SINGAPORE businesses looking to break into China's booming market should train their sights on second-tier inland cities in provinces such as Henan and Jiangsu, said speakers at a recent business forum.

About 200 entrepreneurs and business executives from China and Singapore attended the forum, which was held on Wednesday at the premises of the Singapore Chinese Chamber of Commerce and Industry. They shared ideas on what it takes to do business in China.

The speakers acknowledged the importance of the huge Chinese market to Singapore's businessmen, and noted that second-tier inland cities are currently not seeing the same level of economic development as major coastal cities such as Shanghai and Beijing.

'Cities located inland might be disadvantaged in terms of their geographical location, which might result in higher transport costs,' said Minister of State for Trade and Industry Lee Yi Shyan, who was the guest of honour at the event.

'However, infrastructure in these areas is improving,' he added. He said this should encourage businesses to go into industries that are affected by geographical location, such as information technology.'

Another speaker, Keppel Corp director in chairman's office Chan Soo Sen, said: 'A lot of businesses have ventured into familiar places like Shanghai and Beijing, and investing there will mean more competition. There are many untapped opportunities available in inland cities.'

Mr Lee said there had been requests from a number of second-tier inland Chinese cities, including Chongqing, for Singapore to set up an industrial region similar to the Suzhou Industrial Park.

'While the government is willing to give aid to companies that might want to be a part of such a project, the private sector should take the lead, and companies should look into teaming up with others in relevant industries for a stronger presence in China,' he said.

Another speaker, Jiangsu Guoxin Jingjiang Power Generation general manager Ru Sin, highlighted several key industries in which Singapore businesses could have an edge, including pharmaceuticals, biotechnology, education and financial services.

The business exchange forum was jointly organised by network organisation Business China and the Nanyang Business School.

chiaym@sph.com.sg