Mr Teo Ser Luck at the 2011 Enterprise 50 Awards, 23 Nov 2011

SPEECH BY TEO SER LUCK, MINISTER OF STATE FOR TRADE AND INDUSTRY, AT THE 2011 ENTERPRISE 50 AWARDS, DAY AWARDS CEREMONY, ON WEDNESDAY, 23 NOVEMBER 2011, 11.00AM AT RAFFLES CITY CONVENTION CENTRE

Mr Alvin Tay
Editor, The Business Times

Mr Owi Kek Hean
Deputy Managing Partner and Head of Enterprise Services, KPMG Singapore

Distinguished guests,

Ladies and gentlemen

Introduction

Good morning. It is my pleasure to join you this morning for the 2011 Enterprise 50 Awards. Just a year ago, the economic outlook for Singapore was optimistic as we seemed to be on our way to recovering from the 2008 global financial crisis. However, the economic uncertainty in Europe and the US has affected us and we are now expecting economic growth over the next few quarters to stall.

Singapore must get used to slower economic growth in the next 10 years as it faces tougher global competition and a tightened supply of foreign workers. Our land constraints and small population will also limit our ability to maintain the good growth we have experienced in the past. As a nation, we have to adjust our expectations within these constraints.

Helping enterprises in Singapore grow amidst an uncertain environment

For many locally-owned enterprises in Singapore, the current global economic climate poses a great deal of uncertainty. Rising business costs caused by inflation, a strong Singapore dollar, and limited land and labour supply is a key challenge to their competitiveness.

To address this challenge, some companies have turned to improving productivity by re-designing their work processes. For example, companies in the F&B and Retail sectors which traditionally rely heavily on manual labour are starting to explore tapping on wireless infrastructure to streamline their operations and reduce the reliance on manpower. In the F&B sector, the wireless infrastructure allows orders to be keyed into a mobile Point-Of-Sale system. The orders are then disseminated real-time to colleagues in the kitchen and bar. The processing of payments can also take place with the use of wireless devices.

The Government has also been proactive in encouraging our local enterprises to increase their productivity to deal with the rise in business costs. This includes the use of technology or automation; improving HR practices by encouraging training and staff development; exploring flexible scheduling to include more part-timers for peak periods; or outsourcing non-core functions.

I strongly urge our local enterprises here today, to tap on the suite of productivity-related schemes such as the Technology Innovation Programme (TIP) and iSPRINT, offered by SPRING Singapore and IDA. For instance, the iSPRINT scheme helps SMEs to adopt infocomm technology to improve the company’s business operations, resulting in greater efficiency and productivity. SPRING Singapore also offers programmes such as the Productivity Management Programme (PMP). Companies can tap onto the Enterprise Development Centres at key trade associations and chambers to learn more about the schemes and programmes available.

The gloomy global economic climate notwithstanding, the outlook in the Asia region is fortunately, much brighter and more optimistic. In fact, many of our enterprises have shown themselves to be dynamic and bold, with the ability to seize new market opportunities and internationalise, taking advantage of the growth in Asia. Given Singapore’s small domestic market, it is important for Singapore companies to look overseas for growth and success.

Likewise, I also encourage promising companies with overseas growth aspirations to tap on the various schemes that government agencies such as IE Singapore have to help them venture overseas and build up an international footprint. IE’s international offices across the world also provide in-market support for our companies as they enter growth markets overseas.

In the midst of uncertainty, the Government will continue to work with our local enterprises to identify opportunities, especially niche areas and markets where there are more growth and expansion opportunities.

Enterprises in Singapore are rising to the challenge

Over the past few years, our local enterprises[1] have played a major part in Singapore’s economic development, contributing about half our GDP and employing about 70 percent of the labour force. Despite the challenges they face, enterprises have shown great resilience in overcoming them and in taking steps to reduce their vulnerability and exposure to global economic uncertainty.

As a result of being more cautious in their business outlook, productivity, efficiency and optimising the business has become the mantra for many enterprises. The enterprises that prove to be successful are those that are ever-mindful of optimising their businesses such that they are primed to seize opportunities even during uncertain times, through building business capabilities and productivity improvements.

For instance, Victor Enterprises, a logistics company specialising in diesel, LPG and lubricant distribution, tapped SPRING Singapore’s Technology Innovation Programme to gain productivity improvements in its operations. The company is developing a platform that integrates their Transport Management system with their Enterprise Resource Planning system to enable data sharing, hence eliminating the need for double-entry. The full visibility of its fleet and real-time moving fuel inventories enhances data accuracy. Data analytics via real time tracking of the diesel inventory also improves their operational efficiency. In addition, the company has installed sensors on its delivery trucks to measure outflow and on storage tanks to monitor remaining fuel levels. The information is directly linked to their supply chain system for monitoring and replenishment.

I have also noticed an encouraging trend that increasingly, many enterprising youths are beginning to start up businesses. Let me share the example of Daphane Loke, Founder & Executive Chef of Saybons French Food Factory. Daphane graduated from NTU with a Business degree. Having a strong passion for the food business from a young age, she worked in numerous cafes and restaurants before attaining her formal culinary education from world-acclaimed culinary school Le Cordon Bleu. She worked a few years in shipping and international business advisory before setting up Saybons in 2007. She has grown Saybons from a single takeaway kiosk to a thriving business with two retail cafes, a wholesale business and a catering arm.

These examples tell us that many enterprises are becoming more diverse, creating vibrant and strong partnerships, enabling new ideas to be generated and developed. These are qualities that are important for driving our economy.

Conclusion

A vibrant enterprise ecosystem is crucial to Singapore’s growth. The Enterprise 50 companies here this morning are some of the best examples of the sorts of companies we need in Singapore. It is commendable that organisations such as KPMG and The Business Times continually stoke the flames of the enterprising spirit by recognising the best among us.

Hence to the winners, I offer my heartiest congratulations. You are fine examples of enterprises in Singapore and I hope you will continue to take advantage of the opportunities that are present and do your best in your respective fields. I wish you every success. Thank you.

[1]Local enterprises refer to enterprises with at least 50% local equity.