Distinguished Guests
Ladies and Gentlemen
Good Afternoon
Welcome Remarks
1. I am delighted to join you at the 2024 Singapore Heartland Enterprise Summit.
2. Since 2014, the Summit has become a valuable platform for heartland businesses and industry experts to network, share insights on emerging trends and spark new ideas.
3. I am glad to hear from FMAS that over 300 heartland enterprises, are attending the Summit this year, a 30% jump from 2023. This is a positive reflection of our vibrant heartland business landscape.
4. In line with today’s theme, “Innovate and Elevate: Fostering Collaboration and Partnership,” I would like to highlight two key areas for heartland enterprises to consider to stay relevant and get ahead: transforming and innovating for the future.
Transforming heartland enterprises and building digital capabilities
5. In recent years, heartland enterprises have made significant progress in transformation, especially in digitalisation. Today, more than nine in ten heartland shops across Singapore offer at least one e-payment solution, while about two-thirds have adopted digital tools and platforms such as Google Business Profiles, Carousell and Shopback.
CDC Vouchers drive digital transformation in heartland businesses
6. The drive towards digital transformation has also gained speed and traction with the pervasive use of CDC vouchers, which are claimed and redeemed digitally. Two days ago, DPM Gan announced the distribution of the fifth tranche of CDC Vouchers. In less than two days more than 650,000 Singaporean households have claimed their June 2024 CDC Vouchers, more than 50 per cent of our 1.31 million Singaporean households.
Across the first 4 tranches of CDC Voucher Scheme, more than $1.1 billion of CDC Voucher have been spent at participating hawkers, heartland merchants and supermarkets.
7. In fact, since December 2021, or within 2.5 years, the CDC Voucher Scheme has catalysed close to $650 million of spending in participating heartland merchants and hawker stalls. By the end of this year, we expect this amount to rise to more than $900 million dollars of CDC Vouchers spent at participating hawkers and heartland merchants.
At the same time, the number of heartland shopkeepers and hawkers on board the CDC Voucher scheme has grown steadily with the use of the vouchers. Today, the scheme has more than 23,000 participating hawkers and heartland merchants.
Many participating hawkers and heartland merchants have shared with us over the last two years through dialogues and events that the CDC Vouchers have nudged them onto digital platforms, and joining the scheme has boosted their business and customer reach.
Keep up the momentum - Heartlands Go Digital
8. I encourage all our heartland enterprises to keep up the momentum of digital transformation. For instance, the Heartlands Go Digital (HGD) Programme [邻里企业数码化计划] has received positive feedback and good responses from heartland businesses seeking to upgrade their digital and manpower capabilities.
9. One of these enterprises is Kreme Café. Its second-generation owner, Elijah Tan, applied to the HGD Programme to optimise the café’s storefront and appeal. The Visual Merchandising Programme is an important programme that helped rejuvenate the shopfront. Under the programme, he transformed the traditional heartland bakery into a modern café, which attracted younger customers. Kreme Café also adopted e-payment solutions, accounting for over a third of the café’s transactions. Additionally, Elijah sought Heartland Enterprise Centre Singapore (HECS), business advisory and training to assess and improve the shop’s digital capabilities and service. This business transformation has injected a fresh look and brought new customers to Elijah’s café.
10. Like Kreme Café, 700 heartland enterprises benefited from HECS in 2023. They received strong support to upgrade their capabilities in areas such as digital marketing, service excellence, and financial management.
Innovation is critical to staying ahead
11. Besides transformation, the other key area that heartland enterprises must continue to ramp up is innovation. Innovation keeps a business agile, relevant and competitive. Our heartland enterprises can keep up with changing consumer preferences and emerging trends by continually creating new products and services or evolving fresh business concepts.
12. To encourage our heartland enterprises to innovate their products or business models, we launched the Heartland Innovation and Transformation (HIT) Programme [创新在邻里计划] last year. As a result, several enterprises will showcase their novel products and services at the Ang Mo Kio Town Centre at the end of this year.
13. We can look forward to some exciting and creative concepts and products.
a. For example, Project Enigma, a retail kiosk in Ang Mo Kio, will showcase its 3D-printed mechanical puzzles and science toys that promote cognitive agility. Besides starting a puzzle museum and library at Henderson Community Club, the enterprise runs community workshops to boost brand awareness and additional income streams.
b. AJ Delights is another enterprising heartland shop. It sells delicious, sustainable muffins baked with leftover okara and sesame husks. Besides reducing food waste, muffins are marketed as a healthy food option.
14. Another recent initiative to help heartland enterprises innovate is the Heartland Enterprise Placemaking Grant [邻里企业社区营造计], which encourages merchants to collaborate, host community engagement events and thematic festivals. These activities can attract more footfall and business in the heartlands. As a start, Enterprise Singapore organised the Rasa Gombak Day Out at Bukit Gombak Neighbourhood Centre in April this year. Besides showcasing new products, services and experiences, the 3-day festival was a pilot for testing new concepts to enhance neighbourhood vibrancy and attract new customers to the heartlands.
15. We are creating many opportunities and avenues for heartland enterprises to explore, experiment and innovate.
16. Last year, the Wunderground festival, organised by the Singapore Retailers Association, fostered new ideas, facilitated cross-industry and cross-precinct collaborations within the retail and F&B sectors, and featured collaborations between homegrown retail and lifestyle brands.
17. One of the enterprises showcased at Wunderground was Heng Foh Tong, a local traditional Chinese medicine specialist. It introduced its new range of herbal teas and co-creations like herbal-scented pouches and popsicles. Since then, it has partnered with Fairprice Xtra to launch its products and brand kiosk at Fairprice Xtra Jurong Point.
Commitment from Government
18. You have the Government’s strong commitment and support for your transformation journey. As part of “Our Heartlands 2025” vision [2025 邻里新天地], we are:
a. One, deepening the digital and manpower capabilities of heartland shops;
b. Two, upgrading the capabilities of our trade associations and chambers (TAC) partners and
c. Three, revitalising the heartlands and heartland shops to attract more customers.
19. We will not let up our efforts. Beyond the “Our Heartlands 2025” initiative, we work closely with FMAS on precinct rejuvenation projects and support FMAS’ flagship events, such as today’s Singapore Heartland Enterprise Summit. In addition, we also support the Singapore Heartland Enterprise Star Award (SHESA) to recognise outstanding and promising heartland enterprises.
Addressing the audience in Mandarin
20. Let me now say a few words in Mandarin.
21. 前天，我们刚宣布发放第5轮$300 元的社理会邻里购物券，在两天以内，就已经有超过65万户家庭领取，占总数的将近一半。这其中的$150元能够在邻里商店和小贩摊位使用，加上第4轮的$250元，总共有$400元，也就是说单单在今年，政府总共为我们的邻里商店和小贩摊位，提供了大约5亿2千万元领里购物券的支持。
22. 在邻里购物券计划实施的两年多以来，有大约6亿5千元是在邻里商店和小贩摊位消费，到了今年底，在邻里商店和小贩摊位的消费，预计将达到9亿元。希望大家善用这个计划。
23. 近年来，随着消费者的购物方式和习惯持续变化，邻里企业也必须不断跟进，才能取得更大的业务增长。正如今年峰会主题所提倡的主题：“创意无限，飞跃新高”，我希望邻里企业通过三点建议，继续创新，为邻里社区注入新的活力。
24. 首先，邻里企业必须持续数码化的步伐，积极转型。自从新加坡企业发展局，和新加坡邻里企业中心推出“邻里企业数码化计划”以来，许多邻里企业通过这项计划，加强了数码能力。数码化可以有效地帮助邻里企业增加收入，提高运营效率，降低成本，并扩大客户群。我们很高兴和大家分享，在十家邻里企业当中，就有九家已经采纳了电子收费。三分之二的邻里企业也采用至少一种数码工具平台，例如Carousell 或是 Shopback。
25. 第二，邻里企业可以通过“创新在邻里计划”，研发并测试新的商业方案。刚才提到的Project Enigma就是个很好的例子。Project Enigma通过“创新在邻里计划”推出了3D打印的益智拼图产品，不仅提高了品牌的知名度，还在亨德逊民众俱乐部开设了拼图博物馆，定期举办工作坊等等，开拓了新的收入渠道。消费者目前更加注重整体的购物体验，邻里企业必须不断创新，讲好品牌故事，为顾客带来难忘的消费体验。
26. 第三，政府将继续和新加坡商联总会紧密沟通与合作，共同推出实际、可行，并且有效益的方案。今年新推出的“邻里企业社区营造计划”，就是希望通过计划，鼓励邻里企业携手举办社区活动，带动邻里中心的人流，吸引更多居民前往消费。
27. 最后，衷心感谢今年峰会的主办方，新加坡全国商联总会，在促进邻里企业和邻里中心发展方面所做出的重大贡献。政府为振兴邻里投入了许多的资金和资源，希望大家更积极地善用企发局、社理会的各项计划，开启和持续您的转型过程。
Closing
28. I encourage our heartland enterprises to take advantage of Enterprise Singapore's various programmes and support to keep innovating and stay ahead. To chart your transformation journey, you can also seek HECS for business advice and assistance.
29. Thank you to FMAS for organising this Summit and partnering with us to champion and propel our heartland enterprises to greater heights.
30. I wish all of you an enriching and successful Singapore Heartland Enterprise Summit! Thank you.