1 March 2013 

The Moscow Government and KPMG today hosted the Singapore launch of Destination Moscow 2013 – a series of events also taking place in the UK, USA, Germany and Japan engaging the international business community and promoting constructive dialogue with investors around future opportunities in Moscow.

At the event, a delegation from the Moscow Government met with Singaporean authorities and business representatives to discuss strengthening ties between Singapore and Moscow and developing a greater Singaporean presence in the Russian capital.

“Our focus is on improving the Russian investment climate, and that begins with addressing any misconceptions the international business community may have,” said Andrey Sharonov, Minister of the Moscow Government and Deputy Mayor of Moscow for Economic Policy. “The reality is that Moscow already attracts more than 25% of all foreign direct investment into Russia and has become a key location for 70% of Fortune 500 companies. We have highlighted legitimate opportunities to further develop Russia’s financial services, automotive and technology sectors, and there is no better way to do this than tap into Singaporean businesses’ existing capabilities in these areas.”

The economic relationship between Russia and Singapore has grown considerably in recent years, with trade between the countries totalling US$4.7 billion in 2011 and 330 Russian companies now operating in the Asian hub compared with just 14 in 2004. Moreover, plans for increased economic cooperation are already in place as Russia looks to innovate its agro-industrial sector and update its social security and housing programs based on Singaporean case studies. Discussions around expanding ties between the universities of both countries are also underway.

Mr. Sharonov, on his fourth visit to Singapore in five years, said: “The Destination Moscow Roadshow allows us to outline our significant commitments to trade and industry reform and to vividly illustrate the opportunities available to international and Singaporean businesses in the city that drives Russia’s growing economy. Moscow is determined to rapidly improve the quality of life for its growing population, and the most cost-efficient and economically-viable way to do that is to attract private businesses that are open to the magnitude of infrastructure and consumer investment opportunities on offer.”

Speakers at the event included: Andrey Sharonov, Minister of the Moscow Government and Deputy Mayor of Moscow for Economic Policy; Mikhail Kuzovlel, President and Chairman of the Management Board of the Bank of Moscow; and Michael Tay, former Singaporean Ambassador to Russia.

Mr. Sharonov’s address highlighted the key strengths that make Moscow an attractive investment location for Singaporean businesses, including:

• Expansion of Moscow’s territory by 140,000 hectares in 2012;
• Strong investment in infrastructure, including the development of three airports and a unified transportation system;
• Focus on co-working centres such as Nagatino, which is projected to be the largest co-working centre in Europe by 2014;
• Plans to invest an additional US$100 billion by 2030 in supporting projected growth;
• 40% of all R&D activities in Russia currently take place within Moscow;
• Population of almost 20 million people in the greater Moscow area – of which 60% are of active working age with strong GDP per capita and rapidly growing levels of disposable income;
• Emphasis on energy efficiency and creating a green and safe city, of which one third is already parkland;
• Wide range of technology and industrial parks offering tax subsidies and administration support, including large planned infrastructure projects in greater Moscow such as Technopolis and Aeropolis;
• Low crime rate – below  those of London, Brussels and Milan; and
• Status as a major historical and cultural tourist centre.

Discussion at the event was moderated by Marc van der Plas (Member of Executive Group, KPMG Russia & CIS) and focused on Moscow’s plans to further enhance its economic climate and become an International Financial Centre by introducing international standards and targets, improving business productivity and moving towards the production of high-value-added goods.

“Moscow is well-positioned for growth and is already the largest and most-developed financial capital in the region,” said Mr. Sharonov. “It has a particularly low rate of personal income tax and is ranked in the top two global destinations for relocation amongst international business executives across Europe, the Middle East, North America and Asia. I encourage Singaporean businesses to visit Moscow and discover this compelling reality for themselves.”

To find out more about Moscow as destination for business and investment, visit www.investinmoscow.ru.

 

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