Mr Teo Ser Luck at the SME Talent Programme – Partnership Ceremony between IHLs and TACs

Welcome Address by Mr Teo Ser Luck, Minister of State for Trade and Industry at the SME Talent Programme – Partnership Ceremony between IHLs and TACs on Thursday, 6 June 2013, 3.00pm at Ngee Ann Polytechnic

Principals of the Institutes of Higher Learning;

Partners from the Trade Associations & Chambers;

Students;

Distinguished Guests;

Ladies and Gentlemen;

Good afternoon.

1. It is my great pleasure to join all of you today at the launch of the SME Talent Programme or STP for short.

Matching talents to SMEs

2. The SME sector is a significant pillar of our economy. There are some 170,000 enterprises in Singapore. 99% of these are SMEs¹, and they employ about 70% of the workforce². Most of us have friends and relatives who are working in an SME and who may have advanced their careers from there. Many of us are also familiar with our home-grown SMEs such as Charles & Keith, Breadtalk and Ya Kun, who are proudly flying Singapore’s flag across the world.

3. However, the business environment is becoming more competitive, both locally as well as abroad. Our SMEs have to compete within more challenging market conditions and are vying with global competitors as well. In order to do well, they need to have the right type of employees. They need to attract dynamic, driven and capable talents, who can help them evolve into the next generation of Singapore-grown global icons.

4. Our graduates from the polytechnics and Institute of Technical Education (or ITE) offer this talent pool that our SMEs need. They form an important part of our local workforce and are highly sought after by employers for their practical skills, know-how and ideas. Based on the Graduate Employment Surveys by the polytechnics and ITE in 2012, on average, 9 out of 10 graduates have been employed within six months upon graduation or completion of their National Service. This is good news for all.

What SMEs offer

5. But why should students like you consider joining an SME, when there may be other opportunities available?

6. For one, it will allow you to make a real and major difference in your work. This will be so not only within the company, but in the entire industry as well. Being smaller than MNCs (multinational corporations) does not necessarily mean lesser growth opportunities. On the contrary, SMEs are typically more nimble in adapting to changes, quick to seize business opportunities and are less constrained by complex reporting and decision-making structures. As a result, they respond faster to changes in the environment and can become game changers for their industry. With a lean management structure, employees get the chance to work across different functions and gain a wider experience in business operations.

7. Working in an SME will also provide you with the opportunity to be exposed to different functions and job roles, so that you gain a wider spectrum of skill sets and capabilities. Being in a dynamic working environment that is grounded on practical experience is a highly enriching and valuable experience for fresh recruits. For those aspiring to become entrepreneurs and eventually start their own businesses, you will also pick up a tip or two on how to operate a business.

8. In terms of career growth, SMEs also offer many different opportunities. With many SMEs on track to expanding into overseas markets with new product offerings, they will require capable and motivated people to execute these business strategies for them. Talents who are committed and perform well are often given opportunities to be part of the pioneering teams working on such major projects. Some of you might find this more rewarding than performing functional roles in larger organisations. In short, what a career in a good SME will offer you is a dynamic, exciting and empowering job that will give you new and different challenges every other day.

Strong interest in STP

9. It is clear that forward-looking SMEs have much to offer to our local graduates. This is where the STP comes in, to match our local talents with such SMEs. The STP is a new initiative that aims to attract polytechnic and ITE students to join SMEs. Through STP, aspiring local talents like yourself can look forward to a sponsorship and allowance while studying, a sign-on bonus upon graduation and a job-in-the-bag immediately after school. The SMEs that are participating in the STP are also committed to providing proper training and offering a meaningful career development path for you.

10. With the launch of the SME Talent Programme, I hope you and your counterparts are all encouraged to consider joining SMEs upon graduation. I am happy to learn from SPRING that to date, more than 200 students have expressed interest in STP and more than 100 applications have been received.

11. Over the next five years, SPRING will work with the Trade Associations and Chambers as well as the Institutes of Higher Learning to match 3,000 polytechnic and ITE students with SMEs. Trade Associations and Chambers are most attuned to the needs of their respective sectors, and are thus in the best position to help SMEs with their talent requirements. To date, the six participating are :

• The Association of Small and Medium Enterprises (ASME);

• Print and Media Association, Singapore (PMAS);

• Restaurant Association of Singapore (RAS);

• Singapore Chinese Chamber of Commerce and Industry (SCCCI);

• Singapore Manufacturing Federation (SMF), and the

• Textile and Fashion Federation (Singapore) (TaFf)

12. These associations and chambers act as the bridge to link up our local talents from the polytechnics and ITE to the SMEs. They play a pivotal role in matching good candidates to SMEs with sound HR practices, and partnering your schools to profile SME careers to students. I strongly encourage all polytechnics and ITE to consider setting aside a SME Careers Day for this purpose.

Conclusion

13. For all the students here today, I would like you to think about these questions when you come to think about your future: first, are you excited about being part of the growth of a Singapore company? Second, are you keen to roll up your sleeves to learn and work on the many different aspects of a business operation? And third, do you want to take on these great challenges and stretch your potential? If your answer is “Yes”, then I encourage you to consider the SME Talent Programme and start a career with an SME upon your graduation. The journey will be challenging, with ups and downs, but I can assure you that the experience will be enriching and fulfilling!

14. I would like to take this opportunity to thank all the six trade associations and chambers and all the polytechnics and ITE for their commitment towards this partnership and for facilitating good jobs for our local talents through the STP.

15. With this, I wish all of you a fruitful afternoon and I look forward to a lively exchange during the dialogue session later to share more insights. Thank you.

¹ SMEs are defined as enterprises with operating receipts not more than $100mil or employment not more than 200 workers for all sectors.
² Source : DOS 2012 topline estimates, includes mfg, services, construction, agriculture & utilities sectors