OPENING REMARKS BY MR TEO SER LUCK, MINISTER OF STATE FOR TRADE AND INDUSTRY, AT THE SME CENTRES & PARTNERS APPRECIATION DINNER, ON FRIDAY, 28 AUGUST 2015, 6.30 P.M. AT LIFELONG LEARNING INSTITUTE
Presidents of Associations,
Board of Directors of SME Centres,
Distinguished guests,
Ladies and gentlemen,
Good evening.
1. I
am very happy to join you this evening to recognise the efforts of the SME
Centres, Business Advisors and Trade Associations and Chambers.
Importance of SMEs
2. SMEs
are a key pillar of our economy. They employ 70% of the workforce and
contribute to nearly half of our GDP. It is therefore important that our SMEs
are successful in the restructuring journey towards productivity driven growth
for our economy.
3. To
support our SMEs, the government has put in place a range of assistance schemes
to help our SMEs upgrade capabilities, improve productivity, and grow through
innovation and internationalisation. We have also rolled out SkillsFuture as a
national initiative to help develop a workforce that is future ready. For
enterprises, this effort will help to fill existing skills gaps and enable
access to better skilled manpower to support their innovation and growth.
4. However,
making assistance schemes available is not sufficient by itself. Many SMEs are
busy with day-to-day activities, and do not have the time to undertake research
on the schemes which may be relevant to them. It is therefore important to have
concerted efforts to engage SMEs to ensure that they are well informed about
the help that is available, and obtain feedback on their areas of concern.
Importance of SME Centres
5. The
government needs to work with partners to reach out to SMEs. Key among these
are the TACs, which play an important role in helping to multiply the
government’s efforts in engaging SMEs. In particular, the SME Centres which
have been set up in collaboration with TACs, serve as a first stop for SMEs
that are looking to grow and improve their business.
6. I
am pleased that over the past one and half years, our SME Centres have
organised more than 400 outreach sessions and provided advice to over 50,000
SMEs. Over 90 percent of them are micro- and small enterprises based in the
heartlands. Your experience working alongside SMEs is very valuable and your
feedback has helped the Government to be more responsive to the needs of SMEs.
7. One
example is Chez Rose Bakery at Yishun. The
bakery used to employ five staff who would hand-make bread daily. In 2014, the
company approached the SME Centre@SMF, and was advised to automate to improve
efficiency. Chez Rose tapped on the
Inclusive Growth Programme and the Productivity and Innovation Credit (PIC) to
purchase pastry-making machines. Now, Chez Rose operates with only two kitchen
staff and sales have already increased by 10 percent.
8. This
result has encouraged Chez Rose Bakery to take further steps to upgrade. The
company is now considering prolonging their products’ shelf-life and
introducing new flavours. SME Centre@SMF has encouraged them to explore collaborating
with the Food Innovation Resource Centre (FIRC) to develop longer-lasting and
new bread products.
9. Another
example is Beautiful Hands, which was established in 2005 and offers elegant,
modern pieces of jewellery that are made of natural materials such as wood. The
company had initially focused entirely on the Japanese market, selling its
product through a Japanese sales agent. However, when the Japan tsunami struck
in 2011, its sales were severely affected. The owners knew they had to
diversify their markets, and decided that e-commerce would be the most
effective way to turn their business around.
10. With this in mind, they approached the SME
Centre@SCCCI for advice on effectively executing their e-commerce strategy. The
SME Centre provided recommendations on relevant accounting software and
inventory management solutions that would be integral to a successful
e-commerce business. As a result, Beautiful Hands now has a website
through which customers all over the world can purchase their jewellery, while
at the same time, their products can also be found in stores like Tangs. They
are on the road to recovery with sales picking up and they are exploring
entering brick-and-mortar stores in the US as well looking at new avenues
of business growth.
Role of Trade Associations and Chambers
11. The support and commitment of our TACs
has been instrumental in bringing about the success of our SME Centres. Besides
managerial oversight and governance, our TACs have also been active in
encouraging their members to tap on the various schemes available at SME
Centres.
12. Besides the SME Centres, TACs have
been active in educating their members on government schemes and grants, including
workshops and seminars on capability development, productivity improvement, and
other business issues relevant to their members. By connecting different
members together, TACs also help individual businesses to network and
collaborate, and provide a platform for the concerns and interests of members
to be raised and addressed.
Conclusion
13. Going forward, close partnership between the
government and the TACs will continue to be important in supporting our SMEs in
their restructuring journey, enable them to create good jobs for Singaporeans and
develop innovative and resilient industries.
14. Once
again, thank you for your hard work and support. Tonight’s appreciation dinner
is for you and I hope all of you will enjoy yourselves.