Speech by Minister S Iswaran at the 22nd Business Excellence Awards Ceremony and Gala Dinner

​SPEECH BY MR S ISWARAN, MINISTER FOR TRADE AND INDUSTRY (INDUSTRY) AT THE 22nd BUSINESS EXCELLENCE AWARDS CEREMONY AND GALA DINNER, THURSDAY, 27 OCTOBER 2016, 7.15 PM, RESORTS WORLD SENTOSA

Professor Cham Tao Soon, Chairman, Singapore Quality Award Governing Council,

Distinguished guests,

Ladies and gentlemen,

Good evening,

1.     It is my pleasure to join you at the 22nd Business Excellence Awards Ceremony and Gala Dinner.

2.     Tonight, we celebrate the achievements of organisations in both the private and public sectors that have attained outstanding levels of business excellence.  The pursuit of, and commitment to, business excellence takes on added importance as Singapore gears up for the next phase of economic development.

Building Resilience to Seize Opportunities in the Future Business Landscape

3.     Our economic environment is being reshaped by industry and technological trends, which are disrupting business models and fundamentally changing jobs.

4.     Future growth and competitiveness will be anchored in productivity, innovation and the skills of our workforce.

5.     The work of the Committee on the Future Economy is part of the Government’s effort to help our industries, enterprises and workers become more competitive.

6.     The CFE has been working with stakeholders from the industry, academia, trade associations and unions, to identify future growth clusters and develop economic strategies to position Singapore and Singaporeans well for the future.

7.     Concurrently, Industry Transformation Maps (ITMs) are being developed for 23 key sectors of the economy. Through these ITMs, Government will support company-level efforts aimed at achieving business excellence through industry-level strategies to accelerate productivity improvement, skills development, innovation and internationalisation.  These plans aim to create growth opportunities for our businesses as well as good jobs for Singaporeans.

8.     In the Precision Engineering sector, for example, the transformation to digital manufacturing will significantly enhance the ability of our companies to manage manufacturing capacity and integrate supply chains, develop new products and improve production processes.  To help companies digitalise their factory operations, the Government will support the setting up of ‘Model Digital Factories’ in A*STAR’s Singapore Institute of Manufacturing Technology (SIMTech) and Advanced Remanufacturing & Technology Centre (ARTC), to showcase interoperability solutions and allow companies to testbed and co-develop digital solutions.

Building Future-ready Organisations

9. Our companies are at the heart of our economic transformation and they must equip themselves with strong business fundamentals to tap on growth opportunities.

10.  Over the last 22 years, the Business Excellence (BE) initiative, developed by SPRING Singapore, has enabled 1,700 organisations to strengthen their management systems and transform their businesses.  The internationally benchmarked BE framework provides a roadmap for excellence, by identifying areas for improvement in leadership, strategy, knowledge, customer-centricity, people development and process capabilities.

11.  Increasingly, SMEs have also tapped on the BE initiative to professionalise their management practices.

12.  In the past three years, the number of SMEs benefitting from the BE initiative has increased by more than 60%, with the number of private organisations certified for Business Excellence increasing from 85 organisations in 2013 to 140 in 2015.

13.  Kino Biotech[1], which distributes KINOHIMITSU, their proprietary brand of healthcare and beauty products, to more than 10 countries, has used the BE framework to transform itself.  The company received the Service Class certification for delivering seamless and enhanced service to its customers.  Kino Biotech was quick to adopt omni-channel retail platforms, and leverage technology to improve its understanding of customers’ needs.  By being nimble and embracing new technologies, Kino Biotech has been able to customise products based on customers’ lifestyles and preferences.  Mr Chong Ka Wee, CEO of Kino Biotech, credits Business Excellence for instilling in his company the instinct to constantly be on the lookout for ways to innovate and enrich customers’ experience.

14.  The BE initiative has also helped organisations develop human capital and nurture talent.  I am encouraged that some 100 organisations have been recognised for excellence in people practices since the start of 2015.

15.  The Park Hotel Group[2] has recognised the importance of up-skilling their employees to create unique and memorable travel experiences for its guests.  The Group set up its own in-house training academy and piloted a job redesign scheme in 2011 to groom multi-skilled employees for primary hotel functions.  Since the scheme’s launch, close to 80 employees have benefitted from the one-and-a-half year programme.  Park Hotel Group has consequently stayed ahead of competition, and has seen its employee productivity and business performance improve.

16.  As a further reflection of its commitment to develop employees, Park Hotel Group recently launched its pilot Managerial Leadership Programme in early October.  The programme is a two-year fast track for transforming high-performing supervisors into future leaders through customised development plans.

BE Recognition as a Mark of Excellence

17.  The BE initiative is also about building local and international trust and confidence in organisations.  With Singapore-based companies already commanding a high level of trust and respect, the Singapore Quality Class (SQC) certification provides a widely-trusted endorsement of a company’s excellence that can further boost competitiveness overseas.

18.  One organisation that has benefitted from BE recognition is KinderWorld[3], a Pre-school to Tertiary education service provider.  Business Excellence provided KinderWorld with the knowledge to build and transfer its management practices to its overseas businesses.  Mr Ricky Tan, Chairman of the KinderWorld Education Group, had said that the SQC mark has won trust for KinderWorld from their business counterparts in Myanmar, and helped them in their overseas expansion.

Reviewing the BE Initiative for the Future

19.  To continue serving as a valuable tool to help our organisations gear up for excellence, the Business Excellence Framework must constantly adapt to the changing economic landscape.  In particular, the framework must enable our organisations to deepen their capabilities in innovation and people development to adapt to the fast-changing economic landscape.

20.  With this in mind, SPRING is undertaking a review to enhance the BE initiative as we move into the future innovation-led economy.  The framework review will result in greater focus on people development and innovation capabilities.  These capabilities will enable organisations to attract and retain talent, and to remain nimble.  The review will address three key areas:

a.  First, to place greater focus on the ability of our organisations to leverage disruptive models and technologies to achieve breakthrough improvements in products, services and processes;

b.  Second, to drive innovation values and mindsets across the organisation; and

c.   Third, to emphasise the nurturing of talent to bring about mastery of relevant skills, capabilities and mind-sets for continuous learning to keep pace with the fast-changing business environment.

21.  I am also pleased to announce that SPRING, as part of its review of the Business Excellence initiative, will be re-launching the BE recognition with SQC as the single mark of excellence for organisations.  Currently organisations can directly apply for niche certifications in the areas of People, Service and Innovation or for holistic SQC certification.  Under the revised initiative, all companies must first embark on SQC to establish a strong foundation, before deepening their capabilities in the three niche areas.

22.  SQC recognition signifies the rigour and robustness of an organisation’s management capabilities and its commitment towards excellence and delivering value to its stakeholders.  As our organisations seek out new growth opportunities in both local and international markets, the single SQC mark will set them apart from their competitors.  Along with the revised BE framework, SQC will represent a unified pathway to business excellence and recognition.

23.  SPRING will announce the final details of the refreshed framework and the repositioning of BE recognition in the first quarter of 2017.  With the core business fundamentals encompassed within a single framework, BE will continue to serve as a crucial enabler for organisations to build a competitive edge and be ready for the future.

Conclusion

24.  The BE Awards tonight serve to highlight the need for every organisation to implement systematic processes within the organisation that address the key elements of business excellence, to be well-positioned to scale, grow and be competitive in the future economy.

25.  I hope that the success stories of tonight’s award winners will motivate organisations to strive for greater heights in business excellence.  I would like to extend my congratulations to our winners this year.  I wish you all a pleasant evening and success in your ventures.

26.  Thank you.

[1] Kino Biotech achieved Service Class certification in 2016.

[2] Park Hotel Group achieved People Developer certification in 2014.

[3] KinderWorld Education Group achieved Singapore Quality Class certification in 2015.

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