SPEECH BY MR LEE YI SHYAN, MINISTER OF STATE FOR TRADE AND INDUSTRY AT THE SPRING SEEDS CONFERENCE ON 16 FEBRUARY 2009
Conference Theme: Connect, Create and Capture Opportunities
Ladies and Gentlemen,
Good morning
1. My apologies for not being able to attend the SPRING SEEDS Conference. But thanks to technology, I am still able to address you.
Vibrant Entrepreneurship Landscape
2. I am glad to note that there are more than 250 participants present at this conference, and the gathering includes a diverse group, ranging from entrepreneurs, investors, value-adding partners to representatives from various government agencies. This shows the vibrant entrepreneurship community we have in Singapore.
3. We have observed that new firms formation increased more than two-fold from 11,300 in 2002 to 25,000 per annum in 2008[1]. This is encouraging as more are taking the route of entrepreneurship.
Entrepreneurship Development Efforts
4. Even amidst the global downturn, we will not let up in our efforts to promote entrepreneurship. Indeed, the Action Community for Entrepreneurship (ACE) has taken on the responsibility of remaking Singapore into “a creative and entrepreneurial nation willing to take risks to create fresh businesses and blaze new paths to success”.
Pro-business environment -
5. As a private-public sector initiative, ACE has made significant strides in reducing bureaucratic hurdles for businesses, by working closely with the Pro-Enterprise Panel (PEP) to cut red tape. So far, ACE has helped revise over 900 rules and regulations to make Singapore more businesses-friendly.
6. Let me give an example. In the entertainment industry, flexibility in operating hours is important. When St. James Power Station started operation, it was a long drawn process for it to secure permission to operate past midnight. With the help of the pro-enterprise panel, SPF reviewed the case and agreed to grant immediate approval to any operator who wished to extend their operating hours. Now, any operator wishing to operate past midnight on a Friday night at one of his clubs, all he needs to do is to apply online for an extension anytime before midnight. Permission will be granted for him to run his business through to Saturday morning. These are many examples of our rules being tweaked to help businesses. This is possible because our private and public sectors work closely together.
7. It comes as no surprise then that Singapore has earned the honor as the easiest place to do business for three years in a row, from the World Bank.
8. We are also regarded as one of the easiest places to get financing, according to the US Milken Institute. Through ACE, we have made significant improvements in enterprise financing. These include the establishment of the OTC and SME Access Loans.
9. In Singapore, we have taken a holistic approach to entrepreneurship development.
10. We recognize entrepreneurs go through different phases of growth. At every stage, their needs are different. Hence, our assistance too.
11. For start-ups, we have created a conducive environment for growth. Our smaller companies and start-ups already enjoy the world’s lowest effective tax rates. In addition, companies less than 5 years enjoy full tax exemption on the first $100,000 of normal chargeable income for each of its first three consecutive Years of Assessment. A further 50% exemption is given on the next $200,000 of the normal chargeable income for each of the first three consecutive Years of Assessment.
Equity and grants for start ups -
12. In the area of financing, startups can tap on funds managed by SPRING SEEDS Capital and Infocomm Investment Pte Ltd. In addition, startups can also access mentorship advice through the investments of these funds. More accurately, we should say startups need smart money, and not just money.
13. Under SEEDS Business Angel Scheme, the two Business Angel Groups play a key role in raising more smart money, to groom more savvy start-ups. With the success of our first two Business Angel Groups, I am pleased to announce the launch of a third Business Angel Group – Accel-X (pronounced as ‘Excel-X’) Pte Ltd. This is a partnership between NUS Enterprise (who is an Accredited Business Angel Partner) and SEEDS.
14. In recent years, we observed that more and more young people in the tertiary education institutes are taking the plunge in startups. In November last year, therefore, we launched YES! Startups to provide co-matching grants of up to $50,000 to help young aspiring entrepreneurs.
15. One such beneficiary was Mozat, a mobile solutions provider for enterprises, mobile carriers, software providers and device manufacturers. It was first incubated at NUS Enterprise which was then co-matched by SEEDS. The company has also tapped funds from Spectrum, a Business Angel Group, and also recently received a grant from MDA. In February 2008, Mozat was awarded the "Top Innovator" out of hundreds of mobile applications in GSMA, the world largest mobile exhibition, Barcelona.
Supporting incubation -
16. To support incubation, I recently announced the $30 million dollar Incubator Development Programme aimed at supporting full-suite incubators and venture accelerators to enhance the services they provide to nurture innovative startups.
17. To date, SPRING has supported three incubators (NUS Ventures, Nano Frontier and iAxil) and two venture accelerators (BANSEA and Microsoft Innovation Centre).
Opportunities for Startups
18. Further downstream, startups can tap on a number of programmes to grow. The Technology Enterprise Commercialization Scheme (TECS), launched last April provides grants of up to $750,000 for innovative high-tech projects developed by local companies. So far, 16 companies have obtained $6 million worth of grant support under the TECS.
19. Even amidst the current economic downturn, opportunities remain for the resourceful and imaginative. During the SARS period in 2003 when business was close to a standstill, SEEDS invested in nearly 40 companies. Some of them have grown up nicely.
20. Globalroam for instance went public on OTC with its viable business model. Heulab – a provider of tablet PCs successfully penetrated into the education market. A third example is Astute. This startup has now secured a partnership with NETS providing maintenance services for NETS terminals. There are many more examples.
Conclusion
21. Entreprenurial undertaking is a long term commitment. It’s so for the entrepreneurs, it is so for the partners – you in the private sector, and us in the government. Let's work together to grow more successes.
Thank you and enjoy the rest of the Conference.
Ladies and Gentlemen,
Good morning
1. My apologies for not being able to attend the SPRING SEEDS Conference. But thanks to technology, I am still able to address you.
Vibrant Entrepreneurship Landscape
2. I am glad to note that there are more than 250 participants present at this conference, and the gathering includes a diverse group, ranging from entrepreneurs, investors, value-adding partners to representatives from various government agencies. This shows the vibrant entrepreneurship community we have in Singapore.
3. We have observed that new firms formation increased more than two-fold from 11,300 in 2002 to 25,000 per annum in 2008[1]. This is encouraging as more are taking the route of entrepreneurship.
Entrepreneurship Development Efforts
4. Even amidst the global downturn, we will not let up in our efforts to promote entrepreneurship. Indeed, the Action Community for Entrepreneurship (ACE) has taken on the responsibility of remaking Singapore into “a creative and entrepreneurial nation willing to take risks to create fresh businesses and blaze new paths to success”.
Pro-business environment -
5. As a private-public sector initiative, ACE has made significant strides in reducing bureaucratic hurdles for businesses, by working closely with the Pro-Enterprise Panel (PEP) to cut red tape. So far, ACE has helped revise over 900 rules and regulations to make Singapore more businesses-friendly.
6. Let me give an example. In the entertainment industry, flexibility in operating hours is important. When St. James Power Station started operation, it was a long drawn process for it to secure permission to operate past midnight. With the help of the pro-enterprise panel, SPF reviewed the case and agreed to grant immediate approval to any operator who wished to extend their operating hours. Now, any operator wishing to operate past midnight on a Friday night at one of his clubs, all he needs to do is to apply online for an extension anytime before midnight. Permission will be granted for him to run his business through to Saturday morning. These are many examples of our rules being tweaked to help businesses. This is possible because our private and public sectors work closely together.
7. It comes as no surprise then that Singapore has earned the honor as the easiest place to do business for three years in a row, from the World Bank.
8. We are also regarded as one of the easiest places to get financing, according to the US Milken Institute. Through ACE, we have made significant improvements in enterprise financing. These include the establishment of the OTC and SME Access Loans.
9. In Singapore, we have taken a holistic approach to entrepreneurship development.
10. We recognize entrepreneurs go through different phases of growth. At every stage, their needs are different. Hence, our assistance too.
11. For start-ups, we have created a conducive environment for growth. Our smaller companies and start-ups already enjoy the world’s lowest effective tax rates. In addition, companies less than 5 years enjoy full tax exemption on the first $100,000 of normal chargeable income for each of its first three consecutive Years of Assessment. A further 50% exemption is given on the next $200,000 of the normal chargeable income for each of the first three consecutive Years of Assessment.
Equity and grants for start ups -
12. In the area of financing, startups can tap on funds managed by SPRING SEEDS Capital and Infocomm Investment Pte Ltd. In addition, startups can also access mentorship advice through the investments of these funds. More accurately, we should say startups need smart money, and not just money.
13. Under SEEDS Business Angel Scheme, the two Business Angel Groups play a key role in raising more smart money, to groom more savvy start-ups. With the success of our first two Business Angel Groups, I am pleased to announce the launch of a third Business Angel Group – Accel-X (pronounced as ‘Excel-X’) Pte Ltd. This is a partnership between NUS Enterprise (who is an Accredited Business Angel Partner) and SEEDS.
14. In recent years, we observed that more and more young people in the tertiary education institutes are taking the plunge in startups. In November last year, therefore, we launched YES! Startups to provide co-matching grants of up to $50,000 to help young aspiring entrepreneurs.
15. One such beneficiary was Mozat, a mobile solutions provider for enterprises, mobile carriers, software providers and device manufacturers. It was first incubated at NUS Enterprise which was then co-matched by SEEDS. The company has also tapped funds from Spectrum, a Business Angel Group, and also recently received a grant from MDA. In February 2008, Mozat was awarded the "Top Innovator" out of hundreds of mobile applications in GSMA, the world largest mobile exhibition, Barcelona.
Supporting incubation -
16. To support incubation, I recently announced the $30 million dollar Incubator Development Programme aimed at supporting full-suite incubators and venture accelerators to enhance the services they provide to nurture innovative startups.
17. To date, SPRING has supported three incubators (NUS Ventures, Nano Frontier and iAxil) and two venture accelerators (BANSEA and Microsoft Innovation Centre).
Opportunities for Startups
18. Further downstream, startups can tap on a number of programmes to grow. The Technology Enterprise Commercialization Scheme (TECS), launched last April provides grants of up to $750,000 for innovative high-tech projects developed by local companies. So far, 16 companies have obtained $6 million worth of grant support under the TECS.
19. Even amidst the current economic downturn, opportunities remain for the resourceful and imaginative. During the SARS period in 2003 when business was close to a standstill, SEEDS invested in nearly 40 companies. Some of them have grown up nicely.
20. Globalroam for instance went public on OTC with its viable business model. Heulab – a provider of tablet PCs successfully penetrated into the education market. A third example is Astute. This startup has now secured a partnership with NETS providing maintenance services for NETS terminals. There are many more examples.
Conclusion
21. Entreprenurial undertaking is a long term commitment. It’s so for the entrepreneurs, it is so for the partners – you in the private sector, and us in the government. Let's work together to grow more successes.
Thank you and enjoy the rest of the Conference.
[1] Department of Statistics