Mr Chan Soo Sen at the Launch of the Flu Pandemic Business Continuity Guide for SMEs

SPEECH BY MR CHAN SOO SEN,MINISTER OF STATE FOR EDUCATION AND TRADE AND INDUSTRY, AT THE LAUNCH OF THE FLU PANDEMIC BUSINESS CONTINUITY GUIDE FOR SMES, 16 FEBRUARY 2006, 9.15 AM AT BIOPOLIS AUDITORUM, LEVEL 2, MATRIX BUILDING

Mr. Koh Juan Kiat, Executive Director, Singapore Business Federation,

Distinguished Guests,

Ladies and Gentlemen

Good Morning. I am very pleased to join you today for the launch of a business continuity guide to help our small and medium sized enterprises or SMEs prepare for a flu pandemic. I would like to commend the Singapore Business Federation and SPRING Singapore for organizing this morning’s seminar, and the Association of Small and Medium Enterprises, the ethnic Chambers of Commerce and the Singapore Manufacturers’ Federation, for their support to help our SMEs plan early for a flu pandemic outbreak.

Catastrophic Flu Pandemics Are Not New and Cannot be Predicted

Some of you already know that flu pandemics are not new to the world. There have been three flu pandemics in the 20th century – in 1918, 1957 and 1968. Conservative estimates by the World Health Organization (WHO) and others put the combined death tolls of the next pandemic at around 20-30 million.

Given the catastrophic nature of such pandemics, the recent outbreaks of H5N1 avian flu virus in birds and cases being transmitted from birds to humans must surely be cause for concern. The majority of human cases have been reported in our region, in Cambodia, Indonesia, Thailand, Vietnam and China, but recently, there have also been human infections reported in Iraq and Turkey. Outbreaks in birds have spread to Europe and Africa.

Since 2003, the WHO has recorded 169 confirmed cases of human H5N1 infection, with 91 deaths. At an international meeting to discuss the Flu Pandemic last November, the Director-General of the WHO, Dr Lee Jong Wook, said that it was ”only a matter of time an avian flu virus – most likely H5N1 – acquires the ability to be transmitted from human to human, sparking the outbreak of human pandemic influenza. We don’t know when this will happen. But we do know that it will happen[1].”

Government efforts to prepare Singapore

With each new outbreak report, the world watches anxiously to see if it will turn out to be another narrow escape, or the start of the first pandemic of the 21st century. While we cannot predict what will happen next, one thing is for sure – we cannot sit back and wait for the worst to happen. We need to heighten our awareness of what’s happening and be more prepared for a flu pandemic.

In Singapore, many of us will remember 2003 as the year we battled SARS. The business community will remember it as a challenging year when the economy contracted by 3% in the second quarter of 2003 and growth for the full year struggled to hit 2.2%. The flu virus to cause a global pandemic is expected to be more infectious than SARS.

The Government has started preparations for a possible pandemic. Internationally, we are working closely with the WHO, the Centers for Disease Control in the US and other international counterparts, sharing information and expertise to help prevent this pandemic. For example, together with Indonesia, the US and other international organizations, we would be commencing a pilot project to implement practical measures in a defined locality in Indonesia to detect and manage outbreaks of avian flu.

If we can help control the spread of infection from animal to human in neighboring countries, we can nip the pandemic in the bud, or at least, delay its onset.

Locally, an inter-ministry taskforce headed by DPM Wong is in place to ensure an effective monitoring and surveillance system, and to roll out action plans to fight this threat if and when it comes. Preparations are being made to ensure that Singapore, and especially our economy, will continue to function should a pandemic occurs.

Business Continuity Plans - companies must start planning early

However, we cannot achieve this outcome alone. Many of you in the audience manage SMEs, which make up 99% of all companies registered in Singapore. We will need your co-operation to minimize the economic impact of a flu pandemic.

You have a responsibility to your shareholders, customers, suppliers and employees to ensure that your businesses continue to operate should a flu outbreak occur. If you have not already done so, I would like to urge you to develop business continuity plans (BCP) so that you and your company are not caught unawares.

For example, health experts estimate that absenteeism rates could hit as much as 20% in a pandemic, with employees quarantined or on extended medical leave. It could be higher if employees stay away to look after family members, or if members of the public chose to avoid face-to-face contact, preferring to stay at home. How would you cope if key members of your staff are affected? If your key suppliers have to shut down due to high absenteeism, do you have alternatives? What if customers start flooding your phone-lines with orders, instead of visiting your shop? Can your telephone system cope with the increase in traffic?

To help SMEs think through some of these questions, SPRING Singapore, in consultation with business chambers, industry associations and the Ministry of Health, has developed a guide to help SMEs draft business continuity plans for a flu pandemic. Some 2,000 copies have been printed for free distribution at the various chambers and industry association offices. The guide will also be made available for download on the internet.

The document, developed using principles found in the Business Continuity Management Technical Reference initiated by the Singapore Business Federation, suggests actions SMEs may take at each alert code as determined by the Ministry of Health. These include introducing infection control measures at the workplace, looking into home-based working arrangements and planning for alternative sources of supply, should existing supplies be disrupted. I understand that there will be a presentation later to provide you with more details of the guide.

Conclusion

Businesses need not be paralyzed by a pandemic if companies start planning early and plan well. Early business continuity planning is insurance worth paying for.

The government, in partnership with the various business chambers and associations, will continue to do our part to prepare for, and minimize the disruptions a flu pandemic may bring. More will depend on the actions of businessmen and women like yourselves in getting your companies prepared.

In conclusion, may I wish you a fruitful morning of discussion. Please accept my apologies for not being able to stay longer due to another meeting. Thank you.

[1]

http://www.who.int/dg/lee/speeches/2005/flupandemicgeneva/en/