Mr Lim Hng Kiang at the opening ceremony of GES 2006 Enterprise Exchange

SPEECH BY MINISTER FOR TRADE AND INDUSTRY, MR LIM HNG KIANG, AT THE OPENING CEREMONY OF GES 2006 ENTERPRISE EXCHANGE, ON TUESDAY 31 OCT, 9.30AM, AT SUNTEC CITY CONVENTION CENTER

Distinguished Guests,

Ladies and Gentlemen,

Good Morning.

I would like to warmly welcome you to the opening of the Enterprise Exchange, which is an intrinsic part of Singapore’s annual business networking platform – the Global Entrepolis.

For the many of you personally familiar with Global Entrepolis, we warmly welcome you back. And to the first-time participants, like the many from Ukraine, Indonesia and Gujarat in India, as well as the unprecedented number of participants from China, India, Vietnam, and the Middle East, I wish you an exciting and rewarding time with us.

Enterprise Exchange 2006 is bigger and more diverse than ever

This year the Enterprise Exchange is three times the size of last year’s. It is spread over two floors, with more than 400 enterprises from some 30 countries, including national pavilions from the Middle East, Indonesia, China and Gujarat. There is this year, a more diverse cross-section of ideas, sources and enterprises than ever before.

The Enterprise Exchange is a large, integrated marketplace – both for local and global exhibitors to showcase their innovations, products, and services, in their continual search for new market and commercialization opportunities, and also for venture capitalists, small and large business enterprises, fund managers, and technology buyers and sellers to meet, network, and identify new possibilities.

Two New Initiatives: “Entrepreneurship Investment Incentive (Technopreneur)” and “Consult the Experts”

This makes the Enterprise Exchange a vital platform for Entrepreneurs with innovative new products. And that is why we had taken the opportunity at last year’s GES, to launch the Innovation Commercialization Scheme, or ICS, to support up to 50% of costs for young companies undertaking proof-of-concept activities.

The take-up rate has far exceeded our initial expectations. ICS was targeted to support 60 projects over 3 years, but in its first year alone; the program has already supported more than 40 projects. Some of the first wave of ICS applicants will also be showcasing their prototypes here today.

Today, as an extension to the Scheme, I am pleased to announce that the Entrepreneurship Investment Incentive will be granted to all technopreneurs who have received ICS support. This means that investors in startups with ICS support can deduct any investment loss from their taxable income. In turn, this will mean that investors will be more willing to place their bets on these start-ups, thus making it easier for technopreneurs to secure funding.

I am also pleased to announce the launch of Consult the Experts, an initiative presented by the Singapore Business Federation and supported by the Singapore Economic Development Board to further engage and connect Singapore-based enterprises with the global business community. It is a platform whereby distinguished business leaders and technology gurus will be invited to share their experiences and insights. Help will be given in four main areas - market entry, business development, project financing and technology. We believe this will be a win-win opportunity all round. Just as smaller enterprises will benefit from valuable insights shared, business leaders will also find out more about the many new technologies and practices coming to market.

Opportunities in Franchising

But Entrepreneurship is not just about having an innovative idea or product – being able to take on a franchise and marketing it is another avenue for entrepreneurs. I am therefore also pleased to welcome the participation of Franchising and Licensing Asia 2006 at Global Entrepolis 2006.

The presence of Franchising and Licensing Asia 2006 gives participants this year the opportunity to get acquainted with new business opportunities, and acts as a launch pad for budding local and regional businesses to expand into the global market. Already there exist some 380 franchise concepts in Singapore with over 3,000 operating franchisees.

I am heartened to see that many more people are beginning to take interest in opportunities offered through franchising, and offer my heartiest congratulations to the recipients of the specialist diploma in franchising management today.

Exciting Opportunities at GES and Enterprise Exchange

Your presence here at Global Entrepolis 2006 is an affirmation of your confidence in Singapore as a springboard for your businesses to reach out to the world.

At Global Entrepolis 2005, 46 deals worth a total of S$900 million were forged. The 2005 Enterprise Exchange recorded more than 20,000 trade visitors; and HOT stage alone reached out to an audience of more than 1,200 interested parties.

This year, I have great confidence that there will be even bigger and more deals from Global Entrepolis and Enterprise Exchange 2006.

Conclusion

It now gives me great pleasure to declare the Enterprise Exchange at Global Entrepolis 2006 officially open. I wish you three very fruitful days, and great success.

Thank you.