20 May 2025, NIICE Commentary 11011
Sahana G S
The Belt and Road Initiative, an ambitious plan to construct ports, roads, railroads, and other infrastructure to improve connectivity between nations in Asia, Europe, and beyond, was started in 2013 by Chinese President Xi Jinping. Originally intended to connect East Asia and Europe, the endeavour has expanded to include Africa, Latin America, and the Pacific. Through this program, China is strengthening its political and economic ties with nations worldwide in addition to investing in development projects. In 2013, President Xi introduced a plan while visiting Kazakhstan and Indonesia. The plan consisted of two main routes: the Silk Road Economic Belt on land and the Maritime Silk Road by sea. Initially called the One Belt, One Road initiative, it was later renamed the Belt and Road Initiative. Over 150 countries, including Singapore, have joined the BRI in the last ten years, expanding its influence to various regions like Latin America, Europe, Africa, and Asia. Singapore saw positive opportunities in the BRI, including reducing trade barriers, enhancing business relationships, creating new markets, and collaborating on green finance and technology. Lee Hsien Loong, Singapore’s senior minister, was among the first foreign leaders to visit China and meet President Xi Jinping. They agreed on the “All-Round High-Quality Future-Oriented Partnership (AHFP) and on strengthening ties for a peaceful, open, and inclusive region. During the Second Belt and Road Forum in 2019, Senior Minister Lee highlighted four areas for Singapore’s role in the Belt and Road Initiative: infrastructure connectivity, financial connectivity, third-party cooperation, and expert and legal services.
Infrastructure and Connectivity
Under the Belt and Road Initiative, China and Singapore are working together to strengthen their ties, the most significant one being the CCI- The China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity is the third collaboration between China and Singapore. It focuses on four main areas: financial services, aviation, transportation logistics, and information and communication. This project supports the Belt and Road Initiative, the Great Western Development, and the Yangtze River Economic Zone, emphasizing “modern interconnection and modern service economy. “They have created a project called the New International Land-Sea Trade Corridor (ILSTC) as part of the China-Singapore (Chongqing) Demonstration Initiative to accomplish this. This is the lifeline of trade and logistics, linking Western China with 119 nations and regions, including Southeast Asian nations (ASEAN), via this belt road. China’s 14th Five-Year Plan aims to create a new corridor to boost trade, logistics, industrial cooperation, and cultural exchanges between Western China and ASEAN. Singapore and Chongqing will be key hubs in this network, enhancing Singapore’s role as a major logistics center in Asia-Pacific.
Singapore as a Financial Hub in the BRI Framework
Due to its strategic advantages and financial strength, Singapore plays a key role in the Belt and Road Initiative (BRI). Singapore is an essential connection point between Asia and the rest of the world because it is situated at the center of important shipping routes. As a critical connection point between Asia, Europe, and the rest of the world, Singapore sits along the Strait of Malacca, one of the busiest shipping lanes in the world. Furthermore, Singapore’s highly developed financial industry and knowledge of international commerce make it a vital partner in funding BRI initiatives. The city’s advanced banking system, robust regulatory framework, and extensive knowledge in financial services all contribute to making it a critical enabler of the BRI initiative.
A number of Singaporean banks, including DBS Bank, OCBC Bank, and UOB, are actively participating in the Belt and Road Initiative (BRI). These financial giants provide a wide range of tools, including loans, bonds, and equity investments, that support infrastructure development along the BRI corridor. Singaporean banks lead the way in creating essential infrastructure, such as modern ports, railroads, and roadways, by offering cutting-edge financial solutions. These institutions also excel in attracting foreign investment, serving as crucial channels that connect foreign investors with promising BRI projects. They inspire confidence in capital because they are skilled at managing risks and financing projects, which allows them to advance transformative projects. According to the UNCTAD World Investment Report 2023, the nation received US$141.2 billion in FDI in 2022, which established a new milestone for the country. Singapore’s economy relies greatly on its financial and insurance sectors, which contributed about SG$87. 84 billion, or 17. 5% of the total GDP, in 2023. This sector enhances Singapore’s role in global commerce and investment. It is crucial for enabling global transactions through trade financing solutions, making Singapore an important trading hub for the Belt and Road Initiative.
Legal Expertise
The Supreme Court of Singapore and the Supreme People’s Court of the People’s Republic of China signed an MOU in April 2023 to resolve international business disputes under the BRI framework using a litigation-mediation-litigation (LML) approach. This includes the funding of BRI-related foreign trade and commerce disputes, such as those involving infrastructure development and construction projects. It also understands the growing complexity of these types of conflicts and promotes cross-border collaboration in dispute resolution methods (including information on procedural rules and case management practices). This enhances Singapore’s reputation as a regional and international dispute resolution hub and further solidifies its standing as a perfect, neutral party for the efficient and effective resolution of BRI conflicts.
In conclusion, Singapore plays a vital and strategic role in China’s Belt and Road Initiative by leveraging its strengths in business, finance, and governance. Despite its advantages as a trustworthy hub for investment and connectivity, Singapore must balance its ties with major world powers while maintaining regional collaboration. Its attempts to promote sustainability and transparency add value to the BRI, even if its impact is limited by China’s hegemonic position. Whether Singapore maintains its relevance in the project in the future will depend on its capacity to adapt to shifting regional and worldwide dynamics.
Sahana G S is a Research Intern at NIICE, and she is currently pursuing her M.A. in International Relations at Loyola College, Chennai, India.
