SPEECH BY DR VIVIAN BALAKRISNAN, MINISTER FOR COMMUNITY DEVELOPMENT, YOUTH AND SPORTS AND SECOND MINISTERFOR TRADE AND INDUSTRY, AT ERNST & YOUNG ENTREPRENEUR OF THE YEAR SINGAPORE 2005 AWARDS BANQUET @ THE RITZ-CARLTON MILLENIA SINGAPORE ON 9 MARCH 2006 AT 7.30PM

Mr Ong Yew Huat, Country Managing Partner (CMP) Ernst & Young Singapore

Mrs Fang Ai Lian, Chairman, Ernst & Young Singapore

Mr Michael Boyd, Far East Area Managing Partner, Ernst & Young

Mr Wong Ngit Liong, President of EOYSA and Chairman and CEO of the Venture Group

Distinguished Guests,

Ladies and Gentlemen, and our young entrepreneurs

Good evening

Tonight we honour and celebrate the ingenuity and perseverance of some of our most successful entrepreneurs.

Today’s global economy is changing rapidly. Globalization and new technology; the growth of India and China; and the opening of new markets in Europe, Russia and the Middle East, have all significantly altered the economic world order. To remain competitive, we need to find innovative new products, new services and new ways of serving customers.

Entrepreneurship is critical for Singapore’s future success. I know that entrepreneurs cannot be manufactured. However, we can create the right enabling environment - one that is open to new ideas and enables entrepreneurs to seize new opportunities.

Entrepreneurship in Singapore is thriving. The Global Entrepreneurship Monitor in 2005 revealed a jump in Total Entrepreneurial Activity (TEA) from 5.7% in 2004 to 7.2% in 2005.This strong TEA rate reflects a progressive change of mindset towards entrepreneurship. We have also seen an increase in the number of start-ups, from 33,436 in 2001 to 42,203 new start-ups in 2004.

We are expanding our network of Free Trade Agreements (FTAs) to provide our entrepreneurs with better access to international markets. We are cutting unnecessary red-tape for businesses through the public-private Pro-Enterprise Panel (PEP). We have so far received about 1500 suggestions through the PEP, out of which more than half have been adopted for implementation.

As Minister Lim Hng Kiang announced in Parliament recently, the Government will set aside $3.9 billion over the next five years to support SPRING and IE Singapore’s initiatives in local enterprise development. Out of this, $3 billion will be in loans, and through partnerships with financial institutions, this is expected to catalyze a total of over $6 billion in loans to local enterprises. The other $900 million will be in grants, which will support various programmes, including building up enterprise capabilities and facilitating local enterprises to capture market opportunities. This is tangible proof that we are keen to help our local enterprises grow and prosper.

We are also developing several new initiatives. Launched just two weeks ago, Enterprise One, which stands for “One Network for Enterprises”, is a Government-wide initiative managed by SPRING in partnership with business chambers and industry associations. Enterprise One consists of two key pillars. The first is an online portal that enhances SMEs’ access to business information, Government e-services from more than 30 agencies, and advisory and consultative services. It includes government-compiled market information from 25 agencies and the Online Business Licensing Service, winner of last year’s United Nations Public Service Award.

The second pillar of the Enterprise One initiative is the network of Enterprise Development Centers, or EDCs that are being set up by the various business chambers and associations to offer business advisory and consultancy services. The Singapore Chinese Chamber of Commerce & Industry (SCCCI), through its participation in the EDC, has also developed a Mandarin version of the Enterprise One portal to cater to the Mandarin speaking entrepreneurs.

We are also looking to allow SMEs to raise funds through the equity market in a relatively cost-effective and simple manner. The Action Community for Entrepreneurship (ACE) and several private organizations have been exploring the establishment of an OTC trading platform in Singapore. The Securities & Futures Act has also been amended to facilitate SMEs raising funds through private placement or small offers without issuing a prospectus. I understand that Phillip Securities is working towards setting up the first OTC trading platform in Singapore. If all goes well, Phillip Securities is expecting to commence their trading operations within the next 2-3 months.

But more than just about the environment, Entrepreneurship is a state of mind, born of a spirit of enterprise. It is about taking initiative and also being willing to do things differently, even if there is a probability of failure. While we have relaxed bankruptcy rules and made it easier for those who fail to start over again, we cannot mandate a change in attitude towards those who have failed. For this, we need the support of society and people to develop a mindset change.

The Action Community for Entrepreneurship or ACE, is one such movement where the private sector and public sector are partners in helping to encourage Entrepreneurship in Singapore. Our host today, Ernst & Young is a keen supporter of ACE and has this year, kindly volunteered as a strategic partner for the ACE Blue-sky Festival in July, themed “Singapore and Beyond”.

This theme reflects the vast opportunities available to entrepreneurs, including start-ups, seeking business opportunities and collaborations in the region. Entrepreneurs from the ASEAN region, from Malaysia, Indonesia, Thailand and Vietnam have been invited to attend and I would like also to encourage all of you to stop by.

Ernst & Young has also made a significant commitment in bringing the Ernst & Young Entrepreneur of the Year (EOY) Awards to Singapore. This is a prestigious world business award, organized in more than 30 countries annually, with the grand finals held in Monte Carlo, where the different national EOY winners vie for the title of “World Entrepreneur of the Year".

I am therefore proud to acknowledge Singapore's very own past EOY winners who had represented Singapore at World Entrepreneur of the Year in Monte Carlo. They are Mr Wong Ngit Liong (2002), Mr Ron Sim (2003), Mr Tay Liam Wee (2004). Their stories, life lessons and experiences will inspire and benefit many other aspiring Entrepreneurs.

Our finalists here today, have all shown the same qualities that are needed to achieve success. They have the vision, the passion and the courage to take calculated risks. They have proven their determination and perseverance to see their vision through and overcome challenges and difficulties to successfully build their business.

I congratulate all the finalists in this year's EOY Awards and wish them all the best.

Thank You.