Speech by Senior Minister of State Low Yen Ling at Beyond Carbon: Building the Next Economy

Distinguished Guests,

Ladies and Gentlemen,

Introduction

1)            Good morning, everyone. I am delighted to join you today. In October last year, I had the privilege of witnessing the graduation of 42 SMEs under CDL’s SME Supplier Decarbonisation Queen Bee Programme. That milestone highlighted how many SMEs are turning their green aspiration into action.

2)            Today, we’re taking it a step further and building on that momentum. Singapore’s transition to a decarbonised and sustainable economy hinges on our collective and continuous effort. SMEs are the backbone of our economy. Businesses, big and small, play a critical role in driving this change. By incorporating sustainable practices in their everyday business operations, companies, big and small, are future-proofing themselves for the green economy. 

SMEs’ transformation journey in sustainability 

3)            With sustainability reporting on the rise globally, countries and companies now place greater emphasis on measuring and accounting for carbon emissions. In 2024, Singapore introduced mandatory climate reporting aligned with the International Sustainability Standards Board (ISSB) standards. This step is crucial to steer our companies towards green transformation, keeping them both competitive and relevant. 

4)            Although sustainability reporting is not mandatory for SMEs today, it is important for their growth and future. Many SMEs form part of larger supply chains. They will increasingly need to account for their carbon footprint and climate-related risks to meet the reporting requirements of the larger firms they supply. Starting on the sustainability journey early positions SMEs in a stronger position to seize new opportunities and remain competitive. If anything, since 28 February this year, against the backdrop of the Middle East conflict, SMEs who have already started on the green journey now have more options, and not just to rely on one source of energy. As we pivot to more alternative energy or clean energy, we all know that is the general correct direction. 

CDL’s Queen Bee Programme supports Singapore’s 2030 Green Plan 

5)             As Singapore advances towards our 2030 Green Plan, no business should be left behind. Initiatives such as the SME Supplier Decarbonisation Queen Bee Programme are key in enabling SMEs to develop green capabilities. These new skills help them navigate the evolving sustainability landscape and respond to rising customer and partner demands. 

6)            For instance, participating SMEs in this Queen Bee programme are working closely with companies like CDL and Global Green Connect (GGC) to develop and upskill their green capabilities – from measuring emissions and charting decarbonisation roadmaps to implementing greenhouse gas reduction targets. Furthermore, sustainability considerations are becoming more entrenched in business and supply chain requirements.  SMEs need to equip themselves with such skills to stay relevant in the increasingly green global economy. 

MOUs to strengthen green ecosystem 

7)            If you think of energy as a sport – baseball – there is first base, second base, then third base. At first base, we can only improve if we measure carbon emissions. Then you will know where you want to be in the next years, based on your own resources and your own risk appetite. And of course, the second base is – knowing where you want to be, how do you chart that decarbonisation roadmap? Charting a roadmap is good, but it is still talk. Translating aspiration into action is what Christina and the team wants to do and support SMEs. The third base is about implementing greenhouse gas reduction targets. With a target, then you know how to journey towards those targets. Sustainability considerations are becoming more entrenched in businesses as well as supply chain requirements. That’s why we want to better support our SMEs, because SMEs need to equip themselves with such skills to stay relevant and competitive in an increasingly green global economy. 

8)            I am greatly heartened to see SMEs participating in the Queen Bee Decarbonisation Programme already putting these capabilities into practice. For instance, Techniques Air-Conditioning and Engineering worked closely with GGC to implement their decarbonisation roadmap. The company invested in rooftop solar installations that reduced carbon emissions and resulted in sustained energy cost savings. Practical steps like these show how SMEs can create both environmental and business value. 

9)            We are now really talking about green solutions making an impact, especially in times like this. In the next few months, the elevated energy costs will stay at that level. With that as the backdrop, how do we support not only companies but households manage their energy costs? 

10)         Today, I am delighted to witness the signing of five MoUs between GGC and the solution providers. These partnerships reflect the advancement and growing level of cooperation among SMEs in their sustainability journey. 

Closing Remarks 

11)         Thank you to GGC for organising this insightful event, and for bringing together like-minded SMEs and sustainability leaders to exchange ideas and experiences.   

12)         To our SMEs, I hope today’s discussions and solutions showcase will inspire new ideas and fresh partnerships. The Government remains committed to supporting our SMEs in accelerating decarbonisation and capturing new green opportunities. It is important that in times like this, we come together, companies big and small, to work together, with the government giving you full support. 

13)         Please make good use of the Energy Efficiency Grant (EEG). Initially, the EEG was launched for a few sectors. We have completely liberalised this, especially with the Middle East conflict, to support companies from all sectors to use this grant to adopt energy-efficient appliances so that you can manage your energy bill.  

14)         Our collective action in adopting innovative solutions will advance our green transformation. Together, we can build a resilient and vibrant green ecosystem for a bright future. 

15)         I wish everyone a fruitful day ahead. Thank you.