SMS Speech for the Launch of the 99 percent SME Week Campaign 2015

​SPEECH BY MR LEE YI SHYAN SENIOR MINISTER OF STATE FOR TRADE & INDUSTRY AND NATIONAL DEVELOPMENT, AT SINGTEL 99% SME WEEK CAMPAIGN LAUNCH 6 AUG 2015, 10.20AM, COMCENTRE

Mr Bill Chang,

Distinguished guests,

Ladies and gentlemen,

Introduction

1.            Good morning. I am glad to join you here, at the launch of the 99% SME Campaign.

2.            I am happy that Singtel and its partners are supporting our SMEs through this campaign. SMEs are key to the Singapore economy - they contribute to a vibrant, competitive and productive economy. They also provide diverse good jobs for Singaporeans.

Changing competition landscape for SMEs

3.            The competition landscape for SMEs is changing. Traditional businesses are being disrupted by new business models. For example, in the Retail industry, many customers are shopping online rather than at brick-and-mortar shops. Some online shops even offer products not found in brick-and-mortar shops.

4.            On the other hand, new start-ups too, can disrupt incumbent players. For example, we have seen how start-ups such as Uber and AirBnB unsettle market rules, grow rapidly and achieve valuations far larger than traditional companies in a fraction of time.

SMEs need to innovate and re-invent themselves

5.            For SMEs to stay relevant, the only way is to constantly re-invent themselves by embracing new technology, best practices and market trends.

6.             EpiCentre is one company that has benefited from leveraging the digital economy. As an authorised retailer for Apple products, EpiCentre saw the need and implemented an online platform to complement its physical stores. As a result, EpiCentre saw steady growth as it expanded in other countries such as Malaysia and China.

7.            Surveys show that many SMEs are still unsure about how best to leverage online platforms for growth. The 99% SME Campaign launched today provides a platform for SMEs to market their products online. Through this, SMEs can drive sales beyond the limitation of and sometimes expensive shop fronts.

8.            However, SMEs must recognise that selling online is not as easy as marketing online. It requires the building of new partnerships and capabilities in areas such as logistics and online payment. Planning has to start early as these take time to build.

9.            To build the required capabilities, SMEs can tap on various Government grants and assistance schemes. These include SPRING’s Capability Development Grant (CDG), and IE Singapore’s Market Readiness Assistance (MRA).

SkillsFuture will support SMEs

10.         As SMEs re-invent their business models, adopt and deploy new technology, they will need the right people, equipped with relevant and new skills. SkillsFuture, through its various initiatives, will support SMEs in deepening their employees’ skills, and developing relevant new skills.

11.         In particular, I understand that some SMEs may have to hire new employees to build their talent pool, but find it difficult to do so. SMEs can tap on various programmes, such as the SME Talent Programme or the SkillsFuture Earn-and-Learn Programme, to attract talent.

12.         I urge SMEs to support SkillsFuture’s efforts. They can do so by sending their employees for training and developing career progression pathways for them. In turn, they will see the value they gain from a skilled employee who is able to contribute in the long run.

Conclusion

13.         In closing, I would like to thank Singtel and its partners for supporting our SMEs. I wish Singtel a successful campaign!

14.         Thank you all and happy 50th national day!