SPEECH BY MR S ISWARAN, MINISTER FOR TRADE AND INDUSTRY (INDUSTRY) AT THE 30TH SINGAPORE 1,000, SME 1,000 AND SINGAPORE INTERNATIONAL 100 AWARDS CEREMONY ON 17 FEBRUARY 2017, 7.10 PM AT RESORTS WORLD CONVENTION CENTRE
Mr Ben Elliott, Chairman, DP Information Group and CEO, Experian Asia Pacific,
Mr Max Loh, Managing Partner, ASEAN and Singapore, Ernst & Young,
Distinguished Guests,
Ladies and Gentlemen,
Good Evening.
1. I am pleased to join you this evening to celebrate the efforts and achievements of the excellent companies in Singapore, as well as the men and women who run them.
ECONOMIC OVERVIEW
2. 2016 was a year of rapid change and disruption, in terms of technology, industries, jobs and geo-politics. Singapore ended last year on a positive note - our GDP grew by 2%, above the initial forecast of 1-1.5%. This was boosted by a strong fourth quarter performance, particularly in manufacturing. DP Info’s statistics for its ranking of Singapore 1,000 and SME 1,000 companies paint a similar picture.
3. Two sectors have performed particularly well in 2016 – manufacturing and finance. The manufacturing companies in the Singapore 1,000 achieved record sales of S$310 billion, an increase of 36% from 2015. The finance sector achieved combined sales of S$118 billion, an increase of 10.4% compared to last year.
4. I am also encouraged by DP Info’s findings that Singapore’s top 1,000 SMEs increased their combined sales by 3.7% from S$29.2 billion in 2015 to S$30.2 billion in 2016. Profits also increased by 4.3%, from S$3.3 billion to S$3.5 billion. This is heartening given the challenging environment. These results affirm that even in uncertain times, strong companies with good leadership and sound business strategies can do well.
TRANSFORMING FOR OUR NEXT PHASE OF ECONOMIC DEVELOPMENT
5. The theme for tonight’s event, ‘timeless’ underscores that while economic conditions may change, what endures and anchors our economy are core attributes such as capabilities, adaptability and resilience.
6. This was also the focus of the Committee on the Future Economy (CFE) with the aim of developing strategies to transform our industries for the next phase of our economic development. Over 9,000 stakeholders, including companies, trade associations and chambers, academics, students, and Singaporeans here and abroad contributed to the CFE’s findings.
7. The 7 strategies set out by the CFE fall under 3 core themes. The first is about remaining open - to trade, investments and talent. It is only by staying open and connected with the economies around the world that we can continue to create opportunities for our businesses and our people. This conviction is especially important at a time when anti-globalisation sentiments are on the rise around the world.
8. The second theme focuses on developing deep capabilities – in our enterprises, so that they are able to innovate and scale up, and in our people, so that they can adapt with deep skills to the changing needs of the market. This is especially relevant for our SMEs, who have been a central focus of the CFE’s work.
9. The third theme is to nurture stronger partnerships with our trade associations, unions and enterprises. To navigate the challenges in the path ahead, we will need to pull our resources together and foster closer collaboration across our economy.
DEEPENING BUSINESSES CAPABILITIES TO INNOVATE AND SCALE UP
10. One of the key strategies identified by the CFE is to build strong digital capabilities in our businesses. Advances in digital technology are transforming business models and processes in every sector. This presents an unprecedented level of opportunities. For example, the Internet of Things will enable the digitalisation of manufacturing, connecting different parts of the supply chain in real time and allowing companies to offer more value-added services. Electronic payment systems and crowd-funding platforms will democratise access to financial services. With digital technology, even a micro-SME can reach global markets using e-commerce.
11. JK Tech Group, a fintech and business process outsourcing (BPO) company, has used digital technology and continuous innovation to further its growth. Starting as an equipment manufacturer, the company now has a 300-strong R&D team, which works closely with clients to provide customised solutions. JK Tech Group exhibited its innovative FinTech solutions at the Inaugural Singapore FinTech Festival last November, which included its vision of the smart automated bank. I am pleased that JK Tech will be receiving an excellence award this evening for net profit growth.
12. We also want to help our companies internationalise and scale up. In addition to the government programmes to help the broad base of companies, we will need a more tailored approach to help our high growth companies become regional/global leaders. Besides capability development and internationalisation support, they will need access to networks, mentors, technology and financing to reach new peaks in their businesses.
13. To support internationalisation we need to deepen our knowledge of key markets and build stronger in-market networks. In this aspect, our Trade Associations and Chambers can work with our agencies to organise more business missions at the city or provincial level to help SMEs gain a competitive edge through a more nuanced understanding of regional markets.
14. Technological solutions can also enable our enterprises to accelerate their internationalisation efforts. BreadTalk, with close to 850 bakery outlets worldwide, has invested in upgrading its supply chain management system to standardise traceability of the ingredients used by their franchisees and partners. This will ensure quality control as the company continues to expand its global footprint. BreadTalk will be receiving an excellence award this evening for its sales growth.
15. A successful scale-up programme must be complemented by a strong innovation ecosystem. In particular, we want to build stronger research linkages between the public and private sectors, as well as within the private sector across different industries. It is only by making collaboration and the cross-pollination of new ideas the norm will we be able to create more value from our innovations, and see more success as our companies bring new products and services to markets around the world.
COLLABORATING WITH PARTNERS FOR FUTURE GROWTH
16. One key platform for this collaboration will be our Industry Transformation Maps (ITMs). The ITMs will bring all stakeholders together to develop and implement a dedicated roadmap for each sector and develop transformative solutions. The ITMs will support our industries to ride on global opportunities and technological developments, while implementing strategies to raise productivity and upgrade jobs.
17. Our TACs are valuable partners in such industry-level initiatives and to support our enterprises to scale up and make inroads into overseas markets. For example, in 2016, SMF collaborated with the Enterprise Europe Network (EEN), IE Singapore and Intellectual Property Intermediary (IPI) to form an EEN Singapore Centre to facilitate our companies’ access to technological know-how, IP and partnership opportunities in Europe. To date, more than 500 Singapore companies have registered with the centre, which has facilitated over 200 business-to-business meetings and expressions of interest.
18. We want to work with more TACs like SMF, who can play a catalytic role in identifying and implementing innovative projects that enable its members to enhance productivity and competitiveness. TACs can also aggregate demand so that our SMEs can enjoy the benefits of scale when they access technological advances, or participate in various people development programmes.
19. Deepening the capabilities of our enterprises, and helping them scale-up and internationalise through strong partnerships, are core themes arising from the CFE. If executed well, these will anchor our efforts to build a vibrant and resilient economy with sustainable growth and opportunities for all. We do so from a position of strength, drawing on the capabilities of the strong corporate ecosystem that we have nurtured over the years, as well as our close tripartite collaboration between unions, business, and government. ,
CONCLUSION
20. In conclusion, I would like to congratulate all the award winners, and the men and women who have led their companies to success. You are an inspiration to all of us and I wish you every success in your ventures.
21. I would like to thank DP Information Group for its contributions over 30 years in conducting these rankings and presenting these awards. The Singapore 1000 and SME 1000 rankings have become a staple in the annual business calendar, providing valuable insights into the state of Singapore’s corporate sector and the performance of different industries.
22. If we achieve the economic vision of the CFE, DP Information Group may well have to increase its future listing and rankings significantly beyond 1000 enterprises. I look forward to that day, even as we working together, striving for excellence, sharing and learning from one another, to make that vision a reality.
23. Thank you.