Ms Connie Wu, CEO of Sunray, ladies and gentlemen,
I am pleased to be here today for Sunray’s 28th Anniversary and the opening of its new headquarters-cum-factory.
When it first started in 1987, Sunray was a small outfit with fewer than 10 workers. Today, we are here to celebrate its 28th anniversary and opening of their new premises. It has become one of Singapore’s largest and fastest growing companies in the interior fit-out sector. Sunray’s growth reflects the larger, vibrant SME community in our economy. Many of them are now financially stronger and operationally more sophisticated than when they first started, and are tapping on regional opportunities.
Where we are located, the regional market offers great growth prospects. As the region develops, the demand for construction, interior design and fit-out, and architectural services will also grow.
Within ASEAN, there are already significant opportunities. Over the past five years, the construction sector in Malaysia and Indonesia grew at a compound annual growth rate of by 14.6% and 4.9% respectively. The residential and non-residential building industries of Malaysia and Indonesia have been growing at a rate of 11.3% and 4.2% respectively.
Further out in China and India, the construction sectors are also seeing strong growth, at rates of 15% and 4.6% respectively over the past five years. The Chinese residential and non-residential building industry also saw a 17% growth rate. Many Singapore firms, like Sunray, have found good growth opportunities in export of construction, architectural, and interior design and fit-out services.
To seize these regional growth opportunities, our companies must be able to offer higher value services, and competitive products and design, and more efficient delivery systems to compete with international and local players.
Government is committed to support growth companies
Our government agencies stand ready to support growth-oriented companies like Sunray, be it in re-inventing business models, expanding into new markets overseas, or creating skilled jobs for Singaporeans.
To help firms raise their productivity, BCA had rolled out the Construction Productivity and Capability Fund (CPCF) since 2010. CPCF has to date supported almost 6,000 firms,[1] most of them smaller firms. I am heartened to learn that Sunray has tapped on the various funding schemes under the CPCF to upgrade its workforce, and adopt productive equipment and technologies such as a robotic total station, system formwork and BIM.
SPRING Singapore, too, supports companies who seek to build new capabilities. For instance, SPRING offers the Capability Development Grant which defrays up to 70% of qualifying project costs. Companies can also tap on the Partnerships for Capability Transformation programme (PACT) which pairs large enterprises with SMEs to transform together. PACT supports collaborations for knowledge transfer, capability upgrading and test-bedding of innovative solutions to enhance productivity.
For firms seeking overseas growth, IE Singapore offers help. IE has just enhanced the International Finance Scheme to help companies secure capital financing for their international projects. Through the broad-based Market Readiness Assistance (MRA) companies making first forays into overseas markets get help to find the right business partners to start discussions. IE also offers assistance under the Global Company Partnership (GCP) for the support needed to build up its capabilities, develop its manpower, and defray the costs of setting up in new markets.
With so many assistance programmes for companies to build new capabilities, innovate and grow, I think someone should nominate Singapore for “the best place on earth to grow SMEs!” But seriously, these capability programs are as only good as their users. We need SMEs like many of you here to take full advantage of them.
Good jobs for Singaporeans
When our companies internationalise, their Singapore-based employees must necessarily hold higher value and skills jobs. Sunray now employs approximately 1,500 employees group-wide. But amongst their 300 Singapore employees, a good number have regional responsibilities relating to design, marketing, business development, project management and financial control. They manage cross-cultural project teams distributed across ASEAN, China and the Middle East.
In 2015 budget, the government introduced a series of SkillsFuture initiatives to help Singaporeans acquire deep skills relevant to the changing economy and to seize international opportunities. Through various government agencies such as SPRING, IE Singapore, EDB, WDA as well as industry partners, we are developing training programmes to help grow the pool of skilled craftsmen (and women), engineers and designers who can help take the building and interior design industry to a new level of growth.
I would like to invite Sunray, and other industry leaders in the built sector, to offer yourselves as partners for SkillsFuture Initiatives. BCA, SPRING, EDB and WDA will be happy to sit down with you to start a conversion on how we can begin, in apprenticeship, bursary and scholarship, Earn-and-Learn program and career paths development for the professionals in the fit-out and built sector.
Conclusion
In conclusion, I would like to congratulate Sunray on your many outstanding achievements since inception. May I wish you and all the companies represented here, every success in your future endeavours. Thank you.