Mr. Christopher Ng, Managing Director, Rigel Technology;
Mr. Derek Lau, CEO, Heliconia Capital;
Distinguished Guests
Ladies and Gentlemen
Good afternoon.
Introduction
1. I am delighted to join all of you at this afternoon’s ground-breaking ceremony for Rigel Technology’s new headquarters.
Increasing Global Emphasis on Environmental Sustainability
2. Environmental sustainability is an increasingly important global issue. Much of the world’s industrialisation and development in the past century has contributed to the problem of climate change, and today, there is a concerted global effort to ensure that further development is sustainable, and does not compromise the ability of future generations to meet their own needs. Already, climate change has resulted in more intense and frequent extreme weather events. Over the last few months, the eastern US has had one of their coldest winters on record, with a winter storm earlier this month leading to the cancellation of more than 2000 flights, and the closure of schools and government offices[1]. In the UK, the wettest winter for 250 years has led to floods causing billions of dollars in damage[2]. Singapore is not been spared – in the first two months of this year, we experienced the longest-ever dry spell in our history.
3. To address environmental sustainability, countries around the world are becoming increasingly active in promoting green initiatives. There is recognition that countries need to shift their economies to become more resource efficient, less carbon intensive, and more environmentally friendly. For example, in early March, China’s National People’s Congress outlined an array of initiatives to address environmental issues, with plans to spend 2 trillion yuan, or about 400 billion in Singapore dollars, to tackle water pollution alone[3].
Creating Green Growth Opportunities in Singapore
4. Environmental issues are also important to Singapore as we seek to build a clean, green and liveable city. To this end, Singapore aims to have 80% of our buildings certified with the Green Mark by 2030. More recently, SPRING Singapore has also launched the SME Energy Efficiency Initiative to help SMEs enhance energy efficiency and increase resource productivity.
5. At the same time, Singapore is well-positioned to tap on the economic opportunities arising from the shift towards greater emphasis on environmental sustainability worldwide. We have invested in R&D and other capability development efforts to upgrade the cleantech and related sectors, so that our economy can benefit from the global push towards green growth and create good jobs for Singaporeans. The number of cleantech establishments has grown, from 314 in 2007 to 491 in 2011.
Rigel Technology: Riding on the Global Wave of Green Growth
6. Rigel Technology is an excellent example of an SME that has been farsighted in identifying opportunities in green growth, and has positioned itself well to ride this global trend. It is a one-stop solution provider specialising in the design, manufacture, marketing and supply of green restroom and bathroom products.
7. Rigel has successfully built a market niche for itself as a specialist in high-tech and eco-friendly restroom solutions. I am sure many Singaporeans today are familiar with the Rigel brand, since it supplies more than half of the commercial toilets in Singapore, including prominent projects such as Changi Airport, Marina Bay Sands and the upcoming Singapore Sports Hub.
8. Innovation has been a key pillar of Rigel’s success. The company’s emphasis on R&D has led it to develop more than 200 new products since it was founded in 1991. Today, Rigel’s leading products include a blue light sensor which detects a user’s hands to automatically dispense water and soap, a remote control to adjust settings on all sensor equipment in a bathroom at the same time, and hydro-powered residential bathrooms which use the flow of water to light up the bathrooms without consuming any external power.
9. This continued emphasis on R&D has allowed Rigel to differentiate itself from prominent foreign competitors and achieve sustained success in its markets. 50 per cent of its revenues come from products developed within the last 3 years. Its new corporate headquarters here in Changi Business Park will be known as the Rigel Innovation Hub, and will be responsible for driving the development of 30 to 50 new and improved products per year. I would also like to encourage other SMEs to similarly invest in innovation, in order to sustain and strengthen their competitive positions.
10. Internationalisation has also been a key success factor for Rigel. Singapore’s domestic market is small, and it is necessary to venture overseas to grow. Rigel set up its first marketing office in Malaysia some ten years ago, and today, the Malaysia office contributes to one third of its revenue, with one of its notable projects being the outfitting of toilets at the Kuala Lumpur International Airport. In the last 5 years, they have expanded into Chile, Middle East, Vietnam, Brunei, Sri Lanka and China. Going forward, Rigel plans to deepen its presence in existing markets and expand into new growth markets in regions like the Middle East and Latin America.
11. Internationalisation is also a way to streamline business costs and improve productivity. Rigel, for example, has relocated its lower value-added operations to regional locations such as China to keep their operating costs lean. At the same time, they continue to recognise Singapore as a base for higher value-add activities like R&D, engineering, international sales and corporate HQ activities. This has enabled them to leverage locational cost advantages to enhance their competitiveness.
12. Other SMEs can do the same, and agencies such as IE Singapore and SPRING have been active in helping our SMEs develop into globally competitive enterprises.
Leveraging on the SME Co-Investment Fund
13. To help our SMEs grow overseas, the Government launched the first phase of the SME Co-Investment Programme (CIP) in 2010. Under the CIP, Heliconia Capital Management Private Limited manages two funds, the SME Catalyst Fund and the SME Co-Investment Fund. Under the SME Co-Investment Fund, Heliconia co-invests with private sector investors in qualifying investee companies on a deal-by-deal basis, and today, I would like to congratulate Rigel on its successful strategic collaboration with Heliconia. With Heliconia’s investment in Rigel through the SME Co-Investment Fund, coupled with Heliconia’s extensive knowledge and experience in corporate growth strategy, I am convinced that the partnership between Heliconia and Rigel will help to propel Rigel’s continued growth, and build Rigel’s brand as an internationally renowned green restroom specialist.
14. To promote industry transformation and catalyse financing for SMEs at various stages of growth, the Government has announced at Budget 2014 that the second phase of the CIP will be launched this year, with the Government providing an additional $150 million to match private sector investments. The CIP will continue to focus on investing in growth-oriented Singapore SMEs and providing the patient capital to help SMEs execute their expansion and internationalisation plans. Through the expanded CIP, I hope to see more SMEs like Rigel working with Heliconia in the future, to drive their overseas growth and fly the Singapore flag high in overseas markets.
Conclusion
15. Once again, I would like to congratulate Rigel on its success over the past 23 years, and also on today’s milestone event in laying the foundation for its future growth. I am deeply heartened by Rigel’s success, and hope that this marks the continued maturing of our SME landscape, and that we will continue to see many more SME success stories in the future. Thank you.