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Speech
|
10 JUL 2007
Mr Lim Hng Kiang at the International Enterprise Forum 2007
Mr Lim Hng Kiang at the International Enterprise Forum 2007
OPENING ADDRESS BY MR LIM HNG
KIANG, MINISTER FOR TRADE & INDUSTRY AT THE
INTERNATIONAL ENTERPRISE FORUM
2007, ON 10 JULY 2007,
0910 HRS
Distinguished guests,
Ladies and Gentlemen,
Good morning.
It gives me great pleasure to be here with you for the opening of International Enterprise Forum 2007.
Steering Ahead for Global Growth
The theme for this year’s forum, ‘Steering Ahead for Global Growth’, reflects our confidence in global market opportunities. Last year, the world economy expanded by 5.4%1 while global trade volumes grew at 9.2%2. Many key economies are expected to perform well this year. The ASEAN region is pegged to grow at 5.5%; China at 10%, and India at 8.4%3.Russia, Latin America and the Middle East are expecting brisk growth4. There is also good promise for the more mature markets of EU, Japan and the US5.
Singapore is well-positioned to capture these global opportunities.
Singapore-based companies have built up a strong international presence over the years. This can be seen by our growth in trade and overseas direct investments, key components of our external economy.
Over the last decade, the value of Singapore’s external trade doubled to reach S$810 billion in 2006. Last year, total trade grew by 13%, and we were the fifth largest exporter in Asia.
Singapore-based companies have also been steadily increasing their investments overseas. Outward direct investment stock increased almost four times from S$56 billion to S$196 billion over the last decade, growing by an average 13.4% per year. While Singapore investors have traditionally invested in ASEAN and the wider Asia region, they are beginning to look further afield in emerging markets such as the Middle East and Russia.
We are also continuing our efforts to expand Singapore’s economic space overseas, with our network of Free Trade Agreements, or FTAs. Last year, over S$470 million of FTA tariff savings was achieved. FTA negotiations with China and the Middle East were launched.We also stepped up our FTA outreach efforts. Ultimately, FTAs translate into more trade and investment opportunities for Singapore-based companies.
Challenges of internationalisation
Increasingly, internationalisation will become a crucial part of enterprises’ growth strategies. Companies typically have to overcome three key market challenges to succeed overseas. These are: differentiating from competition, establishing market linkages, and developing market knowledge and expertise. These issues are especially pressing for SMEs, due to their limited resources and less experience in venturing overseas. Let me elaborate on these challenges.
Differentiating from Overseas Competition
First, differentiating from overseas competition. In the face of increasing global competition, Singapore companies need to present compelling value propositions to gain mindshare and sustain growth.
One way that Singapore companies can create a competitive advantage is by offering one-stop, integrated solutions. IE Singapore’s International Partners, or iPartners Programme, launched in 2003, encourages such collaboration. One of our most successful alliances, the SingaporeBuilding and Infrastructure Consortium, has clinched over S$220 million worth of projects in the Middle East since starting out two years ago.
Formation of three new consortiums supported under iPartners
Today, I am glad to announce the formation of three new iPartners consortia, which are expected to generate S$88 million worth of overseas sales over the next five years.
(a) The Singapore Supply Chain Solutions Consortium is led by Autoscan Technology Pte Ltd and also comprises Maventree Technology Pte Ltd and GT&T Engineering. It aims to secure supply chain e-solutions projects in China, Malaysia and Thailand.
(b) The Singapore Homefront Security Consortium comprises anchor company PCS Security Pte Ltd, with partners Teleradio Engineering Pte Ltd, Win Win Digital Security Pte Ltd and X-Bio Pte Ltd. It is targeting vehicular and immigration related security projects in China, the Middle East and India.
(c) The third alliance is the Singapore eGovernment Services Alliance, which will offer a full range of IT services to Governments in the Middle East. This alliance is led by CrimsonLogic Pte Ltd, with members Ditium Technologies Pte Ltd, Elixir Technology Pte Ltd, V3 Teletech Pte Ltd and RSTN Consulting Pte Ltd.
With the formation of these new alliances, we now have a total of 29 iPartners consortia comprising 150 companies. These consortia are expected to generate over S$2.9 billion in overseas sales by 2011. We encourage more companies to consider forming strategic alliances as a competitive advantage in securing overseas projects.
Establishing Market Linkages
The second challenge that companies face when venturing overseas is establishing effective market linkages. Operating in unfamiliar environments, having reliable and competent local partners is vital. The search for such partners, however, can be a long and costly process. To facilitate market connections, the Government provides supporting platforms such as business missions and the BuySingapore portal.
Launched last November, the BuySingapore online business matching portal provides a listing of close to 100,000 Singapore-based companies. To date, BuySingapore has also attracted more than 9,000 foreign leads.
Chinese version of BuySingapore website to target China market
The website has enjoyed good traffic, with its overseas visitors coming mainly from China and the US. To enhance the global reach of the website to Chinese-speaking business communities, IE Singapore will officially launch the Chinese version of the BuySingapore website at this forum tomorrow.The aim of this enhancement is to increase the number of overseas leads generated through the portal.
Building up Market Knowledge and Expertise
The third challenge that companies face when venturing overseas is developing market knowledge and expertise. These are critical factors at every stage of a company’s expansion overseas, to ensure its operations, as well as its products and service offerings are in tune with market conditions. I am pleased to share two key initiatives today – the International Business Fellowship Programme and the iadvisory Portal.
S$10 million to train 2,000 individuals by 2010 in key markets
The Asian Business Fellowship Programme, or ABF, has been supporting the development of market expertise in China, India, Vietnam and more recently, the Middle East. Since its launch in 2001, this programme has trained over 900 executives from 100 organisations.
Moving forward, IE Singapore is expanding the programme to support the development of talents familiar with other emerging markets such as Central Asia and Russia. To better reflect its geographical coverage, the ABF Programme will be renamed ‘International Business Fellowship (IBF) Programme’.At least S$10 million will be set aside over the next four years to groom a pool of 2,000 individuals with in-depth knowledge of doing business in key emerging markets.
Expert advice at your fingertips with the launch of iadvisory Portal
Another source of market expertise that companies can tap on is external advisory. One company that has benefited from such advisory is Loy Kee Pte Ltd. Leveraging on the knowledge and market linkages of consultancy firm Asiawide Franchise, Loy Kee has successfully introduced their famous chicken rice to the Indonesian market.
To increase companies’ access to advisory services, I am happy to announce the launch of the new iadvisory Portal. Through the portal, companies will be able to connect directly to international experts, post questions, and obtain advice for their overseas ventures.
With the launch of the iadvisory Portal, companies can now tap on the knowledge, networks and experience of over 120 iadvisors. IE Singapore is also collaborating with established global companies such as DHL, RSM International and Standard Chartered Bank to provide the latest updates on tax, export regulations and financing issues for specific markets.
Conclusion
Going ahead, companies must be quick to seize global opportunities. Through our various initiatives, we seek to provide a conducive base for enterprises to propel forward internationally. Ultimately, overseas market success will be driven by enterprises’ strategies, capabilities and connections.
I wish all a fruitful time at this forum, learning from our line-up of speakers, and networking for potential partnerships. Thank you.
Ladies and Gentlemen,
Good morning.
It gives me great pleasure to be here with you for the opening of International Enterprise Forum 2007.
Steering Ahead for Global Growth
The theme for this year’s forum, ‘Steering Ahead for Global Growth’, reflects our confidence in global market opportunities. Last year, the world economy expanded by 5.4%1 while global trade volumes grew at 9.2%2. Many key economies are expected to perform well this year. The ASEAN region is pegged to grow at 5.5%; China at 10%, and India at 8.4%3.Russia, Latin America and the Middle East are expecting brisk growth4. There is also good promise for the more mature markets of EU, Japan and the US5.
Singapore is well-positioned to capture these global opportunities.
Singapore-based companies have built up a strong international presence over the years. This can be seen by our growth in trade and overseas direct investments, key components of our external economy.
Over the last decade, the value of Singapore’s external trade doubled to reach S$810 billion in 2006. Last year, total trade grew by 13%, and we were the fifth largest exporter in Asia.
Singapore-based companies have also been steadily increasing their investments overseas. Outward direct investment stock increased almost four times from S$56 billion to S$196 billion over the last decade, growing by an average 13.4% per year. While Singapore investors have traditionally invested in ASEAN and the wider Asia region, they are beginning to look further afield in emerging markets such as the Middle East and Russia.
We are also continuing our efforts to expand Singapore’s economic space overseas, with our network of Free Trade Agreements, or FTAs. Last year, over S$470 million of FTA tariff savings was achieved. FTA negotiations with China and the Middle East were launched.We also stepped up our FTA outreach efforts. Ultimately, FTAs translate into more trade and investment opportunities for Singapore-based companies.
Challenges of internationalisation
Increasingly, internationalisation will become a crucial part of enterprises’ growth strategies. Companies typically have to overcome three key market challenges to succeed overseas. These are: differentiating from competition, establishing market linkages, and developing market knowledge and expertise. These issues are especially pressing for SMEs, due to their limited resources and less experience in venturing overseas. Let me elaborate on these challenges.
Differentiating from Overseas Competition
First, differentiating from overseas competition. In the face of increasing global competition, Singapore companies need to present compelling value propositions to gain mindshare and sustain growth.
One way that Singapore companies can create a competitive advantage is by offering one-stop, integrated solutions. IE Singapore’s International Partners, or iPartners Programme, launched in 2003, encourages such collaboration. One of our most successful alliances, the SingaporeBuilding and Infrastructure Consortium, has clinched over S$220 million worth of projects in the Middle East since starting out two years ago.
Formation of three new consortiums supported under iPartners
Today, I am glad to announce the formation of three new iPartners consortia, which are expected to generate S$88 million worth of overseas sales over the next five years.
(a) The Singapore Supply Chain Solutions Consortium is led by Autoscan Technology Pte Ltd and also comprises Maventree Technology Pte Ltd and GT&T Engineering. It aims to secure supply chain e-solutions projects in China, Malaysia and Thailand.
(b) The Singapore Homefront Security Consortium comprises anchor company PCS Security Pte Ltd, with partners Teleradio Engineering Pte Ltd, Win Win Digital Security Pte Ltd and X-Bio Pte Ltd. It is targeting vehicular and immigration related security projects in China, the Middle East and India.
(c) The third alliance is the Singapore eGovernment Services Alliance, which will offer a full range of IT services to Governments in the Middle East. This alliance is led by CrimsonLogic Pte Ltd, with members Ditium Technologies Pte Ltd, Elixir Technology Pte Ltd, V3 Teletech Pte Ltd and RSTN Consulting Pte Ltd.
With the formation of these new alliances, we now have a total of 29 iPartners consortia comprising 150 companies. These consortia are expected to generate over S$2.9 billion in overseas sales by 2011. We encourage more companies to consider forming strategic alliances as a competitive advantage in securing overseas projects.
Establishing Market Linkages
The second challenge that companies face when venturing overseas is establishing effective market linkages. Operating in unfamiliar environments, having reliable and competent local partners is vital. The search for such partners, however, can be a long and costly process. To facilitate market connections, the Government provides supporting platforms such as business missions and the BuySingapore portal.
Launched last November, the BuySingapore online business matching portal provides a listing of close to 100,000 Singapore-based companies. To date, BuySingapore has also attracted more than 9,000 foreign leads.
Chinese version of BuySingapore website to target China market
The website has enjoyed good traffic, with its overseas visitors coming mainly from China and the US. To enhance the global reach of the website to Chinese-speaking business communities, IE Singapore will officially launch the Chinese version of the BuySingapore website at this forum tomorrow.The aim of this enhancement is to increase the number of overseas leads generated through the portal.
Building up Market Knowledge and Expertise
The third challenge that companies face when venturing overseas is developing market knowledge and expertise. These are critical factors at every stage of a company’s expansion overseas, to ensure its operations, as well as its products and service offerings are in tune with market conditions. I am pleased to share two key initiatives today – the International Business Fellowship Programme and the iadvisory Portal.
S$10 million to train 2,000 individuals by 2010 in key markets
The Asian Business Fellowship Programme, or ABF, has been supporting the development of market expertise in China, India, Vietnam and more recently, the Middle East. Since its launch in 2001, this programme has trained over 900 executives from 100 organisations.
Moving forward, IE Singapore is expanding the programme to support the development of talents familiar with other emerging markets such as Central Asia and Russia. To better reflect its geographical coverage, the ABF Programme will be renamed ‘International Business Fellowship (IBF) Programme’.At least S$10 million will be set aside over the next four years to groom a pool of 2,000 individuals with in-depth knowledge of doing business in key emerging markets.
Expert advice at your fingertips with the launch of iadvisory Portal
Another source of market expertise that companies can tap on is external advisory. One company that has benefited from such advisory is Loy Kee Pte Ltd. Leveraging on the knowledge and market linkages of consultancy firm Asiawide Franchise, Loy Kee has successfully introduced their famous chicken rice to the Indonesian market.
To increase companies’ access to advisory services, I am happy to announce the launch of the new iadvisory Portal. Through the portal, companies will be able to connect directly to international experts, post questions, and obtain advice for their overseas ventures.
With the launch of the iadvisory Portal, companies can now tap on the knowledge, networks and experience of over 120 iadvisors. IE Singapore is also collaborating with established global companies such as DHL, RSM International and Standard Chartered Bank to provide the latest updates on tax, export regulations and financing issues for specific markets.
Conclusion
Going ahead, companies must be quick to seize global opportunities. Through our various initiatives, we seek to provide a conducive base for enterprises to propel forward internationally. Ultimately, overseas market success will be driven by enterprises’ strategies, capabilities and connections.
I wish all a fruitful time at this forum, learning from our line-up of speakers, and networking for potential partnerships. Thank you.
[1]
IMF, World Economic Outlook, April 2007,
p2
[2]
IMF, World Economic Outlook, April 2007,
p2
[3]
IMF, World Economic Outlook, April 2007,
p2
[4]
IMF, World Economic Outlook, April
2007, p2.Russia and the former Soviet Union is expected to grow at 7%,
Latin America
at 4.9%, and
the Middle
East at
5.5%
[5]
IMF, World Economic Outlook, April 2007, p2, They are
growing at 2.5%, 2.8% and 2.3% respectively