Written reply to PQ on Government assistance to help micro, small and medium businesses venture overseas

Questions:

Mr Thomas Chua: To ask the Minister for Trade and Industry (Trade) (a) what has been the performance of Singapore's trade in services compared to trade in goods, especially in the context of the weak performance of the latter; and (b) how can the Government further help SMEs to export their services.

Mr Thomas Chua: To ask the Minister for Trade and Industry (Trade) how can the Government better help the micro and small SMEs to venture overseas to tap a bigger market so that they can continue to grow.

Written answer:

1. Growth in Singapore’s services trade has outpaced that of goods in recent years. Between 2010 and 2015, services exports grew by a robust compound annual growth rate of 6.9 per cent, compared to a 0.1 per cent decline in goods exports. While services exports growth has moderated since 2015, this was in line with the weakening global trade environment, and largely attributable to the slowdown in segments supporting goods trade, such as freight services. Growth remained resilient in segments such as insurance services, and telecommunications, computer and information services, which continue to see regional demand.

2. Singapore has a broad network of Free Trade Agreements (FTAs) and regional initiatives that help companies tap into external demand for our goods and services. For example, the ASEAN Economic Community (AEC) allows our services exporters greater market access to the ASEAN region with restrictions lowered in more than 80 services sectors. The AEC’s continuing efforts to facilitate, protect and liberalise cross-border investments enable our companies to venture into the region at lower costs and with greater assurance. 

3. Singapore also has a suite of assistance schemes that help SMEs internationalise and trade with overseas markets. This includes the Market Readiness Assistance (MRA) and the Global Company Partnership (GCP) schemes administered by IE Singapore. The MRA provides broad-based assistance to companies that are starting to internationalise, while the GCP provides targeted assistance to companies with a more established overseas presence. The GCP covers capability and manpower development, market access and financing. Over 80 per cent of the beneficiaries of these assistance measures are SMEs. 

4. The Government is also collaborating with Trade Associations and Chambers to help SMEs prepare themselves for overseas opportunities. The IE-SCCCI Singapore Enterprise Centre (ISSEC) in Shanghai which is a joint initiative between IE Singapore and the Singapore Chinese Chamber of Commerce & Industry is an example of such collaboration. Over the past 3 years, ISSEC has served more than 5,000 companies through outreach and advisory assistance, and provided research on emerging market opportunities in China. The companies assisted by ISSEC are predominantly SMEs and micro enterprises. ISSEC will be going beyond Shanghai to help such firms build up market expertise and capabilities in other parts of China.

5. 5.IE Singapore also has an extensive network of Overseas Centres internationally that provides targeted assistance for companies in both developed and emerging markets. These include helping them generate new business leads in Southeast Asian markets such as Indonesia and Myanmar, gaining entry as first movers in emerging markets such as Africa and Latin America, and identifying opportunities to enhance technology capabilities in developed markets such as the UK and US.

6. Companies need the right talent to embark on internationalisation plans – people who have global mindsets, exposure to international business environments, in-depth understanding of industries, and ability to navigate markets. To build a pipeline of global-ready Singaporeans for international roles, manpower development programmes are also in place. For example, IE Singapore’s Young Talent Programme exposes students from universities, polytechnics and ITEs to internship opportunities in overseas markets, and equips them with foundational skills needed for international careers. Skillsfuture Study Awards for International Business are also given out to prepare professionals, managers and executives for international roles through various courses, market attachments and customised overseas immersion programmes.