Speech by Minister Lim Hng Kiang at the Internationalisation Forum

KEYNOTE ADDRESS BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY (TRADE), INTERNATIONALISATION FORUM ON THURSDAY, 23 JUNE 2016, 9.35AM, RESORTS WORLD SENTOSA

Your Excellencies,

Distinguished Guests,

Ladies and Gentlemen,

1. Good morning. I am delighted to join you at the inaugural Internationalisation Forum today.

Importance of internationalisation

2. This forum comes at an opportune time to discuss internationalisation as a business strategy. We are facing an increasingly challenging economic environment.  Many of you would have made your own assessment of the global outlook. It is a time of modest growth, quite different from the years before the Global Financial Crisis. For Singapore, growth is in the additional context of our becoming a more mature economy, with a trajectory more in line with other advanced economies.

3. Given our small domestic market and a more competitive economic landscape, internationalisation will play an increasingly important role in companies’ growth strategies.  Companies need to stay nimble and adaptable, and be able to orientate their businesses quickly to emerging external opportunities. To achieve sustained growth, companies need to venture into new and diverse markets, expand their international footprint and gain economies of scale.

4. Let me highlight three key ways in which the Government can continue to support our companies’ internationalisation journey.

Government-Industry collaboration

5. First, the Government will continue to work with you in your internationalisation efforts.  IE Singapore has been providing a wide spectrum of support, both financial and non-financial, for companies looking to expand overseas. For example, companies can tap on IE Singapore’s Market Readiness Assistance (MRA) scheme that provides broad-based assistance for companies new to internationalisation. This includes areas such as market research and advisory on market entry. For companies with more established presence overseas, the Global Company Partnership (GCP) scheme can provide more customised help, such as business match-making and project facilitation.

6. In addition, we recognise that finding the right talent is critical for companies to succeed in their internationalisation journey. This may not always be easy. To address these manpower needs, the Government will continue to support companies’ talent development efforts. For example, IE Singapore’s Skillsfuture Study Award for Internationalisation helps Singaporeans develop skills to take on global responsibilities in their careers. It provides a S$5,000 subsidy to defray participants’ expenses for a list of eligible leadership and management academic courses that focus on developing internationalisation skill-sets.

Collaboration amongst companies and with TACs

7. Second, the government has been promoting collaboration amongst companies and with Trade Associations and Chambers (TACs) to support companies’ internationalisation efforts.  Many small and medium enterprises (SMEs) face challenges going overseas alone, due to their lack of scale or a strong value proposition as an individual company. To help overcome these challenges, we bring companies with complementary strengths together to achieve synergies. For instance, IE Singapore partnered The Foodhall, one of Indonesia’s largest gourmet supermarkets, to launch a Tasty Singapore Food Aisle. This brought together 14 Singapore food and beverage companies to leverage a collective Singapore brand, helping them gain access to the Indonesian market more effectively.

8. We have also been working with TACs as multipliers to help companies extend their reach in overseas markets. For instance, IE Singapore, the Singapore Manufacturing Federation (SMF) and Intellectual Property Intermediary (IPI) spearheaded efforts to establish the Enterprise Europe Network (EEN) Centre in Singapore in April 2016. This gives Singapore companies improved access to technological know-how, intellectual property and business partners in Europe. I encourage companies to leverage such platforms and work closely with TACs to strengthen your international competitive edge.

Singapore as a base for internationalisation

9. Third, Singapore has the right attributes to be a base for companies to internationalise into regional and global markets.  Companies based here can tap on our robust intellectual property and legal infrastructure, strong financing capabilities and overall conducive business environment.  International companies can also leverage our strong regional business networks and forge win-win partnerships with Singapore companies as you venture into the region.

10. In addition, companies can take advantage of our extensive network of bilateral and regional trade and investment agreements. For instance, the establishment of the ASEAN Economic Community (AEC) in 2015 can improve companies’ access to opportunities in the region through the elimination of discriminatory barriers and easing of foreign ownership restrictions. The Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP), when in place, could further enhance regional opportunities for companies. Senior Minister of State for Foreign Affairs, Mrs Josephine Teo, will speak more about this at the Closing Plenary session.

11. Singapore companies are also well positioned to access opportunities arising from new trade corridors such as China’s One Belt One Road (OBOR) initiative. The OBOR encourages further economic integration and infrastructural cooperation between economies in the region, including Southeast Asia. Under the theme of “modern connectivity and modern services”, the Chongqing Connectivity Initiative (CCI) will be a “priority demonstration project” for the OBOR.  It will strengthen Singapore and Chongqing’s positions as gateways into ASEAN and Western China respectively.  This twinning of Singapore and Chongqing will bring about synergies for both sides in terms of flow in goods, capital and people. We hope that the CCI, like many of our government to government level projects, will help to create even more opportunities for companies in overseas markets.

Conclusion

12. Today’s Internationalisation Forum is a good platform for companies to share experiences related to their internationalisation journeys. It is also an opportunity for like-minded companies to broaden their international networks, and discuss how to jointly pursue market interests through business partnerships and collaborations with TACs.

13. I wish everyone fruitful discussions ahead.   

14. Thank you.

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