I am pleased to join you this evening at the Singapore 1000, SME 1000 and Singapore International 100 awards ceremony.

 

2014 was a challenging year for our businesses.  Singapore’s economy grew by 2.8% in 2014, compared to 3.9% in 2013. Notwithstanding this, our top companies have continued to perform credibly.  According to DP Information, the combined revenue of the top 1000 companies was $2.9 trillion in 2014, which was an increase of 8.3% from the previous year.  The profits of these companies amounted to an impressive $149.8 billion. These top companies are testament to the fact that opportunities exist even in the midst of challenges, and that our businesses can benefit by understanding the landscape and being bold and nimble in picking the right opportunities.

 

Our economy is in the process of restructuring toward higher productivity. This is a long term endeavour which is necessary for our economy to grow sustainably, and to position our companies to tap new opportunities. However, the process has been difficult for many businesses. The government understands the difficulties which our companies are facing. We have provided strong support for companies, particularly SMEs, in the process of restructuring, and to help well positioned companies take advantage of growth opportunities. 

 

To date, more than 22,000 companies have benefitted from the productivity initiatives introduced by the National Productivity Council (NPC), which have supported the training and upgrading of workers, and the adoption of technology and infocomm solutions. In 2013, 53,000 companies took advantage of the Productivity and Innovation Credit (PIC) to help them defray the costs involved in capability upgrading.

 

There are encouraging signs on the ground.  A recent survey conducted by the Singapore Chinese Chamber of Commerce and Industry (SCCCI), found that 90% of surveyed companies had adopted productivity improvements in 2014, compared to 84% in 2013. In addition, although overall productivity growth has been 0.2% per annum from 2010 to 2013, our export oriented sectors have done well, with healthy productivity growth of 2.1% per annum over the same period.

To succeed, our companies need to actively seek growth opportunities through innovation and internationalisation. In this regard, there are also positive signs. For instance, DP Information Group’s 2014 SME Development Survey found that 75% of SMEs are pursuing innovation of some form, with an increasing proportion of SMEs investing in technology . The same survey also found that the proportion of SMEs planning to expand overseas rose from 14% in 2013 to 20% in 2014, indicating increasing interest in internationalisation.

Many of our award recipients today are remarkable examples of local companies that have succeeded by striving for growth through innovation and internationalisation. For instance, one of the Singapore International 100 Award winners, Heng Long Leather Company Pte Ltd, started out in 1977 as a traditional tannery of crocodile skins.  Over the years, it has invested in R&D to improve its products and processes, and has consequently moved up the value chain.  Today, it is successfully tapping the global luxury goods market through its partnership with French luxury goods company LVMH.   Heng Long is a good example of how a local company with a long heritage can continue to thrive and compete globally, as long as the company is committed to constantly improving itself and has the ambition to do so.

Another interesting example, this time from the F&B sector, is Brotzeit Pte Ltd, which is a home grown company known for serving Bavarian food and German beer.  Starting out in Singapore in 2006, Brotzeit has now expanded to 13 outlets in Malaysia, Vietnam, Hong Kong, China, Philippines and Thailand.  This is a good example of an F&B company which has grown significantly by cleverly building up its brand and by establishing its overseas presence through a franchising model.  Companies like Brotzeit show that although the F&B sector faces significant challenges, it is possible to grow and do well by identifying market opportunities and moving decisively to capture them.

 

 

Singapore celebrates our 50th year of independence this year. We have thrived and prospered as a nation in large part because of the ingenuity and “can-do” spirit of our entrepreneurs. As we continue in our journey of economic restructuring, I have faith that this “can-do” spirit will see us through to a successful conclusion.

My heartfelt congratulations go to this year’s winners of the Singapore 1000, SME 1000 and Singapore International 100 awards. I would also like to commend DP Information Group and Ernst & Young for your successful organisation of the awards to recognise the best and most exciting companies in Singapore, which is now in its 28th year.

With that, I wish you a good evening ahead. Thank you.