Speech by MOS Koh Poh Koon at Teochew Entrepreneur Award

SPEECH BY DR KOH POH KOON, MINISTER OF STATE FOR NATIONAL DEVELOPMENT AND TRADE & INDUSTRY AT THE LAUNCH OF THE SINGAPORE TEOCHEW ENTREPRENEUR AWARD ON FRIDAY, 5 FEBRUARY 2016, 3:00PM, TEOCHEW POIT IP HUAY KUAN

Dr Kenny Sim, Organising Committee Chairman, Singapore Teochew Entrepreneur Award

Mr George Quek, President, Teochew Poit Ip Huay Kuan

Dr Derek Goh, Huay Kuan Vice President and Chairman for Local and International Affairs

Fellow Teochews

Distinguished Guests

Ladies and Gentlemen

Introduction

1.          Good afternoon.  I am pleased to join you today at the launch of the inaugural Singapore Teochew Entrepreneur Award.

2.          The spirit of entrepreneurship runs deep in the roots of the Teochew Poit Ip Huay Kuan.  Among its founders were prominent Teochew community leaders and businessmen, who were known for their resilience, hard work, honesty and sincerity.  Like their fellow Singapore business pioneers, they constantly sought out opportunities and adapted to stay relevant in challenging business environments.

Learning from our pioneers

3.          Take for example Mr Lim Nee Soon, for whom Yishun estate is named.  Orphaned at the age of 8, Mr Lim was raised by his maternal grandfather.  While his first job was with timber merchants, Mr Lim soon took great interest in rubber planting.  After working at various rubber estates and companies, Mr Lim struck out on his own in 1911, and formed Nee Soon and Company.  He took large tracts of land that were used to grow gambier and pepper – crops that had fallen out of favour – and converted them into rubber plantations.  He started his own rubber factory, and became a consultant to other rubber estate owners, thus playing an important role in the development of rubber plantations and villages in the area that would eventually be named Nee Soon. 

4.          There are many important lessons to be learnt from Mr Lim’s story.  First, it illustrates the importance of entrepreneurship as an engine of economic renewal.  Mr Lim was one of the pioneers of rubber planting in the region. The rubber trade would eventually become one of the most important industries in the Straits Settlements, and a key to Singapore’s prosperity in the early 20th century.

5.          Entrepreneurs today are similarly important in driving change.  The entrepreneurship landscape in Singapore has progressed steadily over the years: the number of active young companies has grown from 23,000 in 2004 to 55,000 in 2014.  In particular, we have seen encouraging growth in high-technology and knowledge-intensive sectors, which represent an increasingly important part of our economy.

6.          Second, it illustrates the importance of new ideas and innovation.  One important factor in the growth of the regional rubber industry was the work of Sir Henry Nicholas Ridley, the first scientific director of the Singapore Botanic Gardens.  In 1895, Sir Ridley discovered an improved rubber tapping technique that yielded maximum amounts of latex without seriously damaging the rubber trees.  This was a game-changer for the industry, lowering costs and raising productivity.  Before this, most of the world’s supply of rubber came from wild rubber plants in South America and Africa.  Sir Ridley’s technique enabled plantations to thrive, and contributed to rubber becoming a key industry here.  By the 1930s, plantations in Southeast Asia were producing 90 per cent of the world’s rubber.

7.          Innovation is equally, if not more important, today.  No matter what sector you are in, whether you are a new start-up or established company, it is important for companies to innovate, be it through research and technology, a new business model, or along supply chain lines.  Otherwise, you risk being disrupted by a more agile business.  For example, taxi companies today face serious challenges from the growth of Uber, a company that has grown to a valuation of US$50 billion in less than 6 years[1].  On the other hand, the once-dominant Blackberry now accounts for less than 1 per cent of the market share for smartphones.  For some companies, the restructuring process might be painful, but we must press on.  We must build the mindset and take deliberate steps to be agile and competitive, whether as a company or an economy, and not be the ones who are left behind. 

8.          Third, it illustrates the important role that successful entrepreneurs play in building the community.  Mr Lim was active in helping others.  He served as a consultant to other rubber estate owners, helping them to become successful, and served as president of the Singapore Chinese Chamber of Commerce for 2 periods[2]. He was also active outside of business life: he was one of the founders of the Teochew Poit Ip Huay Kuan in 1929, and contributed his time and money across various causes, such as schools, hospitals and boards of government committees.

9.          Successful business leaders play a similarly important role today. The Government has been actively supporting entrepreneurship and businesses in Singapore, through numerous agencies like SPRING, EDB, NRF and IDA.  For our entrepreneurs to be successful, this needs to be complemented by greater involvement from private players to step up to contribute to a supportive and vibrant environment for start-ups and SMEs.  In particular, business leaders are well placed to provide guidance and mentorship to newer entrepreneurs, helping them to grow their business and avoid important pitfalls.

10.      In addition, organisations such as the Teochew Poit Ip Huay Kuan play an important intermediating role, by helping to connect and bring people together.  The Singapore Teochew Entrepreneur Award that the Huay Kuan is launching today is an important example of that.  The award seeks to recognise successful and promising Teochew entrepreneurs for their positive contributions to the business and social community.  I am glad that the Huay Kuan has taken the initiative to launch this award, and hope that it will serve as an inspiration to others embarking on the journey of entrepreneurship.

Conclusion

11.      In closing, I would like to congratulate the Teochew Poit Ip Huay Kuan on the launch of the Singapore Teochew Entrepreneur Award, especially Dr Derek Goh, chairman of the Local and International Affairs Committee, which organised the award.  I look forward to finding out who the winners are when the results are announced later this year.  Also, we are just days from Chinese New Year, so let me take the opportunity to wish everyone 事事顺利, 生意兴隆!

12.      Thank you.

[1] Source: “Uber valued at more than $50 billion”, Wall Street Journal, 31 Jul 2015.

[2] 1921-1922 and 1925-1926.

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