Opening remarks by SMS Koh Poh Koon at SBF Post-Budget Seminar for Members

OPENING REMARKS BY DR KOH POH KOON, SENIOR MINISTER OF STATE FOR NATIONAL DEVELOPMENT AND TRADE & INDUSTRY AT SBF POST-BUDGET SEMINAR FOR MEMBERS, ON 8 MARCH 2018, 1.25PM, AT ORCHARD HOTEL GRAND BALLROOM

Mr Ho Meng Kit, CEO, Singapore Business Federation,

Distinguished Guests,

Ladies and Gentleman

            I am very happy to join you this afternoon for the Singapore Business Federation (SBF) post-budget dialogue 2018. This is an important platform for the business community to discuss their views on the Budget, as well as to gain a better understanding on the impact of this year’s Budget on your operations.

Changes to Our Economy Presents New Challenges and Opportunities

2.            In his Budget speech, Minister for Finance, Mr Heng Swee Keat, highlighted three key shifts in the coming decade: a greater economic tilt towards Asia; the emergence of new technologies, including digital technologies; and an ageing population. These shifts will have a profound impact on the business environment, and our companies must be attuned and start preparing now to be ready for the impact these shifts would bring.

3.            Take the rise of digital technologies, which are rapidly transforming business models and processes. While these will disrupt traditional business models, they also bring new opportunities for growth. For example, the Internet of Things (IoT) will enable the digitalisation of manufacturing, where different parts of the supply chain are interconnected and allow more value-added services to be performed by our manufacturing companies. Electronic payments and crowd-funding platforms have and will continue to profoundly alter the financial services landscape. With digital technology, even a micro-SME can reach global markets using e-commerce.

Amidst This Transition, the Government is Committed to Support Our Companies

4.            Given these shifts, it is important that we continue our efforts in industry transformation and deepen partnerships across industry stakeholders so that we are prepared for the next phase of our economic growth. We have elaborated on this both during the Budget and MTI Committee of Supply debates: specifically, how the Government is making certain shifts to better support and enable our enterprises to be future-ready.

5.            Let me take this opportunity to briefly sketch out the ways we are supporting our companies. First and most fundamentally, we are re-looking our organisational structures and processes to better serve our enterprises. The formation of Enterprise Singapore (or ESG), through the merger of SPRING and IE Singapore, encapsulates how the Government is transforming itself to better support businesses to build deep capabilities and internationalise. Enterprise Singapore will adopt a more enterprise-centric approach to address the evolving needs of Singapore companies as they move through the different growth stages.

6.            Moving forward, both ESG and EDB will be two critical and complementary government agencies that will help formulate and implement strategies for the development of industry clusters and enterprises in Singapore. Both agencies will work closely together to drive greater collaboration between multinational corporations, innovative startups, as well as enterprises of all sizes. They will reinforce each other’s strengths, enhance the competitiveness of our industries, and develop Singapore into a global trading hub.

7.            Second, we have made a concerted effort to streamline our grants and processes across the whole of Government. Some companies have highlighted that applying for the various grants can be a confusing process.

To that end, we have made considerable efforts to simplify the grant landscape, such as through the Business Grants Portal (BGP), to better meet the needs of enterprises. For companies that are looking to adopt ready-to-go solutions, the Productivity Solutions Grant (PSG), which streamlines existing grants for pre-qualified solutions and makes it easier for businesses to adopt IT solutions and equipment, will be available. For companies seeking customised support, we will be introducing the Enterprise Development Grant (EDG), which will combine SPRING’s Capability Development Grant (CDG) and IE Singapore’s Global Company Partnership (GCP) into a single grant that will provide customised support for enterprises across the areas of capability development and internationalisation. And for companies looking to collaborate, we have integrated the support measures for enterprise partnerships across various agencies into a single PACT programme, which will support capability building and business development collaborations between enterprises of all sizes, both locally and overseas.

8.            This is a very broad sketch of how we are improving our organisational structures and processes to help our enterprises. We will continue to review our schemes to make it easier for our businesses to get the support they need to remain competitive in a rapidly changing economic landscape.

TACs and Businesses Also Need to Play their Part on This Transformation Journey

9.            Industry transformation requires involvement from all stakeholders, and not just support from the Government. Our Trade Associations and Chambers (TACs) are key partners in our industry transformation efforts. TACs, such as the Singapore Business Federation (SBF), have a wide network of members, deep knowledge of the industry, and are thus well placed to address issues facing the business community. They can help their members adapt to changes in the business environment, stay ahead of the curve, and make inroads into overseas markets. They also serve as an important bridge between Government and businesses, enhancing collaborations and expanding reach. We had announced during the MTI Committee of Supply last week some of the initiatives we will be taking to strengthen the partnership for TACs, including expanding the Local Enterprise and Association Development (LEAD) programme. The LEAD programme already covers up to 90% support for high impact, multi-TAC projects, and up to 70% for other TAC projects, including internal secretariat capability upgrading. Moving forward, it will also support TAC-led projects under

URA’s Pilot Business Improvement Districts (BID) scheme, which will enable TACs to spearhead holistic BID upgrading projects that combine place management with capability development.

10.         At the same time, it is important for businesses to take a proactive approach towards transformation. Businesses must be willing to adapt to the changing circumstances, upgrade, and adopt a growth mindset. A business that stays still and conducts business as usual in the midst of rapid changes will not succeed. Ultimately, to achieve a vibrant and thriving community of enterprises, companies must be co-owners and equal partners of change.

11.         At the end of the day, what we hope to achieve are stronger businesses – businesses that are competitive and ready to compete on the global stage – and good jobs and career prospects for all Singaporeans. This calls for a greater push on industry transformation and on deepening our partnership at all levels.

CONCLUSION

12.         I welcome all of you to be part of this journey. As we look towards the next phase of Singapore’s economic growth, we will need to continue forging strong partnerships and working together to ensure that our economy remains vibrant. My special appreciation goes out to SBF for organising this seminar and providing a platform for businesses to come together and discuss key issues impacting them, and how the various measures announced in Budget 2018 will impact their operations.

13.         I hope you benefit from the presentations and participate actively in the panel discussion later in the afternoon. I wish you all a fruitful time. Thank you.