News: The Straits Times -  17 November 2009


RUSSIAN PRESIDENT'S STATE VISIT
Top leaders to head joint panel 
By Jeremy Au Yong


(Picture: Senior Minister Goh greeting Mr Medvedev at the Istana yesterday - ST Photo)


SINGAPORE and Russia have named top political leaders to chair a new joint panel, demonstrating a commitment on both sides to strengthening bilateral relations.

Senior Minister Goh Chok Tong will be Singapore's representative, while Russia has appointed Deputy Prime Minister Sergey Sobyanin.

The Inter-Governmental Commission, first discussed when Russian President Dmitry Medvedev met President SR Nathan on Sunday, is the most significant outcome of the first visit here by a Russian head of state.

Mr Medvedev held discussions yesterday with Prime Minister Lee Hsien Loong and Mr Goh at the Istana as he wrapped up his two-day visit.

It was at yesterday's meetings that both sides agreed to set up the broad-based commission and use it as a platform to take the relationship forward.

Singapore's Foreign Ministry said in a statement after the talks that the commission will explore and promote broad- based cooperation in a variety of fields that would include economics, science and technology, as well as political, cultural, educational and other areas.

It added that through the commission, both sides hope to foster greater high-level dialogue between their political leaders, further bilateral cooperation and facilitate trade and investment.

The move comes at a time when Singapore-Russia ties are growing, with leaders on both sides recognising that there is potential for more to be done.

Businessmen yesterday welcomed the initiative, saying they would be more confident investing in Russia knowing that the panel will help create a conducive environment for businesses to operate.

'Anecdotal evidence shows that it's not an easy market. We don't have enough knowledge of the country and the environment, and clearly the rule of law is a big challenge,' said Mr Tan Pheng Hock, president and chief executive of Singapore Technologies Engineering.

He was speaking to The Straits Times after attending a dialogue that business leaders held with Mr Medvedev in the morning.

At the meeting, the Russian leader listened as several Singaporean businessmen aired their concerns about doing business in Russia, citing red tape and what one businessman called the lack of a 'high-trust society'.

Responding, Mr Medvedev admitted there was a need for improvements and assured that things will get better: 'As of today, things are not of a good standing. The development of the legal and judicial standing will require additional effort.'

He also reiterated his desire to modernise Russia's economy, moving it away from over-reliance on oil and gas.

In this regard, he said Russia was looking at parts of the Singapore model: 'The experience of Singapore is quite inspiring. It shows that in a short time, you can virtually turn yourself into one of the economic hubs of the Asia-Pacific.'

A joint statement released by both governments at the end of Mr Medvedev's visit outlined how Russia and Singapore were going to work together.

The two sides have inked an avoidance of double taxation agreement that kicks in next year. Negotiators have also completed talks on an investment guarantee pact. Apart from trade and business links, both noted the potential for more cooperation between their defence and security forces.

The two sides also welcomed expanded exchanges in culture, education, health care, information and mass communications, sports and tourism.

The leaders also agreed that the prospect of Russia's future participation in the East Asian Summit should continue to be considered. Moscow has shown interest in joining the annual summit meeting of the Asean nations and six others.

There was momentary hope that the visit would also result in a new Russian restaurant here.

Mr Medvedev announced at the business round-table that an application had been filed: 'There is an attempt to open a Russian restaurant. Well, in eight days we are supposed to receive the answer.'

But it later turned out to be a mock application, to demonstrate Singapore's efficiency.

During his visit, Mr Medvedev invited President Nathan and PM Lee to visit Russia. The Singaporean leaders accepted the invitations.

The Russian leader and his delegation, who also attended the Asia-Pacific Economic Cooperation Summit, left Singapore yesterday.

- end of ST article