CDF Voice｜Merlin Swire: We are excited by new, high-quality development opportunities

The “CDF Voice” column aims to bring together business leaders and convey the voices of the forum delegates.

Since its launch in 2000, CDF have upheld its mandate of “Engaging with the world for common prosperity”.

At present, the economic recovery is still fragile, and the impact of the COVID-19 and geopolitical crisis is continuing. Although China’s economic recovery is improving, lackluster demand, slow recovery in labor market and global supply chain adjustments and other pressures are still present.

The world is experiencing unprecedented change, how do foreign enterprises in China view China's development? How can foreign enterprises grasp the opportunities and challenges in the Chinese market? What insights do they have about China's future economic recovery and social development?

As the 2023 annual meeting of the China Development Forum is about to be held, the "CDF Voice" column invites representatives of global enterprises to discuss the above topics.

The guest of CDF Voice today is Merlin Swire, Chairman of Swire Pacific Limited.

Greetings to you all!

This time last year, I expressed my hope that the opportunity would come as soon as possible to ‘cross the mountains and oceans’ to once more visit old friends in China. In the end this moment came sooner than we had hoped for, and it is so exciting to see China rebuilding its connections to the world, and to see international business travel resuming.

I’m grateful to have been invited by CDF Voice to offer my thoughts on China’s modernization. Swire’s bond with China dates back 157 years – and we have not only been a witness to, but also participated in, China’s rapid modernization over the past century, as the country has faced and overcome numerous storms and challenges.

The modernization of China has led to ever increasing aspirations for a better life amongst Chinese people, and this has created a huge field of opportunity for multinational companies that are able to offer higher quality products and services. Swire’s confidence to continue to invest in the country is rooted in this reality.

And we have been accelerating our investment over the past 12 months. In 2022, Swire Properties announced two major new landmark projects: Taikoo Li in Xi’an, which will be a retail and lifestyle complex built around a site of historical and cultural importance, and, in Sanya, a retail project which will be our first resort-oriented commercial development.

Also during the year HAECO Xiamen began construction at the new Xiang’an International Airport of ultra-modern facilities which will include the largest single span aircraft maintenance hangar in the world. And Swire Coca-Cola has committed to build a new large-scale bottling plant in Kunshan, which will be the largest single investment the bottler has ever made in the Chinese Mainland.

In addition, Swire continues to expand our investment into areas of the economy - non-traditional for us - where we feel we can contribute – for example, our investment in the healthcare sector in the Chinese Mainland is expected to reach US$ 2.5 billion by 2030.

These new and high quality opportunities make us feel like a young company again, despite having operated in China for over 150 years, and we are excited and energized by them.

But at Swire we also recognize that the fruits of development must be shared in a way that benefits and strengthens society more broadly. As China works to narrow the urban-rural divide and to reduce inequalities between regions, Swire have been an active participant.

Through our many educational programmes in the Chinese Mainland, Swire has continuously promoted people exchanges between urban and rural areas, between different regions, and between China and other countries. We have also contributed to the improvement of public services such as education and healthcare in less developed areas, providing support with both hardware and software. We are privileged to continue our co-operation with the China Development Research Foundation in an initiative on early childhood development in the Bijie Pilot Area in Guizhou province, aimed at children from zero to three years old living in rural areas.

We are committed, in all our operations, to be leaders in sustainable and green development. This reflects our determination to champion high-quality development. Swire companies have become pioneers and advocates of green development in their respective areas, achieving widespread recognition in China and around the world.

For example, by the end of 2021, 100% of Swire Properties’ projects under development had achieved the highest environmental building assessment scheme rating. Swire Coca-Cola has plans to achieve one hundred percent use of renewable electricity in its core operations by 2026. And Cathay Pacific has pledged to achieve net zero emissions by 2050, becoming one of the first airlines in Asia to set out its path to carbon neutrality.

As the ancient poem goes, “Friendship should be like a ferry on a mountain stream, remaining forever regardless of stormy waves”. The COVID pandemic has been the most fearful and challenging of storms – but its worst effects are now behind us – and we fervently hope that in the calm after the storm a renewed momentum in people to people dialogues and international engagement can lead us all to a better future.

The China Development Forum is the first large-scale international forum in the Chinese Mainland since the lifting of quarantine. I believe in its theme of friendship and cooperation and would like to wish the Forum a great success.