2. Speeches
Mr Teo Ser Luck at the Emerging Enterprise 2013 Awards
30 August 2013
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SPEECH BY MR TEO SER LUCK, MINISTER OF STATE FOR TRADE & INDUSTRY AT THE EMERGING ENTERPRISE 2013 AWARDS AT THE RITZ-CARLTON BALLROOM ON 30 AUG 2013, 7.30PM
Distinguished guests,
Ladies and gentlemen,
It gives me great pleasure to join you for the 6th edition of the Emerging Enterprise Awards tonight. I would like to commend the Business Times, OCBC Bank, RSM Chio Lim, NUS Extension, Acorn Consultants, Mastercard and SingTel for organising the Emerging Enterprise awards to identify and support young emerging companies which are on the path to higher achievements.
Role of Entrepreneurship in the economy
Entrepreneurship is important because it drives innovation and renewal in our economy, and creates jobs for Singaporeans. Start-ups and young companies are nimble and adaptable due to their small size, and can quickly address market gaps in the economy. They are also a source of innovation that helps push the boundaries of new technological developments and boost Singapore’s competitive advantage. Every large, successful company started small. In other words, from amongst you tonight will emerge the giants of tomorrow.
Past winners like Hope Technik embody the innovative spirit of our young companies. Hope Technik was founded in 2006 and specialises in engineering automotive and aeronautical products such as unmanned air vehicles and military vehicles. The company focuses on delivering innovative solutions rapidly. In 7 years, the dynamic company has delivered 250 projects. Their innovative solutions include the Red Rhino fire-fighting vehicle and Unmanned Surface Vehicle for the SCDF. Through its advanced vision and attention to detail, Hope Technik has tripled its revenue in 2 years - from $3 million in 2010 to $9 million last year.
Addressing Challenges faced by our entrepreneurs
Our entrepreneurs have weathered challenging times. As the global economy stabilises and developed economies start to show signs of recovery1, there are still risks and uncertainties in Europe and China, where slowing demand has hit the emerging economies. The improved forecast of 2.5-3.5% growth for Singapore for 2013 is encouraging, and all our SMEs, especially our emerging enterprises, contribute towards this growth.
The Government remains committed to helping our SMEs to grow and become more productive. Our tight labour market means that companies should restructure their business models to include activities which are of higher value and optimise their use of resources. SPRING’s schemes such as the Innovation and Capability Voucher, Capability Development Grant and SME Talent Programme can help companies to improve their business models and upgrade their capabilities in order to stay competitive.
Tapping on overseas markets for growth
For our businesses to grow and scale, they need to consider internationalisation relatively early in their growth. Notwithstanding the slow-down in China’s growth, the long-term prospects within Asia and emerging markets remain sound, with growing middle class in Asia, Latin America and the Middle East. For example, the number of households with annual disposable incomes above US$50,000 in Brazil and Mexico is expected to increase by over 50% by 20202, and it is important for our businesses to develop the right capabilities to tap on market opportunities like this.
Last year’s Emerging Enterprise Award winner Tagit is an excellent role model for internationalisation and expanding to overseas markets. Tagit specialises in providing secure apps for banking transactions and currently counts many Singapore-based banks among its customers. Earlier this year, the local firm partnered Vietnamese company Smartlink to launch an aggregated mobile banking service in Vietnam, which connects 33 banks and 30 million ATM card users. It has also partnered with Kuwaiti company Knet to provide e-government, telecom and mobile payment services in Kuwait. Tagit’s strategy of aggressive overseas expansion is certainly worth emulating, and I hope more companies can follow their example.
For companies new to internationalisation, IE Singapore provides a Market Readiness Assistance scheme (MRA), which provides information about countries and industries through seminars and workshops. In addition, it offers financial assistance to companies who need consulting services in the areas of legal advice, tax advisory, overseas business matching and business models refining.
IE Singapore also offers a Global Company Partnership (GCP) for companies with existing overseas presence. This is a committed partnership between IE and Singapore companies with the goal of growing them into Globally Competitive Companies. Areas of support under the GCP include Manpower, Capability Development, Market Access and Access to Financing.
The world is in the midst of a long term rebalancing, where Asia is becoming an increasingly important engine of growth and innovation in the world. Our firms are well-placed to seize the opportunities to expand overseas, and become globally recognised brands. Each and every one of you plays an important role in writing the next chapter in Singapore’s story.
Importance of Emerging Enterprise Awards as a showcase for entrepreneurship
The Emerging Enterprise Award winners are a testimony to our companies’ resilience, resourcefulness, and ability to innovate. The Award should not be seen as an end in itself but a strong signal that you are on the right track. With this recognition, new doors will be opened but it is still up to you how far you like and want to go. At the same time, let’s not forget to stay rooted by giving back to this community as inspiring role models and helping the next generation of entrepreneurs in their journey.
I extend my congratulations to all of the Emerging Enterprise Award winners, and I wish you all the best in the next chapter of your development. Have a great evening ahead.
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