Mr Lee Yi Shyan at the 13th APEC SME Ministerial Meeting

Speech by Mr Lee Yi Shyan, Minister of State, Singapore Ministry of Trade and Industry at the 13th APEC SME Ministerial Meeting on Thursday, 28 Sep 2006, at the International Convention Center, Hanoi, Vietnam

APEC SME MM Theme:

“Strengthening SME Competitiveness for Trade and Investment”

Mr Vo Hong Phuc, Minister for Planning and Investment, Vietnam and Chairman of the 13th APEC SME Ministerial Meeting

Colleagues from APEC Economies

Ladies and Gentlemen

Introduction

On behalf of my delegation, let me first thank Minister Phuc and his officials for the excellent hospitality shown to the Singapore delegates. The Vietnamese hospitality indeed makes one feels very welcome and at home.

SMEs are important to Singapore’s economy in terms of employment creation and generation of wealth, as in many other APEC economies. In Singapore, SMEs make up 99% of all enterprises, and contribute to 56% of employment and 42% of value-added. We therefore encourage the formation and growth of enterprising start-ups and SMEs, with the objective of building a competitive base of dynamic and innovative enterprises.

To build up our SME sector, we have adopted three key thrusts. These are: creating a pro-business environment, building capabilities and facilitating business linkages. I shall highlight some key programmes under these thrusts.

Key Thrust 1: Creating a Pro-Business Environment

First, we aim to create a pro-business environment where it is easy to conduct business. To achieve this, Singapore promotes a pro-enterprise regulatory environment and facilitates access to relevant information and services.

Singapore established a Pro-Enterprise Panel (PEP) in August 2000 to actively solicit feedback on rules and regulations that hinder businesses and stifle entrepreneurship. The Panel, chaired by the Head of the Civil Service and comprising business leaders from the private sector and senior civil servants, reviews rules and regulations to ensure that they remain relevant and supportive of a pro-business environment. To date, it has reviewed more than 1,500 suggestions from businesses, and has accepted more than half of these for implementation.

Singapore also launched the Enterprise One Portal earlier this year to facilitate online search for information on government procedures and programmes as well as application of licences.Information vital for trade and investment such as trade statistics and market intelligence can also be accessed via this portal. The integrated information and e-services system saves time and cost for businesses as they no longer need to go from one government agency to another.

Complementing the EntrepriseOne Portal is a network of Enterprise Development Centers set up by industry associations and chambers of commerce with the government’s support. Each is a one-stop center with a team of business consultants who can provide legal, financial, management and business advisory services to enterprises.

Key Thrust 2: Building SME Capabilities

Second, Singapore encourages SMEs to upgrade their capabilities so that they are more resilient and competitive. These capabilities include efficient systems and processes, professional management capabilities and a culture of service and innovation. Let me cite manpower and branding as two examples.

Singapore has focused manpower programmes to build up the enterprises’ capabilities. In the area of venturing overseas, our Manpower and Asian Business Fellowship programmes help internationalizing companies gain relevant international exposure to operate effectively in new markets and develop their talent pool through in-market training. To help companies put in place an effective HR strategy, we also support organizational development through leadership programmes and consultancy projects.

To strengthen enterprises’ branding capabilities, Singapore launched the BrandPact programme in April 2005. This programme includes seminars and exploratory workshops, self-help kits, brand consultancy, and online resources to help enterprises tap branding as a growth strategy at different stages of growth. To collectively raise the awareness and use of branding as a strategic business tool, we also

Thrust 3: Facilitating Business Linkages

Third, we facilitate business linkages through business matching platforms and business networks.

We are developing a new one-stop business matching e-portal called BuySingapore.com. To be launched by end of this year, this initiative will extend the reach of Singapore companies by matching them with overseas buyers and sellers.

We also have various country-specific networks like Network China, Network India and Network Indonesia. These help to foster connections and business linkages between companies that have an interest in specific geographies and markets.

We encourage our SMEs to venture into overseas markets, and serve the markets with their products and services. Likewise, we also encourage SMEs and foreign SME and Trade Associations to set up offices in Singapore. They could serve Singapore’s market and use Singapore as a gateway to serve other markets that Singapore is well connected to, by air-links and sea-links. In addition, the foreign SMEs in Singapore can also take advantage of our Free Trade Agreements with 11 countries and regions. The Vietnam House for instance, opened their office in Singapore in 2005 to assist Vietnam SMEs to enter Singapore.

Conclusion

Singapore adopts an outward-oriented enterprise development strategy to help our enterprises access new markets and business opportunities. We look forward to more partnerships, mutual recognitions, and networking within the APEC communities that will jointly benefit both Singapore and APEC SMEs in trade and investments.

Thank you.