Mr Teo Ser Luck at the SME Centres and Partners Appreciation Dinner 2015

​OPENING REMARKS BY MR TEO SER LUCK, MINISTER OF STATE FOR TRADE AND INDUSTRY, AT THE SME CENTRES & PARTNERS APPRECIATION DINNER, ON FRIDAY, 28 AUGUST 2015, 6.30 P.M. AT LIFELONG LEARNING INSTITUTE

Presidents of Associations,

Board of Directors of SME Centres,

Distinguished guests,

Ladies and gentlemen,

Good evening.

1.    I am very happy to join you this evening to recognise the efforts of the SME Centres, Business Advisors and Trade Associations and Chambers.

Importance of SMEs

2.    SMEs are a key pillar of our economy. They employ 70% of the workforce and contribute to nearly half of our GDP. It is therefore important that our SMEs are successful in the restructuring journey towards productivity driven growth for our economy.

3.   To support our SMEs, the government has put in place a range of assistance schemes to help our SMEs upgrade capabilities, improve productivity, and grow through innovation and internationalisation. We have also rolled out SkillsFuture as a national initiative to help develop a workforce that is future ready. For enterprises, this effort will help to fill existing skills gaps and enable access to better skilled manpower to support their innovation and growth.  

4.    However, making assistance schemes available is not sufficient by itself. Many SMEs are busy with day-to-day activities, and do not have the time to undertake research on the schemes which may be relevant to them. It is therefore important to have concerted efforts to engage SMEs to ensure that they are well informed about the help that is available, and obtain feedback on their areas of concern.

Importance of SME Centres

5.    The government needs to work with partners to reach out to SMEs. Key among these are the TACs, which play an important role in helping to multiply the government’s efforts in engaging SMEs. In particular, the SME Centres which have been set up in collaboration with TACs, serve as a first stop for SMEs that are looking to grow and improve their business.

6.    I am pleased that over the past one and half years, our SME Centres have organised more than 400 outreach sessions and provided advice to over 50,000 SMEs. Over 90 percent of them are micro- and small enterprises based in the heartlands. Your experience working alongside SMEs is very valuable and your feedback has helped the Government to be more responsive to the needs of SMEs.

7.    One example is Chez Rose Bakery at Yishun.  The bakery used to employ five staff who would hand-make bread daily. In 2014, the company approached the SME Centre@SMF, and was advised to automate to improve efficiency.  Chez Rose tapped on the Inclusive Growth Programme and the Productivity and Innovation Credit (PIC) to purchase pastry-making machines. Now, Chez Rose operates with only two kitchen staff and sales have already increased by 10 percent.

8.    This result has encouraged Chez Rose Bakery to take further steps to upgrade. The company is now considering prolonging their products’ shelf-life and introducing new flavours. SME Centre@SMF has encouraged them to explore collaborating with the Food Innovation Resource Centre (FIRC) to develop longer-lasting and new bread products.

9.   Another example is Beautiful Hands, which was established in 2005 and offers elegant, modern pieces of jewellery that are made of natural materials such as wood. The company had initially focused entirely on the Japanese market, selling its product through a Japanese sales agent. However, when the Japan tsunami struck in 2011, its sales were severely affected. The owners knew they had to diversify their markets, and decided that e-commerce would be the most effective way to turn their business around.

10.        With this in mind, they approached the SME Centre@SCCCI for advice on effectively executing their e-commerce strategy. The SME Centre provided recommendations on relevant accounting software and inventory management solutions that would be integral to a successful e-commerce business. As a result, Beautiful Hands now has a website through which customers all over the world can purchase their jewellery, while at the same time, their products can also be found in stores like Tangs. They are on the road to recovery with sales picking up and they are exploring entering brick-and-mortar stores in the US as well looking at new avenues of business growth.

Role of Trade Associations and Chambers

11.                 The support and commitment of our TACs has been instrumental in bringing about the success of our SME Centres. Besides managerial oversight and governance, our TACs have also been active in encouraging their members to tap on the various schemes available at SME Centres. 

12.                 Besides the SME Centres, TACs have been active in educating their members on government schemes and grants, including workshops and seminars on capability development, productivity improvement, and other business issues relevant to their members. By connecting different members together, TACs also help individual businesses to network and collaborate, and provide a platform for the concerns and interests of members to be raised and addressed.

Conclusion

13.     Going forward, close partnership between the government and the TACs will continue to be important in supporting our SMEs in their restructuring journey, enable them to create good jobs for Singaporeans and develop innovative and resilient industries.

14. Once again, thank you for your hard work and support. Tonight’s appreciation dinner is for you and I hope all of you will enjoy yourselves.