One company expanding in this space is SP Group, drawing on two decades of experience operating Singapore's Marina Bay district cooling system. 

The utilities provider is expanding its district cooling network in Guangzhou Knowledge City, including a system serving a 53-storey tower. The first phase of the project spans 80ha. The system also provides heating during colder months. 

Unlike the densely built-up Marina Bay financial district, Guangzhou Knowledge City covers a larger area that is still developing. 

Mr Michael Lim, SP Group’s deputy managing director of sustainable solutions China, said he sees growing demand for energy-efficient infrastructure as China places greater emphasis on sustainability. 

“In the past, projects in China were mainly driven by policy. Now, it's a little bit different. We're moving into more of a hybrid structure where there's a lot more emphasis on sustainable solutions, reducing carbon emissions, but of course (with) regulatory support,” he said. 

Mr Lim said the company is prioritising cost-effective, low-carbon energy solutions rather than simply pursuing projects with the largest capacity. 

SP Group plans to triple its capacity across China by 2030, targeting industrial and healthcare developments, including semiconductor suppliers supporting the artificial intelligence boom. 

CHINA AS A SPRINGBOARD FOR GLOBAL GROWTH

China's economy was worth about US$20 trillion in 2025. At annual growth of around 5 per cent, that translates to roughly US$1 trillion in additional economic output each year. 

Still, it is a tougher market than before, with a prolonged property slump, cautious consumer spending and intensifying competition. 

But EnterpriseSG said Singapore firms can still carve out opportunities by targeting expanding sectors and leveraging their strengths. 

Mr Kow identified advanced manufacturing, biomedical sciences and sustainability as key growth areas. 

He added that Singapore is generally regarded as trustworthy, with reliable products and solutions. 

However, Mr Kow cautioned that China remains a large and complex market, urging firms to understand local regulations and take steps to mitigate risks. 

Beyond its domestic market, China's manufacturing network, supply chains and technological advances could help Singapore companies develop products and services for international markets. 

“China's manufacturing capability, supply chain and technology development are (what) Singapore companies can tap upon. They can utilise this to expand within China, to other countries in Southeast Asia, or even globally,” said Mr Kow.