Russians setting up Asian shop in Singapore

SINGAPORE – If you want to rent an Italian supercar or British limousine in Singapore, look up Pavel Zotov – one of a new wave of Russian businessmen using the city-state as an entry point to Asia.

Luxe Car Rental, Singapore’s first company specialising in high-end auto leasing, was set up by the young Moscow entrepreneur over a year ago in the depths of the global financial crisis.But business is booming and Zotov plans to double his fleet of eight cars, which are worth an average of one million Singapore dollars (US$725 000) each, topped by a Lamborghini Gallardo and Bentley Continental Flying Spur.’It’s a unique business, nobody has done it in Singapore so far,’ Zotov, 38, told AFP by telephone from Moscow, where he started out as a car trader.Zotov is now seeking permanent residency in Singapore and looking at expanding his business to other Southeast Asian countries.’When you meet their entrepreneurs, they are a different breed,’ Michael Tay, a former Singapore ambassador to Moscow, said in an interview.Tay, who inaugurated an annual Russia-Singapore business conference in 2006, played down any concerns about the source of the new money coming from Russia’s opaque business world.’When the Russians come, they go through the due diligence process,’ he said, asked about the possibility of money-laundering.’Many of them are self-made people, they have not done anything that is against the law. I don’t see that as a problem.’The Russian government is keen to tap Singapore’s expertise as it tries to diversify its oil- and gas-powered economy. Last month President Dmitry Medvedev brought a high-powered business delegation on a state visit here.Medvedev said Russia should learn from Singapore’s ‘great example’ of transformation from a resource-poor colonial outpost into one of Asia’s top financial hubs.Bilateral trade doubled from US$1,38 billion in 2007 to US$2,75 billion last year, according to Singapore officials.’Singapore can be Russia’s gateway to Asia. We have networks and experience in the economies of China, India and Southeast Asia,’ Singapore President S.R. Nathan said at a state dinner for Medvedev.An estimated 200 Russian companies including Lukoil, the country’s second biggest oil producer, and TMK, its largest exporter of steel pipes, have offices in Singapore.Russian officials say 2 000 of their citizens live in Singapore, which has just five million people. The Singapore Tourism Board says visitor arrivals from Russia rose from 19 000 in 2004 to over 56 000 last year.Singaporean property developers are also trying to generate more business from Russian buyers.Former ambassador Tay’s annual conference has grown steadily, from about 200 delegates in 2006 to almost 700 this year.’Singapore has the credentials to not just be a listening post to understand the region but be an actual business hub from which they can start getting partners to enter the region,’ said Tay.Moscow-based investment adviser Giedrius Pukas, who makes a trip to Singapore every three or four months, says his firm Quadro Capital Partners is in talks with a number of Singapore-based parties to explore working together.’Russians understand that Asia is the growth area and Singapore is one of the most developed bases for business operations,’ the 34-year-old Lithuanian told AFP by telephone from the Russian capital.- Nampa-AFP

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