Mr Teo Ser Luck on Sustainability of Small and Medium Enterprises

SPEECH BY MOS(T&I) TEO SER LUCK – MOTION BY MR TEO SIONG SENG ON “SUSTAINABILITY OF SMALL AND MEDIUM ENTERPRISES”

1.Madam Speaker, I would like to thank Mr Teo Siong Seng for introducing this motion on Small and Medium Enterprises (SMEs). SMEs are an important part of our economy. They make up 99% of companies, employ 70% of our workforce and contribute 50% of our GDP. 

2.            The need for SMEs to restructure and improve productivity is clear.  Our challenges, in manpower, land and energy, are especially sharp because we are a small country. We need to manage our resources carefully. SMEs which rely heavily on manpower or land have faced rising costs.Singapore Chinese Chamber of Commerce and Industry’s 2013 SME survey has found that many businesses understand the need for increased productivity, and are working hard to do so.

Land and Rentals

3.Mr Teo has highlighted the difficulties our SMEs face with rental increases. The Government’s overall objective is to maintain a stable and sustainable market where rentals remain competitive and affordable for businesses. While HDB does not divest its commercial space in private companies or owners or established REITS, we have released a significant amount of land through the Industrial Government Land Sales (IGLS) programme. Over the next 5 years, about 340,000 sqm of new multiple-user factory space will become available each year. This is higher than the annual demand of 220,000 sqm over the last 5 years. We have also released smaller IGLS land parcels with shorter tenure, to provide more affordable options for SMEs.

4.Over the next 5 years, about 230,000 sqm of new office space and 120,000 sqm of new shop space will be completed each year.  This is higher than the annual demand of 140,000 sqm of office space and 70,000 sqm of shop space over the last 5 years. 

5.Commercial rentals declined slightly in 2012, after increasing in 2010 and 2011, and have remained relatively unchanged in 2013. Current commercial rentals are still below the previous peak of mid-2008. The Government will continue to monitor rentals carefully, and introduce additional measures if necessary.

6.JTC develops long term land-use plans which are regularly reviewed.  The plans ensure that there is sufficient affordable land and space for genuine industralists to support and develop our manufacturing sector.  Importantly, the landuse plans also ensure that the productivity of the land continues to improve.

7.Mr Teo raised the issue of lease renewal. Singapore is a small island nation, and all land, including land for industrial space, is precious.  Every single application for lease renewal is assessed to ensure that the industrial use fits our long-term plans in strengthening our economy, and the land productivity continues to improve over time. As a result, some companies may not be able to have their leases renewed.

8.JTC actively engages its customers at least 6 years before the expiry of their lease, and provides at least 3 years’ notice if a lease cannot be renewed. This way, companies have enough time to find alternative premises.

9.To provide more options for companies, JTC is developing infrastructure projects which reduce business costs for SMEs through innovative designs and provision of shared capital-intensive facilities. SMEs can consider moving to these developments, which include the Small Footprint Factories Mr Teo has mentioned, and the Surface Engineering Hub and MedTech Hub, which will be completed by early 2014. The advantages can be considerable. For example, Globaltronic Precision, which makes precision parts for the aerospace, marine and medical sectors, relocated in July to JTC’s Small Footprint Factory in Buroh Street. Their rental decreased by close to 40%, even though the total floor area remained the same, and productivity increased significantly. JTC has been engaging many industries, such as furniture and food manufacturing, to understand their infrastructure needs. In the next phase, it will be by cluster development. More of such projects will be announced in due course.

10.Madam Speaker, I would like to continue in Mandarin.

政府援助计划，助企业转型和持续发展

11.议长, 政府将继续密切关注中小企业的需求，以及它们所面对的挑战。张松声先生刚才提到由我带领的中小企业工作小组。这个小组集合基层顾问、政府机构和商贸代表，三方共同努力，协助中小企业解决它们所面对的问题。基层顾问已经开始同中小企业举行对话会，分享和商讨提高生产力的实际做法，并且聆听中小企业的心声与反馈。工作小组将听取和研究这些意见，探讨如何进一步扶助企业在经济重组的过程中，成功转型和升级。

12.政府有多项针对企业的援助计划，协助它们提升技能和提高生产力。政府去年展开了中小企业策略检讨工作后，标新局的能力发展计划，以及新加坡国际企业发展局协助企业拓展海外业务的援助计划都已经更为精简。因此，企业并非求助无门，但有些可能还不清楚该向哪个政府部门或机构求助，或是哪些援助计划适用于它们。其实，除了“动物热线”外，我们也有专为企业服务的“企业通热线”（EnterpriseOne）。只需拨打热线，企业便能获取所有政府援助计划的相关信息。热线号码是68981800。企业通的网站也同样提供全面和详尽的资料。

13.此外，企业也可选择到任何一个中小企业中心（SME Centres），或卫星中小企业中心（Satellite SME Centres）获得面对面的咨询服务。政府已经将原本设于五家商会的“企业发展中心”（EDCs）提升成为一站式的中小企业中心，并在社区发展理事会设立5个卫星中心。它们为中小企业提供全面和完善的咨询服务，协助企业了解政府的各项援助计划，方便它们更快速地得到所需的帮助。自今年四月以来，我们的中小企业中心已接触超过7,200个中小企业，向它们解释和介绍能够帮助它们提高生产力的计划。我们将继续加倍努力，让受惠企业的数目从过去的每年1万4000个，增加至2万个。

14.这里和大家分享一个例子。Rossi Apparel 是一家提供量身定制服务的男装服饰零售商。它申请了标新局的能力发展津贴（CDG），通过政府的援助计划提升生产力、改善顾客的服务体验。这家公司采用了资讯通信科技，设立网站和网上店面，加强同顾客和网上社群的联系，让业务的运作更完善。同时，它也使用iPad简化店内及网上的订购程序，进而减少每名销售员的行政工作，让他们能够更专注地为顾客服务。公司的生产力也明显提升了20%。这样的成功例子还有很多。我们乐见其成，也相信企业已经在采取必要的措施和努力，提升它们的生产力。

总结

15．议长，中小企业蓬勃发展是新加坡经济能够持续腾飞的一个巨大动力。政府很关注并重视中小企业的需求，以及它们所面对的挑战，并将在企业转型与提高生产力的过程中继续给予它们强有力的支持。我们的中小企业明白这一点，而我也感到很欣慰的是许多企业也开始付诸行动，积极努力地转型。我们的援助非常多。不怕他们不知，只怕他们不用。政府必然会伸出援手，助它们一臂之力。我所负责的中小企业工作组将竭尽所能，寻求务实的援助计划，协助中小企业，给与企业最有用、最能使用的援助计划。但也需要企业自行检讨，知道在哪方面他们需要创新、改变。我们希望中小企业在新加坡这颗大树下，落地生根，迅速成长，发扬光大。政府必须努力，但企业也必须加把劲，力求转变。只要我们同心协力，必定能通过创新和提高生产力，为国人创造更好的就业机会，实现经济优质增长的目标。