Ladies and Gentlemen,
​
Good afternoon.

1.     My colleagues Sim Ann, Low Yen Ling and I are pleased to join you today for the annual LEAD Forum 2017, co-organised by SPRING Singapore and IE Singapore.

An Active Base of Trade Associations and Chambers

2.     Trade Associations and Chambers (TACs) are valuable catalysts and multipliers in driving industry-level initiatives, and supporting the scaling up and internationalisation of enterprises.  The Committee on the Future Economy (CFE) emphasised the importance of forging strong partnerships to enable innovation and growth, in addition to deepening the capabilities of individuals and organisations.  In particular, we want to enhance the role of TACs to drive industry transformation.

3.     The Local Enterprise and Association Development (LEAD) programme is the cornerstone of Government’s strategy to boost the enterprise development efforts of our TACs.  Since the LEAD programme’s inception in 2005, a total of 47 TACs have stepped up to spearhead more than 200 industry initiatives.  As a result, over 40,000 companies have reaped benefits through improved operational efficiency, productivity, business innovation and growth.

4.     It is especially encouraging that ten newcomers have embarked on their first-ever LEAD projects in the past year.  One example is the Institute of Singapore Chartered Accountants (ISCA).  By developing e-learning courseware and organising training workshops, ISCA aims to help accounting firms strengthen their professional competencies and capture opportunities in high-growth practice areas such as risk management, taxation and data analytics.  These capability building initiatives are complemented by dedicated business trips to gain access to markets in the region.  ISCA also intends to roll out audit software among SMEs, which is expected to cut down processing time by 20% to 30% compared to current paper-based systems.

5.     Under LEAD+ introduced in Budget 2016, eight TACs have also received support for internal upgrading initiatives that will enhance their capability to lead industry development efforts.[1]  I encourage and invite more TACs to come forward with your proposals to help your members and strengthen the competitiveness of your industry.  Under the LEAD programme, SPRING Singapore and IE Singapore stand ready to work with willing and committed TACs from all sectors to drive industry transformation.

Call for Proposals: Enhanced LEAD Funding for Collaborative Projects

6.     While we have made notable progress in nurturing an active base of TACs, there is untapped potential and much to be gained through collaboration among TACs.  By collaborating, we can pool our different capabilities, overcome resource constraints, and develop innovative solutions to thrive in a fast-changing world.  As the saying goes: “strong alone, stronger together”.

7.     To support such partnerships, we announced at the MTI Committee of Supply debate earlier this year, that the maximum funding level for high-impact, multi-TAC projects under LEAD would be raised from 70% to 90%.  I am happy to share with you that the Government is launching a Call for Proposals (CFP) today to solicit ideas for joint projects between TACs.  To encourage more TACs to submit new ideas, I would like to elaborate on three possible models that TACs could adopt in order to collaborate and deliver greater benefits to their members.

Opportunities for Greater Collaboration Among TACs

8.     First, by combining resources and expertise, TACs in the same industry can band together to surmount common business challenges and pursue a shared vision for the industry.  The Memorandum of Understanding for the formation of the Logistics Alliance, which will be signed at the LEAD Forum today, illustrates how this can be done in practice.  Supported by SPRING Singapore, the Logistics Alliance comprises four TACs – the Container Depot and Logistics Association (Singapore) (CDAS), SAAA@Singapore (formerly known as Singapore Aircargo Agents Association), Singapore Logistics Association (SLA) and Singapore Transport Association (STA) – as well as the Centre of Innovation for Supply Chain Management at Republic Polytechnic (COI-SCM@RP).

9.     Last year, we launched the Logistics Industry Transformation Map (ITM) to reinforce Singapore’s position as a global logistics hub.  The Logistics Alliance will carry out projects in areas such as innovation, productivity and human capital to contribute to this industry transformation effort.  Under this Alliance, the four TACs have formed sub-groups to lead specific initiatives including identification and adoption of emerging technologies, development of a common transport platform, and designing of training programmes to expand the talent pool and upskill the logistics workforce.  This form of intra-industry collaboration allows related TACs to avoid the duplication of efforts and reach out to a larger number of enterprises in a purposeful, coordinated and synergistic manner.

10.  Beyond intra-industry partnerships, collaborative arrangements that span multiple industries is another avenue for TACs to help local firms seize new business opportunities.  Take the African-ASEAN Business Expo (AABE) led by the Singapore Manufacturing Federation (SMF) and supported by IE Singapore as an example.  This is a platform that links companies in the African Union and ASEAN to harness trade and investment opportunities in these growing economies.  To maximise the reach and impact of the AABE, SMF will partner several TACs in diverse sectors including financial services, building and construction, and energy and environment to form cross-sectoral business clusters.  Members of the participating TACs can take advantage of the exhibitions, business missions, and targeted business matching under the AABE to make inroads into African and ASEAN markets.

11.  I have covered two approaches that have been used by TACs to collaborate – the intra-industry model like the case of the Logistics Alliance, and the cross-industry model exemplified by the AABE.  The third model involves a well-established TAC serving as an anchor in a consortium with smaller TACs.  This would provide the opportunity for smaller TACs to collectively play a role in projects that might be too large for them to manage on their own.  Further, guidance and support from the larger TAC would also help the smaller associations to level up their organisational capabilities.

12.  An example of this is the Trade Association Hub (TA Hub).  Recognising that many smaller or newer TACs lack the resources or experience to drive upgrading initiatives for their members, the Singapore Chinese Chamber of Commerce and Industry (SCCCI) worked with SPRING Singapore and JTC to set up the TA Hub at the former Jurong Town Hall.  Overheads are reduced through shared secretariat services and facilities.  In addition, co-location fosters the building of networks and cross-pollination of ideas.  To date, more than 20 TACs have agreed to participate in the TA Hub, and SCCCI is working with smaller associations such as the Landscape Industry Association (Singapore) (LIAS) and the Singapore Motor Workshop Association (SMWA) to chart productivity plans for their respective industries.  SCCCI is also at the helm of the Trade Association Committee (TACOM), a business-led platform to drive the development of trade associations.

13.  Intra-industry, cross-industry or TAC consortia are all viable models for TACs to work together to advance collective interests.  I therefore hope that all of you will seize this opportunity and respond enthusiastically to the CFP for collaborative LEAD projects.  Your openness to collaborate will pave the way towards a cohesive and forward-looking TAC community.

Conclusion

14.  To reiterate, TACs play a catalytic and instrumental role as multipliers in our enterprise ecosystem.  Many TACs have tapped the resources available through the Government’s LEAD programme to implement industry initiatives and internationalisation projects to help SMEs upgrade their capabilities, capture new opportunities, scale up and venture overseas.  The Government remains committed to supporting our TACs in driving enterprise and industry development.  Strong alone, stronger together – let us work hand-in-hand to create a competitive economy and a bright future for businesses in Singapore.

15.  I look forward to continuing this conversation with you during the dialogue session later.  Thank you.