SINGAPORE, April 17 (Xinhua) -- The Hainan Free Trade Port is emerging as a potential node in China-ASEAN supply chains and a gateway into China, as Singapore companies explore new operating models amid global trade fragmentation, Kok Ping Soon, chief executive officer of the Singapore Business Federation (SBF), told Xinhua in a recent interview.
The SBF recently led a business mission to Haikou, Hainan, alongside the sixth China International Consumer Products Expo, bringing together companies from sectors such as consumer, retail, e-commerce and lifestyle. Kok said the expo provides a platform that brings together brands, distributors and platforms. "For many companies, it is a starting point to test the market, build relationships and identify viable channels."
In a fragmented global trade environment, businesses are reorganizing supply chains rather than simply expanding markets, with a focus on resilience, cost discipline and speed to market, Kok said.
"For Singapore businesses, free trade zones like Hainan can play a constructive role by simplifying cross-border processes and creating clearer operating conditions," he said.
According to Kok, Singapore will continue to serve as a base for regional headquarters, financing and coordination, anchoring high-value trade and maritime services, while Hainan is emerging as a node in the China-ASEAN corridor and a gateway into China.
"These roles are largely complementary," Kok said.
For trade and logistics companies, operational efficiency remains central. "What matters is how efficiently goods can move, how quickly they can clear, and how predictable the process is," he said.
Connectivity is key. Kok said new direct links, such as routes connecting Southeast Asia to Yangpu Port in Hainan, could strengthen feeder networks and improve supply chain resilience over time.
Some companies also see Hainan as "a controlled entry point into China," allowing them to test demand and refine operating models before scaling up, he added.
"In practical terms, businesses will look at where to place inventory, how to structure processing, and how to connect Hainan to existing shipping and distribution routes," Kok said. "These decisions are driven by cost, speed and reliability. If Hainan can deliver on these fronts, companies will commit with certainty."
Kok said the most immediate opportunities are in sectors where Hainan is already gaining momentum, including consumer markets, modern services, logistics and urban solutions.
On policy, recent special customs arrangements have provided greater clarity, Kok said. Measures such as tariff exemptions, a 15 percent corporate tax rate and cross-border capital facilitation are "all relevant because they directly affect how a business is structured."
"Over time, Hainan can become a useful part of how Singapore companies engage China, particularly as an additional node within a broader network," Kok said. "The approach will be steady. Companies will start with focused activities, build confidence and expand where it makes commercial sense." Enditem
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