Mr Lim Hng Kiang at the Local Enterprise and Association Development (LEAD) Forum – Implementing Industry Development Initiatives

SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE & INDUSTRY, AT THE LOCAL ENTERPRISE AND ASSOCIATION DEVELOPMENT (LEAD) FORUM – IMPLEMENTING INDUSTRY DEVELOPMENT INITIATIVES AT 9.00 AM ON WEDNESDAY, 26 SEPTEMBER 2007, AT THE GRAND COPTHORNE WATERFRONT HOTEL

Distinguished Guests,

Ladies and Gentlemen,

Good morning.

Introduction

I am happy to be here today for the 3rd Local Enterprise and Association Development, or LEAD Forum.Since the inaugural LEAD Forum was held two years ago, this annual gathering has now become a must for many of our industry partners.I am glad that our industry associations have shown continued interest in this forum.Events such as these provide excellent opportunities for our associations to exchange ideas, share knowledge on enterprise and industry development, as well as share our thoughts on how to drive our industries forward.

Excellent Growth Prospects

Singapore’s economy is doing well.Singapore’s economy has the potential to grow by an average of between 4 to 6 per cent annually for the next five to 10 years, higher than the earlier estimates of the Economic Review Committee of between 3 to 5 per cent. In the first half of this year, our economy grew by 7.6 per cent, and we are expected to achieve 7 to 8 per cent growth for the full year.

We have enjoyed broad-based growth in both the manufacturing and services sectors.There has also been strong demand in many sectors such as marine, logistics, engineering services as well as in commerce activities, such as banking, IT and retail.

Our local industry associations play a vital role in helping their respective industries enjoy and sustain such robust growth.Being champions of their industries, industry associations have a keen understanding of the capabilities, needs and potential of their industry players.They are in the best position to conceptualise strategies and spearhead efforts to strengthen the capabilities and competitiveness of their industries. The Government has therefore put in place programmes and resources to enhance the industry development role of the industry associations. LEAD is one such initiative.

Update on LEAD Progress

Since the launch of LEAD two years ago, I am pleased to note that to date, 15 proposals from 16 industry associations have been approved. Together, the Government and the associations have committed some $78million over a three-year period to put in place initiatives that will enhance business infrastructure and strengthen industry competitiveness.Many of these associations have also taken the bold step to embark on market development projects to create greater visibility of Singapore industries and enterprises in the global markets. When fully implemented, these proposals are expected to add 10,000 new jobs to the market and generate some $1.4 billion in value add and$3.4 billion in revenue to the economy.

Most associations are progressing well with their LEAD implementation. We have already started to see some success, both locally and internationally.For example, the Singapore Furniture Industries Council (SFIC) is making headway in realising its vision of positioning Singapore as a premier furniture hub by leading participation of local companies in prestigious international furniture fairs in Europe, Middle East and the USA, as well as through organising business missions. Our Singapore furniture manufacturers have ventured overseas and they now have a commercial presence in more than 16 countries.SFIC’s International Furniture Centre at Sungei Kadut will also be officially opened this November and it has so far secured more than 90 per cent in terms of occupancy. The International Furniture Centre, as well as other initiatives such as the Furniture Design Award and Design Entrepreneur Development Programme, are expected to contribute $250 million in value-add and create 300 jobs in areas such as marketing, design and development by end 2009.

Another example of good progress is that of the LEAD consortia formed by the Container Depot Association (Singapore), Singapore Logistics Association and Singapore Transport Association.These associations implemented a Containerised Traffic System which allows member companies to work hand-in-hand with PSA to optimise the handling capacity of the depots and port.This is done through the use of Mobile Data Terminals which track the location of the fleet, thereby ensuring efficient traffic routing and management of the prime movers. To date, 19 pilot companies have installed about 400 Mobile Data Terminals in their prime movers. When fully implemented, the system is expected to help the SingaporePort achieve some 30 per cent savings due to faster processing and turnaround times.

You will hear more about how other industry associations have shaped their own success stories during the case sharing this morning.We hope that these stories will inspire more industry associations, who are able and willing to take charge of their industries, to undertake holistic plans to bring their industries to the next stage of growth.

This morning, we welcome five more successful LEAD applicants into the fold.They are the Association of Singapore Marine Industries (ASMI), the Singapore Logistics Association (SLA), the Singapore Contractors' Association Limited (SCAL), the Singapore Industrial Automation Association (SIAA), and the Sustainable Energy Association of Singapore (SEAS). Following the implementation of their LEAD projects, these five associations are expected to generate $356 million in combined value-add and create a total of more than 4,000 jobs as well as a projected $368 million in overseas turnover over the next three years.

While we continue to support new proposals, we also need to take stock and make sure that existing LEAD projects are progressing smoothly. Therefore, the purpose of today’s forum is also for associations to learn from one another, and to see how the more successful associations are organising themselves to lead their industries in upgrading efforts.

Conclusion

LEAD is an impactful programme.It has helped to catalyse our industry associations to take on leadership roles by strengthening their organisational capacity and capability, as well as helping them develop blueprints to keep their industries in the lead, no pun intended. The Government will continue to support association leaders in your efforts to upgrade your industries and scale even greater heights. Today’s LEAD forum is one such effort to bring industries together to network and learn from each other’s best practices.I am sure that you will find today’s Forum an interesting one.

I wish everyone a fruitful morning of learning and networking.Thank you.