Speech by MOS Teo Ser Luck at the Emerging Enterprise 2014 Awards at the Ritz-Carlton Ballroom

Distinguished guests,

Ladies and gentlemen,

1.              It gives me great pleasure to be here for the 7th edition of the Emerging Enterprise Awards tonight. I am glad to note how this event has grown over the years and would like to congratulate the organisers for putting together another successful instalment.

Role of Entrepreneurship in the economy

2.              Tonight’s Awards reflect the evolution and vibrancy of our entrepreneurship landscape. Our finalists have several traits in common. They are entrepreneurial, innovative and committed to delivering value to their customers.

3.              The “Most Promising Start-up” award will be launched tonight to recognise the achievements of businesses that are less than three years old, and with less than $1 million annual turnover. This is timely as the entrepreneurship scene in Singapore has become significantly more vibrant over the years. The number of active start-ups has grown by 58% from 24,000 in 2005 to 39,000 in 2012. The number of people employed by start-ups has also almost doubled from 167,000 in 2005 to 293,000 in 2012. In addition, our start-ups are a source of innovation, in terms of business models and technology, which helps to enhance Singapore’s competitive advantage.

4.              Last year’s winner, Biomax Technologies embodies the innovative spirit of our young companies. Founded in 2009, Biomax uses technology to contribute to environment sustainability. Using in-house proprietary technology, organic waste is loaded into an enclosed rapid thermophilic digester

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where it is mixed with enzymes to produce high quality organic fertiliser. This technology is particularly attractive in countries with large agriculture or livestock sectors. To date, Biomax has sold the digesters to more than 10 countries including Australia, Thailand and France. Supported by SPRING SEEDS Capital, Biomax has grown into a company with 30 employees, and had US$4.5 million in revenue last year.

Internationalise and grow

5.              Our businesses operate in a small domestic market. Against this backdrop, businesses need to find creative ways to drive growth. There are two key areas which I suggest businesses should focus on: internationalisation and talent development.

6.              By internationalising, businesses can access larger markets, increase sales, and gain greater economies of scale in production.  ASEAN has been working towards the realisation of an ASEAN Economic Community, or AEC. AEC will bring about deeper economic integration through the creation of a single market and production base, with enhanced transport and business connectivity. Through this, Singapore companies will be able to produce and export more seamlessly across the region.

7.              Many of our internationalising businesses are “micro-multinationals”, or businesses that are global without being large in terms of staff size or revenues

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. Businesses that have succeeded in this have done so by building alliances, developing capabilities that are relevant to their target markets, and taking advantage of Singapore’s strong brand reputation.

8.              SC Auto is a leading bus and coach manufacturer in Singapore. The company is able to design and manufacture specialised vehicles to meet varied specifications. In addition, they place a strong emphasis on quality, which is important in establishing a foothold in overseas markets. As a result of SC Auto’s focus on high standards for performance and safety, the company has broken into Hong Kong, a market with strict safety regulations.

9.              SC Auto’s focus on customer needs has also facilitated its overseas expansion. For example, the company employs a “Complete Knock Down” methodology, which allows the buses to be reassembled by the customer to reduce logistics cost. With the help of grants and schemes from SPRING Singapore and IE Singapore, SC Auto now exports their vehicles to Macau and India. SC Auto also provides buses to Myanmar’s major fleet operators and is looking to set up an assembly plant there to further capitalise on the region’s growth opportunities.

10.          Businesses with an existing overseas presence can leverage on IE Singapore’s Global Company Partnership (GCP) programme, which helps them grow to become globally competitve. Areas of support under the GCP include Manpower, Capability Development, Market Access and Access to Financing.

Talent development

11.          To build a foundation for sustainable success, businesses need to attract and retain talent. This requires businesses to build policies and systems to better engage and develop their staff, and help them to grow with the business.

12.          Through SPRING, businesses can gain assistance in developing their human capital. Businesses can tap on the SME Talent Programme, which helps SMEs attract young talents from ITEs, Polytechnics and universities through internship and employment opportunities. In addition, businesses can tap on SPRING’s grants to implement effective HR processes, practices and policies.

13.          Allalloy Dynaweld Private Limited, a 2009 Emerging Enterprise Award winner, offers in-house engineering and consultancy services in welding. The company started in 2008, and annual sales turnover has grown from S$10M in 2008 to over S$42M in 2013. To maintain a pipeline of talent, the company actively recruits from the ITEs and supports its employees’ pursuit of higher educational qualifications. For example, Ms Gladys Ng, an ITE graduate, who joined Allalloy in September 2012. After performing well as a Customer Service Assistant

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, she is now pursuing a part-time Diploma in Sales & Marketing Management, which is sponsored by the company. By investing in staff development, Allalloy has helped Gladys progress to an executive role where she will be able to contribute further to the company’s

success. In addition to Gladys, Allalloy has sponsored four other staff for Diploma and Degree courses.

14.          As a business grows, the management team needs to acquire new skills to manage larger teams as well as more complex situations such as cross-border and cross-cultural matters. As they strengthen the leadership skills and managerial competencies of their management teams, businesses can tap on SPRING’s Capability Development Grant or CDG for support.

Conclusion

15.          The Emerging Enterprise Awards is an endorsement of the hard work and resourcefulness of our winners and will help to open new doors for them. I would like to end my speech by extending my congratulations to the winners. Receiving the awards is a clear signal that your business is on the right track. I encourage you to continue the good work, stay bold, and grasp future opportunities with both hands. Thank you.

[1]

Biomax’s thermophilic digester uses heat to speed up this process.

[2]

Creating a Business – Testing, testing, The Economist, 18 Jan 2014.

[3]

Miss Gladys Ng started her course in Oct 2013 and is expected to graduate in Oct 2014.