2. Research and Development is an important enabler in our economic ecosystem.  It allows our companies to expand their business opportunities, manage their costs and create good jobs for Singaporeans. 

3. So we have committed significant amount of resources, $16.1 billion from FY2011 to FY2015, towards this national R&D effort.  This commitment has also catalysed, and this is important, complementary business investment in R&D.  In 2012, the private sector invested almost $1.60 in R&D for every dollar from the public sector.  In the same year, Singapore businesses increased their R&D expenditure by 16 per cent to $1.3 billion.  The overall rate of private sector R&D investment, as demonstrated by this data, is comparable to that of other economies such as the UK, France and Germany. 

4. Our investments in technology have strengthened existing clusters such as precision engineering.  A*STAR has established a Nanoimprint Foundry where our research institutes, and participating companies collaborate to design special plastics and surfaces for commercial use.  For example, Nanoveu, an SME, has used these materials in products like EyeFly 3D, a screen protector filter which turns smartphone screens into 3-dimensional displays.  Since its launch, Nanoveu has sold more than 10,000 pieces of EyeFly 3D, and continues to attract local and overseas interest. 

5. R&D also enables our businesses to apply their existing capabilities to adjacent industries.  One good example is precision engineering company Meiban. Started as an injection moulder in the consumer electronics sector, it has since successfully branched out to design and manufacture biomedical devices.  Through A*STAR’s marine and offshore programme, Meiban has also developed Southeast Asia’s longest deep-hole drilling machine.  Meiban now undertakes diverse, high value projects which have added to its topline. 

6. Mr Ong Teng Koon asked how SMEs benefit from our R&D effort. And I think Ms Lina Chiam was also referring to that obliquely. The answer - in several ways that enhance their competitiveness.

7. First, SMEs need manpower to develop and execute an R&D plan.  The Get-Up (Growing Enterprises through Technology Upgrade) programme serves this purpose and was set up for that reason.  This inter-agency initiative has benefited over 400 SMEs in sectors such as electronics, chemicals and biomedical sciences, with the secondment of 460 A*STAR researchers.

8. Second, SMEs need time to translate technology and intellectual property (IP) into commercialised products and services.  Under the new “Headstart” programme that A*STAR has launched, all local SMEs who collaborate with A*STAR will enjoy 18 months of royalty-free and exclusive IP licenses for IP arising from the collaboration.

9. Third, SMEs need technology to be accessible.  That is the goal of the Technology Adoption Programme (TAP), which was launched last year.  Under this programme, teams of A*STAR intermediaries link SMEs with solution providers to customise and implement technology solutions, as well as conduct training for such technology adoption.

10. About 200 SMEs in the construction, food manufacturing, aerospace, marine, precision engineering and retail sectors have benefited so far.  To foster networking and even more TAP collaborations, A*STAR is organising its inaugural “SME Day” next month involving businesses, A*STAR research institutes, and technology providers.

11. One participating company is Feinmetall, which designs and manufactures equipment for the semiconductor industry.  Using A*STAR’s pictorial recognition technology, Snap2Tell, customers can now scan logos of Feinmetall equipment, and access updated instruction manuals immediately instead of relying on hardcopies. 

12. There is scope for us to do more.  Hence, A*STAR will expand TAP to the food services, healthcare, logistics and infocomm-media sectors.  With this expansion, more companies will be able to leverage on technology to raise productivity and realise more business opportunities. 

13. Our R&D effort has also enhanced Singapore’s appeal as a competitive investment location and vibrant technology hub.  More MNCs are coming to our shores to collaborate with our local research institutes and technology companies. 

14. And this, in turn, has created a diverse range of employment opportunities for Singaporeans.  The number of research scientists and engineers in Singapore has grown at a compounded annual rate of 7 per cent over the last 10 years to about 30,000 in 2012.  70 per cent of these research scientists and engineers are locals.

15.           L’Oreal, Danone, Nestle and Abbott are some MNCs that have expanded their R&D investments in Singapore.  Over the last four years, more than 200 R&D jobs have been created in the food and nutrition sector alone.  Mr Lau Jun Jie (35 years) is an example.  He is part of Abbott’s sensory analysis department, applying his training and experience to the development of food products. So, Ms Lina Chiam should be assured the R&D effort is broad-based and it works not just with MNCs, but there are specific programmes that are geared towards our SMEs. And it has also created good jobs and opportunities for our businesses.

16. Madam Chairperson, let me now turn to the tourism sector.

17. Last year, we welcomed 15.5 million tourists, 7 per cent more than in 2012.  These tourists spent $23.5 billion, 2 per cent more than the year before.  These figures are encouraging, and were achieved despite business travellers scaling back on spending due to a relatively uncertain economic climate.

18.           STB expects companies to remain cautious in their business travel expenditure in 2014.  Mr Vikram Nair asked about the sector’s outlook for 2014. STB has forecast visitor arrivals to grow to between 16.3 to 16.8 million (this is an increase of about 5 per cent to 8 percent from last year), and tourism receipts to be in the range of $23.8 to $24.6 billion (about 2 per cent to 5 per cent)..

19. STB will continue to pursue quality tourism growth, by focusing on visitor experience and driving tourist spend.  Given our land and manpower constraints, we need to creatively achieve more with less, and invest in both tourism hardware and software.

20. We start from a position of relative strength, having progressively augmented our tourism assets.  Just last week, Prime Minister Lee officially opened the River Safari.  Soon, the Sports Hub and National Art Gallery will be ready.

21. We will complement such tourism hardware with distinctive content and programming.  This will help to differentiate us from competitors, and enhance the value derived from existing assets.

22. Lifestyle events are a good example.  Our tourism calendar and capabilities are strengthened by international sporting events like the F1 Singapore Grand Prix, and, from this year, the Women’s Tennis Association (WTA) Championships.  Complementary entertainment and business events maximise the tourism and international branding benefits for Singapore.  The experience we have gained from hosting such marquee projects also boosts Singaporeans’ event management capabilities.

23. We maintain our standing as a top global venue for the meetings, incentives, conventions and exhibitions (MICE) sector.  This has enabled Singapore to grow a pipeline of quality MICE events which will draw high-spending business travellers.  This includes, for the first time in Asia, and as part of the inaugural Singapore Design Week, Maison & Objet Asia, which will be held alongside one of our top tradeshows, the International Furniture Fair Singapore.  Over the next few years, the World Confederation of Physical Therapy, and the International Society of Magnetic Resonance in Medicine, will also hold their meetings in Singapore for the first time. 

24. Smaller-scale, ground-up innovations also make for a vibrant tourism landscape.  Last year, we launched the Kickstart Fund to support the test-bedding of such novel ideas with good tourism potential and scalability.  The response has been good and STB has received a variety of ideas.

25. One example is The Inside Job, which will commence its interactive walking tour combining elements of live theatre and adventure.  Participants will be taken through precincts, such as Marina Bay, and neighbourhoods where they will encounter in-character actors.

26. In general, I would encourage all who have exciting tourism ideas to come forward and jointly develop them with STB.

27. There are also opportunities to innovate and deliver superior service, despite the manpower constraints that Mr Vikram Nair and other Members have highlighted. 

28.           For example, STB and IDA recently concluded a call-for-collaboration for the use of self check-in technology in hotels.  So far, about 60 of our hotels have expressed interest.  With such technology, hotels can better anticipate the arrival timings, and check-in habits of business travellers and other guests.  They can then tailor their services, and stagger their staffing to provide the best check-in experience for their valued guests, every time.  It will also allow hotels to re-deploy manpower to other high-touch customer-facing functions – in other words to focus on services that would really matter to their customers.

29. Travel agents have also been raising their productivity.  Last year, I spoke about the National Association of Travel Agents Singapore’s (NATAS) skills accreditation framework that aims to raise the capabilities and professionalism of the travel agents (TA) industry.  Since March 2013, almost 200 individuals have participated in the scheme, and about 60 more are undergoing assessment.

30. Mr Lim Biow Chuan has pointed out that travel agents also need to better protect the interests of consumers.

31.           Today, there are about 1,200 travel agents (TAs) providing a range of services like coach tickets and travel packages.  STB licenses them under the Travel Agents Act and Regulations.  One of the requirements is that TAs must have a minimum capital requirement of $100,000 to ensure that these operators are bona fide.

32. The incidence of sudden or distressed closures of large TAs like Five Stars Tours is relatively uncommon.  In the past decade, only one other large TA closed abruptly, and that was in 2006.  To some extent, this is unavoidable as TAs, like any other business, are subject to risk and business failure.

33. Under such circumstance, customers can also usually make claims under travel insurance, or seek redress through the Small Claims Tribunal.

34. I fully accept Mr Lim’s point that customers should be protected and that we should look for more ways to do so. Mr Lim has suggested various other ideas to protect consumers’ deposits, including compulsory insurance and a compensation fund.  STB will study these proposals, as well as the consumer protection practices in other countries, to assess what more can be done in Singapore.  In doing so, it is important that we remember there is a need to balance the protection of consumers’ legitimate interests, against any additional regulation, and its impact on business cost and cost to consumers. 

35. On the manpower front, our training institutes like SHATEC and our polytechnics have been working with STB and industry, to review their pre-employment training in light of evolving industry needs.

36. These industry stakeholders are also keenly aware of the aspirations of young Singaporeans, and the need to offer structured career pathways that can attract and reward those who wish to make tourism their career.  One example is Mr Kung Teong Wah (43 years), who graduated from SHATEC more than 20 years ago. He has risen through the ranks to now become the Executive Assistant Manager of Holiday Inn Singapore Atrium. 

37. Our collective efforts to enhance Singapore’s tourism hardware, software, manpower capabilities, and service quality, will have a sustained and positive impact on our quality tourism strategy. 

38. Let me now turn to the energy sector.  Our aim is to strike a balance between energy security, economic competitiveness, and environmental sustainability.  We seek to do so by pricing energy right, avoiding consumption subsidies, and fostering a competitive energy market for the benefit of businesses and households. 

39. As I announced last year, EMA has sought to promote more competition in the electricity retail market through the Increased Retail Contestability initiative.

40. Dr Lim Wee Kiak and Mr Liang Eng Hwa have asked how such measures will benefit consumers.  Currently, only about 8,000 large consumers who use more than 10 megawatt-hours (MWh) per month can choose to purchase electricity from electricity retailers through negotiated contracts. This is the contestable segment of our market.

41. This threshold will be lowered to 8 MWh from 1 April, and then to 4 MWh from 1 October this year.  In total, this will allow 15,000 more consumers to choose their electricity retailer and sign on to packages that best suit their needs.

42. With this change, 15 town councils have already signed up for contestability under this initiative.  In fact, this is a point that Mr Zaqy Mohamad raised at last year’s Committee of Supply as well. As a result of the sign ups by the 15 town councils, I understand that collectively they will enjoy a reduction of at least 10 per cent off the regulated tariff, which works out to an estimated $640,000 in monthly savings. 

43. Companies, especially SMEs, across all sectors will also benefit.  They can now aggregate their demand across various locations to meet the lower threshold, and choose a retailer who offers the most competitive pricing.  Several firms from various sectors, like SMD Manufacturing and Kleen Pak Products, F&B outlets like the Song Fa chain of restaurants, and logistics firms like Huationg, have already done so and will enjoy cost savings ranging from 3 and 12 per cent. 

44. EMA is studying how to further expand the contestable segment of the market over the next few years to include all consumers, including households.  In doing so, EMA will also have to ensure that there are adequate system safeguards even as more businesses and households benefit from greater retail contestability.

45. We will continue to provide progressive and targeted assistance to low- and middle-income households through the Utility-Save (U-Save) special payment and quarterly U-Save rebates.  This was announced by the Finance Minister in the Budget Statement For the majority of Singaporeans who live in 3- and 4-room flats, the rebates will offset around two to three months’ worth of utilities, or three to six months’ worth of electricity bills.

46. Energy security is another key priority as we import almost all the energy.

47. Singapore’s energy security was given a significant boost when our first liquefied natural gas (LNG) terminal on Jurong Island commenced operations in May last year.  This allows us to import natural gas from around the world.  To meet future demand in a secure manner, we will develop a 2nd LNG terminal to diversify our LNG infrastructure. 

48. And we continue to explore other energy options.  Mr Liang Eng Hwa asked for an update on electricity imports.  We are studying how electricity imports can add to our energy mix without compromising the stability and security of our system.  EMA is developing the proposed regulatory framework and will be seeking further industry feedback by the end of the year.

49. We will also do more to encourage the use of renewable energy.  This will help reduce our reliance on imported fuel and our carbon footprint.

50. Among the various renewable energy options, solar has the greatest potential for wider deployment in Singapore.  As a principle, rather than subsidise consumption, we have supported R&D and encouraged the market to adopt economically viable forms of renewable energy.  As Mr Ong Teng Koon has noted, recent global developments suggest that solar energy has become more cost-competitive.

51. As a result, we plan to raise the adoption of solar power in our system to 350 Mega-Watt-peak (MWp) by 2020.  This is about 5 per cent of 2020 peak electricity demand, a significant increase from the present 15 MWp of installed capacity today.

52. EDB will work with key government agencies to aggregate demand for solar deployment across Government buildings and spaces.  This “SolarNova” programme will also catalyse the growth of the clean-energy sector, and create opportunities for Singapore businesses such as Sunseap, PV World and SolarGy.

53. As renewable energy sources like solar are intermittent in nature, EMA is reviewing its regulations to ensure our system remains stable, even with greater adoption of renewables.  EMA will continue to work with industry to refine the regulatory framework.

54. We will also support the use of renewables by continuing to test-bed innovative energy technologies and business models.  An example is the deployment of floating photovoltaics on reservoirs to overcome land constraints.  In addition, the inter-agency Energy Innovation Programme Office is funding research into technologies to allow the integration of intermittent generation sources into our electricity grid.

55. These initiatives not only create business opportunities for our clean-tech ecosystem but also good jobs for Singaporeans.

56. Over the next 10 years, we need around 2,400 technical professionals for the energy sector.  These are good jobs and we will continue to equip Singaporeans with the skills to fill such jobs.

57. Ms Katelyn Ng (25 years) and Mr Ridhuan Abdullah (39 years) are two of the growing pool of Singaporeans who have chosen careers in the energy sector.  Ms Katelyn Ng joined Singapore LNG Corporation over 2 years ago on its Graduate Development Programme.  She helped set up the LNG terminal’s laboratory and now oversees its operations.  Mr Ridhuan Bin Abdullah is a polytechnic graduate who made a mid-career switch to join Tuas Power.  He has since progressed from a Technical Officer to an assistant shift manager at Tuas’ $2 billion Tembusu Multi-Utilities Complex.  We want to encourage more Singaporeans to embark on a promising career in the energy sector.

58. Madam Chairperson, I have outlined my Ministry’s and our agencies’ major initiatives in R&D, tourism and the energy sector for this year and beyond. 

59. These and other measures that MTI, MOM and MOE will be outlining will help us continue transforming our economy, enable our businesses to seize growth opportunities, and create good jobs for Singaporeans.