MIDA e-News

The republic of Tatarstan, described as one of the richer and more industrialised state in Russia, is inviting Malaysian entrepreneurs looking to gain access to the 140-million market in Russia to invest in the country.

The Tatarstan Investment Development Agency (Tida), Chief Executive, Linar Yakupov, was in Malaysia recently to promote investments into Tatarstan via a seminar jointly organised with the Malaysia External Trade Development Corp (Matrade).

Yakupov said even though the country is land-locked, the technologies and the means of logistics available in Tatarstan have enabled the republic to have good linkages to other parts of the world, adding that some 50% of the republic’s goods are exported worldwide.

Tida has identified eight key industries for promotion to investors ie chemicals and petrochemicals, machinery and automotive parts, construction and building materials, health and pharmaceuticals, IT and telecommunication, agriculture, services and tourism, and the halal industry.

Tatarstan has also introduced legislative and organisational initiatives and business-friendly regulations with the view to quicken investment and boosting economic growth.

The republic has also developed its infrastructure including a flagship Special Economic Zone- Alabuga covering 2,000 ha, of which some 60% has already been taken up.

To-date, the zone has drawn investments valued at US$3 billion, with the government injecting US$515 million to develop the infrastructure.

The flagship zone is strategically sited where eight out of the 11 largest cities in Russia are located within a radius of 1,000km from the zone.

Many companies including Ford, Mercedes Benz and Rockwool, a firesafe insulation manufacturer, have set up operations in the flagship zone.

In terms of Malaysian investments in Tatarstan, Amanah Capital Group Ltd, an investment advisory and consulting company, which is now leading the development of the Kazan Smart City, is among the few Malaysian companies there.

The company has partnered Straits Consulting Engineers Sdn Bhd to form a consortium for the project and have undertaken feasibility and technical studies over the last half year.

The Kazan Smart City to be developed on a 360 ha site between the airport and city centre, is expected to boost Kazan, the capital city,  to be the main area for investments as well as a financial centre.

It will also house offices of global companies, high-tech facilities, international schools, specialist hospitals, world-class hotels and international exhibition and convention centre.

Amanah Capital Executive Officer, Abas Jalil said the company is entrusted to seek investors from the Middle East and South-East Asia to participate in the US$2.2 billion project.

Abas said phase one of the project would involve investments of US$150 million to US$200 million for new road construction, engineering and utilities, the inclusion of smart elements as well as the basic framework.

Funding for the infrastructure development would be undertaken through the setting up of a real estate mutual fund in cooperation with local and international investment banks.

Meanwhile, the republic has commenced major projects in preparations for the 27th World Summer Universiade 2013, the 2015 World Aquatics and the 2018 football World Cup, where a number of games are lined up to be played in Kazan.

In inviting Malaysian investors to Tatarstan, Yakupov said the agency is encouraging more investment linkages with Malaysia as it notices that the two countries share many common values and have over time develop the basic trust with the number of Malaysian companies visiting the republic nearing a critical mass.

These companies are now more aware of the opportunities in Tatarstan.

Adapted from StarBiz 21 July 2012