Singapore. COMPANIES OF RUSSIA and Singapore with support of Rostec have signed several agreements on the development of cooperation during the session of High-Level Russia-Singapore Inter-Governmental Commission. The signing of the agreements will expand the presence of Russian companies in Southeast Asia.
Parties of the first agreement are The Russian Export Center (REC), RSTradeHouse LLC (the executive structure of Russia-Singapore Business Council) and Progression Engineering (S) Pte Ltd, which is a legal entity of the Center for Overseas Promotion of Russian High-Tech Companies and the Presentation of investment projects. The parties agreed to jointly develop Russian high-tech export to the countries of Southeast Asia.
Russia-Singapore Business Council with support of Rostec has created an infrastructure of Russian high-tech products promotion, which has two components: the international multilingual information and service B2B platform RSTrade and the Center for Overseas Promotion, which serves as an integrator of international engineering cooperation of industrial and high-tech enterprises and presenting a permanent exhibition of Russian high-tech products in the showroom format. The signed agreement intends the joint use of this infrastructure for the promotion of Russian products in Southeast Asia, as well as the provision of financial and non-financial support measures of REC to Russian exporters, that are using these services.
Besides, RSTradeHouse LLC and the Singapore vCargo Cloud Pte. Ltd. (VCC), a subsidiary of SGX Catalyst, have signed a cooperation agreement to expand trade opportunities between Russian and Singapore companies. The agreement provides mutual integration into the platforms vCargo Cloud and RSTrade (which is operated by RSTradeHouse LLC) of electronic services and services of this two companies.
The companies agreed to represent and promote the goods and services of the other side to their customers in the markets of Singapore and the ASEAN countries, as well as Russia and the EEU countries, respectively.
“I am convinced that the signed agreements will contribute to expanding cooperation between Southeastern and Russian companies”, said Deputy CEO of Rostec and Chairman of the Russian-Singapore Business Council Nikolay Volobuev. “We got together on a practical mechanism that would provide Russian companies with the ability of strengthening their positions in a perspective Asian region. The agreement signed by our holding company Shvabe and Russia-Singapore Business Council became the first step of fulfilling our agreements. We intend to significantly scale up our presence in the segments of optics, laser and high-tech medical equipment”
Under trade platforms integration, Asian companies can access more than 81,000 companies from 16 countries in Europe and Asia, including Russian, which are already represented on the RSTrade platform. This allows VCC to enter a much wider market. At the same time Russian companies can access markets of ASEAN and several African countries. ASEAN has the highest rate of economic growth among all international integration associations. The ASEAN countries economy has grown more than 2 times in 7 years. In 2010 the aggregate GDP of the ASEAN countries was $1.1 trillion, the foreign trade turnover $ 1.4 trillion. In 2017 the GDP was already $2.4 trillion with foreign trade turnover of $2.3 trillion.
Rostec is a Russian State Corporation established in 2007 with the purpose of facilitating the development, manufacture and export of high-tech industrial products for both civil and military purposes. It incorporates over 700 entities that currently form 11 holdings operating in the military-industrial complex and 4 holdings active in civilian industries, as well as over 80 directly supervised organizations. Rostec’s portfolio includes such well-known brands as AVTOVAZ, KAMAZ, Kalashnikov Concern, Russian Helicopters, VSMPO-AVISMA, Uralvagonzavod, and others. Rostec companies are located in 60 regions of the Russian Federation and supply products to the markets of over 100 countries. In 2017, Rostec’s consolidated revenue reached RUR 1.589 trillion, its consolidated net profit was RUR 121 billion, and EBITDA was RUR 305 billion. According to Rostec’s Development Strategy, the mission of the Corporation is to ensure Russia’s technological advantage on highly competitive international markets. One of Rostec’s key goals is to implement a new technological way of living and to promote the digitalization of Russia’s economy.
Russia-Singapore Business Council was established in 2009 under the Chamber of Commerce and Industry of the Russian Federation under the auspices of Ministry of Economic Development of the Russian Federation and the State Corporation Rostec. The Chairman of the Council is Nikolay Volobuev – CEO’s Deputy of the State Corporation Rostec.
Center for Overseas Promotion of Russian High-Tech Companies and the Presentation of investment projects was founded in 2017 on the basis of Singapore company Progression Engineering (S) Pte Ltd.