Mr Patrick Daniel, Editor-in-Chief, Singapore Press Holdings
Mr Herbert Vongpusanachai, Managing Director, DHL Express Singapore
Mr
Stephen Lee, Chairman, Singapore Business Awards Judging Panel
Distinguished
Guests,
Ladies
and Gentlemen,
A
very good evening
It is a pleasure to be here at the 30th Singapore Business
Awards ceremony. The Awards recognise exceptional individuals and enterprises that
have displayed visionary drive and enterprising spirit, and chalked up
outstanding performance in growing their businesses.
Charting
Future Growth
This year, we
celebrate the 50th anniversary of Singapore’s independence. As a
country and as an economy, we have come a long way since 1965. Then, we were a
small, post-colonial city state, with no hinterland, and engulfed by the
uncertainties of separation. Fifty years
on, Singapore is today a metropolis. Our people enjoy one of the highest standards
of living in Asia. Singaporeans are more highly educated, and enjoy access to
opportunities that our forefathers could never dream of.
The next phase of our
growth must strengthen Singapore as a sustainable innovation-driven economy. We
must continue to develop our existing sectors and uplift their productivity. At
the same time, we must pursue new growth opportunities. Singapore’s unique
portfolio of industries and location as a gateway to Asian and global markets,
positions us well to capitalise on growth clusters to lead this next phase of
economic growth. These clusters span manufacturing and services, such as Advanced Manufacturing, Applied Health
Sciences, Smart and Sustainable Urban Solutions, Logistics and Aerospace, and
Asian and Global Financial Services.
For example, in manufacturing, we will
build on strengths such as deep capabilities in electrical, mechanical and
process engineering which support a diverse portfolio of industries. This
clustering provides unique opportunities for collaboration and innovation. Under
the Future of Manufacturing initiative, EDB will encourage companies to undertake
R&D and adopt new technologies in areas such as Additive Manufacturing,
Robotics and Digital Manufacturing in order to develop Singapore into a Global
Lead Manufacturing Hub.
To position ourselves to tap the
opportunities in advanced manufacturing and other growth clusters, we will need
to ensure that our businesses have the capabilities to compete and thrive in
the global economy, and that Singaporeans are equipped with the skills to
contribute and benefit from the good jobs which will be created.
Helping our
companies tap innovation and restructure
We have made some headway in our
economic restructuring journey. This has been accomplished as businesses
optimised their processes and improved operational efficiencies. Over the last
5 years, our export-oriented sectors have done well, with annual productivity
growth of more than 5 per cent. Our domestic-facing sectors have however done
less well, with productivity growth at less than 1 per cent. Under the National Productivity Council
(NPC), we will continue to focus on helping our enterprises, big and small,
transform to higher productivity.
Budget 2015
emphasised innovation as a key strategy to help our enterprises achieve
productivity-driven growth, strengthen their value proposition and to
differentiate themselves from the competition. The measures in Budget 2015
build on the groundwork which has been laid by agencies such as A*STAR and
SPRING, in helping our enterprises leverage technology and innovation to
enhance competitiveness and drive top-line growth.
To help our companies tap innovation,
a range of government assistance schemes are available. For companies just
starting on innovation, SPRING offers the Innovation and Capability Voucher
(ICV), which supports SMEs in the development and implementation of simple
solutions to improve business efficiency and productivity. Take-up has been
strong, with SPRING issuing over 9,000 ICVs last year. Under the Technology
Adoption Scheme (TAP), A*STAR has put in place a team of intermediaries to
match SMEs with ready technology solutions to improve productivity. We have
seen encouraging progress. Since its launch in July 2013, more than 4,000
companies have been engaged under this programme, with 1,200 technology
adoptions by companies achieving at least a 20% productivity improvement.
To further help our enterprises
innovate as part of restructuring, SPRING enhanced the Capability Development
Grant (CDG) to introduce a simplified application process for projects seeking
grant support up to $30,000. And for capable SMEs which carry out R&D, our
public sector research institutions, such as A*STAR, second researchers to SMEs
under the GET-Up programme, to help SMEs build and strengthen in-house
technology capabilities that will lead to the development of innovative new
products. The number of SMEs undertaking R&D has increased in the last 10
years by more than one-third, from about 320 in 2003 to more than 430 in 2013.
SMEs are also investing more in R&D activities, from about $370 million in
2003 to about $580 million in 2013.
I am glad to note that a number of our
businesses have done well by pursuing innovations and collaborations which
supports their efforts to grow. I am particularly heartened to see our young
companies and new generation of entrepreneurs lead the transformation in our
existing sectors. For example, the Freshen
Group, which was set up only two years ago, collaborated with the Food
Innovation and Resource Centre (FIRC) using SPRING’s Innovation and Capability
Voucher (ICV) to develop a manufacturing technique and packaging solution for
ready-to-serve packaged soups. This innovation enables the company to grow
beyond the domestic market by exporting their soups overseas. As we restructure
the economy, the Government will continue to support the ambitions of our
companies to grow and to succeed, through a comprehensive suite of schemes
administered by SPRING, IE Singapore and other agencies.
Investing
in Our People
As
we create better economic opportunities and jobs, we must ensure that
Singaporeans are well-equipped to take on the new roles that will be available.
To nurture the relevant skill-sets and mind-sets in our workforce, the
SkillsFuture initiative was announced at Budget 2015. Through SkillsFuture, we
will put in place the structures and processes to enable Singaporeans to develop
and learn the relevant skillsets as they progress through their lives – from formal
schooling, throughout their careers and until retirement.
I encourage our business owners and
industry leaders here today to support the SkillsFuture initiative and to
continually invest in your employees. I am happy to know that a number of
employers have already come on board, and I will encourage more to do so. A good example is local interior furnishing
firm Goodrich Global, which was
recently named the Best SME Employer in Singapore 2015 by HR consulting firm
Aon Hewitt. The company’s commitment to good HR practices has allowed it to
keep its employees engaged, support training programmes suggested by employees,
and keep employee retention rates high. I am glad to note that Goodrich has
benefited from SPRING’s assistance schemes to optimise their business
operations and develop HR capabilities. I would like to see more companies
follow suit, to enable Singaporeans in our SMEs to benefit from good working
environments which support higher employee productivity.
Enabling
Trade and Internationalisation
Given
Singapore’s small domestic market, internationalisation will continue to be a
key economic strategy.
In the immediate region, we expect new
opportunities for our businesses arising from the realisation of the ASEAN Economic
Community (AEC) as a single market and production base. Singapore businesses
have already benefitted from the various AEC initiatives. Our companies can
export most products to other ASEAN markets duty-free, and enjoy greater ease
of trade through measures such as mutual recognition agreements. In the area of services and investment, there are now more opportunities for Singapore companies to participate in sectors
which were previously closed off to foreign investors. Our investors can
also enter into the rapidly growing ASEAN market with greater ease of mind,
knowing that their investments will be guaranteed fair and equitable treatment
in a more transparent, consistent and predictable investment environment. The AEC will increase the overall competitiveness and productivity of
ASEAN as a single economic region and make the region more attractive to global
investors.
IE Singapore has in place a suite of
assistance schemes which our companies can tap for their internationalisation
plans. In Budget 2015, we enhanced support
for companies under the Market Readiness Assistance (MRA) and the Global
Company Partnership (GCP) schemes. Companies can look to the MRA for financial
and advisory support, and use the GCP to support expansion, capacity building,
manpower development and financing. I would encourage our enterprises to make
use of these schemes.
Conclusion
The Government is committed to supporting
our enterprises in developing the capabilities to tap growth opportunities,
thrive and become globally competitive We will encourage innovation and raise
productivity in existing sectors, invest in future growth sectors, help our
companies tap international markets, and invest in our workforce to ensure that
they have the skills to benefit from the new opportunities. The success of these
strategies will depend critically on our businesses to step forward, and the
vision, conviction and commitment of our business leaders to take your
companies to the next level and beyond.
Tonight, we celebrate the achievements
of business leaders and enterprises that have indeed taken those steps and made
exemplary progress in your respective sectors. I hope that others will be
inspired by your fine examples and be committed to the same enterprising spirit
to propel your companies forward.
I offer my fullest congratulations to
the winners this evening, and wish you all the best for your continued journey.
Thank you.