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Invest time in Russia to see results: PM Lee to business community
Prime Minister Lee Hsien Loong says Russia "is the place we ought to be" in the long run, as there are opportunities in areas such as urban master planning, transport and infrastructure.
By Olivia Siong, Channel NewsAsia
Posted 21 May 2016 09:00 Updated 21 May 2016 23:52
SOCHI: Opportunities abound for Singapore companies in Russia, despite its economic struggles. But for these companies to succeed, they will have to invest the time to get to know the country, said Prime Minister Lee Hsien Loong on Saturday (May 21).
Speaking to the media as he wrapped up his four-day work visit to Russia, Mr Lee said his first trip to Moscow in almost 40 years gave him the chance to get an update on how things are in the country.
He noted that Singapore and Russia had established relations in 1968 and trade, while modest, has been growing rapidly over the past decade.
While the present downturn in Russia may be one of the reasons the country wants to cultivate its relationship with ASEAN countries, the Prime Minister said the ASEAN-Russia Commemorative Summit in Sochi shows a desire to take this relationship another step forward.
There might be less urgency if circumstances improve, but the relationship would have already been nurtured, Mr Lee added.
“There are business people here and they tell you how they see the vibrancy in opportunities here for the long term and how we ought to take advantage of them. In the short term, it is not so easy because the Russian economy is flat, they declined 4 per cent last year, this year maybe another 2 per cent. Oil prices are down and it affects them. There are sanctions by the western countries and they also have an impact," the Prime Minister said.
"The rouble has come down and this has affected the calculations for the business people in the short term. (But) if you take it on the long-term perspective, then it is the place we ought to be.”
OPPORTUNITIES ABOUND
He pointed to Russia's capital as an example of how there are opportunities to tap into and build on relationships.
“If you look at Moscow city, their redevelopment, their upgrading which they want to carry out, the transformation of the old industrial infrastructure, which is now becoming really outdated and they want to redevelop the industrial estates into, in some cases modern business parks, in some cases arts and cultural centres and in other places education centres, (these are) very ambitious plans.
"So urban master planning, talking about transportation, building public transport, there are many business opportunities to be had. But you have to understand them and you have to fit in,” Mr Lee reiterated.
CHALLENGES TO OVERCOME
That said, for Singapore companies to succeed here, Mr Lee noted there will be challenges to overcome such as language, how the system of government works and their business landscape.
He said: “For us, Russia is far away and psychologically the distance is there. We don’t understand it very well, language is a consideration because most of us don’t speak Russian and we need to understand how they operate, their system of government, their system of how their businesses are linked up, what their networks are, how their government decisions are made, what are their principal considerations and objectives.
"This is so that we can fit in to them and these are things which we don’t know unless you spend a lot of time here. If you just come and you make a quick trip, in and out, you meet some people and you shake hands, drink some vodka, maybe that’s helpful, but that will not cause you to have a deep understanding and to be able to have your company strike roots and grow vibrantly. You need to put in the investment over many years.”
- CNA/kk
http://www.channelnewsasia.com/news/singapore/invest-time-in-russia-to/2804648.html
Prime Minister Lee Hsien Loong says Russia "is the place we ought to be" in the long run, as there are opportunities in areas such as urban master planning, transport and infrastructure.
By Olivia Siong, Channel NewsAsia
Posted 21 May 2016 09:00 Updated 21 May 2016 23:52
SOCHI: Opportunities abound for Singapore companies in Russia, despite its economic struggles. But for these companies to succeed, they will have to invest the time to get to know the country, said Prime Minister Lee Hsien Loong on Saturday (May 21).
Speaking to the media as he wrapped up his four-day work visit to Russia, Mr Lee said his first trip to Moscow in almost 40 years gave him the chance to get an update on how things are in the country.
He noted that Singapore and Russia had established relations in 1968 and trade, while modest, has been growing rapidly over the past decade.
While the present downturn in Russia may be one of the reasons the country wants to cultivate its relationship with ASEAN countries, the Prime Minister said the ASEAN-Russia Commemorative Summit in Sochi shows a desire to take this relationship another step forward.
There might be less urgency if circumstances improve, but the relationship would have already been nurtured, Mr Lee added.
“There are business people here and they tell you how they see the vibrancy in opportunities here for the long term and how we ought to take advantage of them. In the short term, it is not so easy because the Russian economy is flat, they declined 4 per cent last year, this year maybe another 2 per cent. Oil prices are down and it affects them. There are sanctions by the western countries and they also have an impact," the Prime Minister said.
"The rouble has come down and this has affected the calculations for the business people in the short term. (But) if you take it on the long-term perspective, then it is the place we ought to be.”
OPPORTUNITIES ABOUND
He pointed to Russia's capital as an example of how there are opportunities to tap into and build on relationships.
“If you look at Moscow city, their redevelopment, their upgrading which they want to carry out, the transformation of the old industrial infrastructure, which is now becoming really outdated and they want to redevelop the industrial estates into, in some cases modern business parks, in some cases arts and cultural centres and in other places education centres, (these are) very ambitious plans.
"So urban master planning, talking about transportation, building public transport, there are many business opportunities to be had. But you have to understand them and you have to fit in,” Mr Lee reiterated.
CHALLENGES TO OVERCOME
That said, for Singapore companies to succeed here, Mr Lee noted there will be challenges to overcome such as language, how the system of government works and their business landscape.
He said: “For us, Russia is far away and psychologically the distance is there. We don’t understand it very well, language is a consideration because most of us don’t speak Russian and we need to understand how they operate, their system of government, their system of how their businesses are linked up, what their networks are, how their government decisions are made, what are their principal considerations and objectives.
"This is so that we can fit in to them and these are things which we don’t know unless you spend a lot of time here. If you just come and you make a quick trip, in and out, you meet some people and you shake hands, drink some vodka, maybe that’s helpful, but that will not cause you to have a deep understanding and to be able to have your company strike roots and grow vibrantly. You need to put in the investment over many years.”
- CNA/kk
http://www.channelnewsasia.com/news/singapore/invest-time-in-russia-to/2804648.html
