By Peh Shing Huei, China Bureau Chief

Sharing with Zhejiang province party boss Zhao Hongzhu Singapore's strategies to tackle the global financial crisis, Mr Lee said that for the long term, it is critical to come up with new ideas to grow the economy.

'There are many ideas to look at but one of the ideas which we have to continue and enhance is how to have our companies and businesses go overseas and benefit from the opportunities and growth in Asia including in China,' he said at the start of his four-day visit to three cities in the Yangtze River Delta region - including Hangzhou, Ningbo and Shanghai.

The setting-up of the ESC was announced by Mr Lee in Parliament last week. Chaired by Finance Minister Tharman Shanmugaratnam, it is tasked with coming up with new and creative ways to grow the economy for the long-term.

'We have had some success over the last 15, 20 years as we have gradually learnt about the region and our business people have operated in China and we are more familiar with the environment,' Mr Lee said yesterday. 'There are still many opportunities which will continue to open up and our people must understand this and take advantage of it.'

One such example is the Ascendas Singapore-Hangzhou Science and Technology Park, which will be opened by Mr Lee today. Such projects have helped trade between Singapore and Zhejiang soar to US$2.34 billion (S$3.38 billion) last year, up 12.8 per cent from 2007.

Mr Lee added that he hoped more Zhejiang companies can go to Singapore and be listed there, using the island nation as the Chinese enterprises' international headquarters.

Mr Zhao had earlier told PM Lee that there are 53 Zhejiang firms with a presence in Singapore, including six listed there. Because of its heavy dependence on foreign trade, Zhejiang is among the most badly-affected Chinese provinces in the financial crisis, said Mr Zhao.

In response, Mr Lee said that Singapore has also suffered heavy blows: 'We have never seen such a contraction in our history. Normally when we say 6 to 9 per cent, we do not have a minus sign in front of the numbers.

'Now it's going to be minus, so it's like a very cold bath for the whole population.'

Mr Lee, who is accompanied by his wife, Ms Ho Ching, arrived here from South Korea where he attended the Asean-Korea 20th anniversary commemorative summit. He is visiting Zhejiang for the first time since 1991, and this is his fourth visit to China since taking up the premiership in 2004.

His visit comes on the back of a flurry of high-level trips to China by Singapore leaders in recent months, with Minister Mentor Lee Kuan Yew touring the Yangtze River Delta just last week.

Said Mr Zhao, who also hosted Mr Lee to a welcome dinner last night: 'China and Singapore relations are the prime example of close ties between countries of the world. We have been on friendly terms for a very long time.'

-end of ST article