Introduction

Good morning.I am delighted to extend my warmest welcome to Minister German Gref to Singapore.This is the second time the Russia-Singapore Business Forum is organised, and I am pleased to see an even stronger turnout this year, a reflection of the increasing strength of the bilateral relations and multi-faceted partnership between our countries.

Increasing Partnership between Singapore and Russia

I am pleased to note that over the past few years, trade activity between Singapore and Russia has been steadily increasing.Our bilateral trade has grown 43% from S$1.32 billion in 2005 to S$1.89 billion in 2006.Since 2000, bilateral trade has increased more than three-fold.Russia is now Singapore’s 33rd-largest trading partner, up from 38th position in 2005.

A growing number of Singapore companies have successfully ventured beyond what many would consider familiar territory into the Russian market, across a spectrum of industries, ranging from real estate, and food and beverage, to consumer electronics.

In tandem with the intensifying business relations between our countries, government-to-government ties have also strengthened with both sides playing host to several high-profile visits.

On 15 August 2006, Singapore signed a Memorandum of Understanding on Economic Cooperation in Special Economic Zones with Russia.In the past 6 months, we have made 2 ministerial visits, 3 working-level visits and shared our experience with close to 100 senior Russian SEZ officials in 3 customised programmes in Singapore and a seminar in St Petersburg.

This successful collaboration constitutes a significant government-to-government platform for bilateral engagement and paves the way for closer economic cooperation.

Singapore remains a fully committed partner in Russia’s development and expansion abroad.We will continue to share our experience and expertise with Russia, and open doors for our companies to work together.Moving forward, we hope to broaden our collaboration to other areas including science and technology, tourism and using Singapore as a hub.

Multi-Faceted Collaboration

Science, Technology and Enterprise

Russia has a long and distinguished tradition of excellence in science and technology and has produced many Nobel laureates.Today, Russia continues to be at the forefront of cutting-edge innovation. We certainly look forward to furthering science and technology cooperation with Russia.

Singapore has been consistently ranked by the Political Economic Risk Consultancy as 1st in Asia for intellectual property protection.The IMD World Competitive Yearbook has also named Singapore as the most attractive environment for highly skilled foreigners, and as a leading testbed for new technologies.Companies can leverage on Singapore’s strong IP protection infrastructure, together with its vibrant venture capital industry, and pro-business environment to kick start their businesses, and commercialise their ideas and technologies.

I am pleased to note that Russia would be setting up here its first business incubator outside of its borders. The Russian business incubator will no doubt contribute to the extensive enterprise ecosystem network of more than 100 business incubators in Singapore representing 21 economies, including China, France, India, Japan, Korea, New Zealand and Scotland.At the same time, Russian entrepreneurs, scientists and talents can readily set up here to work, live and play.

Tourism

As our economic relations grow, tourism flows between our countries are also rising, be it for leisure, business or healthcare.Last year, Singapore welcomed 38,000 Russian visitors, 44% more than in 2005.In September 2006, the Singapore Tourism Board held its first SingaporeMedicine seminar in Moscow.Singapore Tourism Board will set up an office in Moscow this year to serve the Russian market.

Come 2009, the attraction of Singapore as a destination of choice for Russians with abundant cultural and nature attractions will be further enhanced with two world-class Integrated Resorts.Las Vegas Sands will build the Marina Bay Sands Integrated Resort, targeting the business travel and meetings, incentive travel, conventions and exhibitions market.Genting International will construct Resorts World Sentosa, aimed at family and leisure visitors with a Universal Studios theme park and other major attractions.

These developments will further diversify Singapore’s vibrant tourism landscape, recently rated by the Global Country Brand Index 2006 as having the world’s second – and Asia’s top – country brand for shopping, nightlife and dining.

Singapore as a Hub for Business, Investments and Talents

Today, Singapore is the world’s gateway to Asia.Our enterprise community continues to grow in vibrancy and diversity.Singapore is the hub for more than 7,000 multinational companies.In addition there are 13,000 Asia Pacific enterprises (excluding Japan), comprising for example 5,700 for ASEAN, 2,200 Chinese and 2,200 Indian firms.There are now 137 Russian firms here.The number of Middle Eastern companies, now exceeding 240, is also increasing, adding to the dynamism of our marketplace.

Strategically located at the crossroads of global trading routes and with a comprehensive network of air and sea links, Singapore is the ideal springboard for Russian companies seeking to expand and grow in the booming Asian market.

Singapore has the world’s largest container port, with 200 shipping lines connecting us to 600 ports in 123 countries.At the same time, Singapore’s ChangiAirport is served by over 75 airlines that operate 4,000 weekly flights to over 180 cities.Singapore is within a 7-hour flight radius from most markets in Asia, including the important growth engines of India and China.

With 4,500 international players and boutique firms offering professional management services, companies located in Singapore can access a wide variety of services, including audit, accounting and management consulting; market development and market research; advertising and public relations; human capital services and legal services.

Singapore is also a major international financial hub. In December 2005, the Banker named Singapore as the “Financial Centre of the Future” in its inaugural ranking of international financial centres. Today, Singapore is a key wealth management centre and the world’s fourth-largest foreign exchange trading centre. The Singapore Exchange is also at the forefront in attracting listings from global companies and is fast becoming Asia’s key offshore risk management centre for international derivatives

With all these advantages, Singapore welcomes both Russian MNCs as well as Russian SMEs to set up in Singapore.We can serve as a production, trading, financial, business and investment management headquarters for expanding into the lucrative Asian market.Singapore companies can also partner with Russian companies, by providing in-depth market insights on the region, extensive business and marketing networks, and helping out in the logistics and supply chain integration functions.

Conclusion

Today’s Forum provides a platform for fostering closer economic cooperation between Russia and Singapore.I encourage everyone here to make full use of the panel discussions during this forum to understand the rich opportunities in the Russian market. I also hope that today will be the start of many new friendships and fostering of business contacts.

I wish you all a highly pleasant and productive experience at the Russia-Singapore Business Forum today.Thank you