December, the program will be gradually implemented by the Singapore branches of ICBC and the Bank of China, enabling users to create and fund digital renminbi wallets. Notably, payments using digital renminbi can be conducted in China without requiring internet access, as long as the devices used support near-field communication technology. Given that China is among the most popular travel destinations for Singaporeans, this initiative could significantly enhance the travel experience.
Additionally, other agreements include a protocol between Singapore’s Ministry of Sustainability and the Environment and China’s General Administration of Customs, aimed at streamlining the export of processed meat from Singapore to China. Moreover, the Ministry of Health has signed an MOU with the National Health Commission of China to deepen cooperation in various health-related areas, including disease prevention and control, healthy aging, and maternal and child health.
Another notable MOU was established between Singapore’s Ministry of Law and the China Council for the Promotion of International Trade, focusing on international commercial dispute resolution, intellectual property management, support for the growth of digital and green economies, as well as compliance with international trade policies.
This year marks an important milestone, celebrating 35 years of diplomatic relations between Singapore and China, commemorated by a series of high-profile exchanges, including reciprocal visits by Prime Minister Lawrence Wong and Chinese Premier Li Qiang. Deputy Prime Minister Gan, who is also the Minister for Trade and Industry, is on his second official trip to China within four months. In his remarks at the JCBC, he pointed out that the foundation for the strong ties between the two countries dates back much further than the 35-year anniversary, crediting early interactions between influential leaders like Mr. Lee Kuan Yew and Mr. Deng Xiaoping for establishing mutual respect and understanding.
These foundational relationships have paved the way for significant government-to-government projects, including the Suzhou Industrial Park, Tianjin Eco-City, and the CCI.
An offshoot of the CCI is the New International Land-Sea Trade Corridor (ILSTC), a multimodal transportation route combining rail and sea that facilitates cargo movement between Chongqing, Singapore, and beyond, utilizing Qinzhou Port in Guangxi, southern China. Notably, cargo volumes along the CCI-ILSTC increased by 15 percent from 2022 to 2024.
Singapore’s investments in Chongqing have seen substantial growth, rising from US$5.7 billion (S$7.4 billion) in 2015 to US$12.7 billion in 2024. Additionally, trade between Chongqing and Singapore—its largest investor—grew by 15.5 percent in 2024 compared to the previous year.
This multifaceted cooperation not only enhances economic ties but also reflects a broader strategic partnership that both nations are eager to cultivate.
