Mr Teo Chee Hean at the Ernst & Young Entrepreneur of the Year 2011 Gala Dinner, 24 Oct 2011

SPEECH BY MR TEO CHEE HEAN, DEPUTY PRIME MINISTER AND MINISTER FOR HOME AFFAIRS, AT THE ERNST & YOUNG ENTREPRENEUR OF THE YEAR 2011 GALA DINNER, MONDAY, 24 OCTOBER 2011, 7.35PM AT THE RITZ CARLTON, MILLENIA SINGAPORE

Mr Ong Yew Huat, Executive Chairman, Ernst & Young

Mr Steven Phan, Chief Operating Officer, Ernst & Young

Mr Max Loh, Country Managing Partner, Ernst & Young

Mr Wong Ngit Liong, President, Ernst & Young Entrepreneur of the Year Singapore Academy and Chairman of the Entrepreneur of the Year 2011 judging panel

Ladies and Gentlemen

Good evening.

Introduction

It is my pleasure to be here this evening, as we recognise the best of our entrepreneurs in Singapore.

The Economic Backdrop

Last year, the Singapore economy rebounded strongly from the global financial crisis, and registered GDP growth of 14.5 per cent. This year, however, the economic outlook is less certain.Concerns of a double-dip recession in the US have intensified, and growth in many advanced Western economies has stalled. As a small and open economy, Singapore is highly susceptible to global economic developments, and we expect GDP growth to be around 5 per cent this year.

Even in uncertain times, however, there are emerging opportunities that our companies can tap on. Growth in Asia remains robust, and the region is set to be a major growth driver over the next few decades.Situated at the heart of this dynamic region, Singapore is well positioned to ride on this growth.Our entrepreneurs must stay nimble, and take advantage of these opportunities to enter new markets as dynamics shift.

Celebrating our Successful Entrepreneurs

I am pleased that the spirit of entrepreneurship in Singapore remains strong. Our pool of entrepreneurs and new companies continue to grow each year. In 2010 alone, more than 29,000 companies were formed in Singapore, the highest number in the past 10 years.[1]

Some of our best entrepreneurs and Singapore-based companies have gained international recognition for their achievements.In June this year, Hyflux founder Olivia Lum did Singapore proud by becoming the first woman and the first Singaporean to clinch the Ernst & Young World Entrepreneur of the Year award.

This year’s Ernst & Young award recipients also have their own compelling stories. For instance, Mr Richard Eu, Group CEO of Eu Yan Sang International, has revolutionised the concept of Traditional Chinese Medicine (TCM).He hired English-speaking staff, launched easy-to-prepare herbal products, and distributed products in supermarkets and online stores to appeal to the younger generation.To date, the company has 186 retail outlets locally and in the region.

Dr Derek Goh, the founder of electronic distribution company, Serial System, scaled up recruitment and expansion plans in China, India and Taiwan during the economic downturn in 2008 and 2009.These high growth markets are now showing good returns in the economic recovery.Today, the company has successfully diversified its business to different product lines and geographical areas, and achieved revenues of almost S$750 million last year.

Mr Andrew Tjioe, Executive Chairman of TungLok Restaurants, has grown TungLok into a well-known name in the F&B sector. Besides consistently striving to provide diverse food offerings, it has made use of technology to improve business processes and raise productivity with the introduction of a “central kitchen concept” to ensure consistency in food quality. TungLok now owns and manages over 40 restaurants locally and in the region.

Mr Tan Wee Beng was roped in by his father in their home-grown commodities trading company, Wee Tiong.He built an innovative business model for the company, providing one-stop, personalised service including collateral management and sharing of industry insights and trends with customers.Nine years later, Wee Beng has transformed the company into a highly efficient, knowledge-based organisation whose turnover reached a high of S$400 million last year.

Growing Globally Competitive Companies

Underlying these success stories are the winners’ abilities to seize new market opportunities and internationalise, taking advantage of the growth in Asia.Given Singapore’s small domestic market, it is essential for Singapore companies to venture abroad in order to grow and succeed.

To support promising companies with overseas growth aspirations, government agencies such as International Enterprise Singapore have various schemes to help them venture overseas and build up an international footprint. Their international offices across the world also provide in-market support for our companies as they enter growth markets overseas. In 2010 alone, over 66,000 companies received IE Singapore’s assistance in expanding abroad. Domestically, government agencies such as SPRING are also helping our companies strengthen their fundamentals by making available a suite of capability programmes, financing schemes and industry development programmes to help our small and medium enterprises (SMEs) grow and eventually globalize.

Importance of Mentoring in Promoting Entrepreneurship

But what the Government does to promote entrepreneurship or foster an environment for enterprise growth are only enablers.Ultimately, it is the entrepreneur who is at the heart of a successful business.Entrepreneurs have to take calculated risks when seeking out new markets, sourcing for new partners, or even entering into financing arrangements.And there is no better way to learn, than from someone who has lived through similar experiences, i.e. from a seasoned business mentor.

Mentoring facilitates the transfer of knowledge and experience from seasoned business leaders, and gives entrepreneurs and their businesses useful insights at critical junctures of a business’s life.An independent study of a Northern Ireland mentoring programme found that participating SMEs enjoyed increased sales turnover, after-tax profits and employment.[2]Other “soft” benefits of mentoring include increased confidence amongst entrepreneurs, better staff management and internal process, as well as broader networking.

Facilitating Mentorship in Singapore

In Singapore, we hope to build up a robust mentoring ecosystem. For example, the Singapore Business Federation (SBF) Mentorship Programmes links experienced business leaders with growth-oriented enterprises to provide a sounding-board on their growth strategies.

One beneficiary is Mr Johnny Soon of Heatec Jietong, whose company is in the marine, oil and gas industries. Last year, through SBF, Mr Soon met Mr KK Kuah of MTQ Corporation, a company providing integrated engineering solutions. Mr Kuah advised Mr Soon on his overseas expansion plan, especially in the Middle East as Mr Kuah had recently set up a manufacturing plant in Bahrain. Mr Kuah also offered advice on factory automation, another area of interest to Mr Soon.

SPRING has also recently re-launched the Business Advisors Programme (BAP) with the Singapore Institute of Management (SIM). Through the BAP, freelance or semi-retired Professionals, Managers, Executives, and Technicians (PMETs) are attached to SMEs. They work alongside the entrepreneur and staff to implement specific projects in areas such as marketing, HR, and market expansion.

Let me give an example from the pilot project launched with SMU and NUS in 2008. An education company sought its Business Advisor’s assistance to fine-tune its franchising system. The Advisor worked on improving the terms and conditions of the company’s franchising agreements, its operations and quality assurance manual, and the marketing process for attracting franchisees. The company is currently working on franchising its model in China, Vietnam and Korea.

Besides benefiting entrepreneurs and SMEs, many Business Advisors and mentors have said that they find mentoring a fulfilling and rewarding endeavour, because it allows them to share their business and life experiences with others.Mentors can also expand their own networks through their mentees, and some even end up investing in the new companies themselves.

I would therefore like to encourage our business leaders and successful entrepreneurs to contribute back to the business community by participating in these meaningful mentorship platforms. At the same time, I hope our new entrepreneurs will be open to receiving sound advice and feedback from these business veterans.

Conclusion

Launched in 2002, the Ernst & Young Entrepreneur of the Year Awards seek to honour entrepreneurs who have created and sustained successful business ventures, in line with the government’s focus on fostering entrepreneurship and grooming local entrepreneurs.Now into its tenth year, the Awards provide a strong endorsement of the entrepreneurial spirit. I hope the award-winning entrepreneurs will serve as inspirational role models for the many others who come after them.

Let me convey my heartiest congratulations to the award winners, and I wish everyone a pleasant evening.

Thank you.

[1]Source: Accounting and Corporate Regulatory Authority

[2] New Economics Foundation, “Entrepreneurial mentoring: A key to business success” (2004)