Speech by Minister S Iswaran at SCCCI Lunar New Year Gathering

​SPEECH BY MR S ISWARAN, MINISTER FOR TRADE AND INDUSTRY (INDUSTRY) AT SCCCI LUNAR NEW YEAR GATHERING, SATURDAY, 28 JANUARY 2017, 11.30 AM, SCCCI AUDITORIUM

Mr Thomas Chua,
President, Singapore Chinese Chamber of Commerce and Industry,

Mr Roland Ng,
Incoming President, SCCCI,

Council members and members of the SCCCI,

Excellencies,

Ladies and Gentlemen,

1.    Good morning.  I am delighted to join the Singapore Chinese Chamber of Commerce and Industry (SCCCI) to celebrate the Lunar New Year. Let me start by wishing all of you a Happy, Healthy and Prosperous Year of the Rooster.

Economic Outlook

2.    We bid goodbye to the Year of the Monkey, which has certainly been eventful with unpredictable twists and mischievous turns. We have witnessed unexpected economic and political developments, and the long term repercussions and consequences are just beginning to unfold. Nations around the world are now forced to contend with this new reality. 

3.    Against that backdrop, we ended 2016 with some positive news. Our advance estimates place Singapore’s economic growth in 2016 at 1.8 per cent, above the initial projections. Our growth was buoyed by a strong performance in the fourth quarter, especially from the manufacturing sector which saw a strong reversal from its contraction in the third quarter.

4.    As we look ahead, 2017 will pose its own challenges, with continuing economic headwinds and an unpredictable global political climate. In the Chinese zodiac, roosters are known for their confidence, resourcefulness, reliability and drive. These are traits that will serve us well as we navigate the uncertain path that lies ahead.

5.    This is not new for us in Singapore. We have faced the many ups and downs of the first 5 decades of our nationhood with unity and resilience. In every crisis, we have sought out new opportunities, built on our strengths, acquired new capabilities, and ventured into new markets and sectors. And we have always taken care to ensure that our immediate needs do not blind us from fundamental long term challenges; otherwise we might win the battle but lose the war. This periodic renewal, as Prime Minister Lee Hsien Loong emphasised in his Lunar New Year message, has been our way, and this time is no different. 

Positioning Singapore and Singaporeans for the Future

6.    For Singapore to thrive as a place of opportunity, our people must be adaptable with deep skills; our enterprises, innovative and nimble; and our economy, open and connected. The challenge lies in how we achieve and sustain these goals. It requires the commitment and collective effort of our workers and unions; industry, trade associations & chambers; and the government. This is the focus of the Committee on the Future Economy; to articulate economic strategies that position Singapore and Singaporeans well for the future. The CFE’s report will be issued soon.

7.    I am encouraged that the SCCCI has also thought deeply about these challenges, and distilled four key pre-Budget 2017 recommendations[1] for Government’s consideration. These recommendations aim to foster a pro-business environment where the Government and industry work hand in hand to strengthen our enterprises, especially the SMEs who are key to our economic renewal. It is the dexterity, innovation capacity and scale of our SMEs that will underpin our ability to create value in future. I therefore wish to assure the Chamber and its members that the Government shares your vision and will work closely with you to realise it. 

8.    The Government is also paying close attention to the immediate needs of companies in this uncertain climate. SCCCI’s SME Survey 2016 showed dampened business sentiments with the top concerns being business costs and manpower. Last year, in response to these challenges, Government announced targeted measures to help our companies, such as SPRING’s SME Working Capital Loan, and the support measures for Marine and Offshore Engineering companies. We will monitor the situation and do more if necessary.

9.  More broadly, Government will continue to support our trade associations, companies and people as they gear up for the future. SPRING and IE Singapore have supported 35 trade associations and chambers in over 180 industry development and internationalisation projects. In the past year alone, SPRING’s Capabilities Development Grant has enabled almost 2,400 companies to strengthen themselves in key business areas.  IE Singapore has helped more than 37,000 companies internationalise and develop new market capabilities. In all these efforts, we need strong collaboration with our industry partners so that we can reach out to more companies and achieve greater benefits for all.

Role of SCCCI

10.      The SCCCI has played an instrumental role in that regard. You have taken the lead in projects such as the SME Centres and the IE-SCCCI Singapore Enterprise Centre in Shanghai, to help our businesses transform and internationalise. SCCCI has also actively engaged the many other trade associations within its network, to generate valuable inputs for the Industry Transformation Maps that are being developed.                                     

11.      2016 was a milestone year for SCCCI, with the celebration of your 110th anniversary. SCCCI also partnered JTC and SPRING to establish the Trade Association Hub (TA Hub) at the former Jurong Town Hall. The Chamber and 19 other trade associations, will move into the new TA Hub over the course of this year. Besides shared secretariat services and facilities, the TA Hub provides a vibrant environment that is conducive for cross-sector collaboration in industry projects. SCCCI will play an important leadership role as it already has by setting up the Trade Association Committee (TACOM) to which Senior Minister of State Sim Ann will be an Advisor. The bonds forged at the TA Hub and TACOM will enrich the conversation between industry and Government on our common goal of creating a pro-enterprise environment for our businesses, and good jobs for Singaporeans.

Conclusion

12.      Throughout its 110-year history, SCCCI has responded to the changing needs of our industries and businesses by continually adapting itself, with the Rooster’s resourcefulness and dedication. In that same spirit, I look forward to the continued support and partnership of SCCCI as we journey forward to transform our industries, and position our enterprises and economy for continued growth and prosperity. 

13.      A line in one of the most popular Lunar New Year songs that we hear each year describes the beautiful springtime scenery as Liu3 An4 Hua1 Ming2 (柳暗花明). But the phrase also describes how one encounters hope and opportunity after a circuitous or challenging journey. As sure as Spring comes after Winter, this coming year, and those beyond, will present us with opportunities and, like the Rooster, we must be confident in moving to make the most of them.

14.      I wish everyone here Xin1 Nian2 Kuai4 Le4 （新年快乐）, Gong1 Xi3 Fa1 Cai2 （恭喜发财）, and Wan4 Shi4 Ru2 Yi1 （万事如意）. Thank you.

[1] The 4 recommendations are:
1.     To help businesses to restructure and innovate, Government agencies:

a.     Should be coordinated and have a consistent business-focussed approach;
b.    Have a flexible mindset; and
c.     Develop schemes that are flexible and easy for SMEs to qualify and apply.

2.     Government should empower trade associations to drive industry development to benefit businesses
3.     Government should create a national-level infrastructure and e-platform to drive and accelerate SMEs’ IT adoption
4.     Government needs to educate and guide SMEs on how to benefit from FTAs, especially the ASEAN Economic Community.

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