SPEECH BY MR LEE YI SHYAN, MINISTER OF STATE FOR TRADE & INDUSTRY AND MANPOWER AT THE A*STAR GET-UP SEMINAR ON WEDNESDAY, 8 APRIL 2009, AT 1500H AT GENEXIS THEATRE, LEVEL 5, FUSIONOPOLIS
A*STAR & SMES In Strategic Partnership To Create Value And Transform Singapore’s Economy
Distinguished guests
Ladies and gentlemen
Good afternoon.
Introduction
1.I am delighted to be here today at A*STAR’s Growing Enterprises with Technology Upgrade or GET-UP Seminar. It is very encouraging to see so many companies here at this networking session.
R&D help boost SMEs’ competitiveness
2.There is a strong link between technology adoption and increased revenue for SMEs. According to a study conducted by MOM, the annual average VA growth of the High-Tech Manufacturing cluster was 13 times more than the annual average VA growth of the Low-Tech Manufacturing cluster.
3.In last year’s DP Info SME Development Survey, 80% of the respondents cited technology adoption as having led directly to increased revenue and profitability.Three quarters of the respondents also cited Increased Productivity as a key benefit.Many of our SMEs recognize the critical role technology adoption plays in ensuring their long-term competitiveness. 80% of respondents who have already adopted technology innovation plan to invest further in technology in the next 1-2 years, while almost half of respondents who have not yet invested also plan to do so in the next 1-2 years
4.Likewise, the Government is committed to R&D and adopts a long term perspective towards it as a key capability to keep our economy competitive.We have invested heavily, committing $13.5 billion dollars from 2006 to 2010. PM chairs the Research Innovation and Enterprise Council, which drives our National R&D Agenda and ensures continued high-level attention on R&D.One of the key strategic thrusts of our National R&D Agenda is to strengthen the nexus between R&D and businesses.In this regard, A*STAR is a strategic partner to transfer public research expertise to SMEs through its GET-Up programme.
Overview of GET-UP
5.The GET-Up programme has been around to support R&D in SMEs since 2003. It is organised jointly by A*STAR, EDB, SPRING Singapore and IE Singapore.
6.Under the GET-Up programme, SMEs receive four avenues of assistance.First, SMEs can tap onto the pool of R&D talent in A*STAR through the T-Up scheme to help improve production processes or develop new products or services.Today, some 33 researchers from A*STAR will join 29 SMEs under this scheme. They join the ranks of 208 researchers who have been seconded to 138 companies since the inception of the scheme.Second, SMEs can receive assistance in developing technology plans that meet their long-term business objectives.To date, 97 companies have tapped on this service and developed a total of 112 plans.Third, SMEs can benefit from technical advice from A*STAR researchers.Fourth, SMEs can benefit from access to A*STAR’s laboratories and facilities.
Update on GET-UP
GET-Up has been helping SMEs develop and break new grounds
7.At the beginning of this year, A*STAR commissioned the NUS Entrepreneurship Centre to conduct a survey on the GET-Up programme.I am pleased to note that the findings were extremely positive.GET-Up participants have reported better business and revenue projections.They have also reported higher revenue growth of 15% compared to 6% by non-participating companies, and enjoyed higher sales of 16 to 20% from new and improved products as compared to 11 to 15% by non-participating companies.95% of the companies that participated in the T-up scheme also reported that the programme helped them achieve their overall objectives
Examples of SMEs that have benefited from GET-U
8.To give you a better idea on how the scheme can be of assistance to your company, let me now share with you the stories of two companies that have benefited from GET-Up scheme, namely: iZeno, and Intellect Property Exchange.
9.iZeno is a home-grown software company specialising in customised Enterprise Resource Planning, Customer Relationship Management, Business Intelligence and Business Process Management Solutions using open source technologies. Although the company was already doing well, having developed a stable of local SME clients, it recognised the need to expand its business and add value to its customers.iZeno worked with an A*STAR researcher from the Institute for Infocomm Research to develop an intelligent warehouse management system, integrating an RFID tracking system with its existing Enterprise Resource Planning system. This, together with continued offerings of new and cost-effective solutions, contributed to the company’s revenue growth and helped expand its customer base to include MNCs.
10.Intellectual Property Exchange provides professional services in Intellectual Property research and commercialisation.The A*STAR researcher from the Data Storage Institutewho was seconded to IP Exchange, helped improve the accessibility of the company’s services by developing a smart hard-disk controller that afforded users remote access to central repository files through mobile devices.This enabled the company to reach a wider market and venture into other regions such as Greater China and the United States.
11.Both iZeno and Intellectual Property Exchange are examples of how GET-Up has enhanced the capabilities and expertise of SMEs, increased their revenue and expanded their businesses. The two companies will share their experiences in greater detail with you shortly.
Conclusion
12.To conclude, even in the current economic climate, it is important that our SMEs continue to invest in R&D and upgrade their technical capabilities.Towards this end, the GET-Up programme has and will continue to provide valuable assistance.I would like to encourage greater participation by our SMEs in the programme to expand their businesses through R&D and technology upgrading.
13.Thank you.