SPEECH BY MR S ISWARAN, MINISTER (PRIME MINISTER’S OFFICE), SECOND MINISTER FOR HOME AFFAIRS AND TRADE & INDUSTRY, AT THE AWARD PRESENTATION CEREMONY OF THE SINGAPORE PRESTIGE BRAND AWARD 2013 ON FRIDAY, 4 OCTOBER 2013, 7.55PM, RITZ-CARLTON MILLENIA SINGAPORE
Mr Chan Chong Beng, President, Association of Small and Medium Enterprises
Mr Lim Jim Koon, Editor in Chief, Chinese Newspapers Division, Singapore Press Holdings Limited
Mr Lee Hong Khim, Head, Global Banking, Maybank Singapore
Distinguished Guests
Ladies and Gentlemen
Good Evening.
Introduction
1. I am pleased to join you this evening at the Singapore Prestige Brand Award. Over the last 12 years, this event has recognised hundreds of companies which have gone on to attain greater heights in their business pursuits. Tonight, we will see 43 companies joining the ranks of these past winners.
Importance of SMEs to the economy
2. Small and medium enterprises (SMEs) are an integral part of our economy. They account for 99 per cent of all enterprises in Singapore, employ seven out of 10 workers, and contribute to about half of our GDP. Hence, the importance of building a strong SME community cannot be overstated.
3. Today, our SMEs operate in a challenging environment. Domestic resource constraints are mounting and the competition is unrelenting. Against this backdrop, the need to innovate and create new value, to grow the top line and not just improve operational efficiency, becomes even more of an imperative. One effective key way to do so is through brand development and market positioning.
The Singapore Brand
4. Earlier today, I was at a seminar which focused on what Singapore and Switzerland could learn from each other. One aspect was the significance of the Swiss brand. The term “Swiss-made” has come to stand for quality, trust, innovation and deep capabilities – across a wide array of industries from chocolates to watches, pharmaceuticals to financial services. The company and its companies have nurtured this branding through painstaking efforts over decades if not centuries. Consequently, Swiss-made products and services are able to command a premium and gain market share in international markets.
5. Singapore too has been able to establish a strong brand in our relatively short history. Over the years, we have earned a reputation for trust and quality, and as a key trading partner in Asian and global markets. This positive brand association puts Singapore-based companies in good stead when they venture abroad to seek new opportunities and strike business deals with willing overseas partners.
Branding as an Integral Business Function
6. To be credible, a brand must be underpinned by differentiating factors that are valued by customers – be it quality, design, innovation, functionality or reliability. It is therefore important that our companies invest in and meticulously develop processes and capabilities that will sustain these attributes.
7. But this alone is not sufficient. Today, brand development has evolved into a full-fledged business function in its own right – entailing significant investment in terms of time, expertise and funding. Brand positioning is now a critical part of a broader business and commercial strategy for our companies, to acquire greater market share and achieve higher value for their products and services. Brand development and management are also the type of functions that can meet the aspirations of the growing proportion of PMETs among Singaporeans.
8. It is therefore important that our companies pay careful attention to the creation and management of their brands. With the advent and ubiquity of social media, information gets transmitted and shared in seconds and the multiplier effect is even greater. This means that all information about the brand – positive or otherwise – will spread to target markets in a much shorter time than ever before.
9. Companies should therefore harness such technology by integrating social media channels into their overarching branding strategy. Strong brand owners, like tonight’s award recipients, understand that brand building is not just about a logo, tagline or image. It is an ongoing process of careful management, curation and nurturing, to reach, engage and instill loyalty in target customers and market segments.
10. The winners of the SPBA 2013 Heritage Award Category and inductees to the Hall of Fame epitomize this branding journey. Their sustained efforts to foster a strong brand through the years have yielded substantial rewards for their companies.
11. Tiger Balm is an excellent example. A well-established homegrown brand that has been passed down from generation to generation, the Tiger Balm brand has weathered numerous financial downturns and recessions, and withstood business challenges throughout its history. It has not only managed to survive domestically, but has also flourished in international markets, delivering the same brand of benefits to millions of people in more than 100 countries around the world.
Seizing opportunities for overseas growth
12. The global economic outlook remains uneven given the protracted downturn in Europe, recent developments in the US, and China’s transition to a more consumption-driven economy. Nevertheless, there will continue to be opportunities for Singapore companies. We remain an open and compelling business location, for both local and foreign companies, and a key gateway to Asia and our immediate South-East Asian region. To grow and scale their business, our companies must look to overseas markets and leverage on Singapore as a springboard to tap growth in Asia and the region.
13. Asiatravel is a good example. From its beginnings as a niche hotel reservation service provider, to the full-fledged hotel and travel reservation service provider it is today, Asiatravel is testament to the benefits that can accrue from targeted overseas expansion coupled with a strong brand and strategic partnerships. For its noteworthy efforts, Asiatravel scored a win under the Regional Brands Award Category at SPBA 2011, and has since gone on to expand its services to more countries around the globe.
Government Assistance
14. To help SMEs develop their capabilities and grow their businesses, the Government has in place a comprehensive framework of assistance schemes and grants. These are not confined to branding-related initiatives alone, but also include many other schemes, which provide help for companies to streamline their business processes, enhance their productivity, improve their human resource capabilities or upgrade their IT infrastructure.
15. At Budget 2013, IE Singapore rolled out the Market Readiness Assistance (MRA) scheme to help SMEs understand the landscape of their target markets and grow their business abroad. IE Singapore also introduced the Global Company Partnership (GCP) programme last year to help companies achieve their long-term overseas growth and revenue targets.
16. The Government will work closely with our companies to support their transition to higher productivity and greater innovation.
17. In that regard, the SME Workgroup, led by my colleague, Minister of State for Trade and Industry, Mr Teo Ser Luck, will reach out and engage SMEs on areas which are of concern to them, and increase their awareness of, and access to, government assistance schemes.
Winners of SPBA 2013
18. The Winners of this year’s Singapore Prestige Brand Awards hail from a wide range of industries, including the retail sector, beauty & healthcare, hospitality, F&B, construction & engineering, furnishing & interior design, real estate, manufacturing, pawn brokering, consumer electronics and specialised services sectors.
19. This diversity underscores the importance of branding for every business, regardless of the industry or sector that it operates within. In recognition of this, more enterprises are ramping up their branding efforts to secure or expand their market share, and I wish them success in this important effort.
Conclusion
20. My congratulations once again to all winners of the SPBA 2013. I look forward to more local companies emulating you and emerging as exemplars of branding excellence as they make their mark as regional and global brands.
21. Thank you.