SPEECH BY MR LIM
HNG KIANG, MINISTER FOR TRADE & INDUSTRY, AT THE
LOCAL ENTERPRISE AND ASSOCIATION
DEVELOPMENT (LEAD) PROGRAMME FORUM: “SHARING PRIVATE
SECTOR-LED INDUSTRY DEVELOPMENT INITIATIVES” AT
9.30 AM
ON
WEDNESDAY 19 JULY
2006, AT THE GRAND
COPTHORNE WATERFRONT HOTEL
Distinguished Guests,
Ladies and
Gentlemen,
Good
morning.
Introduction
It gives me
great pleasure to be here with you at this Local Enterprise and
Association Development or LEAD Programme Forum. The LEAD Programme
was launched in May last year to accelerate the building of a
strong base of industry associations to lead industry development
efforts.The aim of today’s forum is to build on the efforts of last
year’s forum, as well as to provide updates and familiarise more
associations with how the LEAD programme can work for
you.
Creating Vibrant Industries through Strong
Industry Associations
Our basic
premise for starting the LEAD programme is that strong industry
associations have been shown to form part of the backbone for
vibrant industry clusters, and ultimately, a competitive economy.
Industry associations are in the best position to know the current
trends and business needs of their industries.Having direct links
with the industry also allows associations to identify potential
issues quickly and to collectively act in a timely
manner.
Strong industry associations are not only able to help
their members improve their capabilities.They can also undertake
more value-adding initiatives for their members.For example,
in Japan, the Japan
Automobile Manufacturers Association or JAMA plays a strategic role
in growing the overseas market shares of Japanese automobile
industry members.In the ASEAN region, JAMA helps its members deepen
ties with local partners through regular dialogues and technical
assistance initiatives such as the Experts Dispatch Programme. JAMA
will be sharing their experience at this Forum, and I hope the
trail they have blazed will be a source of inspiration to you as
well.
Thus, our aim in launching LEAD is for industry
associations to adopt a holistic view.First, identify existing
industry gaps and future trends, and then propose strategies to
grow your industries. The Government will evaluate proposals based
on economic parameters such as revenue and VA contributions,
employment creation and the number of local enterprises benefiting
from the project.Other evaluation factors include the ability of
the association to implement the proposals.
Update on LEAD
Programme
I am happy to say that LEAD has received good response thus far, with many
aspiring industry associations heeding our call to put up their
industry development plans.The Government and the industry
associations have jointly committed $60m to invigorate 10 strategic
industries.When fully implemented over
the next three years, these proposals are expected to create 6,500
new jobs, as well as generate $1 billion in VA and$2.5
billion in revenue.Let me
highlight some key initiatives for three of the approved proposals.
The
Singapore Furniture Industries Council or SFICwill be developing
its industry’s capabilities in design, marketing, branding and
internationalisation. In fact, the SFIC has acquired a building at
Sungei Kadut to develop the International Furniture Centre, which
will be a permanent furniture showroom targeted at international
buyers.
Second, the
Singapore Food Manufacturers’ Association or SFMA has started its
SME and Export Clubs, and is setting up the Food Innovation and
Development Centre and the Information Resource Centre.These four
platforms will help food manufacturers to upgrade capabilities,
develop new products and gain access to overseas
markets.
Third, the
Textile and Fashion Federation or TaFf is working to improve its
members’ productivity and enhance their design capabilities. One
key project is the Productivity and Design Development Centre
(PDDC), where industrial engineers will provide training and
consultancy services to local manufacturers. This will help enhance
manufacturing processes and improve production
efficiency.
Besides
these three, several other industry associations have also
successfully applied for LEAD funding, including the Print and
Media Association, Singapore (PMAS), the Singapore Infocomm
Technology Federation (SiTF) and theSingapore Chemical Industry Council
(SCIC).Three other associations, namely
the Singapore Precision Engineering and Tooling Association
(SPETA), the Restaurant Association of Singapore (RAS) and the
Association of Process Industry (ASPRI), will be sharing their key
LEAD initiatives this morning.
Fostering Collaboration among
Associations
Let me now move on to collaboration among industry
associations.We have seen many examples of how industries and
enterprises in other countries, such as Taiwan and
Japan, put aside their
differences to collaborate and achieve greater collective benefits.
We would like to see more of this happening in the
Singapore context.
I am therefore pleased to note that we have
approved a joint LEAD proposal from three of our logistics
associations, namely the Container Development Association
(Singapore) (CDAS), the
Singapore Logistics Association (SLA) and the Singapore Transport
Association (STA).These associations are working together to
improve the productivity of our land logistics sector and make our
trans-shipment port globally competitive.I hope that the logistics
association consortium will inspire more associations and
enterprises to seek partnership opportunities and I look forward to
seeing more of such industry collaborations.
One key area
identified in several of the LEAD proposals is the development of
manpower capabilities.I have also often heard feedback on this
during my meetings with various industry
associations.
Therefore, I am
happy to announce that SPRING and WDA are jointly launching the SME
Training for Enhanced Performance and Upgrade, otherwise known as
the Step-UP programme.Under Step-UP, SPRING and WDA will identify
and plug training gaps, while emphasising industry and occupational
skills that are immediately applicable to the
workplace.
For a start,
SPRING and WDA will work with the industry associations supported
under LEAD to identify industry-relevant courses. SMEs
participating in Step-UP will enjoy enhanced course fee support
through the Skills Development Fund. We expect some 600 workers
from about 100 SMEs to benefit from Step-UP in the first
year.
Conclusion
For
industries to sustain growth, we need to continually upgrade our
capabilities, seize new opportunities and serve our customers
better.I encourage all associations present to make use of this
forum to learn from the plans and experiences of your peers, and to
pick up useful pointers on developing strategies for your own
industries.Under the stewardship of our associations, our
industries will be able to scale greater heights and be
well-positioned to capture new opportunities, create new value, and
generate meaningful jobs in Singapore.
With that, let me
conclude by wishing everyone a fruitful time at this morning’s
forum.Thank you