Opening Remarks by SMS Koh Poh Koon at the 2nd Belarus-Singapore Business Forum

OPENING REMARKS BY SENIOR MINISTER OF STATE (TRADE & INDUSTRY AND NATIONAL DEVELOPMENT) KOH POH KOON AT THE 2ND BELARUS-SINGAPORE BUSINESS FORUM, 13 NOVEMBER 2017, 10.05AM

Your Excellency First Deputy Prime Minister of the Republic of Belarus, Vasily Matyushevsky,

Excellencies,

Distinguished Guests,

Ladies and Gentlemen,

Introduction

1.         Good morning. It gives me great pleasure to join you today at the 2nd Belarus-Singapore Business Forum, aptly titled “Belarus Calling Asia”. I would like to extend a warm welcome to First Deputy Prime Minister Matyushevsky. I had the pleasure of meeting His Excellency last April in Minsk, and I am glad to receive him and his distinguished delegation in Singapore.

2.         Belarus and Singapore share a warm friendship and our bilateral economic ties are strengthening. According to Singapore’s data, Belarus is our 3rd largest trading partner in both goods and services within the Eurasian Economic Union (EAEU). The EAEU is a five-member grouping that comprises Armenia, Kazakhstan, Kyrgyzstan and the Russian Federation. In 2016, trade in goods between Singapore and Belarus amounted to S$22.5 million, and in 2015, bilateral trade in services amounted to S$15 million. Belarus is also our 3rd largest source of investment among the EAEU members. In 2015, Belarus’ stock of Foreign Direct Investment (FDI) in Singapore more than doubled, standing at S$9 million. There is clearly room and potential for our trade and investment ties to grow.

3.         There are currently 23 Belarusian companies registered in Singapore, of which three are some of Belarus’s largest companies. The Singapore office of Belarusian Potash Pte Ltd (“SINBKK”), one of the world’s biggest suppliers of potash fertilisers; Beltyre Asia, the trading house of JSC Belshina, a manufacturer of tyres for cars and heavy machinery; and BelAzia, the trading house of JSC BelAZ, a manufacturer of heavy machines.

4.         The number of Singapore companies present in Belarus is, in contrast, currently small. I am confident that this number will increase as we learn more about each other, identify opportunities and develop good partnerships. The presence of Singapore companies at today’s Forum is an encouraging sign of such interest.

Belarus and Singapore are establishing the infrastructure to support businesses

5.         At the government level, Belarus and Singapore are working closely together to put in place frameworks to support the growth of trade and investment relations between our countries. We have an existing Avoidance of Double Taxation Agreement, which has been in force since 2013. We also have an Investment Protection and Promotion Agreement, in force since 2001. Such agreements create conducive conditions for Singapore companies as they venture into Belarus, and vice versa.

6.         At the regional level, Singapore and the EAEU, of which Belarus is a founding member, are negotiating a Free Trade Agreement (FTA). Through the FTA, both sides aim to achieve greater access to each other’s markets, eliminate barriers that impede the flow of goods and services, and facilitate bilateral investment flows. Negotiations are underway and I look forward to an expeditious conclusion.

7.         Beyond agreements and legal frameworks, Belarus and Singapore can exchange views and learn from each other’s experiences. One area we could cooperate in is innovation and entrepreneurship. During my visit to Belarus last year, I had the opportunity to visit the Belarus High-Technology Park, which has incubated and supported successful start-ups such as Viber, an instant messaging and voice over IP application, and MSQRD (“Masquerade”), a selfie application that was bought by Facebook. In November last year, the Director of Belarus’ Hi-Tech Park visited Launchpad in Singapore. I am glad that such exchanges are taking place. There are insights from Belarus’ experience that would be valuable to Singapore as we seek to strengthen our own start-up eco-system.

Singapore can be Belarus’ partner in Asia

8.         It is very appropriate that the title of today’s forum is “Belarus Calling Asia”. Singapore is situated in the heart of Asia, and is well-connected to China, India, as well as our immediate neighbours in Southeast Asia. Singapore companies possess a robust network of business relationships in Southeast Asia, and they are amongst the top three investors in markets such as Indonesia, Myanmar, Thailand and Vietnam.

9.         Singapore’s strong networks in Southeast Asia, together with our position as a leading global trading and financial centre, makes Singapore an ideal place for Belarusian companies to base themselves to explore opportunities in the region. Southeast Asia is a diverse market of more than 600 million people. The region’s fast growing urban middle class is expected to reach 50% of the population by 2030. Regional economic integration under the ASEAN Economic Community will drive further growth by creating a single market and production base in our region. Belarusian companies such as BelAZ, Belshina, and Belkali are examples of those who have already ventured into the larger Asian market through Singapore.

10.      In the same way, I hope that the Singapore companies here today will consider the business opportunities in Belarus and see Belarus companies as good partners with which you can access further opportunities in the Eurasian region. The EAEU is a region of great potential, offering a combined market of about 180 million and a combined GDP of over US$4 trillion.

Conclusion

11.      Through the discussions and conversations initiated at this Belarus-Singapore Business Forum, I hope that we will learn more about each other and uncover potential opportunities which are mutually beneficial. I would like to conclude my remarks by echoing a comment that First Deputy Prime Minister Matyushevsky made at our meeting in Minsk last year: “I hope that the connections you make today will help you to gain a friend, and not just a business partner, as only good friends with a deep understanding of each other can do great business”.

12.      I wish everyone a rewarding and fruitful day ahead.

Thank you.