Singapore firms eyeing China market should target smart tech, green economy: EnterpriseSG
China's manufacturing network, technological capabilities and research and development offer Singapore firms opportunities to improve their products, lower costs and expand internationally.
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SUZHOU, Jiangsu: Singapore companies looking to expand into China should focus on growth sectors such as smart technology, advanced manufacturing and the green economy, said Enterprise Singapore (EnterpriseSG).
Mr Kow Juan Tiang, the statutory board's executive director for China, said opportunities remain abundant for firms offering innovative solutions.
He added that China's vast market, manufacturing capabilities and supply chains could also serve as a springboard for expansion into Southeast Asia and beyond.
“(China) is a very large market that is still showing significant growth, and that represents a lot of opportunities for Singapore companies to expand,” he said during a media trip organised by the agency.
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“It’s very important for us to know our core capabilities and the value proposition that we have.”
One Singapore company tapping into China's rapidly growing robotics sector is Xnergy, which develops contactless charging solutions for autonomous robots.
As factories, warehouses and other industries increasingly deploy robots, keeping large fleets charged and operational has become a growing challenge.
Most robots rely on contact charging, which requires physical docking and can lead to wear and tear over time.
Xnergy's technology works like universal chargers, allowing robots of different brands and models to charge without needing to be physically plugged in.
Robots can automatically return to a charging station when their batteries run low, with charging beginning once they are correctly positioned.
Since entering China in 2021, Xnergy has witnessed what its co-founder and CEO Chin Foong Tong described as "exponential growth" in the robotics industry.
According to the International Federation of Robotics, China installed 354,000 industrial robots in 2025, accounting for about 60 per cent of global installations.
Mr Chin said developing a universal charging solution is technically challenging, given the different software, designs and docking capabilities of robots.
But China's vast customer base and established supply chains have helped Xnergy develop and scale its technology.
“China is one of the biggest homogeneous robotic markets in the world,” said Mr Chin, adding that the country offers both a strong supplier network and a large customer base that is open to adopting new technologies.
The company currently manufactures several thousand chargers annually but aims to increase production by as much as 100 times in the coming years.
To support that expansion, Xnergy is stepping up its sales and marketing efforts while seeking fresh capital.
China will remain its manufacturing base, even as the company serves overseas markets including South Korea, Japan and the United States.
ANOTHER GROWTH AVENUE: GREEN ECONOMY
Sustainability is another growth sector, supported by China's push towards a lower-carbon economy.
It is among the priorities in China's 15th Five-Year Plan, which outlines the country's economic and industrial development goals for 2026 to 2030.
China has also pledged to peak its carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060.
“That represents a commitment by the country, and that's why there's a lot of opportunities in this sector,” said EnterpriseSG’s Mr Kow.
“Beyond renewable energy generation, you have power efficiency, carbon services, etc. The entire ecosystem represents opportunities for Singapore companies to participate in.”
One company expanding in this space is SP Group, drawing on two decades of experience operating Singapore's Marina Bay district cooling system.
The utilities provider is expanding its district cooling network in Guangzhou Knowledge City, including a system serving a 53-storey tower. The first phase of the project spans 80ha. The system also provides heating during colder months.
Unlike the densely built-up Marina Bay financial district, Guangzhou Knowledge City covers a larger area that is still developing.
Mr Michael Lim, SP Group’s deputy managing director of sustainable solutions China, said he sees growing demand for energy-efficient infrastructure as China places greater emphasis on sustainability.
“In the past, projects in China were mainly driven by policy. Now, it's a little bit different. We're moving into more of a hybrid structure where there's a lot more emphasis on sustainable solutions, reducing carbon emissions, but of course (with) regulatory support,” he said.
Mr Lim said the company is prioritising cost-effective, low-carbon energy solutions rather than simply pursuing projects with the largest capacity.
SP Group plans to triple its capacity across China by 2030, targeting industrial and healthcare developments, including semiconductor suppliers supporting the artificial intelligence boom.
CHINA AS A SPRINGBOARD FOR GLOBAL GROWTH
China's economy was worth about US$20 trillion in 2025. At annual growth of around 5 per cent, that translates to roughly US$1 trillion in additional economic output each year.
Still, it is a tougher market than before, with a prolonged property slump, cautious consumer spending and intensifying competition.
But EnterpriseSG said Singapore firms can still carve out opportunities by targeting expanding sectors and leveraging their strengths.
Mr Kow identified advanced manufacturing, biomedical sciences and sustainability as key growth areas.
He added that Singapore is generally regarded as trustworthy, with reliable products and solutions.
However, Mr Kow cautioned that China remains a large and complex market, urging firms to understand local regulations and take steps to mitigate risks.
Beyond its domestic market, China's manufacturing network, supply chains and technological advances could help Singapore companies develop products and services for international markets.
“China's manufacturing capability, supply chain and technology development are (what) Singapore companies can tap upon. They can utilise this to expand within China, to other countries in Southeast Asia, or even globally,” said Mr Kow.
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