Russia seeks inspiration from high-tech Singapore

By Stuart Williams (AFP) – 23 hours ago

SINGAPORE — President Dmitry Medvedev on Monday said Russia should learn from Singapore's "great example" of economic transformation as he made the first ever visit by a Russian head of state to the island.

Accompanied by a high-ranking Russian business delegation, Medvedev said the Singaporean example was vital for Russia as he battles to develop its oil exports-based economy into a more diversified system.

The visit came days after Medvedev gave a state-of-the-nation address outlining a plan to modernize the Russian economy, which analysts praised for its broad vision but criticized for a lack of concrete proposals.

He said in Singapore that Russia was seeking "a change from a hydrocarbon-based model of the Russian economy to a new innovative model based on the wide use of high technologies to make it highly competitive."

"In this respect, the experience of Singapore is very interesting for us," he said, hailing the "great example" the country had set in implementing a rapid transformation of the economy.

Speaking at a roundtable with business leaders, Medvedev said one of the most important results of his trip was the creation of an inter-governmental commission on the economy and science and technology.

Medvedev also met with post-colonial Singapore's founding father Lee Kuan Yew, who is credited with masterminding the country's rapid growth since independence.

He now holds the title of minister mentor in the cabinet of his son, Prime Minister Lee Hsien Loong, who Medvedev also met for official talks.

Medvedev listened intently, without translation, as several Singapore business leaders outlined their desire to do business with Russia but expressed concern about the strength of the rule of law in the country.

He said Russia risked being seen only as a hydrocarbon exporter by other states and warned that "in the 21st century this is senseless".

Russia has overtaken Saudi Arabia as the world's biggest oil producer and remains the world's biggest natural gas producer. But its failure to diversify the economy hit hard when the economic crisis struck and oil prices plunged.

Alexander Medvedev, deputy chairman of the world's largest gas firm Gazprom, said at the meeting he hoped that diversification of the Russian economy would go hand in hand with "development of the oil and gas sector".

Moscow and Singapore forged ties in 1968 under the Soviet Union. Lee Kuan Yew, who was prime minister for three decades, twice visited the USSR and has been to post-Soviet Russia three times.

With Russia importing Singaporean high-tech goods and Singapore importing Russian natural materials and engine oils, total trade in 2008 rose to 1.64 billion US dollars.

And despite the economic crisis which has hit Russian trade with other big Asian economies, trade rose 62.2 percent in the first eight months of the year to 1.1 billion US dollars.

"I am glad to say that our relations have not been weakened by the crisis," said Medvedev.

Russia joined the Asia-Pacific Economic Cooperation (APEC) forum in 1998 and in recent years sought to bolster its relationship with states such as Singapore to diversify its trade base.

At the weekend's APEC summit meeting, Medvedev again made clear Russia's ambition to be a leading member of the group and the importance it attaches to hosting the 2012 summit in its Far East city of Vladivostok.

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