In 2008, Singapore-Uzbekistan total bilateral trade was more than SGD$16 million.
Total exports was approximately SGD$8 million.
Singapore, Thursday, 2 July 2009 - Central Asia could be an attractive trade and investment destination for Singapore companies looking for alternative markets amid the current global economic downturn. Emphasizing this key message were various speakers at the Uzbekistan-Singapore Business Forum held today in conjunction with the visit of Mr. Shavkat Tulyaganov, Deputy Minister of Foreign Economic Relations, Investments and Trade of Uzbekistan.
Minister Tulyaganov, together with a 12-member delegation comprising government officials and appointment holders of state-owned enterprises, was here to update the local business community on economic developments and investment opportunities in Uzbekistan. He also invited Singapore companies to partake in their privatization projects specifically in banking and finance, IT and telecommunications, pharmaceutical and the chemical and energy sectors. The seminar provided opportunities for the local business community to network with Uzbek officials and to learn from Singapore businessmen who have successfully ventured into that country.
In addition, Minister Tulyaganov shared with participants Uzbekistan?s unique value proposition. Uzbekistan, which is blessed with substantial new reserves in gas and other minerals, presents huge economic potential for investors. He observed that there were several key agreements between Singapore and Uzbekistan on promoting economic cooperation, investment protection and issues relating to double taxation.
The Minister noted that the high-level agreements such as the Open Skies Agreement and the Agreement for Closer Cooperation between the Ministry of Foreign Affairs of both countries were signed during President Islam Karimov's call at the Istana in January 2007. The agreements laid a strong foundation for bilateral ties in the area of economic development and humanitarian cooperation. The Minister told participants that his government will do its best to help Singapore business develop in Uzbekistan.
Dr. Alisher Shaykhov, Chairman of Uzbekistan Chamber of Commerce and Industry said investors can use Uzbekistan as launch pad to access the markets of Commonwealth of Independent States (CIS), Europe, America, Japan and South Asia. He also listed various opportunities and incentives given to SMES in Uzbekistan. Priority sectors set aside for further development of small businesses include the following industries - automobile, agriculture, textile, information and telecommunication, leather, construction, consumer good production, food stuffs production, pharmaceutical, social services, retail trade, tourism, public catering, services and social infrastructure.
In his welcome remarks, SBF Chairman Tony Chew said, "Our businesses have traditionally been more familiar with the markets of Southeast Asia, China, Japan and the United States. However, given the current challenging operating environment, Singapore companies are venturing beyond these traditional markets to seek opportunities in new and emerging economies. Central Asia is looking attractive as a trade and investment destination and there's good potential for Singapore businesses to explore."
"This is especially so given the intent of the Uzbek government to attract more Asian businesses to invest in Uzbekistan. The decision to set up an embassy and trade office in Singapore in 2007 is the best testament to the Uzbek leadership's commitment towards developing strong business and economic ties with our country," Mr. Chew elaborated.
Sharing the Singapore company experience of doing business In Uzbekistan was Dr. R. Theyvendran, Secretary-General of Management Development Institute of Singapore (MDIS). He listed Uzbekistan's attractive characteristics - rapidly growing market, young population, fast expanding demand for well-educated managers, conducive government policies - and said Central Asia has 300 million people and plenty of land. According to news reports in November 2008, MDIS opened Uzbekistan's sixth foreign university in Tashkent, a US$20 million joint venture with the Uzbekistan Banking Association. At the forum, Dr. Theyvendran said his organization initially resisted becoming a university as they wanted to be a global education provider. But MDIS Tashkent was conferred the university status by the Uzbekistan government and they currently have 700 students on their waiting list.
The panel, made up of Minister Tulyaganov; H.E. Alisher Kurmanov, Ambassador of Uzbekistan to Singapore; Dr. Shaykhov, Mr. Aziz Abdukhakimov, First Deputy Chairman of the State Property Committee and Dr. Theyvendran, answered participants' enquiries. The session was moderated by SBF Deputy Executive Director Tan. Poh Teck.
Participants told the panel that non-CIS foreigners faced huge cost ($250 for one person's visa entry) and red tape when they try to enter the country. Minister Tulyaganov and Ambassador Kurmanov assured the audience that Uzbekistan government will simplify these procedures. Ambassador Kurmanov said visitors can apply for an e-visa on the embassy's website and they are currently working with the Singapore government to exempt diplomatic visits, which might extend to ordinary citizens in future. Also, multiple visits visa was also granted on gratis to businessmen who needed to make frequent business trips to the country.
The panel also informed participants that fully-owned foreign companies are allowed to operate in most sectors aside from the areas of oil and gas, and mining, which are dominated by the Uzbekistan government. The landlocked country is also working on dry ports and hubs in their Free Industrial Economic Zone (FIEZ), located in Navoi region and the capital. Other development plans also include their railway system, air and road connectivity.
This is the second business forum organised by SBF for Uzbekistan. It follows the inaugural Uzbekistan-Singapore Business Forum in January 2007, on the occasion of the visit of President Islam Karimov to Singapore. During this visit, SBF and the Uzbekistan Chamber of Commerce & Industry signed the Memorandum of Understanding (MOU) to strengthen Singapore-Uzbekistan business ties to boost cooperation between their respective business communities. In September 2007, SBF organised its first business mission to Central Asia, covering Uzbekistan and Kazakhstan (for more information, please refer to the Annex).
Participating in the event were 80 Singapore business representatives from a diverse range of sectors including banking and financial services; infrastructure and building services; legal and accounting; lifestyle; shipping and logistics; F&B; automotive parts; oil and gas; water and environment; ICT; chemicals; and industrial machinery and parts.
For more information please contact:
Renee Koh
Assistant Director, Americas, Middle East, Africa, Europe and Oceania
Singapore Business Federation
Email: markets.amea@sbf.org.sg
Tel: 6827 6866
Event: Uzbekistan-Singapore Business Forum 2009
Date / Time: 2nd July 2009, Thursday, 9.30 am to 12.30 pm
Document: Country Brief
Country Background
1. Uzbekistan is situated in central Asia bounded by Kazakhstan in the north and northwest, Kyrgyzstan and Tajikistan in the east and southeast, Turkmenistan in the southwest, and Afghanistan in the south. It has a predominantly Muslim population and is regarded as a fairly stable country.
2. Uzbekistan has significant mineral deposits such as gold, uranium, silver, copper, zinc, coal (about one-third of which is highly valued anthracite), lead, tungsten, and molybdenum. In addition, it has large natural gas reserves (a highly speculative estimate of 6.25 trillion cubic meters) as well as some oil reserves.
Political Overview
3. Uzbekistan, a former Soviet republic in Central Asia, has been independent since the fall of the Soviet Union in 1991. Since then, it has been ruled by Islam Karimov. His regime has been known for its autocratic style.
4. The key appointment holders in Uzbekistan's government are:
President |
Islam Karimov |
Prime Minister |
Shavkat Mirziyaev |
Deputy Prime Minister and Finance Minister |
Rustam Azimov |
Minister for Foreign Affairs |
Vladimir Norov |
Central Bank Governor |
Faizullo Molladzhonov |
Source: Global Insights 2009
5. The Ambassador Extraordinary and Plenipotentiary of Republic of Uzbekistan to Singapore is H.E. Alisher Kurmanov. Singapore?s non-resident ambassador to Uzbekistan is H.E. Sim Cheok Lim.
6. Singapore maintained warm political relationship with Uzbekistan. In 2007, the President of the Republic of Uzbekistan Islam Karimov led a senior level government delegation during his state visit to Singapore, when he called on President Nathan, PM Lee and MM Lee. This was the first official visit since Singapore and Uzbekistan established diplomatic relations on 8 April 1997.
7. At the government level, there were significant collaborations such as the signed Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income in July 2008. The importance of this agreement is that it helps to lower tax barriers and provides more tax certainty to Singapore businesses engaged in cross-border trade and investments with and in Uzbekistan.
Economic Overview
8. The economy is based primarily on agriculture and agricultural processing; Uzbekistan is a major producer and exporter of cotton. It also is a major producer of gold with the largest open-pit gold mine in the world and has substantial deposits of copper, strategic minerals, gas, and oil.
9. Since its independence, the government has stated that it is committed to a gradual transition to a free market economy but has been extremely cautious in moving to a market-based economy.
10. Russia remains Uzbekistan's most important trading partner. However, an increasing share of trade is conducted notably with China, Turkey, and South Korea. The main export goods are cotton, light industrial goods, gold, natural gas, and electricity. Uzbekistan joined the Eurasian Economic Community in January 2006, joining Russia, Belarus, Kazakhstan, Tajikistan, and Kyrgyzstan.
11. Uzbekistan's top trading partners for 2005 are:
12. The Uzbek government is striving to attract foreign direct investment (FDI) to help develop its industry, in particular cotton processing. Foreign investment has helped in increasing mining of gold and other metals, making them Uzbekistan's second most important export article after cotton.
Economic Structure
14. The key sectors of the economy are:
Agriculture: Agriculture remains one of the most important sectors of the economy. The country is the largest producer of silk and Karakul pelts among the former Soviet republics.
Cotton: Also known as Uzbekistan's white gold, it constitutes approximately 40% of total export revenues and taking up one-third of agricultural land. Indeed, Uzbekistan is one of the leading producers of seed cotton in the world.
Industry (including mining and manufacturing) accounted for 23.2% of GDP in 2005.
Gold: Uzbekistan has estimated gold deposits amounting to over 5,000 tonnes and is a world leader in gold production (and exporter). Gold ore is extracted from 10 mines and the main reserves are found in the Muruntau mine in the Kyzylkum desert is one of the world's largest open-pit gold mines. Other metals such as copper, silver, tungsten, molybdenum, and uranium are also produced.
Hydrocarbons: Uzbekistan has sizable oil and gas resources, which have significant long-term potential. The country estimates oil reserves of over 600 million barrels and gas reserves of 6.25 trillion cubic meters. The government is now looking to privatize four of the 17 companies owned by the state-owned Uzbekenergo, but energy privatization has not yet got off the ground.
Bilateral Trade
15. The overall bilateral trade in 2008 totalled more than SGD$16 million, with the balance of trade in Uzbekistan's favour. Total imports stood at close to SGD$9 million in 2008 and total exports was approximately SGD$8 million.
SBF's past activities for Uzbekistan
16. SBF had organised the "Business Opportunities & Networking Session" in December 2006 with relatively promising responses. There were more than 70 registered participants and more on the waitlist due to space constraint. The fact that there was only one week of marketing time signified the high interest level of our local businesses in this market.
17. In January 2007, SBF organized the inaugural Uzbekistan-Singapore Business Forum 2007 in conjunction with the state visit by H.E. R. Azimov, Deputy Prime Minister & Minister of Finance, Republic of Uzbekistan. H.E. Zainal Abideen Rasheed, Senior Minister of State for Foreign Affairs, Republic of Singapore was the guest of honour and both ministers delivered opening speeches at the event. More than 250 participants from a broad spectrum of sectors registering for the forum.
18. In conjunction with the state visit, several agreements were signed during President Karimov's call at the Istana. The signing ceremony was witnessed by President Karimov and PM Lee Hsien Loong:
Open Skies Agreement
Agreement for Closer Cooperation between the Ministry of Foreign Affairs of both countries
MOU between SBF and Uzbekistan Chamber of Commerce & Industry
19. SBF organised its first business mission to Central Asia, covering Kazakhstan and Uzbekistan from 16-25 Sep 2007. Led by Mr. Tan Puay Hiang, Chairman of Silkino International Pte Ltd and Advisor to SBF's Young Business Leaders Forum, the 12-member delegation from the ICT & electronics, services and trade sectors visited Almaty and Astana in Kazakhstan and Samarkand and Tashkent in Uzbekistan. Mr. Sim Cheok Lim, Singapore's non-Resident Ambassador to Kazakhstan and Uzbekistan, also accompanied the business delegation and act as our advisor.
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