Second Russia-Singapore Joint Steering Committee Provides Impetus Expanding Economic Cooperation Beyond Special Economic Zones (SEZS)

SECOND RUSSIA-SINGAPORE JOINT STEERING COMMITTEE PROVIDES IMPETUS EXPANDING ECONOMIC COOPERATION BEYOND SPECIAL ECONOMIC ZONES (SEZs)

The 2nd Russia-Singapore high-level Joint Steering Committee (JSC) was held in Singapore today on the sidelines of the 2nd Russia-Singapore Business Forum (RSBF).The meeting was co-chaired by Singapore's Minister for Trade and Industry, Mr. Lim Hng Kiang and the Minister of Economic Development and Trade of the Russian Federation, Mr. Herman Gref . The JSC was set up in August 2006 to provide a platform for both sides to discuss economic cooperation issues.

The JSC reviewed Singapore’s involvement in Russia’s SEZ projects. The Russians have found Singapore’s experiences to be useful. Going forward, Singapore will continue to provide assistance and contribute in areas where it can value-add.

In particular, both sides stressed the need to broaden cooperation beyond SEZs to other areas such as in science and technology (S&T) and tourism. Both sides also reaffirmed their commitment to work towards the conclusion of a bilateral S&T agreement and the coming into force of the Double Taxation Agreement.

Trade between Singapore and Russia has been steadily increasing. Since 2000, bilateral trade has increased more than three-fold.Bilateral trade grew 43% from S$1.32 billion in 2005 to S$1.89 billion in 2006. Russia is now Singapore’s 33rd-largest trading partner, up from 38th position in 2005. Tourist flows also saw a healthy increase last year. Singapore welcomed 38,000 Russian visitors, 44% more than in 2005. To tap on the growing Russian tourist market, the Singapore Tourism Board will set up an office in Moscow later this year.

A growing number of Singapore companies have also successfully ventured into the Russian market, across a spectrum of industries, ranging from real estate, and food and beverage, to consumer electronics. Russia also recently announced plans to set up its first business incubator outside its borders. The Russia Business incubator (RBI) would partner Russian companies with Singapore-based companies, to explore opportunities in the region and in the Asia-Pacific markets. At the end of the JSC, both Ministers witnessed the signing of a “Protocol of Intentions” for RBI to market and represent and promote VNITEP (a Russian-based company from Dubna SEZ, specializing in laser-cutting technologies) in Singapore and in the Asia-Pacific markets.

MINISTRY OF TRADE AND INDUSTRY
SINGAPORE
6 MARCH 2007