Opening Address by MOS Teo Ser Luck at ACE's Gala Dinner, Ballroom 2 at Pan Pacific Hotel

Distinguished Guests

Ladies and gentlemen.

Good evening.

Introduction

1.        Welcome to this year’s Action Community for Entrepreneurship (ACE) Gala Dinner. I am very heartened to see many familiar faces here tonight. Many of you have championed entrepreneurship for many years, and tonight is a celebration of your efforts and contributions.

Achievements of ACE over past decade

2.        ACE has come a long way since it started in 2003 to champion entrepreneurship in Singapore.  In the early days, there were few platforms and community networks to support aspiring entrepreneurs.  Starting a business was not considered a favourable career option.  Resources were limited and entrepreneurs found it challenging to secure support and financing. 

3.        Over the last 10 years, ACE has done much to build a pro-enterprise environment, nurture an entrepreneurial culture and facilitating networking and learning amongst members of the entrepreneurship community.

4.        To strengthen the culture of entrepreneurship and change mindsets, ACE pioneered various entrepreneurship-related events and platforms. Through the ACE Speakers’ Circuit, volunteer entrepreneurs shared their experiences, inspiring and educating more than 60,000 youths in 150 sessions. This works out to more than 1 event a month, over the last 10 years. ACE has also organised more than 60 ACE BlueSky Exchange networking sessions, enabling more than 27,000 entrepreneurs and stakeholders to network, learn from one another, and explore business opportunities. Such platforms have contributed tremendously to strengthening the entrepreneurship community in Singapore.

5.        ACE was also instrumental in pushing for the introduction of youth entrepreneurship schemes such as Young Entrepreneurs Scheme (YES!) Start-ups and YES! Schools.  Collectively, these schemes have funded more than 250 youths in their first business ventures and more than 140 schools in developing entrepreneurship programmes for 35,000 students. Last year, ACE introduced ACE Schools, a structured three-year Entrepreneurship Programme for secondary schools, which has since been adopted by 9 schools.

6.        ACE has also made inroads into helping our entrepreneurs expand overseas. We have established an ACE Chapter in Beijing.  In the last two years, the ACE Beijing community has helped to mentor and connect more than 25 local start-ups to a network of partners and potential customers, thereby, easing their expansion into China.

7.        As a result of the team’s hard work and dedication, we have seen many positive changes and increased vibrancy in our entrepreneurship landscape.  There are more start-ups today, with the number of active start-ups increasing 58% from 24,000 in 2005 to 39,000 in 2012.  Start-ups are also making an impact and creating more jobs. In 2012, start-ups employed 293,000 people, which is almost double the 167,000 employed by start-ups in 2005.

8.        We have also seen an increase in entrepreneurial intent among Singaporeans.  The 2012 Global Entrepreneurship Monitor found that more than 20% of respondents had the intention to start a business within three years, which was second only to Taiwan.

9.        More entrepreneurs are also finding success. Take for example, Min-Liang, the CEO and Founder of Razer.  Unlike fellow law graduates from NUS, he chose to follow his passion and aspired to design devices and software that are truly for gamers, by gamers. Razer was founded in 2005 and today, Razer is a world leading cult brand in gaming, employs more than 400 people worldwide, has offices in nine different cities, and has an annual turnover in the hundreds of millions. Recently, at the Consumer Electronics Show[1] (CES) in Vegas, Razer was awarded the Best of CES People’s Choice for their Razer Nabu smartband[2] – an unprecedented feat as it is the third straight year that Razer has won the award.

10.    There were also a record number of 12 successful exits for start-ups in Singapore last year, where the start-ups were acquired by another company. Two of them, Viki and sgCarMart, were acquired in excess of $50 million each. This is considerable progress since the 2000s.

Entrepreneurship Review Committee

11.    At the ACE 10th Anniversary dinner in May last year, I announced the formation of the Entrepreneurship Review Committee, or EnRC, to conduct a review of our entrepreneurship landscape.  Over a six-month period, the Committee actively engaged key stakeholders in the start-up community, speaking to over 100 entrepreneurs, angel investors, venture capitalists, and incubators, through a series of dialogue sessions and surveys. 

12.    Today, I am happy to share with you that EnRC has concluded its work, and identified several recommendations which you will find displayed at your tables.  I would like to briefly share some of the Committee’s key findings and recommendations, which are focused on three key objectives – driving more private sector involvement, providing opportunities for greater market access, and enhancing growth of quality start-ups.   

Key EnRC recommendations

13.    Given the development stage of our entrepreneurship landscape, EnRC believes that it is timely for the private sector to play a greater role in leading the growth of entrepreneurship in Singapore. With greater private sector involvement, start-ups will have more access to resources such as financing, networks and expertise, which can accelerate their growth.

14.    EnRC also sees the need to provide greater market opportunities to start-ups both locally and overseas.

15.    Locally, large organisations and MNCs are potential customers for start-ups. However, it is often difficult for start-ups to work with them because of their lack of track record. The Committee has therefore proposed ways to facilitate closer collaboration between large corporations and start-ups.

16.    The Committee has also made recommendations to support our start-ups for overseas expansion, which is necessary given Singapore’s small domestic market.

17.    Lastly, to enhance the growth of quality start-ups, the Committee has tabled proposals to inspire future entrepreneurs and support early-stage entrepreneurs. They include supporting start-ups in key sectors that have greater potential to create jobs and economic growth. This can be done by creating better infrastructure and enhancing access to funding for such sectors. In particular, entrepreneurship in key technology sectors could be supported through the creation of a dedicated community cluster for such start-ups, similar to what has been done for start-ups in Blk 71 at One-North.

18.    For more details on the recommendations, do refer to the booklets at your tables.

ACE to be Private Sector-Led

19.    The relevant government agencies will review the EnRC’s recommendations, and will be responding when they are ready.

20.    One key recommendation which is timely is the call for more private sector involvement in shaping the entrepreneurship movement in Singapore. Given how vibrant the entrepreneurship community has become, we can now do more with the private sector driving it. As such, I would like to take the opportunity to announce that, moving forward, we will be transitioning ACE to be led by the private-sector. It will continue to be supported by the government, which will facilitate the process.

21.    I will no longer be the chairman of ACE. ACE will take a new form and shape, led by the private sector, which will be more sustainable and better able to energise the entrepreneurship landscape. I am confident that with the continued contribution of individuals to the ecosystem, the community will evolve to new heights.

22.    In the coming weeks, we will review and finalise the structure and direction of this private sector-led ACE. More details will be announced soon and I hope you will continue to lend your support to this new team. 

Conclusion

23.    In closing, I would like to express my appreciation to the EnRC and the entrepreneurship community for all the hard work put into the review.  These recommendations will help to shape and guide the directions for a stronger entrepreneurship landscape in Singapore where entrepreneurs can flourish.

24.    To all of ACE’s partners, thank you once again for your contributions towards the ACE movement.  I wish all of you a pleasant evening ahead.

25.    Thank you.

[1]

The Consumer Electronics Show (CES) is an internationally renowned electronics and technology trade show, which attracts major companies and industry professionals worldwide. The show was first inaugurated in 1967 and since 1998, the show is held every January in Las Vegas.

[2]

The Nabu smartband is a combination of a fitness band and a smartwatch. It tracks steps taken and calories burned, and it also receives notifications (text messages, phone calls, emails) from iOS or Android phones. It can also initiate a social transaction: send a friend request or follow them on Twitter, when a Nabu smartband wearer makes a handshake with someone wearing the smartband too.