Distinguished Guests,

Ladies and Gentlemen,

Introduction

1.                        Good evening.  I am delighted to join you this evening for the tenth anniversary of the Emerging Enterprise Award, jointly organised by The Business Times (BT) and OCBC Bank.  Let me begin by commending BT, OCBC, and your supporting partners on your sustained efforts in organising this event, and growing it into a significant milestone on the SME sector and community in Singapore.   

2.                        Accolades such as the Emerging Enterprise Award help celebrate the leadership and accomplishments of promising startups and high-growth enterprises, as well as to support them with the necessary resources for future growth.  In turn, their success stories will serve to inspire and motivate other aspiring business owners in their own journeys to success through entrepreneurship.

3.                        Since the Emerging Enterprise Award was established ten years ago, it has received more than 5,000 applications, recognised more than 130 finalists, and been awarded to more than 50 winners.  Many of the past award recipients have gone on to scale new heights, win further recognition and distinguished themselves in many different ways.

4.                        When we talk about a vibrant enterprise ecosystem, whilst we have the whole spectrum of enterprises in Singapore, the emerging enterprise element is key. That is where the real verve in the entrepreneurial community is. And that is where we see the sparks and the prospects for future growth and success.   

Enterprises must adapt, innovate and transform to seize the opportunities presented by the changing global economy

5.                        The success stories of our emerging enterprises takes on added significance in the context that we are in today as we enter a new phase of economic development.  The global environment has witnessed significant changes, with structural and political shifts in developed and developing economies.  With tighter domestic constraints, external demand will be an even more important driver of growth for Singapore.   

6.                        To seize these new opportunities, we want our enterprises to be able to respond nimbly to political and economic shifts, shorter technology cycles, and changes in consumer demand patterns and business models.  They need to develop an enterprising mindset, a strong culture of innovation, build deep capabilities and aim to scale up and internationalise.  Having a strong core of such enterprises will anchor Singapore’s future growth, generate the kinds of jobs that we want Singaporeans to have and create value for our economy, while ensuring that we remain competitive within the context of the global economy.   

7.                        Hope Technik, which won the Emerging Enterprise Award in 2012 for its strong spirit of innovation, exemplifies this aspiration.  An engineering company, Hope Technik started off in 2006 with a focus on specialised vehicles.  However, as the demand for robotics grew, the company started developing new technology to apply robotics in various sectors.  SPRING extended the Capability Development Grant to help Hope Technik build new technical competencies, and supported the company to scale up its solutions for new segments such as healthcare, logistics, and semiconductors.  These efforts culminated in Hope Technik launching in the first quarter of this year its subsidiary company, SESTO Robotics, focusing on intelligent automation. 

8.                        At the same time, Hope Technik wanted to unlock new overseas markets in China.  To support its internationalisation efforts, it took part in three of IE Singapore’s business missions to better understand the Chinese market.  IE also helped the company establish its first overseas office last month in the Singapore Manufacturing Innovation Centre, located in Guangzhou Knowledge City. 

Enterprises must adopt differentiated strategies for growth

9.                        To rise above the competition in the current business environment, our enterprises must adopt differentiated strategies for growth. 

10.                     Firstly, they must be prepared to develop new capabilities and harness innovation to capitalise on emerging trends in their sectors.  This can include mastering new digital platforms, or employing non-traditional business models that allow them to better adapt to the changing environment.

11.                     Secondly, we want our companies to be geared to internationalise earlier rather than later in their development.  Across Asia today, we are seeing rapid urbanisation, a rising middle class with its attendant demands, which offer significant opportunities for enterprises that venture abroad.  In order to seize these opportunities for growth, it is important that our SMEs and startups plan for international growth from the very get-go, and equip themselves with an in-depth knowledge of their target markets overseas and the networks they want to develop.

12.                      In today’s dynamic economic environment, strategies to develop capabilities and to internationalise must be implemented in tandem.  We cannot segregate, or take a linear view, of an enterprise’s need to, on the one hand, upgrade, innovate and transform, and on the other hand, the need to internationalise and grow.  As emphasised in the report of the Committee on the Future Economy (CFE) earlier this year, the capacity to innovate, harness new technologies, scale up, and internationalise are deeply intertwined for all our companies, regardless of their scale or stage of development.

Enterprise Singapore will provide more comprehensive support for enterprises to seize new growth opportunities

13.                     It is in response to these trends that the Government is also adapting its programmes and, where necessary, reorganising itself to better serve our enterprises.  Earlier this month, I announced the formation of Enterprise Singapore through the merger of SPRING Singapore and IE Singapore.  Enterprise Singapore will build on the strengths and networks of both agencies to provide comprehensive support to our local enterprises in their efforts to innovate, scale up, and go overseas.  Through Enterprise Singapore, SMEs and startups will benefit from the capability development support that has been provided by SPRING, while growing their international footprint through IE’s wide network of overseas centres.  The integration of these two agencies will allow us to better meet the evolving needs of industries and businesses today and also groom our next generation of local champions.

14.                     Several of the finalists for this year’s Emerging Enterprise Award have benefited from the Government’s assistance in their efforts to develop capability and to internationalise.  I want to highlight a couple of examples.

15. The first is Castlery, an online furniture startup which was founded in 2013.  SPRING supported Castlery in its operational expansion efforts to build a warehouse management system through its Capability Development Grant.  As a result, Castlery reaped significant improvements in warehouse efficiency, including manpower savings and improvements in overall sales output per worker.  Building on this strong foundation, IE worked with the company to expand into the region.  IE teams in Singapore and Australia coordinated to provide market insights and data, and help Castlery to establish a showroom in-market.  IE further supported the company with the Global Company Partnership Grant to localise its brand and hire suitable talent.  These collective efforts culminated in faster growing sales and Castlery's successful launch in Sydney in July this year.  

16.                     With the set-up of Enterprise Singapore, companies such as Castlery would be able to access a comprehensive range of support in capability development and internationalisation concurrently, thereby propelling their growth in a highly competitive market segment.

17.                     The second example I want to cite is Pixel Automation, an SME which specialises in the design and building of industrial automation systems.  In 2016, with support from SPRING’s Capability Development Grant, the company launched a flexible and scalable smart manufacturing system based on modular “cells” that enable rapid creation of different products by switching out machine parts.  This significantly reduced the time and cost compared to traditional methods such as getting new machines or building manufacturing lines from scratch.  In the same year, Pixel Automation participated in IE’s business missions to China and Germany, which helped the company gain valuable market exposure, source for new technology, and better understand how its solutions could be customised to the needs of the international market.   

18.                     These examples show how our companies have benefitted from SPRING and IE’s good work over the years.  Moving forward, by integrating capability development and internationalisation efforts, Enterprise Singapore will be in a better position to provide comprehensive support and champion the growth of enterprises in today’s economic environment.

19.                     Enterprise Singapore will also deepen its partnerships with industry stakeholders, Trade Associations and Chambers (TACs), educational institutions and unions.  In particular, it will work closely with the Economic Development Board (EDB) to drive collaborations and partnerships between multinational corporations, innovative startups, as well as large and small local enterprises.  In other words, to bring the enterprise ecosystem closer together in a symbiotic relationship.

20.                     To catalyse co-innovation partnerships involving MNCs, SMEs and startups, EDB and Enterprise Singapore will tap initiatives such as the Partnerships for Capability Transformation, or PACT, for knowledge transfer, capability upgrading and co-development of new solutions between the parties.  By integrating the resources and capabilities of SPRING and IE, Enterprise Singapore can now facilitate business and partnership opportunities for our SMEs and startups locally and overseas through a single touchpoint.

21.                     As we continue to drive the transformation of industry in Singapore, Enterprise Singapore will enable us to respond more quickly and flexibly to change, as well as position ourselves and our enterprises for new growth opportunities.  I want to emphasize that this is not a journey that is to be undertaken by Enterprise Singapore, or the Government, on its own – a point that we have emphasized on many occasions at different fora.  In order to realise successful economic transformation, and to unlock future growth for Singapore, we will need the support and active participation of all stakeholders – industry, enterprises, TACs, educational institutions, unions, workers, and all of you. We look forward to your support because it is only by applying ourselves collectively to this important task that we can secure Singapore’s future, economic competitiveness and growth.

Conclusion and congratulatory message

22.                     Tonight’s award ceremony is an excellent example of how the business community can play a significant role, by recognising and celebrating high-growth enterprises and startups in Singapore, and sharing their experience and best practices with others.   Once again, I want to applaud the efforts of The Business Times and OCBC Bank who have been behind this effort from the start and is an example of how the privates sector can come together to enhance the possibilities for our enterprises.

23.                     I am also encouraged to see that this year’s Emerging Enterprise Award has introduced a series of new initiatives aimed at helping business owners learn how to unlock the value of their brands and businesses, pick up best practices in e-commerce to boost their online businesses, and learn crucial presentation tips.  These initiatives will help our companies to strengthen their digital capabilities and become future-ready.

24.                     I want to applaud all of you on this important effort and offer my congratulations to all finalists and award winners.  I wish you every success in your ventures as you take your businesses to new heights.  Thank you.