Mr. Kho Choon Keng, President, Singapore Chinese Chamber of Commerce & Industry,
Distinguished guests,
Ladies and gentlemen,
Introduction
A very good morning to all.
I am delighted to be here for the opening of the 27th SME Infocomm Commerce Conference (SMEICC) 2024.
The massive turnout we see here today is a testament to SMEICC’s continued relevance to the local SME community, as a platform to network, exchange knowledge and collaborate.
2. This year’s conference theme – “Navigating Change Today: Embrace (接纳). Overcome (克服). Grow (成长)”, is particularly apt in today’s more volatile context.
Businesses need to be proactive and forward-moving to stay competitive, relevant and resilient.
I would like to share some ways we can navigate such change based on these themes.
3. As a small and open economy, we are often not spared from external trends.
Amid a more fragmented geopolitical landscape, we contend with shifting supply chains, trade and investment flows.
With zero carbon now an imperative and key driver of our economy, Singapore and businesses will have to ride the green transition.
We need to adapt to the rise of disruptive technologies such as Generative Artificial Intelligence (GenAI) or risk being left behind.
Domestically, we face rising energy prices and financing costs in recent years, which have contributed to higher business costs.
Embrace Today’s Challenges as Tomorrow’s Opportunities
4. Despite the global uncertainties and challenges faced, we are not passive recipients of change.
We can first, choose to embrace today’s challenges as tomorrow’s opportunities for growth.
It is encouraging to see from SCCCI’s 2023 Annual Business Survey findings, that our SMEs have started to take a 化险为夷 attitude towards today’s challenges.
More of our SMEs are pushing to internationalise, tapping on complementary opportunities in Southeast Asia to expand productive capacity, access new markets, near-shore and diversify sourcing options.
5. Indeed, ASEAN has emerged as a beneficiary amid reconfiguring global supply chains.
Our region’s young and dynamic population, economic diversity and strategic location have made us a compelling location for businesses seeking to diversify their supply chains, invest and grow their market share.
Of note, Foreign Direct Investment (FDI) flows into Southeast Asia have remained robust, even as global FDI flows experienced a decline.
6. To capitalise opportunities in our region, our Trade Associations and Chambers (TACs) are key partners you can leverage to tap on their extensive business networks and strategic partnerships forged with regional partners and chambers.
a. For example, the establishment of a Joint Steering Committee for Cooperation and Consultation (JSCCC) between SCCCI and the Associated Chinese Chambers of Commerce and Industry of Malaysia in January this year will facilitate more areas of collaboration and investment opportunities in Singapore and Malaysia, which members can explore.
b. TACs’ SME Centres are also a good start point for practical advice on how your business can better leverage such partnerships and Singapore’s network of Free Trade Agreements.
There are also other advisory services on available government support schemes, productivity and digital solutions, capability development, expansion and financing options.
c. Beyond ASEAN, SMEs can tap on SCCCI’s strong presence and networks in China, through GlobalConnect@SCCCI and its Enterprise Centres, to gain valuable in-market insights and accelerate entry into the Chinese market.
Overcome Constraints and Capture Green Growth Opportunities by Focusing on Niches
7. Second, to capture green growth opportunities and overcome constraints, there is value in focusing on niches.
Even as an alternative energy-disadvantaged island-state, there are opportunities in niche areas where Singapore can capture green growth.
With our strengths as a strategic trading hub for commodities and energy products, strong professional and financial services ecosystem, deep talent pool and a choice location for MNCs seeking to decarbonise their operations, Singapore is well-poised to capture opportunities in carbon services and trading within the region and beyond.
8. In a similar vein, SMEs, which operate on a smaller scale than larger enterprises, have immense potential as well.
Being small enables them to have greater agility and resourcefulness in responding to emerging trends.
These can be useful advantages to seize opportunities in niche areas within the green economy that are underserved by larger corporations.
9. In the carbon services and trading sector, the Environmental, Social and Governance (ESG) assurance and disclosure space is a promising area where SMEs can develop their niche and competitive edge.
ESG is growing in importance amid rising demand for advisory services and sustainability reporting support.
Sustainability reporting is also fast becoming a critical capability that large corporations look out for in supplier selection.
Furthermore, consumers and investors are becoming more environmentally conscious in their preferences.
SMEs that can meet this growing demand and grow their green capabilities would be well-positioned to differentiate themselves from competitors and do well.
10. Hence, I strongly encourage you to start investing in developing sustainability capabilities.
We have several schemes available to help you along and will continue to enhance these support measures to encourage adoption.
a. Apart from the Enterprise Sustainability Programme, which SMEs can leverage for financial assistance and courses to build their sustainability capabilities and embark on sustainability projects, we also enhanced the Energy Efficiency Grant this year to help local companies invest in energy efficient equipment.
b. We also want to empower all SMEs to capitalise on sustainability as a competitive advantage, by taking your first steps towards sustainability reporting.
Gprnt was launched by MAS last year as a digital platform to simplify the sustainability reporting process for all SMEs.
Gprnt is gradually being rolled out to the industry and interested SMEs can approach Gprnt to find out how you can get started on sustainability with them.
Tap on Technology to Grow Productivity and Performance
11. Third, in navigating a more complex, high-cost environment and the sustainability transition, technology can help.
New technologies, particularly AI, offer opportunities for SMEs to grow their productivity and performance.
a. AI-enabled solutions or tools can help businesses reap time-savings, bring down operational costs and grow revenue.
For example, by integrating AI in business operations, processes can be further optimised for greater productivity and cost-effectiveness.
b. Beyond cost reduction and operational efficiency, AI can also play a pivotal role in driving business growth by fostering product and service innovation and enriching the customer experience.
This not only creates further value, but also opens new avenues for growth.
Take for example, Ednovation, an early childhood education provider with a network of more than 70 pre-schools and enrichment centres in Singapore, China and ASEAN countries.
The company has transformed its content delivery by integrating AI into its preschool curriculum with the development of EdnoAI, an age-appropriate chatbot with voice activation that children can use to learn about anything they are curious about.
These AI tools create an enjoyable and interactive experience for young children, enhancing knowledge retention in the process.
These tools have enabled its Kindergarten 1 students to improve their word recognition skills by ~50% after one month of use.
c. Additionally, AI can be a useful tool to harness your full business potential.
I earlier talked about carving out niches in sustainability, particularly in the ESG domain.
This is a potential area where AI can be applied too.
For instance, new technology can be used to measure businesses’ carbon footprint, enable real-time data analysis, generate useful insights and monitor abatement commitments for emissions verification.
12. I am glad that our TACs, like SCCCI, recognise the importance of embracing new trends, as exemplified by the recent opening of the Trade Association Committee (or TACOM) Transformation Centre at the Trade Association Hub @ Jurong Town Hall in August.
Congratulations! This milestone is a good example of our TACs taking the lead in upgrading themselves and growing their capabilities to better serve the needs of members and adapt to new realities.
a. Supported by Enterprise Singapore, the TACOM Transformation Centre will help uplift the secretariat capabilities of local trade associations, particularly in key domains such as internationalisation, digitalisation, sustainability and advocacy.
This will empower them to better drive industry transformation through their own initiatives.
b. It will also leverage SCCCI’s suite of holistic offerings, to help our TACs grow and transform through targeted roadmaps and solutions tailored to meet their unique needs.
c. With a strengthened TAC ecosystem with uplifted capabilities, our SMEs can look forward to more relevant, effective support to meet their growth needs.
Closing
13. In closing, let me say a few words in Mandarin.
我们必须在瞬息万变的商业环境中, 继续求新求变, 精益求精, 探索新的合作机会。
通过迎接挑战, 克服自身局限, 并善用科技来提升效率, 我们能把障碍转化为增长机遇。
政府与商会和商团(TACs)致力于支持企业转型, 并将提供所需资源, 协助企业蓬勃发展。
让我们继续携手合作, 开拓新商机, 为我国打造一个可持续发展的未来。
14. Thank you very much, and I wish everyone a fruitful and enriching conference ahead.