Speech by Minister S Iswaran at the SCCCI's Lunar New Year Gathering 2016

SPEECH BY MR S ISWARAN, MINISTER FOR TRADE & INDUSTRY (INDUSTRY) AT THE Singapore Chinese Chamber of Commerce and Industry LUNAR NEW YEAR GATHERING 2016 AT SCCCI AUDITORIUM, ON MONDAY, 8 FEBRUARY 2016, 11.30 AM​

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

Excellencies, Distinguished Guests,

Ladies and Gentlemen

Introduction

1.            Good morning.  I am delighted to join you and the members of the Singapore Chinese Chamber of Commerce and Industry (SCCCI) to celebrate the Lunar New Year, and welcome the start of the Year of the Monkey.

Economic Outlook

2.            In the Chinese zodiac, the Monkey is known to be lively, flexible, quick-witted and versatile.  These qualities are precisely what we need to navigate what is shaping up to be a challenging year of the Fire Monkey. 

3.            Last year, our economy grew at its slowest pace since the Global Financial Crisis in 2009.  The sluggish economic environment is likely to persist this year due to cyclical and structural factors like the continued slowdown in the Chinese economy, weakening growth momentum in the US, and in-sourcing trends in major markets.  Against this backdrop, our economy is projected to grow at a modest pace of 1.0 to 3.0 per cent in 2016.

4.            The Government is closely monitoring these developments and the impact on different parts of our economy.  There are risks, and there are industries which are facing significant challenges, but the situation is not all gloomy.  For example, lower oil prices have adversely affected some industries, but also mean lower energy costs for a broad range of businesses.  Unemployment remains low and we continue to invest in our capabilities through R&D and programmes like SkillsFuture.  And, there are still short and long term opportunities to be seized in regional markets, and in sectors like advanced manufacturing, logistics, healthcare, digital and urban solutions. 

5.            Our government agencies understand the challenges that our SMEs are facing in the current economic environment, and will continue to work closely with our business community to help our companies.  There have been calls for a fresh boost of government support for business in the current economic environment.  We have to bear in mind, however, that we are not in a situation like 2008, when there was risk of a major global recession bringing down our economy. Hence, even as we deal with short term challenges, it is crucial that we press on with our longer-term economic restructuring to become more innovative, productive and manpower-lean.  As the Chinese phrase goes 稳扎稳打，步步为营 (wen3 zha1 wen2 da3, bu4 bu4 wei2 ying2) – we must keep a steady foot as we proceed with alertness and caution.  That is the surest path to staying competitive, achieving sustainable growth over the long-term, and seizing opportunities when the economic environment improves, as it will. 

6.            The Government will continue to provide strong, targeted support to our SMEs, to help build their capabilities for internationalisation and innovation.  Over the past year, IE Singapore has supported close to 4,500 companies in internationalisation projects through different financial assistance schemes (Global Company Partnership (GCP) and Market Readiness Assistance (MRA)).  An SME Centre set up in Shanghai by SCCCI and IE Singapore has, to date, assisted more than 5,000 SMEs to do business in China.  SPRING has also supported more than 700 Capability Development Grant (CDG) projects, to help SMEs across key business areas including productivity improvement, brand and marketing strategy development, and financial management.

7.            The Committee on the Future Economy will also consult closely with the business community to chart the longer-term course for Singapore’s economic growth.  A few months ago, I had a fruitful dialogue with the SCCCI leaders who provided useful feedback which our agencies are working on.  I look forward to deep engagement with the Trade Associations and Chambers, like SCCCI, who are key partners and stakeholders in our economy, and will play an important role in helping their members transform so as to collaborate and compete more effectively.

SCCCI’s Role in Championing Business Interests and Nation Building

8.            This year, SCCCI will be celebrating its 110th anniversary.  In the course of its history, the Chamber has played an important role in helping local enterprises foster partnerships and collaborations, seize new opportunities, and manage economic restructuring.  For instance, the SME Centre@SCCCI and its satellite centre at Central CDC provide business advisory services to over 300 SMEs each month.  In addition, SCCCI has taken the lead to establish a trade association hub at Jurong Town Hall.  This hub will provide a platform for trade associations of different industries to collaborate in driving industry transformation.  

9.            SCCCI has also been active in promoting closer consultation between industry and government.  Over the past year alone, SCCCI has organised 18 dialogue sessions between its Trade Association (TA) members and government agencies.  Through these sessions, the TAs have worked with government agencies to jointly address key business challenges faced by their members, including industry land-use, compliance costs, and rising rentals.  In addition, SCCCI has recently submitted a comprehensive Pre-Budget 2016 Survey Report with several recommendations for the Government to consider.  We will carefully study these ideas to see how they can be implemented for the benefit of our businesses and the economy.

10.         For instance, one of SCCCI’s recommendations is to simplify paperwork for business grants, and expedite grant disbursement processes.  In fact, government agencies have been actively working to further streamline processes.  SPRING and IE Singapore have already rationalised their grant programmes into two umbrella schemes – the Capability Development Grant (CDG) for innovation and domestic capability development, and the Global Company Partnership (GCP) for internationalisation.  The upcoming rollout of the Business Grants Portal will further allow businesses to easily identify, apply for and manage their business grants, and enable SMEs to more easily benefit from government programmes.

11.         Beyond the SCCCI’s core work in servicing the interests of its members, I am also heartened by its contributions to nurture an inclusive society.  For example, through the Chamber’s Foundation, joint scholarships have been awarded to Malay-Muslim undergraduates through Mendaki since 2004, and to ethnic Indian students since 2015.  These efforts go a long way towards strengthening our multicultural social fabric, as part of our ongoing journey to build a cohesive society and resilient nation. 

Conclusion

12.         In closing, I am confident that in this Year of the Monkey, SCCCI will continue to achieve excellence in all its activities and programmes, and be nimble and enterprising in supporting and driving the local business community towards continued prosperity, growth and resilience. I look forward to working closely SCCCI to improve the business environment for the continued growth of our local enterprises.

13.         On this note, I would like to wish everyone 新年快乐（xin1 nian2 kuai4 le4），恭喜发财（gong1 xi3 fa1 cai2）, and万事如意（wan4 shi4 ru2 yi4）. I wish you a very happy, healthy and prosperous new year.

14.         Thank you.

贸工

部长（工业

）易华仁先生

在新加坡中华

总商会新春

团拜的讲话全文

地点：新加坡中华总商会礼堂

日期：2016年2月8日（星期一）

时间：上午11时30分

新

加坡中华总商会会长蔡其生先生

、　

贵宾

们、

先生们、女士们

引言

1.       大家早上好。我很高兴在这里和大家一

起欢庆农历新年、迎接猴年的

到来。

经济前景

2.       在华人生肖里，猴子可说是聪明灵活、身手敏捷的动物。这些恰恰是我们在应对眼前

充满挑战的火猴年里所需具备的条件。　 

3.       去年是我国经济自2009年全球金融危机以来增长最缓慢的一年。今年，由于周期性和结构性因素，例如中国经济持续放缓、美国经济增长乏力和主要市场的内包趋势，整体疲弱的经济环境极可能持续下去。在这种情况下，我国今年的经济增长预测介于1.0至3.0％之间。　

4.       政府正在密切关注事态的发展及其对我国经济各领域所造成的影响。风险是有的，而且有些行业会面对极大的挑战，但情况并非完全如此黯淡。例如，较低的油价虽然冲击某些行业，但对大多数企业来说，这也意味着较低的能源成本。我们的失业率维持在低水平；而我们也将继续通过研发与未来技能等计划增强我们的能力。此外，在区域市场及一些行业如先进制造业、物流、保健、数码与城市解决方案等领域，还是会有一些长期和短期的机会让我们去争取。 

5.       我们的政府机构了解我国中小企业在目前的经济环境中所面对的挑战，并将继续与商界合作，助企业一臂之力。我们知道有企业促请政府在当前的经济情况下给予企业更大的协助。不过，我们也必须知道，现今的情况并不像2008年那样，面对全球大萧条、经济被拉垮的风危。因此，在应对短期挑战的时候，我们必须继续坚持长期的经济转型计划，才能更具创新能力、提高生产力、减少对人力的依赖。正如华人有句话“稳扎稳打，步步为营”——这是维持竞争能力、取得长期可持续性增长、并在经济好转时抓紧机会的最佳途径。　

6.       政府将继续给予我国的中小企业大力、具针对性的支持，协助他们建立走向国际化和创新的能力。过去

一年里，新加坡国际企业发展局（IE Singapore）已透过各项援助计划如国际企业合作计划（Global Company Partnership，GCP）与市场进入协助计划（Market Readiness Assistance，MRA）协助近4500家公司发展海外业务。到目前为止，由贵会与企发局联合在上海设立的中小企业中心也帮助5000多家中小企业在中国做生意。此外，标新局也资助了700多个能力发展津贴计划（Capability Development Grant, CDG）项目，帮助中小企业提高生产力、及提供品牌与市场营销策略、财务管理等多方面的协助。　

7.       未来经济委员会也将和企业界密切磋商，为新加坡的长期经济增长制定方向。几个月前，我和贵会领导层进行了对话，得到宝贵的反馈和意见。我们的机构正在跟进这些建议。我希望其他贸易团体和商会也和贵会一样积极参与，并在协助会员转型以便更有效地竞争及展开合作扮演重要和积极的角

色。　

新加坡中华总商会在维

护商家利益与国家建设方面所扮演的角色　

8.       今年，贵会将庆祝成立110周年。自创会以来，贵会在协助本地企业培养伙伴关系与合作精神、把握新机会与应对经济转型方面扮演重要的角色。例如，它的中小企业中心（SME Centre@SCCCI）及设在中区社区发展理事会的卫星中小企业中心，每月为超过300多家中小企业提供商业咨询服务。此外，贵会也率先在裕廊镇大会堂建立商团中心，为不同行业的商贸团体提供一个平台，促进商会及各个行业之间的合作，推动整个行业的转型。  

9.       贵会向来也活跃于促进企业与政府之间的联系。单在去年一年里，贵会就举办了18场商贸团体与政府机构之间的对话会。通过这些对话会，商贸团体同政府机构联手协助会员应对所面对的商业挑战，包括工业地段的使用、行政收费、租金上涨等。此外，贵会最近提呈了一份周详的2016年预算案前的调查报告，其中列出几个建议让政府考虑。我们将认真研究这些建议，探讨如何落实它们才能让我们的企业和经济受益。

10.     贵会的其中一个建议是减少企业申请商业津贴的繁文缛节，加速发放津贴的程序。实际上，政府机构一直在积极探讨简化申请程序。标新局与企发局也已经把他们的津贴计划整合为两大主要项目——协助企业增强创新与能力发展的能力发展津贴计划、以及帮助企业走向国际化的国际企业合作计划。另外，不久即将推出的商业津贴网站（Business Grants Portal）将方便商家更容易确认、申请并管理他们所申请的企业津贴，使中小企业更容易从政府各项计划中受惠。

11.     贵会除了为会员争取利益外，还致力于为培养具包容性社会而作出贡献。这点令我感到鼓舞。例如自2004年以来，贵会已通过自己的基金会，与回教社会发展理事会联合颁发奖学金给马来-回教的大学生；自2015年起，贵会也同样颁发奖学金给印族学生。这些努力，对于强化我国的多元文化社会，建立一个深具凝聚力的社会和强韧的国家有深远的作用。　 

总结

12.     我有信心，在这个猴年里，贵会将在它的所有活动与计划中继续取得卓越的成就，并能以灵活的身段和具有创新的精神，继续支持与推动本地企业走向繁荣、增长与坚强的道路。我期待与贵会密切合作，为协助我们企业的持续增长、改进商业环境而努力。

13.     最后

，恭祝大家新年快乐，恭喜发财，万事如意！　

14.     谢谢。​