Questions:
Mr Thomas Chua: To
ask the Minister for Trade and Industry (Trade) (a) what has been the
performance of Singapore's trade in services compared to trade in goods,
especially in the context of the weak performance of the latter; and (b) how
can the Government further help SMEs to export their services.
Mr Thomas
Chua: To ask the Minister for
Trade and Industry (Trade) how can the Government better help the micro and
small SMEs to venture overseas to tap a bigger market so that they can continue
to grow.
Written answer:
- Growth in Singapore’s services trade has
outpaced that of goods in recent years. Between 2010 and 2015, services exports
grew by a robust compound annual growth rate of 6.9 per cent, compared to a 0.1
per cent decline in goods exports. While services exports growth has moderated
since 2015, this was in line with the weakening global trade environment, and largely
attributable to the slowdown in segments supporting goods trade, such as
freight services. Growth remained resilient in segments such as insurance
services, and telecommunications, computer and information services, which
continue to see regional demand.
- Singapore has a broad network of Free Trade
Agreements (FTAs) and regional initiatives that help companies tap into
external demand for our goods and services. For example, the ASEAN Economic
Community (AEC) allows our services exporters greater market access to the ASEAN region with restrictions lowered in
more than 80 services sectors. The AEC’s continuing efforts to facilitate,
protect and liberalise cross-border investments enable our companies to venture
into the region at lower costs and with greater assurance.
- Singapore also has a suite of assistance
schemes that help SMEs internationalise and trade with overseas markets. This
includes the Market Readiness Assistance (MRA) and the Global Company
Partnership (GCP) schemes administered by IE Singapore. The MRA provides
broad-based assistance to companies that are starting to internationalise,
while the GCP provides targeted assistance to companies with a more established
overseas presence. The GCP covers capability and manpower development, market
access and financing. Over 80
per cent of the beneficiaries of these assistance measures are SMEs.
- The Government is also collaborating with
Trade Associations and Chambers to help SMEs prepare themselves for overseas
opportunities. The IE-SCCCI Singapore Enterprise Centre (ISSEC) in Shanghai
which is a joint initiative between IE Singapore and the Singapore Chinese
Chamber of Commerce & Industry is an example of such collaboration. Over
the past 3 years, ISSEC has served more than 5,000 companies through outreach
and advisory assistance, and provided research on emerging market opportunities
in China. The companies assisted by ISSEC are predominantly SMEs and micro
enterprises. ISSEC will be going beyond Shanghai to help such firms build up
market expertise and capabilities in other parts of China.
- 5.IE Singapore also has an extensive network of
Overseas Centres internationally that provides targeted assistance for
companies in both developed and emerging markets. These include helping them
generate new business leads in Southeast Asian markets such as Indonesia and
Myanmar, gaining entry as first movers in emerging markets such as Africa and
Latin America, and identifying opportunities to enhance technology capabilities
in developed markets such as the UK and US.
- Companies need the right talent to embark on
internationalisation plans – people who have global mindsets, exposure to
international business environments, in-depth understanding of industries, and
ability to navigate markets. To build a pipeline of global-ready Singaporeans
for international roles, manpower development programmes are also in place. For
example, IE Singapore’s Young Talent Programme exposes students from
universities, polytechnics and ITEs to internship opportunities in overseas
markets, and equips them with foundational skills needed for international
careers. Skillsfuture Study Awards for International Business
are also given out to prepare professionals, managers and executives for
international roles through various courses, market attachments and customised
overseas immersion programmes.