Apr•May•Jun 2014
BUDGET 2014
Taking stock
of Singapore’s
economy
EMPOWERING EXCELLENCE
BusinessQuotient / Business / People / Opportunities
Thinking out
of the box
SHOOTING FOR THE STARS
Funding the nation’s
space industry
A P U B L I C AT I O N O F S I N G A P O R E B U S I N E S S F E D E R AT I O N
EYEING
THE CHINA
MARKET
Cover BQ Apr-Jun14.indd 1
PTC Logistics’
Chairman Poh
Choon Ann believes
in mentoring future
business leaders
Upon approval
Please sign:
Name and Date:
03/04/2014 16:21
03265_14_SBF_PohTiongChoon_A4_FC
-
1
2014-03-28T16:28:43+08:00
Apr•May•Jun 2014
1
Chairman’s Message
Calibrating the Budget
for Singapore’s Future
The first quarter of 2014 has been
a busy period for the Singapore
Business Federation. We submitted our
recommendations for the Singapore
Budget 2014 to our members, and shared
the results of the SBF National Business
Survey 2013/14 as well as the latest
SBF-DP SME Index.
there has been no further general
tightening of manpower policies.
The Federation welcomes the enhanced
measures in Budget 2014 to help
businesses cope with restructuring and
pursue growth. We urge businesses
to tap into the extensive schemes and
incentives available to them.
The Index, a six-monthly forward-looking
measure of SME business sentiments,
indicated optimism about prospects for
2014. On the other hand, the National
Business Survey showed that our
members are increasingly concerned
about rising costs and manpower and
productivity issues as the Singapore
economy restructures.
On this note, I urge all members to take
a closer look at the stories in this issue,
as they capture the prevailing mood and
opportunities available in our business
environment.
These findings, backed by extensive
engagement by the SBF-led SME
Committee of our members and
Government agencies, provided the basis
for the SBF’s budget recommendations to
the Government. The recommendations
aimed to create a more vibrant and
sustainable SME sector. We included
targeted support for SMEs seeking
growth, those who are in survival mode,
and those in sectors requiring special
assistance. We are delighted to have
seen considerable alignment with our
recommendations in Budget 2014.
SBF is relieved that aside from the
S$100 levy increase for unskilled foreign
workers in the construction sector,
001 ChairmanMsg AB.ed.indd 1
Upon approval
Please sign:
Name and Date:
Tony Chew Leong-Chee
Chairman
Singapore Business Federation
03/04/2014 09:15
BizQ
2
Apr•May•Jun 2014
Contents
Economy Watch
Businesses Upbeat
Economy
06 about
Based on the latest SBF
survey of small and medium
enterprises, BiZQ takes a
closer look at Singapore
SMEs’ more positive outlook.
BiZ Voice
10
Singapore’s
Space Industry
Singapore Government says
more opportunities are in the
pipeline for international
companies to work with
local players.
Commentary
More companies looking
to increase headcount, and
employees expect pay hike
this year, HR surveys reveal.
Gettyimages
14
Hiring Trend Sets to
Continue This Year
16
Business Quotient (BiZQ) is the
official publication of the Singapore Business
Federation, reaching out to over 21,000 of
Singapore’s business elite, chief executives
and entrepreneurs. The quarterly, published
in collaboration with SPH Magazines, is
your eye on Asian and global business
trends, bringing you up to date on industry
developments, the economy, country profiles,
stories about successful companies and
the people who lead them.
002,004 Contents AB SBF ED.indd Upon
2 approval
Please sign:
Name and Date:
BiZ Feature
A Budget Unlike Others
BiZQ takes stock of the economic
implications in the latest Singapore Budget.
ABOVE: Transforming Singapore’s industries to achieve higher productivity
levels and skills.
03/04/2014 11:15
OAOS Ad SBF BizQ Mag.ai
1
Mar/18/2014
4:48 PM
Apr•May•Jun 2014
4
Publisher
Singapore Business Federation
10 Hoe Chiang Road, #22-01 Keppel Towers,
Singapore 089315, Tel: +65 6827 6828,
Fax: +65 6827 6807, E-mail: mr@sbf.org.sg,
Website: www.sbf.org.sg
In BiZ With
22
chairman
Heading into the
China Market
Mr Poh Choon Ann,
Chairman and CEO of
Poh Tiong Choon Logistics,
believes in mentoring SMEs
and helping them expand.
Tony Chew
chief executive officer
Ho Meng Kit
Innovations
chief operating officer
Victor Tay
assistant executive director
(member relations)
26
Cheryl Kong
A local company has discovered
how thinking out of the box
can transform the impossible
into new possibilities.
director, corporate
communications
Gerald De Cotta
Publishing Agent
SPH Magazines Pte Ltd
group editor-in-chief
Caroline Ngui
group editor
3E: Empowering
Efficiency &
Excellence
Inside SBF
28
Joanna Lee-Miller
editorial & creative
senior editor
Accessing the
Next Frontier
SBF’s Africa Business
Group heads into new markets
in the sub-Saharan region.
Dora Tay
contributing editor
Casuarina Peck
sub-editor
Annabelle Bok
associate creative director
Jayson Ong
International Markets
36
art director
Winnie Ong
senior designer
Mohamed A Rahman
China’s Urban
Services on the Rise
SBF leads delegation to the
3rd China International
Fair for Trade in Services
(CIFTIS) in Beijing.
managing director
Dennis Pua
general manager
Christopher Chan
sales & client management
associate account director
Kaz Lim
account manager
Lin Mi’er
senior executive,
client management
SME Resources
39
Innovation Centre
to Help SMEs
Adopt Technologies
A S$7 million Materials
Centre of Innovation has
been set up to help 450
SMEs adopt new technologies.
Neo Pei Shi
publishing services
team head
Alice Chee
For advertising enquiries, please call
+65 6827 6828 or +65 6319 6326
002,004 Contents AB SBF ED.indd Upon
4 approval
Please sign:
Name and Date:
This news magazine is published by SPH Magazines Pte Ltd (Registration No. 196900476M) for Singapore Business Federation (Registration No. ROS138/2002TAP).
Copyright of the materials contained in this magazine belongs to SPH Magazines Pte Ltd and Singapore Business Federation respectively. Nothing in here shall be
reproduced in whole or in part without prior written consent of SPH Magazines Pte Ltd or Singapore Business Federation. Views expressed in this news magazine
are not necessarily those of SPH Magazines Pte Ltd nor the Singapore Business Federation and no liabilities shall be attached thereto. All rights reserved. Editorial
enquiries should be directed to the editor, BiZQ, SPH Magazines Pte Ltd, Media Centre, 82 Genting Lane, Level 7, Singapore 349567. Tel: +65 6319 6319, Fax: +65
6319 6227, E-mail: bizq@sph.com.sg. Unsolicited material will not be returned unless accompanied by a self-addressed envelope and sufficient return postage. While
every reasonable care will be taken by the editor, no responsibility is assumed for the return of unsolicited material. MICA (P) 119/03/2014. Printed in Singapore by
timesprinters, Singapore (Registration No. 196700328H).
03/04/2014 16:33
Apr•May•Jun 2014
6
Economy Watch
Businesses
Expect Better
Sales this Year
More positive sentiments from Singapore businesses.
S
ingapore’s GDP growth is
predicted to expand to 4.4%
this year, a Standard Chartered
economist said recently, and
Singapore’s Prime Minister, Mr Lee
Hsien Loong, seems to concur with
this positive sentiment.
PM Lee said in his New Year
message that he expects the
Singapore economy to grow
between 2% and 4%, and that strong
growth is on the horizon for the
broader global economies as well.
In early January, the Ministry of
Trade & Industry (MTI) announced
that the Singapore economy grew by
4.4% on a year-on-year basis in the
fourth quarter of 2013, compared to
5.9% in the previous quarter (refer to
table: Singapore’s GDP – Quarterly
Performance). As a result, the
ministry stated that for the whole
of 2013, the economy is estimated
to have grown by 3.7%. This was in
line with MTI’s growth forecast of
3.5% to 4.0%.
The Index was compiled with
input from 3,000 SMEs on their
January 2014 to June 2014 outlook.
The respondents came from five
industries – business services,
commerce/trading, construction/
engineering, manufacturing and
transport/storage.
Specifically, the overall index
for the first quarter of 2014 rose
0.5% to 55.0 – the highest score
since the third quarter of 2011 (refer
to table: SME Outlook for 1Q-2Q
2014). A score above 50% indicates
that SMEs are more positive about
their business prospects for the
SINGAPORE’S
ECONOMIC
GROWTH
4.4%
on a year-on-year basis in the
fourth quarter of 2013, compared to
5.9% in the previous quarter.
The Ministry of Trade and Industry
stated that for the whole of 2013, the
economy is estimated to have grown by
3.7%
in line with the ministry’s growth
forecast of 3.5 % to 4.0%.
next six months.
Ms Chen Yew Nah, Managing
Director of DP Information Group,
said: “SMEs expect the global
economy to continue to grow, albeit
at a modest pace. They expect their
sales and profits to improve and
their businesses to expand during
the next six months.”
Mr Ho Meng Kit, CEO of SBF,
said: “It is clear that Singapore
businesses are riding the tide of a
Getty Images
Survey on SME outlook
Meanwhile, the Singapore Business
Federation (SBF) released its SBFDP SME Index for 2014, revealing
that local business optimism is
currently at its highest level in
three years.
The release of this six-month
forecast revealed that Singapore’s
small and medium enterprises
(SMEs) expect this year to end on a
brighter note.
006-008 EconomyWatch AB CP ed AB.indd 6
Upon approval
Please sign:
Name and Date:
03/04/2014 10:38
BizQ
7
Overall Index (out of 100)
on the back of improved global
macroeconomic conditions.
Released in late January, a
weighted 11% of manufacturers
expected business conditions to
improve while a weighted 7%
foresee deterioration. The survey
showed a net weighted balance of
4% of manufacturers expecting a
more favourable business situation
in the first six months ending June
2014, compared with the fourth
quarter of last year.
1Q-2Q 2014
Commerce/Trading
56.1
Construction/Engineering
55.3
Manufacturing
54.8
Business Services
55.3
Transport/Storage
54.2
Overall
55.0
▲
0.5
Percentage change Q-on-Q (%)
Stronger growth expected
Source: SBF-DP SME Index
On the back of such official data,
several economists also echoed
the expectation that the economy is
headed towards stronger growth
this year.
As Barclay’s Singapore-based
economist Mr Joey Chew succinctly
put it: “It looks like 2014 is going
to be much stronger than 2013 for
the global economy, so this will
definitely support Singapore.”
There is optimism that GDP
growth will accelerate. The
surprising upside in the US
economy at the start of the year and
expectations of a stronger Chinese
economy have led some experts to
forecast growth rates of between
4% and 5%.
Taking such a glimpse into 2014,
OCBC analyst Ms Low Pei Han
said: “While there are larger global
issues – mainly from the developed
markets – which will continue to
dominate headlines in 2014, we
believe that the outlook is slowly
and gradually improving.”
more positive global outlook, with
our SMEs more confident about
their prospects for the new year.
SMEs should seize this opportunity
for growth by strengthening their
competitiveness through innovation
and internationalisation.
“As inflationary pressure
remains high, small businesses
are looking to policy makers to
introduce measures to rein in rising
business cost and tight labour
constraints,” he added.
Positive business sentiments
The Economic Development Board
(EDB) recently released the results
of a survey on business sentiments
in Singapore, and the survey also
pointed to a more positive outlook
for the economy.
The EDB survey revealed that
companies in the manufacturing
sector expected a “positive business
situation” in the first half of 2014
*
13
20
13
4Q
13
3Q
13
2Q
13
1Q
12
20
4Q
Gross Domestic Product
at 2005 Prices
12
*
Singapore’s GDP – Quarterly Performance
Percentage change over corresponding period of previous year
Overall GDP
1.5
1.3
0.3
4.3
5.9
4.4
3.7
Goods Producing Industries
Manufacturing
-1.1
0.1
-6.3
0.8
5.3
3.5
0.8
Construction
5.8
8.2
5.5
6.3
5.8
4.7
5.5
Services Producing Industries
1.7
1.2
2.7
5.9
6.5
5.5
5.1
Source: Ministry of Trade & Industry, Singapore
Upon approval
006-008 EconomyWatch AB CP ed AB.indd
7
Please sign:
Name and Date:
SME OUTLOOK
Overall Index for the first
quarter of 2014 rose
55%
the highest score since the
third quarter of 2011.
A score above 50% indicates
that SMEs are more positive about
their business prospects for the
next six months.
Current global issues
There were several developments
which took place in rapid succession
in some emerging markets early
this year. First, the Argentine
peso plummeted by 15% in a
single trading day. This was then
followed by the selling of financial
instruments in Turkey, South Africa
and Russia.
Amidst the gust of cold air
swirling around the global
macroeconomic crisis, China
released its Purchasing Manager’s
Index (PMI) for January, which
reflected slower growth in its
manufacturing and services sectors.
One DBS economist told
BiZQ that with China being the
largest single country export
destination for Singapore, there
will be a spillover effect due to lower
purchasing power and decreased
demand for manufacturing goods.
Such exports account for about
13% of the republic’s non-oil
domestic exports.
“If customers in China are cutting
back on their orders, it’ll naturally
have a spillover effect on the local
purchasing managers. With that,
the PMI numbers will not look
great,” the economist said.
Looking ahead, there does not
seem to be a let-up in this trend,
especially since the US Federal
Reserve is continuing its pull-back
of its US stimulus package. At
the time this magazine went to
print, the sentiment for the global
economy had turned rather negative.
p.8
SPH Library
SME Outlook
for 1Q-2Q 2014
03/04/2014 16:38
Apr•May•Jun 2014
8
Economy Watch
A glimpse into the future
While forward-looking surveys
have captured general sentiments,
BiZQ took a closer look at several
Singapore companies from a cross
section of industries to get the real
pulse on the ground.
SIA Engineering Group, which
announced its latest financial results
this February, has warned that its
operating yields for maintenance,
repair and overhaul (MRO) work
will continue to be under pressure
because of the uncertain outlook
for the global economy in the
immediate future.
The company released a
statement, saying: “The near-term
global economic outlook remains
uncertain. Rising business costs,
particularly labour cost, present
challenges to our operating
environment. This will continue to
put pressure on MRO yields. The
group remains focused on managing
costs by pursuing improvements
in productivity and enhancing
operating efficiencies.”
Executive Chairman Teo Choon
Hock of home-grown PS Fasterner,
which specialises in the trading
of infrastructure and engineering
materials, highlighted the “general
uncertainty of the world economy,
in particular the economies of
emerging markets”.
The company reported a drop
in revenue and a continued lossincurring position for 2013, saying
that its performance continues to
be affected by competition and
pricing pressure.
As a result, Mr Teo said that
the group will “focus its efforts
on strengthening its position as
a quality fastener supplier in the
emerging markets, by ensuring that
it maintains a comprehensive and
well-stocked inventory of products.”
Challenges ahead
Another company from the
manufacturing sector that is trying
to hold its ground is Surface Mount
Technology Holdings.
Senior Managing Director Chan
Kei Biu said that despite the positive
business sentiment in the current
year, “the overall outlook for 2014
remains cautious as there are still
concerns on various risk factors
like the US tapering of QE3, a
possible economic hard-landing for
China, restructuring challenges
in emerging market countries,
and Europe’s possible relapse
into recession.”
Looking at the real estate and
property sector, Hwa Hong Corp’s
Chief Financial Officer Lee Soo
Wei said that the residential
property market in Singapore faced
headwinds throughout the fourth
quarter of 2013, due to the property
cooling measures introduced by
the government and the increasing
supply of private residential units.
“The uncertain outlook in the
world economy is expected to
remain, and returns from equity
SINGAPORE’S REAL GDP IN RECENT YEARS
GDP YoY
GDP QoQ
40%
30%
20%
SPH–The Business Times
10%
0%
-10%
-20%
1Q08
1Q09
1Q10
1Q11
1Q12
Upon approval
Please sign:
Name and Date:
“The overall
outlook for 2014
remains cautious
as there are still
concerns on various
risk factors like the
US tapering of QE3,
a possible economic
hard-landing for
China, restructuring
challenges in
emerging market
countries, and
Europe’s possible
relapse into
recession.”
investments will correspondingly
be influenced by the uncertainties,”
said Mr Lee. Exposure to the UK
market had not provided much
buffer as “the commercial property
market outside of London remains
weak, and the group expects its
investments outside of London to
continue to perform in line with the
weak market”.
Looking ahead, analysts and
economists say that businesses
need to remain astute about
developments on the ground. For an
economy like Singapore’s, constant
analysis of China is necessary.
As UBS Global Chief Investment
Officer Alexander Friedman put
it, “China remains a concern due to
its size. Transitioning an economy
as large and complex as China’s will
be difficult, and any missteps, such
as an uncontrolled default on an
investment product, could pose a
major risk to the outlook.”
In this regard, it pays to keep a
keen eye on economic, policy and
market dynamics, before deciding
the best way to move forward.
•
Source: Ministry of Trade & Industry, Singapore
006-008 EconomyWatch AB CP ed AB.indd 8
1Q13
Mr Chan Kei Biu, Senior
Managing Director, Surface
Mount Technology Holdings
03/04/2014 09:26
BizQ
TAU0011_BQ
-
1
2014-02-18T15:54:41+11:00
Big landscapes
Inspire big thinking
THERE’S NOTHING LIKE AUSTRALIA FOR YOUR NEXT BUSINESS EVENT.
This year we chose Australia for our global congress. It was an easy choice, as Australia’s proximity to Asia gave us the
opportunity to attract many new delegates. The program was one of the best in years. New Australian developments in
our field attracted a lot of interest and strong international research partnerships were established.
Australia is on everyone’s list to visit, and it lured our highest number of delegates yet. There’s no doubt they’ll be talking
about this convention for years to come.
Dr Louise Wong,
International Board Member
VISIT
BUSINESSEVENTS.AUSTRALIA.COM/ASSOCIATIONS
FOR EVERYTHING YOU NEED TO PLAN YOUR AUSTRALIAN EVENT.
Apr•May•Jun 2014
10
BiZ Voice
Mr S Iswaran, Second Minister
for Trade and Industry
Expanding Singapore’s
Space Industry
Opportunities for
international companies to
work with local players.
SPH – The Straits Times
S
ingapore is making
further progress in the
space industry and there
will be more opportunities
for international companies
to work with local players
in research and development
(R&D) projects.
Singapore has currently
progressed to the point where
it is supporting 11 projects with
a total budget of close to S$12
million, since the Office for Space
Technology and Industry (OSTIn)
was set up last year, said Second
Minister for Trade and Industry
Mr S Iswaran at the Global Space
Technology Convention on Feb 6.
Mr Iswaran said: “The scope
for growth is significant. As the
local space industry develops,
there will be opportunities for
international companies to work
with local players to co-develop
satellite solutions and access
growth markets.”
Addvalue Technologies Ltd, a
local medium-sized enterprise, is
one example. With OSTIn’s support,
it is building on its expertise in
radio frequency technologies to
develop a satellite-based terminal
that enables data transfer between
satellites in low earth and geostationary orbits. This innovation
will allow more efficient use of
ground networks, and enable timely
access to a greater amount of data.
Another development taking
place is that between Alliant
Techsystems Inc, a US multinational
with strong capabilities in space,
and ST Electronics. Both companies
010-013 BizVoice AB CP SBF ED AB.indd 10
Upon approval
Please sign:
Name and Date:
The scope
for growth is
significant. As the
local space industry
develops, there will
be opportunities
for international
companies to work
with local players
to co-develop
satellite solutions
and to access
growth markets.”
industry to continue growing,
supported by rising demand for
worldwide information exchange
and better connectivity.
recently signed an agreement to
jointly develop and market a new
class of small satellite buses.
Funding for satellite industry
To grow the space industry, the
Singapore government set up a
S$90 million Satellite Industry
Development Fund which was
announced in the 2013 Budget.
The fund supports industry
development efforts and publicprivate partnerships in R&D to
build up Singapore’s capabilities in
satellite technology.
Loop Electronics, which
makes specialised radio frequency
components for satellites, is one of
many small and medium enterprises
(SMEs) looking to beef up its
capabilities. Managing Director Mr
Lim Guan Choon said that they
hope to tap into the fund to build
test and production facilities, as well
as technical capabilities.
According to research and
consultancy firm Frost & Sullivan,
over 900 satellites are expected to
be launched globally by 2020. Its
consultants expect the global space
Seletar Aerospace Park
There is also a growing number
of local SMEs setting up shop at
Seletar Aerospace Park.
To help more of them settle in,
JTC Corporation is building two
new towers and seven standalone
factories which will be ready next
year. This is in addition to the
existing JTC Aviation One building
and eight factories.
About half of the 45 companies
that currently operate at Seletar
are SMEs.
Mr Johnny Lim, 65, Managing
Director of Tri-Wing Aviation
Resources Pte Ltd, which provides
repair and overhaul services, said:
“Being in Seletar not only allows
us to be closer to our customers,
which is more efficient, but there
is also more potential to secure
new business from other tenants
based here.”
Currently, Singapore accounts
for a quarter of Asia’s maintenance,
repair and overhaul output. In 2012,
its aerospace sector posted a record
output of some S$8.7 billion.
•
03/04/2014 09:36
BizQ
11
More Positive
Sentiments,
say SMEs
S
Based on 3,000 interviews with
SME owners and managers, five
industry sectors were tracked:
business services, commerce/trading,
manufacturing, construction/
engineering, and transport/storage.
The overall index for this quarter
rose 0.5% to 55 (the highest score
since Q3 of 2011), indicating that
SMEs have a more positive outlook
for their business prospects over the
first half of this year.
The construction/engineering
sector was the only industry which
had moderated expectations, from
57.4 in the last quarter to 55.3.
This showed that local companies
in this industry expected a slight
temperance of their business
expectations. Construction
companies may take on fewer
projects given the increase in
manpower constraints.
Ms Chen Yew Nah, Managing
Director of DP Info, said: “SMEs
1Q
12 2Q
12 F
2Q
12 3Q
12 F
3Q
12 4Q
12 F
4Q
12 1Q
13 F
1Q
13 2Q
13 F
2Q
13 3Q
13 F
3Q
13 4Q
13 F
4Q
13 1Q
14 F
1Q
14 2Q
14 F
ingapore small and medium
enterprises’ (SME) business
optimism over the first six
months of this year is at its highest
level in three years, findings from
the latest SBF-DP SME Index for
January-June 2014 revealed.
The index score for overall
growth expectations in turnover
was 5.68, up from 5.60 in the
previous study released in October
2013. In terms of profit growth, the
index was at 5.48, compared with
5.39 previously.
Citing upbeat growth
expectations for turnover and profit
for the upbeat sentiments, the index
also showed that fewer companies
are looking to increase headcount.
The index, which measures
the sentiments of Singapore’s
local business community, is a
joint initiative by the Singapore
Business Federation (SBF) and
DP Information Group (DP Info).
OUTLOOK FOR 1Q14 2Q14F (JAN-JUN 2014)
Overall index (out of 100)
Commerce/Trading
52.0 55.1 58.2 54.4 53.9 54.6 53.7 55.1 56.1
Construction/Engineering
51.1 48.1 52.1 54.0 54.5 55.4 56.1 57.4 55.3
Manufacturing
47.9 54.1 54.9 54.0 50.8 54.1 54.0 54.6 54.8
Business Services
50.9 54.5 56.6 52.0 51.1 55.3 54.6 55.1 55.3
Transport/Storage
47.0 48.1 51.8 54.0 51.3 54.7 54.0 53.3 54.2
Overall
20.8 52.4 54.4 53.0 51.6 54.8 54.1 54.7 55.0
Percentage change QoQ (%)
0.4
010-013 BizVoice AB CP SBF ED AB.indd 11
3.2
Upon approval
Please sign:
Name and Date:
3.8
2.6
2.6
6.2
1.4
1.1
0.5
expect the global economy to
continue to grow, albeit at a
modest pace.”
Indeed, the index score registered
for business expansion was 6.16,
a significant increase from the
previous study’s 6.06 reading.
Ms Chew said that the
commerce/trading sector is the most
optimistic, which indicates that
there was an increase in regional
trade throughout the first half of
this year.
One area SMEs expect to be
less active in is making new hires.
SMEs surveyed said that they are
less likely to increase staff strength
over the next six months. The index
score for hiring expectations fell to
5.55 from 5.69 previously.
One reason for this may be due
partly to “an adjustment to a tighter
labour market, where SMEs are
struggling to get the best talent,
and working on productivity
improvements to reduce dependence
on labour,” explained Ms Chen.
SBF CEO Mr Ho Meng Kit said:
“It is clear that Singapore businesses
are riding the tide of a more positive
global outlook, with our SMEs more
confident about their prospects for
the new year.”
He added that SMEs should take
the opportunity to strenthen their
competitiveness through various
measures, such as innovation and
internationalisation.
“As inflationary pressure remains
high, small businesses are looking to
policymakers to introduce measures
to rein in rising business costs and
tight labour constraints.”
•
Getty Images
Although hiring trends have slowed,
SMEs expect better sales this year.
03/04/2014 09:36
BizQ
Apr•May•Jun 2014
12
BiZ Voice
Pushing for
Productivity Growth
Local businesses lack confidence and mindset to
expand, SME Development survey reveals.
GettyImages
L
ocal companies need to
rediscover their appetite for
growth or risk a period of
decline, according to the recent
findings of DP Information Group’s
SME Development Survey.
The survey, which interviewed
2,708 local small and medium
enterprises (SMEs), found that these
companies are focused on internal
changes such as cost cutting and
productivity improvements instead
of looking for ways to expand.
There are several indicators
showing that SMEs have lost
their appetite for growth:
● Only 7% of SMEs expect to
achieve double digit growth;
● Nearly half of all SMEs (44%)
expect no discernible growth, and
9% expect their turnover to drop;
● Fewer SMEs are doing business
overseas (54% in 2012, 46% in 2013);
● Fewer SMEs have a business
strategy (85% in 2012, 75% in 2013),
with one in four having no strategy
at all; and
● Fewer SMEs are looking for debt
or equity financing – a key indicator
that they are not looking to fund
expansionary plans.
Ms Chen Yew Nah, Managing
Director of DP Information, said
that years of turmoil and change
have left many SMEs feeling timid
and risk-adverse.
“SMEs have had to focus on
cost-cutting and productivity in
order to stay competitive,” she
said. “As a result, fewer SMEs are
pursuing expansion and pushing
for growth.
“Some SMEs lack confidence
and fear another international
010-013 BizVoice AB CP SBF ED AB.indd 12
Upon approval
Please sign:
Name and Date:
economic shock. Others lack the
ambition and are happy for each
year to be the same as the last.”
With economic conditions
steadily improving, Ms Chen said
that SMEs need to renew their
appetite for growth and expansion.
She explained: “SMEs need to
understand that the riskiest thing
to do is to stand still. After a period
of stagnant growth, the balance
sheets of SMEs have weakened and
more SMEs are now considered to
be high credit risks.”
Changing mindsets
SME leaders have embraced the
productivity agenda, with the
majority (58%) planning to
improve productivity over
the next 12 months.
The most
common
strategy for
MAIN OBSTACLES
FACED IN PROMOTING
PRODUCTIVITY
Lack of manpower with the
right attitude and mindset
29%
22%
15%
12%
11%
11%
Lack of manpower with the right skills
Lack of relevant knowledge and skills
Lack of money
Lack of time to manage productivity
Other variables
Source: SME Development Survey
2013 (DP Information Group)
03/04/2014 09:40
BizQ
13
increasing productivity is
optimising their manpower (62%),
which includes staff training and
redesigning jobs to address the skills
shortages within their workforce.
A third (33%) of SMEs will be
fine-tuning their business processes,
while only one in four (25%)
plans to invest in technology or
automation to improve productivity.
While SME leaders have
embraced the productivity agenda,
many SME employees have yet
to do so. The biggest obstacle to
further productivity improvements
are staff attitude and aptitude – 29%
lack the right mindset while 22%
lack the skills. (Refer to page 12:
Main Obstacles Faced In
Promoting Productivity.)
Ms Chen explained that
without the right mindset, all the
tools and training in the world will
only yield modest productivity gains.
“Employers must do more to
convince their workforce that
there are benefits in embracing
productivity reforms. It is only
by being more productive that
employees can expect to achieve
increased wages and bonuses, as
well as greater job security.”
Last year, the most popular
response to cost pressures was to
reduce overheads (37%).
This year, the most popular
response has been to raise
productivity (32%). This shows
that SMEs see productivity as part
of the solution to rising costs.
Reducing foreign workforce
SMEs plan to significantly reduce
the proportion of foreign workers
they employ from 74% to just 35%
in three years’ time.
More than half of the SMEs
currently employing foreign
workers have plans to stop doing
so by 2016.
There were also significant
changes in the balance of local
and foreign workers employed
by SMEs. The number of SMEs
who employ a small proportion of
foreign workers (10% or less) has
increased almost threefold to 33%
this year.
The results of the survey revealed
010-013 BizVoice AB CP SBF ED AB.indd 13
Upon approval
Please sign:
Name and Date:
SMEs with workforce comprising foreigners
2013
2012
2011
80
70
76
74
76
76
75
71
70
60
50
53
40
35
30
20
10
0
(%)
CURRENT
NEXT 1 YEAR
NEXT 2-3 YEARS
Source: DP Information Group
Ms Chen Yew Nah, Managing
Director of DP Info
“SMEs need to
understand that the
riskiest thing to do
is to stand still. After
a period of stagnant
growth, the balance
sheets of SMEs
have weakened and
more SMEs are now
considered to be high
credit risks…SMEs
need to renew their
appetite for growth
and expansion.”
that SMEs would like to replace
foreign workers with locals but are
finding it hard to hire Singaporeans.
“Fewer local employees want to
work for a small SME, believing
they will build their careers faster
in a larger company,” said Ms Chen.
She said that the costs of
employing a local employee are also
rising, as larger companies offer
wages and benefits that smaller
companies cannot match.
•
HEAD START FOR
SMES LOOKING
TO LEVERAGE
EMERGING
TECHNOLOGIES
Singapore’s Agency for Science,
Technology and Research (A*STAR)
has launched a new programme
to encourage more local SMEs to
leverage emerging technologies to
compete effectively.
Over the past five years, more
than 700 SMEs have undertaken
close to 2,200 projects with A*STAR.
The new Headstart programme
grants royalty-free and exclusive
intellectual property licences for the
first 18 months to local SMEs that
collaborate with A*STAR.
The exclusive use of the IP can
be further extended on businessfriendly terms through Exploit
Technologies Pte Ltd, which is
A*STAR’s technology transfer arm.
Since September 2013,
Headstart has received interest from
local enterprises in various industries
such as electronics, infocomm, and
precision engineering.
Headstart complements the
existing A*STAR schemes that
provide SMEs with greater
accessibility to practical and
affordable technology.
03/04/2014 09:40
BizQ
Apr•May•Jun 2014
14
Employee Benefits
Commentary
More Companies
Looking to Increase
Headcount in 1H
Nine in 10 employees expect pay hike this year,
HR surveys reveal.
Getty Images
S
alaries in Singapore are
expected to rise between 3%
and 5% this year, according to
reports by two recruitment firms.
However, the outlook for hiring in
some sectors remains unclear.
When it comes to hiring
expectations, reports from global
talent solutions firm Hudson as
well as the Achieve Group suggest
that the situation is not expected
to improve in some industries, such
as information technology (IT) and
telecommunications.
According to Hudson’s Salary &
Employment Insights 2014 report,
nearly three quarters of the 1,292
employees surveyed last year are
looking for new job opportunities,
and 86% of them expect an increase
in salary this year.
Salary expectation is one of
the key drivers affecting many
employees’ decisions to change jobs.
About 30% of the respondents
cited increased salary and better
benefits among their most
important considerations.
Highlighting the need for
better leadership, the report
noted that 40% of those
surveyed had switched jobs
in the past two years, with
68% citing senior staff with
poor managerial skills as their
main reason for leaving.
Survey respondents also
listed some of the qualities they
are looking for in their leaders:
● Being an inspiration and a role
model (28%);
014-015 Commentary AB ed AB.indd 14
Upon approval
Please sign:
Name and Date:
● Supportive of staff (11.8%);
● A wise decision maker and
someone who can create a
compelling vision (11%);
● Someone who recognises good
performance (10.5%).
Strong leadership needed
Mr Andrew Tomich, Executive
General Manager of Hudson
Singapore, said: “It’s clear that
strong leadership impacts
engagement, drives productivity,
and increases employee retention.
“This is something that should
not be ignored, particularly in a
climate where there is increasingly
high potential for movement
within the workforce.”
Hudson’s survey stated that
39.5% of companies expect to
increase headcount in the first
Ranking in terms of importance:
1
FLEXIBLE
WORKING HOURS
2
INCREASED
ANNUAL LEAVE
3
VALUED PRIVATE HEALTH
INSUR ANCE
quarter of this year, adding to the
cost pressures they are already
reporting. A majority of employers
surveyed said they will be
increasing salaries between 3% and
5% this year, with the biggest reason
for awarding a pay rise being the
retention of high-performing staff.
The most important benefits for
employees were flexible working
hours (36.9%), increased annual
leave (29%) and valued private
health insurance (28.4%).
“Those organisations that don’t
invest in their workforce, both in
terms of remuneration and effective
leadership and mentoring, put
themselves at risk,” Mr Tomich said.
“We could well see growing
separation between successful
and less successful organisations,
primarily influenced by their
attention to and investment in
03/04/2014 09:47
BizQ
15
Overview of Sectors Hiring in 1H14
Health care sector hiring
Property & Construction
12%
Professional services
10%
Oil & Gas
12%
Industrial Manufacturing & Engineering
9%
Shipping & Logistics
13%
Lifestyle, Retail & F&B
12%
IT & Telecommunications
8%
Health care & Pharmaceutical
15%
Banking & Finance
Percentage (%) 0
9%
2
4
6
8
10
12
14
16
Source: Achieve Group
correctly resourcing their business
and developing their staff.”
A separate report by the Achieve
Group found that 37% of companies
said that they intend to increase
salaries by up to 3%, while 30% said
they plan to hike wages by 3% to 5%.
Some 3% of companies reported
that they would be increasing staff
salaries by more than 5%.
Achieve’s report, Hiring Trends
Report 1H 2014, stated that 48%
of the companies surveyed were
looking to hire, and another 48%
plan to freeze recruitment. Only 4%
intend to reduce their headcounts in
the next six months.
saw an increase in demand for risk
and compliance professionals, with
some organisations prepared to
pay premium salaries (increases
of between 20% and 50%) to
professionals who possess both
the right skill set and local market
knowledge and experience.
Among other industries, hiring
intentions have declined compared
to the previous quarter, with the
most substantial drop seen in the
health care and life sciences sector –
17.9 percentage points.
Industry outlook
Last year was a good year for
Singaporeans as there was a rise in
employment levels for local
workers, says the Ministry of
Manpower (MOM).
According to its Employment
Situation 2013 report, total
employment last year is estimated
to have increased by 134,900, higher
than 129,100 in 2012. It also stated
that “higher employment growth
over the year was mainly driven by
locals, as the pace of growth of the
foreign workforce continued to
slow amid foreign manpower
tightening measures.”
The report said that local
employment growth for last year
(81,600) was higher than 2012’s
(58,700) and 2011’s (37,900), while
the increase in foreigners slowed to
53,300 from 70,400 in 2012.
It also highlighted that
Singaporeans accounted for 66.2%
The Hudson report revealed that
banking and financial services was
the only industry to demonstrate
an increase in positive hiring
intentions. Hiring expectation
in the sector has gone up by 7.4
percentage points to 50%, its
highest result since the second
quarter of 2011.
According to Hudson, this
increase in positive hiring
intentions over three consecutive
quarters in the banking and
financial services sector shows
increased confidence in Singapore’s
banking sector. It also reflects that
Singapore has established itself as
one of the region’s leading offshore
trading centres for the Chinese
yuan, following the recent decision
to allow both countries to trade
currencies directly.
Within the sector, the report
014-015 Commentary AB ed AB.indd 15
Upon approval
Please sign:
Name and Date:
According to the Achieve
Group, Singapore’s health care/
pharmaceutical and shipping/
logistics sectors are the top two
industries looking to hire in the
first half of this year. The other
sectors that are also looking to hire
are property/construction, lifestyle/
retail/F&B, and oil and gas.
The demand for staff will
persist this year – it will still be
an employees’ market – as many
companies will be hiring in the first
half of the year, although hiring
may not be as aggressive as in the
previous six-month period.
The Achieve Group’s Hiring
Trends Report 1H 2014 surveyed
500 companies in December
2013; participants were primarily
executives, HR managers and
directors at multinational firms
and medium to large enterprises.
Hudson’s Salary & Employment
Insights 2014 report survey was
based on 477 employers and 1,292
employees. Size-wise, 90.4% of the
employers surveyed were medium
to large firms, while 9.6% were
small firms. ●
MORE EMPLOYMENT FOR LOCAL WORKERS
of those employed (excluding
foreign domestic workers) last
December, with foreigners forming
33.8% of the total.
The last quarter of 2013 also saw
an elevation in employment levels by
39,200, as compared to the previous
quarter (33,100). The rise was likely
driven by an increase in hiring for
year-end festivities.
The bulk of employment gains, or
92,900 jobs, occurred in the service
sector, followed by construction
(35,500) and manufacturing (5,000).
Amid the tight labour market,
the report also found income
growth strengthening in 2013. “The
nominal median monthly income
from the work of full-time employed
citizens (including employer CPF
contributions) increased over the
year by 7.1% to $3,480 in June
2013, up from gains of 5.8% in the
preceding year,” the report said.
03/04/2014 09:47
BizQ
Apr•May•Jun 2014
16
BiZ Feature
A
Budget
Unlike
BiZQ takes stock of the
economic implications
of the latest Budget.
Others
SPH - The Straits Times; Getty Images
S
ingapore Budget 2014
was not just another
announcement of the
country’s annual budget.
From large corporations
to small and medium enterprises
(SMEs), many businesses
were looking at the recent
announcements for guidance as to
how fiscal policy would be used
to steer Singapore’s economic path
over the next few years.
Wish list items from the
Singapore Business Federation
(SBF)-led SME Committee and
other business chambers
were varied, and many were
focused on rising business
costs and the recent tightening of
foreign labour policies.
Macroeconomic data ahead of
the announcement of Budget 2014
were mixed. While Singapore’s
gross domestic product grew by
a faster-than-expected 4.1%, the
economy showed zero productivity
growth for 2013.
Many businesses were concerned
that the dismal productivity data
was a hint that more screws would
016-021 BizFeature ABx ed AB.indd 16
Upon approval
Please sign:
Name and Date:
03/04/2014 10:02
BizQ
17
be tightened on the economic
engine in order to ratchet up the
country’s productivity. This is
notwithstanding the fact that
Singapore is halfway through
the restructuring programme
(Economic Strategies Committee
recommendations) initiated in 2010.
In announcing Budget 2014,
Deputy Prime Minister and
Finance Minister Tharman
Shanmugaratnam said that the
island republic continues to
transform its economy to “create
higher-value industries and quality
jobs for Singaporeans in the next
decade and beyond…There is no lack
of demand for what Singapore can
offer. But we are changing how we
grow, in a fundamental way.”
He added that “we must adapt
to the permanent reality of a tight
labour market, and transform every
sector of the economy to achieve
higher productivity and skills.”
016-021 BizFeature ABx ed AB.indd 17
Upon approval
Please sign:
Name and Date:
Modest deficit
As a result of an estimated S$56.7
billion in total expenditure for the
year, there will be a modest deficit
of S$1.2 billion – 0.3% of Singapore’s
nominal GDP.
The highlight is the creation of
an S$8 billion Pioneer Generation
Package, to create a socially-oriented
and all-inclusive Singapore society.
In addition, the Government
has decided to raise the employer
Central Provident Fund (CPF)
contribution rate by one percentage
point for all workers.
SBF’s Mr Ho responded by
saying that an increase in employers’
CPF contributions “will not
help, and (instead) will impact
small businesses as they employ
proportionately more older workers.”
However, he stressed that “the
government recognises this, and
we welcome the one-year cost offset
provided for companies in lieu of
the increase in employers’ CPF
contribution.”
Also announced were a slew of
initiatives to support innovation
and skills, the use of information
p.18
Another year of slightly expansionary fiscal policy?
5
5
4
4
3
3
2
2
1
1
0
0
-1
-1
-2
-2
-3
FY2008
FY2009
FY2010
Fiscal impulse (left axis)
FY2011
FY2012
FY2013
FY2014
(revised) (estimated)
% of potential GDP
No new manpower measures
The recent Budget made no further
announcements on lowering the
caps on the supply of foreign
manpower into Singapore, and this
brought relief to many companies
and chambers, especially the SBF.
In response to the February
announcement, SBF’s CEO, Mr Ho
Meng Kit, said: “SBF is relieved
that no major new manpower
measures were announced in
Budget 2014 to exacerbate the tight
labour situation.”
structurally higher social and health
care spending, with a particular
focus on older people.”
-3
Output gap (right axis)
Source: Ministry of Finance
Getty
SPH - The
Images
Straits Times
“We must
adapt to the
permanent reality of
a tight labour market,
and transform
every sector of the
economy to achieve
higher productivity
and skills.”
Mr Ho added: “Notwithstanding,
rising operations costs and
manpower issues continue to be a
challenge for businesses.”
Echoing a similar sentiment, DBS
economist Mr Irving Seah observed
that restructuring Singapore’s
economy and fostering inclusive
growth has continued to be the
focus of the recent announcements.
“New measures were announced
to help companies enhance
productivity and there was no
further tightening in manpower
policies. In this regard, Budget
2014 is more carrot than stick for
companies,” he commented.
Credit Suisse’s economist, Mr
Michael Wan, summarised the latest
Budget in the following manner:
“We note that the government still
views the overall fiscal policy stance
to be expansionary for the macro
economy in 2014, with a positive
fiscal impulse of around 1% of
GDP for FY2014. (Refer to chart:
Another year of slightly
expansionary fiscal policy?)
“While the expansionary fiscal
position partly reflects government
transfers to businesses – such as
the Productivity and Innovation
Credit (PIC) Scheme – that support
economic restructuring, it seems
to us that parts of it also reflect
% of GDP
Mr Tharman Shanmugaratnam,
Deputy Prime Minister
and Finance Minister
03/04/2014 10:02
BizQ
Apr•May•Jun 2014
18
BiZ Feature
technology to get businesses to raise
productivity levels, and the catalyst
of growth for Singapore’s homegrown companies, among others.
Again, Mr Ho’s response to
the new incentives was that the
SBF was “delighted with the
budget measures in support of
growth enterprises, as well as the
introduction of the SME-centric
PIC+ Scheme and the extension of
the PIC Scheme for a further three
years to 2018.”
Pains of economic
restructuring
The recent SME Development
Survey revealed that Singapore
companies, particularly SMEs,
have been experiencing a “difficult
transition period of economic
restructuring”.
One of the SME Committee’s
key observations about the Budget
2014 Recommendations was that
Singapore’s competitiveness has
been eroded by global conditions
while domestically, our economic
performance has been dragged
down by reduced business efficiency,
SPH – The Straits Times
Mr Daniel Ho, Director of
Taxes, Deloitte Singapore
“The overall sense is
that SMEs are the
big winners of this
year’s budget. The
extension of the
PIC Scheme, the
PIC+ Scheme, and
more assistance
with financing and
overseas expansion
should assist
SMEs in building
capabilities for
quality growth.”
016-021 BizFeature ABx ed AB.indd 18
Upon approval
Please sign:
Name and Date:
Singapore looks to 2-4% growth in 2014
Singapore’s Ministry of Trade
& Industry announced that the
country’s GDP grew 4.1% in 2013.
The expansion was greater than
what most economists and analysts
had expected.
Looking ahead, the ministry
said that global economic outlook
is expected to improve modestly
this year, supported by sustained
but slow recovery in the US and
Eurozone economies.
In Asia, China’s growth is
expected to moderate slightly as the
government continues with reforms
to rebalance the economy towards
consumption-driven growth.
Against this backdrop, the
higher business costs, and inevitable
restructuring.
For example, the findings
revealed that one in three SMEs
indicted cost reduction as a priority,
and that one in four SMEs did not
have a business strategy for the next
12 months because they were caught
up with cost-management matters.
With business costs a rising
concern, the SBF National
Business Survey 2013/14 cited
wages, rental of premises and
transportation costs as the top three
cost components with the greatest
impact on profitability. Government
compliance costs were fourth on the
list, with one in three respondents
citing it as a growing concern.
Prior to the February 21
announcements, the committee
said that 72% of SBF members
had hoped Budget 2014 would
contain measures to help businesses
deal with escalating costs, and
48% had anticipated policies that
could soften the impact of tighter
manpower constraints.
As it turns out, the calls from the
business community were heard.
In previous budget
announcements, labour policies
were successively tightened as the
Government steered the economy
Singapore economy is expected
to post modest growth in 2014.
Externally-oriented sectors such
as manufacturing and wholesale
trade are likely to continue to
recover and provide support to
growth, in tandem with the
recovery in global demand.
However, tightness in labour
conditions could weigh on growth
in some labour-intensive
domestically-oriented sectors.
Overall, the 2014 growth
forecast for the Singapore
economy is maintained between
2% and 4% (refer to the Economy
Watch story for a feel of the 2014
business outlook).
SIGNS OF RELIEF
72% of SBF members had
hoped that Budget 2014 would
contain measures to
1
HELP BUSINESSES DEAL
WITH ESCALATING COSTS
48% anticipated policies that could
2
SOFTEN THE IMPACT OF
TIGHTER M ANPOWER
CONSTR AINTS
towards a productivity-led model.
While this goal has not changed,
there have been no further
announcements relating to new
levies, except for a marginal rise in
the use of low-skilled workers in the
construction sector.
The big PIC-ture
What came through was a
commendable push to support
innovations and skills development
through the Government’s PIC
Scheme, and a push for greater
adoption of information technology
03/04/2014 10:13
BizQ
19
Supporting Businesses Through PIC+
Supporting Innovation and Skills
Extension and Enhancement of the
Productivity and Innovation Credit
(PIC) Scheme by S$3.6 billion over
three Years of Assessment (YAs)
PIC Extension: The PIC Scheme,
which lapses after YA2015, will be
extended for three years (ie YA2016
to YA2018) at the current support
level. The expenditure cap for each
qualifying activity is combined
across the three years, which means
businesses can claim enhanced tax
deductions of up to S$1.2 million
(S$400,000 x 3 YAs).
PIC+ Scheme: To help firms that
are making substantial investments
to revamp their businesses, the
expenditure cap will be raised for
each of the six qualifying activities
from the current S$400,000 to
S$600,000 with effect from YA2015.
This means that qualifying SMEs
that have hit the combined cap of
S$1.2 million (across three YAs) can
now claim enhanced tax deductions
of up to S$1.8 million in qualifying
expenditure.
●
to boost productivity (refer to
side story: Supporting businesses
through PIC+).
These targeted and calibrated
measures appear to be resonating
with just about every quarter of the
business community.
Credit Suisse’s Mr Wan said that
for him, one of the salient takeways
was that the Government had
decided not to announce further
across the board tightening in its
foreign labour policies.
“This is an important and also
marked departure from previous
budgets over the past four years,”
commented Mr Wan. “We note
that major foreign labour tightening
measures were announced over the
last four consecutive Budgets.”
He added: “With these more
targeted changes, it seems to us that
the government, at least for now,
is comfortable with the current
trajectory of foreign workforce
growth, with the expectation that
it should continue to moderate over
the next two years – particularly
in the services sector – with the
measures already in place.”
In comments shared with BiZQ,
p.20
016-021 BizFeature ABx ed AB.indd 19
Upon approval
Please sign:
Name and Date:
Extension of Research &
Development (R&D) Tax
Deductions Scheme
To continue encouraging R&D
in Singapore, the broad-based
50% additional tax deduction
on qualifying R&D expenditure,
which lapses after YA2015, will be
extended for 10 years till YA2025.
The further tax deduction for
Economic Development Boardapproved R&D activities, which
lapses after 31 March 2015, will also
be extended till 31 March 2020.
●
Top-up to Lifelong Learning
Endowment Fund
In line with the long-term
commitment to continuing
education and training, the
Government will top up the
●
Lifelong Learning Endowment Fund
by S$500 million, bringing the total
fund size to S$4.6 billion.
Adopting Information and
Communications Technology
(ICT) Solutions to Increase
Productivity
ICT for Productivity and Growth
(IPG) Programme
The Government has planned for a
$500 million budget over three years.
●
Catalysing Investment in
Growth Enterprises
Co-Investment Programme
(CIP) Phase II:
Under the second phase of the CIP,
the Government will set aside up to
S$150 million for co-investment with
the private sector, to catalyse more
patient growth capital for Singaporebased enterprises. The additional
capital will be allocated to two new
funds: the SME Co-Investment Fund
II which supplies equity capital, and
the SME Mezzanine Growth Fund
which supplies mezzanine capital.
●
Enhancement of the Micro-Loan
Programme
To spur further lending to young
SMEs, the Government will
increase the risk that it shares with
participating financial institutions
for loans to young SMEs (firms
which have been registered for less
than three years) under the MicroLoan Programme, from 50% to 70%
for two years.
●
Seizing Growth Opportunities
Overseas
● Enhancement of
Internationalisation Finance Scheme
To further help companies make
additional asset investments abroad
or fund working capital expenses
for secured overseas projects, the
maximum loan quantum supported
by the Internationalisation Finance
Scheme will be raised from $15
million to $30 million for two years.
For more details, visit: singaporebudget.
gov.sg/budget_2014/Business1.aspx
SPH – The Straits Times
As part of Budget 2014, several fresh
initiatives that drive innvovation
and productivity in Singapore were
announced. These are some of the
salient points.
03/04/2014 11:09
BizQ
Apr•May•Jun 2014
20
BiZ Feature
Mr Keith Yong (right), Director, Robofusion
Asia, on being a fairly new start-up.
“… cash flow tends
to be tight and tax
incentives do not
really help…The PIC
is the only scheme
that helps with our
cash flow, to tide us
through the critical
start-up period.”
SPH - The Straits Times
Deloitte Singapore’s Director of
Taxes, Mr Daniel Ho, said that
calls by SMEs for more help have
been answered.
“More support has been given
in these areas of investment:
productivity, innovation, adoption
of information and communications
technologies, overseas expansions,
and financing support. The overall
sense is that SMEs are the big
winners of this year’s budget.
“The extension of the PIC
Scheme, the PIC+ Scheme, and
more assistance with financing and
overseas expansion should assist
SMEs in building capabilities for
quality growth.”
vending robots, each costing about
US$65,000 (about S$82,000) each.
These robots can accept orders from
and deliver food items to customers.
A customer starts by choosing
one of four robot characters;
this will then trigger the robotic
movements, animation effects,
music and sounds. The robot will
select a souvenir cup, fill it with the
ice cream and candy toppings that
the customer has chosen, and then
deliver it to the customer.
The current manpower shortage
in Singapore is making it difficult
for companies like Robofusion Asia
to employ staff. Hence, there is
room for robots to work alongside
people in service industries like this,
said Director Keith Yong.
As Robofusion Asia is a fairly
new start-up, he said that cash
flow tends to be tight and that tax
incentives do not really help because
new companies are usually unable
to generate profits until a few years
down the road.
Giving a resounding endorsement
to the enhanced PIC scheme, Mr
Yong said: “The PIC is the only
scheme that helps with our cash
flow, to tide us through the critical
start-up period.”
Another PIC beneficiary is
“With the opening
of my new factory, I
will also have a new
product line, so the
PIC Scheme will help
with my expansion
plans over the next
few years.”
2012
2013
Total
1.9%
4.1%
Goods Producing Industries
1.4%
2.2%
●
Manufacturing
0.3%
1.7%
●
Construction
8.6%
5.9%
2.0%
5.3%
-1.4%
5.0%
Services Producing Industries
Wholesale & Retail Trade
Name and Date:
Mr Tang Siew Chuan, General Manager,
Jackson Bakery & Confectionery
(YoY change)
Ice-ing on the cake
Upon approval
Please sign:
•
Sectoral Growth Rates
of the Singapore Economy
Among the local companies that
will benefit from the Government’s
PIC Scheme is home-grown
Robofusion Asia.
The company, set up barely
two years ago, has tapped into
the scheme to buy ice cream
016-021 BizFeature ABx ed AB.indd 20
Jackson Bakery & Confectionary,
a traditional bakery in a nascent
industry. General Manager Tang
Siew Chuan said that the PIC is a
scheme that benefits his company,
and that its extension is welcomed.
The company announced
recently that it will be opening a
new factory, and new machinery
will be required as part of this
growth plan.
“With the opening of my new
factory, I will also have a new
product line, so the PIC Scheme
will help with my expansion
plans over the next few years,”
Mr Tang said.
●
Information & Comms
6.2%
5.5%
●
Finance & Insurance
1.3%
10.6%
●
Business Services
5.9%
5.1%
Source: Ministry of Trade & Industry
03/04/2014 10:22
BizQ
21
In Budget 2014
PIC Enhancements;
More Support for SMEs
Extend PIC for three years to
provide continuing support for
businesses as they restructure
● Introduce PIC+ for
qualifying SMEs:
Raise expenditure cap for each
qualifying activity from S$400,000
to $600,000 from YA2015
●
Scale Up Adoption of ICT;
Three-year ICT for Productivity
and Growth (IPG) Programme
Proven ICT solutions: Target
to extend these solutions to
another 10,000 SMEs
● Piloting of emerging solutions:
Support 80% of qualifying costs,
capped at S$1 million per
participating firm
● Enabling high speed connectivity
for businesses: Subsidise SMEs’
fibre broadband subscription plans
of at least 100 MBps and provide
support to implement Wireless@SG
services on their premises
● Facilitating access to fibre
broadband: Subsidise up to 80%
of the costs of new in-building
infrastructure, capped at S$200,000
per building
●
Industry Transformation
through New Industrial Spaces
Support clustering among firms
to improve competitiveness
● Five-year renewal of the
Land Intensification Allowance
scheme till June 2020; extended
to logistics sector
●
Investment in Skills and Training
● Top up the Lifelong Learning
Endowment Fund by S$500 million
to to S$4.6 billion, in line with
our commitment to continuing
education and training
Tax Incentives For Innovation
● Qualifying R&D expenditure:
10-year extension of the 50%
additional tax deduction till YA2025
● EDB-approved R&D projects:
016-021 BizFeature ABx ed AB.indd 21
Upon approval
Please sign:
Name and Date:
Five-year extension of the
further tax deduction
scheme till March 2020
● Acquisition of Intellectual
Property Rights:
5-year extension of writingdown allowances till YA2020
MANAGING FOREIGN
WORKFORCE GROWTH
Progressive raising of levies and
lowering of Dependency Ratio
Ceilings. To raise the quality of our
foreign workforce, levies for skilled
and unskilled workers have been
differentiated, and requirements for
S Pass and Employment Pass holders
have been tightened.
Foreign worker inflow
(excluding construction sector)
2011
60,200
2013
16,800
IN BUDGET 2014
Construction – Targeted Policies
and Upstream Measures
Increase levies for basic-skilled
workers by S$100 in 2016 to
encourage employment of skilled
workers
● New Market-Based Skills
Recognition Framework to help
retain workers with better skills
and experience
● Extend maximum period of
employment from 18 to 22 years
for higher-skilled workers
● Mandate use of productive
technologies on selected sites
● Increase buildability and
constructability scores for private
projects on non-Government
Land Sales sites
●
HELPING BUSINESSES
GROW AND
INTERNATIONALISE
The Micro-Loan Programme (MLP)
has provided 3,500 loans
to SMEs over the last two years
The Co-Investment Programme (CIP)
has catalysed over S$500 million in
investments from private sector
players – over three times the
Government’s seed funding
IE Singapore provided
assistance to more than 26,000
companies in 2013, including
access to S$775 million in trade and
financing loans
IN BUDGET 2014
MLP
Raise the Government’s risk share
of loans to young SMEs
CIP
Additional S$150 million to further
catalyse growth capital for
promising enterprises
INTERNATIONALISATION
FINANCE SCHEME
Double the maximum loan
quantum to S$30 million per firm
More support under the
GLOBAL COMPANY
PARTNERSHIP PROGR A MME
03/04/2014 11:47
BizQ
Apr•May•Jun 2014
22
In
InBiZ
BiZWith
With
Heading East
Veronica Tay
Mr Poh Choon Ann, Chairman
and CEO of Poh Tiong Choon
Logistics Limited, believes in
mentoring SMEs and
helping them expand into
the China market.
022-024 InBizWith (warehouse).inddUpon
22approval
Please sign:
Name and Date:
03/04/2014 16:50
23
M
r Poh Choon Ann,
Chairman and CEO
of Poh Tiong Choon
Logistics Limited, is very
committed to the promotion
and development of the arts in
Singapore. He is currently the ViceChairman of the board of directors
in Nanyang Academy of Fine Arts.
Honoured as a Patron of the Arts
by the National Arts Council,
Mr Poh believes that enabling more
people to enjoy cultural arts is his
contribution towards “helping
to build a more harmonious and
gracious society in Singapore”.
For his exemplary work as
a distinguished Mentor in the
Singapore Business Federation’s
(SBF) Mentorship Programme,
he was also presented with the
SBF Distinguished Partner Award
in 2012.
Driven by the desire to be
compassionate and proactive
in promoting corporate social
responsibility, he has made
significant contributions to many
charitable organisations. One is
the SBF Foundation, which was
launched last November.
Passion and determination are
qualities that Mr Poh strongly
advocates. He lost his father at the
age of five and was brought up
by his mother and elder brothers.
Determined to be independent and
help support his family, he gave up
his passion for music in his early
years and joined the family
business at the age of 14.
That was in 1964. Today, the
company has emerged as one of the
largest homegrown logistics firms
and is listed on the Mainboard of
the Singapore Stock Exchange.
Considering how Singapore
struggled in its early years before
becoming independent in 1965,
Mr Poh believes that the growth
and success of the company mirrors
the development of Singapore.
As such, his contributions to
society are his way of showing his
gratitude to his country.
Mr Poh is also keen to help
companies expand into China’s
022-024 InBizWith (warehouse).inddUpon
23approval
Please sign:
Name and Date:
vast opportunities. Having entered
the Chinese market in 1981, he
brings with him more than 30 years
of experience, networking and
connections in China.
As the Vice-Chairman of the
SBF China Business Group, he
shares some of his insights with
BiZQ magazine.
You have helped SBF members
forge many networks overseas.
How do you describe your active
support of the Federation’s business
development programme for China
and North Asia?
We entered the China market
in 1981 and have been there
since. Over the past 33 years, we
have accumulated vast amounts
of experience and established
many networks and connections
in China. Such experiences
and connections have become
important in assisting Singapore
SMEs in entering China. There
have been proven results, especially
in China’s second, third and
fourth-tier cities.
As the Vice-Chairman of the
China Business Group in SBF, I
have also led many high-level
Singapore business delegations to
various cities in China, Mongolia
and the Democratic People’s
Republic of Korea. Such
delegations are often received by
ministers and state leaders.
I lead an average of six to eight
business delegations to China a year
and attend forums in China and
North Asian countries to deliver
keynote speeches.
How do you envision SingaporeChina trade and investment
relations developing?
Singapore and China have a
close bilateral relationship. They
have established seven Economic
Councils and jointly developed five
National Industrial Parks (Suzhou
Industrial Park, Tianjin Eco-City,
Guangzhou Knowledge City,
Sichuan Hi-Tech Innovation Park,
and Jilin Food Industrial Zone).
p.24
03/04/2014 16:50
Apr•May•Jun 2014
24
In BiZ With
Ms Connie Wu, Executive Director, Sunray
For projects like these, we need
mutual trust and understanding
from both governments and the
business communities. SBF, as an
apex chamber, is an important
connection for the Singapore
business community, and we want
to continue building a variety
of platforms for them, especially
to benefit the Singapore-China
economic and trade relationship.
I hope that both the Singapore
and China business communities
will continue to discover and
develop new opportunities in
the future, especially for small
and medium enterprises (SMEs)
which make up 99% of registered
enterprises in Singapore.
How has your experience helped in
your sharing and giving back to the
business community?
I have been leading the development
of Poh Tiong Choon Logistics
Ltd for the past 50 years, and
accumulated a great deal of
management experience, especially
in dealing with the relationships
within our family business.
The success of our company is
evident by our pervasive culture of
“humanity as the roots of harmony
in the enterprise, kinship as the
origins of harmony in the family”
These core values are the
organisation’s greatest spiritual
wealth, and have underpinned our
success. We will continue to uphold
these values for years to come.
Family businesses are unique,
and some of this experience has
come in handy in mentoring
SBF corporate members. I have
successfully assisted several SBF
corporate members in resolving
business continuity and succession
planning issues.
The SBF Mentoring Round
Table programme has been
well-received by SMEs and they
appreciate such assistance. I feel
very encouraged, and will continue
my efforts to assist SMEs.
Woodcraft Construction Pte Ltd, on having
benefited from one of Mr Poh ’s sessions
via the SBF Mentorship Programme.
“Having participated in the SBF
Mentorship Programme, we are
now able to resolve issues we
once thought impossible. This has
given us much more confidence in
the company’s future growth.
This is especially so with Mr Poh
Choon Ann being our mentor; it
allowed us to capitalise on his vast
amount of life experience, like
when he shared with us a different
view of longstanding issues that
we could not resolve.”
Ms Annie Gan, Managing Director,
Jian Huang Group, on having attended
one of Mr Poh’s sessions on maintaining
How do you spend your personal
and private time?
I am an avid fan of the arts and
cultural activities. I am also an
amateur composer, conductor and
music producer.
I am passionate about the
promotion of arts and culture,
and believe that culture is the best
stepping stone towards an inclusive,
harmonious and elegant society.
Currently, I am the Chairman of the
Poh Tiong Choon Arts Fund, which
sponsors cultural and arts activities
and helps promote and groom
artistic talent in Singapore.
•
harmony within the family and business.
“From Mr Poh, I have gained more
confidence in my mindset and
improved tremendously in my
management philosophy. Since my
company is a husband-and-wife
business, Mr Poh stressed that
both of us must always stay
united and focused on the
direction of our business in order
to conquer problems together.
More importantly, by staying
motivated, we will be able to
promote the standards of our
company to a higher level. I must
thank Mr Poh.”
LEADING THE CHARGE TO CHINA
Over the years, Poh Tiong Choon Logistics’ Chairman and CEO Mr Poh Choon Ann
had led countless business missions to China. Here is a snapshot of those trips:
2006
Accompanied
Singapore’s
Prime Minister
Lee Hsien Loong
to Nanning to
attend the ChinaASEAN Business
Investment
Summit.
2008
In conjunction
with Singapore
Day in Beijing
and Shanghai, he
led the Singapore
Chinese
022-024 InBizWith (warehouse).indd 24
Orchestra to
Beijing, Shanghai,
Guangzhou,
Shenzhen,
Zhongshan
and Macau.
2009
Led a 300member business
delegation
to Fuzhou to
participate in
the Uniquely
Singapore
exhibition, in
conjunction with
the cross-strait
Upon approval
Please sign:
Name and Date:
economic and
trade forum.
2010
In conjunction
with Singapore’s
then Senior
Minister Goh
Chok Tong’s
visit to Xiamen
and Fuzhou in
Fujian Province,
he accompanied
Senior Minister
of State Lee Yi
Shyan in visiting
Pingtan Island.
In August, he
led a 60-strong
business
delegation to
Zhejiang (Ningbo,
Zhoushan and
Shanghai), in
conjunction with
Singapore Day
at the Shanghai
World Expo.
2011
Led a Singapore
delegation to
the 5th China
International
Fair for Trade in
Services
(CIFITS) in
Beijing. The
guest of honour
was Signapore’s
Deputy Prime
Minister and
Finance Minister,
Mr Tharman
Shanmugaratnam.
2012
Led the
Singapore team
to the 6th edition
of CIFTIS in
Beijing, and
also to the 9th
China-ASEAN
Exposition
(CAEXPO).
2013
Singapore
participated in
the 16th China
Chongqing
International
Investment and
Global Sourcing
Fair. The same
year, Mr Poh led
a business
mission to
the Shandong
Province (Rizhao
Linyi, Taian).
03/04/2014 10:36
#13888-Tyco Magazine Ad_FA_275x205_v2.pdf 1 3/25/2014 5:45:44 PM
C
M
Y
CM
MY
CY
CMY
K
Apr•May•Jun 2014
26
Innovations
Thinking Out
of the Box
A semiconductor testing
company takes its productivity
objectives to the next level.
I
Getty Images
n today’s business
environment, companies
are facing tough times
with an ever-increasing list
of challenges to overcome.
Besides a tight labour market,
escalating rental and other
business costs are forcing
companies to rethink their
business strategies.
Boosting productivity
has always been a key
emphasis in plans for shaping
Singapore’s economy, and it will
continue to be in the coming years.
While some businesses have
gravitated towards or are embracing
this change, companies such as
Ardentec Singapore Pte Ltd are
taking their first steps in their
productivity improvement journeys.
Ardentec, which provides
semiconductor testing solutions,
has been looking at possible
resolutions to their productivity
woes – particularly the lifespan of
its magnum probe cards. The cards
were wearing out at a lower rate
than customers expected.
This not only contributed to
reduced productivity but also
increased business costs and
lowered customer satisfaction.
The 3E programme
While searching for a productivity
tool programme for its staff,
Ardentec learnt about the
026-027 Innovations.indd 26
Upon approval
Please sign:
Name and Date:
Mr Ho Kok Pin, Deputy
Director and Project Team
Leader, Ardentec Singapore
“Productivity
is a measure of
the efficiency of
production. It
is measurable
and quantifiable.
We only realise
how important
productivity is
when it is
quantifiable by a
tangible benefit.”
Empowering Efficiency &
Excellence (3E) productivity
improvement programme through
the Singapore Business Federation
(SBF). It then decided to tap on the
generous 90% Singapore Workforce
Development Agency (WDA)
funding extended to small and
medium enterprises (SMEs).
Five of Ardentec’s key staff were
trained with essential productivity
tools and measures under the Lean
Six Sigma framework, including the
SIPOC (suppliers, inputs, process,
outputs, customers) diagram and
the fishbone analysis.
Following the programme’s
two-day workshop, the team of
five decided to focus specifically on
their wafer probing process.
“By going through with the 3E
programme, we managed to
palpably demonstrate to our staff
how many benefits we can obtain,”
observed Mr Ho Kok Pin, Deputy
Director and Project Team Leader.
He said: “Our people also learnt
that by thinking out of the box
via a systematic, analytical
approach, we can zoom in to the
areas that we had overlooked or
thought impossible, but were
indeed critical factors.
03/04/2014 17:01
27
cost savings on to our customers.
It is an excellent programme that
all manufacturing firms should
participate in and embrace.”
Increasing overall excellence
The Economic Strategies
Committee (ESC) has set a
goal – for Singapore to achieve
2-3% productivity growth over the
next 10 years. Businesses will need
concrete strategies to implement
and execute their productivity
growth plans.
In the recent SBF National
Business Survey 2013/14, a majority
of respondents were looking to
train their staff in response to the
recent tightening of foreign worker
policies by the Government.
Investing in staff training is
one way to effectively retain
good workers and raise overall
productivity, in the face of an
increasingly competitive industrial
environment.
It was against this backdrop
that SBF partnered with the WDA
to roll out the comprehensive
3E productivity improvement
programme.
3E PROGRAMME SUCCESS STORIES
COMPANY
TYPE
PRODUCTIVITY
IMPROVEMENT
PROCESS/AGENDA
65% improvement
in average
production
process cycle time
BENEFITS
Manufacturing Production lead
of Chemical
time, from
Products
preparation of raw
materials to final
QC inspection
●
Reduction of
transportation time
● Reduction of
overtime costs
Interior
Finishing
Credit note
and cycle time
reduction
●
Credit note
processing cycle
time reduced by
about seven days
● Process wastes
eliminated within
an average of 40
hours
●
Retail
Employee
satisfaction
●
26% increase
in internal staff
satisfaction
● Standardised
and uniformed
processes across
all branches
●
●
Sales team
processing more
streamlined and
continuous
● Number of unique
steps in workflow
significantly
reduced
Employees more
satisfied with
incentive schemes
● Improved cash
control and cash
balance tallies
“Productivity
improvement is
important and
mandatory for
competitiveness
today. The benefits
go beyond ourselves
and are passed on to
our customers.”
Since 2012, the 3E programme
has helped over 100 individuals
become Productivity Managers
who are equipped with the right
skills and knowledge to drive
future productivity and quality
improvements.
The programme’s two-pronged
approach of classroom training and
in-house consultation instils both
theoretical and practical knowledge
into its participants.
The programme is highly
customisable in order to meet
the needs of companies across all
industries. Case studies of some of
its success stories are summarised
in the table (see side story: 3E
Programme Success Stories).
SMEs can enjoy up to 90%
WDA funding, as well as the
Productivity and Innovation
Credit (PIC) tax incentives, when
they sign up for the programme,
which can be conducted in both
English and Mandarin.
•
To find out more about the 3E programme
and its workshop schedule, contact SBF’s
Irene Chen (6827-6824) or Sharifah (68276893), or e-mail productivity@sbf.org.sg.
026-027 Innovations.indd 27
Upon approval
Please sign:
Name and Date:
SPH Library
This project is only a start. We
will apply the skills and knowledge
from what we learnt during the 3E
programme in our daily work.”
By the end of the six-month
programme, Ardentec had seen an
87% improvement in its probe card
tip erosion rate, and had also saved
about US$70,000 (S$88,600) in
material costs.
Mr Ho said that the programme
had also helped his team to measure
productivity more effectively.
“Productivity is a measure of
the efficiency of production. It
is measurable and quantifiable.
We only realise how important
productivity is only when it is
quantifiable by a tangible benefit,”
he said.
Having supportive “productivity
champions” in the company also
played an important role in the
team’s success. Ardentec’s General
Manager, Mr David Hsiao, who
realised the need for productivity
improvement, said: “Productivity
improvement is important and
mandatory for competitiveness
today. The benefits go beyond
ourselves and we are able to pass
Mr David Hsiao, General Manager,
Ardentec Singapore
03/04/2014 13:04
Apr•May•Jun 2014
28
Inside SBF
Accessing the
Next Frontier
SBF Africa Business Group heads
to sub-Saharan region.
Africa is the fastest
growing region outside
Asia today, with an average
of 5% GDP growth
per annum in the last
decade, and about one
third of its 54 nations
have seen yearly gains in
GDP of more than 6%.
The continent is
becoming an attractive
foreign direct investment
destination among
Singapore companies.
Singapore’s total trade
with the continent rose
from S$7.7 billion in 2009
to S$13.2 billion in 2012.
Being a relatively
new frontier market,
Mr Teo Siong
Seng, Managing
Director, Pacific
International Lines
“PIL has been working
with SBF for many years
now, and we value the
support and trust
fostered over the years.
Being one of the pioneer
companies offering
shipping services to
Africa, the Far East and
China, we have gained
much local knowledge
and built a reputation. We
also believe that Africa’s
time is now – with a
growing population and
market opportunities, this
emerging market has a
huge potential for growth.”
028-033 Inside SBF.indd 28
Upon approval
Please sign:
Name and Date:
there are few Singapore
companies with the
right market expertise to
tap into the long-term
opportunities in Africa.
In light of the
continent’s growth and
development opportunities,
the Singapore Business
Federation (SBF) Africa
Business Group (AfBG)
will be organising several
business missions to
explore new markets
such as Sudan, Malawi,
Madagascar and
Equatorial Guinea in
the coming months.
SBF will also be
hosting several high-level
government and business
delegations from Africa
as many look to Asia for
developmental expertise
and financing. Many see
Singapore not only as a
regional hub, but also as a
partner for many projects.
With this in mind, SBF
will also be organising
networking and briefing
sessions with a focus on
third-country partnerships.
NTU-SBF
CENTRE FOR
AFRICAN
STUDIES
South-east Asia’s first
Centre on Africa Studies
will enable public and
private sectors to develop
new insights into the
emerging continent by:
1
PROVIDING THOUGHT
LEADERSHIP ON
AFRICA
2
BUILDING CAPACITY
FOR GOVERNMENTS
AND EXECUTIVES
3
BUILDING AFRICAN
HUM AN CAPITAL
4
FOSTERING AN
INTEGR ATED
AFRICA-SINGAPORE
NETWORK
partners in Tanzania,
Ghana and the Ivory
Coast over the past year.
In 2013, AfBG
successfully lobbied for a
visa waiver for Singapore
passport holders to the
Ivory Coast, and also
for the appointment of
Tanzania’s Honorary Consul
General to Singapore,
Mr Teo Siong Seng.
Business Forum
in August
The third edition of the
Africa-Singapore Business
Forum will take place in
August this year, following
on the steps of the
successful Africa Asia Oil
and Gas Summit that took
place in November 2013.
AfBG is also looking
Engaging the
right partners
Increasing market access
for Singapore companies
to the continent has
always been a cornerstone
of AfBG’s work.
The group has signed
several memorandums
of understanding with
03/04/2014 09:48
29
to structure a market
immersion programme
that will help executives
build up their management
capabilities for the
African market.
Centre for
African Studies
SBF and Nanyang
Technological University
(NTU) recently announced
the NTU-SBF Centre for
African Studies, the first of
its kind in Southeast Asia.
The centre will be
launched by June this year.
Located at NTU’s
Nanyang Business School,
the NTU-SBF Centre for
African Studies will provide
in-depth insights on
African markets through
research, workshops and
relevant programmes.
The centre aims to
build knowledge on
business, politics and
social economics to
strengthen the capabilities
of policymakers and
businesses for their
engagement with Africa.
In the longer term, the
centre will also foster
understanding and closer
relations between Africa
and South-east Asia.
Five of Singapore’s
leading investors in
Africa were recognised
for their contributions
to the centre’s funding.
Indorama Group, Olam
International, Pacific
International Lines (PIL),
Tolaram Group and Wilmar
International, had each
donated S$1 million to
the centre’s endowment
fund, and are the founding
donors on the centre’s
governing board.
•
Mr Amit Lohia, Group Managing
Director, Indorama Group
“As south-south
partnership becomes
increasingly important,
we hope this centre will
facilitate that bond even
further. We are optimistic
about the future of Africa
and Singapore, which can
be an excellent bridge
between Africa and
Asia. This centre is one
unique step towards that
direction.”
Mr Kuok Khoon
Hong, Chairman
and CEO, Wilmar
International
“Wilmar is proud to be a
founding donor of the
NTU-SBF Centre for
African Studies. We have
been operating in Africa
since 2007, and today we
are present in 10 countries
across the continent.
We are bullish on Africa
due to its abundant land,
human resources and a
fast growing consumer
market. We would be
pleased to share our
experience in order to
strengthen business
ties between Singapore
and Africa.”
Mr Venkatramani Srivathsan,
Regional Head for Africa,
Olam International
“It’s widely recognised
that Africa needs
investment in skills
and capability building,
expertise and technology
– but it’s clear that what is
also sought is responsible
development that takes
into account economic
and environmental
considerations, cultural
understanding, and the
creation of mutual value
for local communities.
The Centre for African
Studies will provide
guidance and insight
to help both Southeast Asian and African
companies achieve their
goals, and benefit from
a truly integrated AfricaAsia network.”
Mr Sajen G. Aswani, Group
CEO, Tolaram Group
“Having been involved in
Africa for the last 35 years,
the Tolaram Group
has watched Africa
moving forward
progressively.
We think that a thinktank dedicated to African
issues will definitely
make a positive impact.
We look forward to
continuously making
meaningful contributions
to the economic, political
and social development
of Africa, where many of
us cut our teeth in the
business world.”
SBF Business Institute helps
Members Upgrade Workforce
The SBF Business Institute
(SBI) is helping Singapore
Business Federation
(SBF) members train their
employees and increase
their skill sets. Established
under the SBF’s auspices,
SBI will help its members
and the wider business
community to build
capabilities and transform
towards inclusive and
028-033 Inside SBF.indd 29
Upon approval
Please sign:
Name and Date:
quality-driven growth as
Singapore restructures.
SBI will leverage
professional practitioners,
certified trainers and
successful business
mentors to help companies
address business
challenges by providing
training services for
their employees. These
training programmes
are tailored to upgrade
management capabilities
and equip employees
with the right skills.
SBI is currently
offering the following
training programmes:
● C-Level Essentials
● Legal &
Compliance Acts
● Human Resource
Management
● Business Continuity
Management
● Innovation &
Productivity
● Finance & Taxation
● Business Excellence
● Trade Finance
● Digital & Information
Communications
Technology
● Overseas Market
Engagement
03/04/2014 09:50
Apr•May•Jun 2014
30
Inside SBF
Gaining Insight
into Turkey
SBF, IE Singapore strengthen trade relations
The Singapore Business
Federation (SBF), IE
Singapore, and the Turkish
Ministry of Economy
recently held the third
Turkey-Singapore Business
Forum in January.
Singapore’s Minister for
Trade and Industry, Mr Lim
Hng Kiang, and Turkey’s
Minister of Economy, Mr
Nihat Zeybekci, attended
the forum. It included
a panel discussion
on infrastructure
opportunities in
Turkey, as well as some
of the challenges
experienced there by
Singapore companies.
The forum provided a
platform for Singapore and
Turkish business leaders to
meet, network and gain
insights into the economic
developments, as well as
business opportunities
in both countries.
Strategic gateway
Situated at the crossroads
of Asia and Europe,
Turkey’s strategic location
gives the country access
to the markets of Europe,
the Middle East and
North Africa. Between
2002 and 2012, its real
GDP grew at 5% annually.
Turkey’s regional and
international trade has
been flourishing. The
country is a leading global
producer of textiles and
clothing, automotive, iron
028-033 Inside SBF.indd 30
Upon approval
Please sign:
Name and Date:
Mr Lim Hng Kiang, Singapore’s
Minister for Trade and Industry
“The country
boasts a liberal
investment
climate, costcompetitive
workforce,
low taxes and
attractive
incentive
systems.
Turkey will
certainly
promise more
growth for
businessmen
and investors.”
and steel, shipping and
transportation equipment,
consumer electronics,
and home appliances.
It has also signed
numerous free trade and
investment protection
agreements with regional
partners, making the
country an ideal export
gateway and business hub.
Robust trade relations
Turkey was Singapore’s
50th trading partner in
2012, with a bilateral
trade valued around
S$1.46 billion, according
to IE Singapore. This
was an increase of 17%
compared to 2010.
To further cement both
countries’ economic links,
Singapore and Turkey
are working toward
finalising a bilateral free
trade agreement (FTA).
There is a growing
number of Singapore
businesses from diverse
sectors who are exploring
potential opportunities
in Turkey. Examples
of successful local
companies include Portek
International, CWT
Logistics, Food Empire,
Singapore Technologies,
Phillip Securities, Tee
Yih Jia Foods, Charles &
Keith, and Sitra Holdings.
Mr Lim said: “Given
that both Singapore
and Turkey are strategic
hubs to our respective
regions, I believe both
business communities
can leverage each other’s
unique strengths to create
win-win partnerships.”
“Turkey boasts a liberal
investment climate, costcompetitive workforce,
low taxes and attractive
incentive systems.
Turkey will certainly
promise more growth
for businessmen and
investors,” he elaborated.
Singapore as
an Asian hub
For Turkish companies
looking to trade in Asia,
Mr Lim explained that
Singapore is also a gateway
into the growing ASEAN
and Asian regions.
Singapore is “part of the
ASEAN community and
have several FTAs with
our Asian counterparts,
including South Korea,
India and China,” he said.
“With discussions
to strengthen these
ties through the
ASEAN Economic
Community and the
Regional Comprehensive
Economic Partnership,
Singapore presents a
natural gateway to an
increasingly integrated
and exciting region.”
Moving forward, SBF
aims to initiate more
collaboration between
the business communities
in both countries.
•
03/04/2014 09:50
Ad4ToyRun.indd 1
19/2/14 12:19 PM
Apr•May•Jun 2014
32
Inside SBF
Silver Lining
in Europe
Europe among top 10 overseas markets, business
survey reveals
Europe is showing signs
of recovery, and this is
encouraging news for
Singapore businesses
that are looking to
expand into the region.
Business activity in the
Eurozone private sector
reached a 31-month
high this January. Spain’s
economy emerged from
a two-year downturn
by posting 0.1% and
0.3% growth in the
third and fourth quarter
of 2013 respectively.
Portugal, on the other
hand, saw an increase in
investment and household
spending for three
consecutive months since
September last year. This
extended the country’s
economic recovery
into a second quarter.
In the Singapore
Business Federation’s
(SBF) recent National
Business Survey 2013/14,
Europe was one of the
top 10 overseas markets
that SBF members were
keen to venture into.
028-033 Inside SBF.indd 32
Upon approval
Please sign:
Name and Date:
Trade agreement
Against the backdrop
of the European Union
(EU)-Singapore Free Trade
Agreement (EUSFTA),
which is expected to
enter into force in 2015,
this marks a significant
milestone in the EU’s and
Singapore’s bilateral ties.
As the first EU FTA
partnership with an ASEAN
country, the EUSFTA will
liberalise the trading of
goods and services as well
as facilitate investments.
To encourage Singapore’s
business community to
capitalise on the EUSFTA
when it comes into force,
SBF organised a series of
Europe-related activities
last year to explore
opportunities in the region.
● Business missions to
France, Poland, Hungary,
the Czech Republic and
Slovakia, in conjunction
with Prime Minister
Lee Hsien Loong and
President Tony Tan’s visits.
● EUSFTA Outreach
Seminar.
● Business Horizon
Series of workshops on
Merger & Acquisition
Opportunities in Europe.
SBF will continue to
engage the region with
several business missions
and workshops this year.
A high-level business
mission to Portugal,
Switzerland and Italy is
also on the cards. The
missions aim to allow
participants to gain
first-hand knowledge of
doing business in these
European countries and
network with business
leaders, decision makers
and government officials.
SBF will also hold
several EUSFTA sectorial
workshops. These are
to enable members to
engage with experts in
open discussions on the
technicalities of the FTA.
•
EU-Singapore Free Trade Agreement (EUSFTA)
Trade in goods & services
● Greater market access
to the 28 EU Member
States, leading to
increased business
opportunities
and a wider variety of
goods and services.
● The concept of ASEAN
accumulation, applied
to key exports, allows
Singapore manufacturers
to count the use of
components and parts
sourced from other
ASEAN member countries
as originating content.
● Reduced technical
and non-tariff barriers
through the adoption of
international standards.
● Removal of tariffs on
80% (S$23.2 billion) of
Singaporean exports
to the EU upon the
enforcement of the
EUSFTA, while the
remaining 20% (S$4.3
billion) will qualify in the
next three to five years.
● Allows electronics,
chemicals,
pharmaceuticals,
machinery and processed
Asian food products to
enter the EU tariff free.
● Facilitation of meat
imports from the EU.
● Preferential market
access and elimination of
discriminatory barriers.
● Potential increase in
Singaporean exports to
the EU by S$5.9 billion.
● Singapore economy is
expected to grow by
S$4.6 billion.
● Addition of the EU,
the world’s largest
trading bloc of 500
million consumers, will
significantly enhance
Singapore’s current
network of FTAs covering
18 regional and bilateral
agreements with 24
trading partners.
Greater opportunities and
investment facilitation
● New opportunities for
foreign direct investment.
● Wider access to
government procurement
opportunities.
Intellectual property
Protection of intellectual
property rights
●
03/04/2014 09:51
33
AIM OF THE
MISSION
1
Gain first-hand
understanding of the
overall market dynamics
and opportunites in
Central and Eastern
Europe against the
backdrop of the EUSFTA
2
BILATERAL TRADE
FIGURES BETWEEN
SINGAPORE AND EU
PARTNERS in 2013
SBF-led Visit to Czech
Republic, Slovakia
Establish useful business
and official contacts
with representatives from
Hungary, the Czech
Republic and Slovakia
Value in Thousands (S$)
Germany
20,915,570
France
15,414,051
Netherlands
15,188,154
UK
14,276,363
Belgium
7,636,438
Italy
5,830,409
Malta
2,074,006
Ireland
1,807,839
Spain
1,779,673
Greece
1,697,391
Sweden
1,671,848
Austria
1,566,211
Denmark
1,041,439
Czech Rep
998,875
Hungary
969,333
Cyprus
735,014
Finland
655,679
Poland
575,275
Bulgaria
461,450
Lithuania
213,484
Romania
210,488
Portugal
192,485
Luxembourg
177,377
Estonia
132,844
Slovakia
122,076
Slovenia
93,663
Latvia
70,789
Croatia
48,970
028-033 Inside SBF.indd 33
Upon approval
Please sign:
Name and Date:
The Singapore Business
Federation (SBF) has
been proactively assisting
Singapore companies
to venture overseas for
opportunities in European
markets. In November
2013, it led a business
mission to Hungary, the
Czech Republic and
Slovakia, in conjunction
with a state visit there
by President Tony Tan.
Mr Ho Meng Kit, SBF
CEO, led the mission
to the Czech Republic
and Slovakia, while
the Hungary business
mission was co-led by
Mr R. Narayanamohan,
Vice Chairman of SBF.
The 22-member
delegation comprised
business leaders and
senior representatives
from diverse industries
including planning and
infrastructure, information
and communications
technology, marine and
automotive supplies,
logistics, architecture and
design, pharmaceuticals,
business services,
electronics and general
trading. The aim of the
mission was to give
participants first-hand
understanding of the
overall market dynamics
and opportunities in
Central and Eastern Europe,
against the backdrop of
the EU-Singapore FTA
that is expected to come
into force by 2015.
The mission also helped
the Singapore delegates
establish useful business
and official contacts.
“Singapore enjoys a
warm bilateral relationship
with Central and Eastern
Europe, underpinned by
robust trade,” said Mr Ho.
The delegates attended
briefings by the host
countries’ ministries and
government agencies, and
visited several industrial
areas and businessmatching sessions.
More direct
exchanges
In Hungary and Slovakia,
SBF and the delegates
participated in the
Singapore-Hungary
Business Forum and
the Singapore-Slovak
Republic Business Forum.
The apex chamber also
inked a Memorandum of
Understanding (MOU)
with the Budapest
Chamber of Commerce
and Industry to carry
out more business
promotional activities in
trade and investment.
The key provisions
of the MOU included
direct exchanges of
information and the
promotion of agreements
between Hungary and
Singapore business
communities on economic
and market situations,
business opportunities,
and technological and
industrial cooperation.
In addition, IM Holdings
Pte Ltd and Ziegler
Ostya KFT jointly inked
an MOU to provide a
platform for Hungarian
companies interested to
enter the Singapore and
South-east Asian markets.
This is the SBF’s third
mission to Hungary and
its first to the Czech
Republic and Slovakia.
•
03/04/2014 09:51
Apr•May•Jun 2014
34
Inside SBF
Transforming
Singapore into an
Arbitration Hub
Dr Michael Pryles, Founder and President
of SIAC, honoured with Singapore’s
Public Service Medal.
In recognition of his
contributions to Singapore,
President Tony Tan Keng
Yam recently conferred
the Public Service Medal
(Friends of Singapore)
on Dr Michael Pryles,
Founder President of the
Singapore International
Arbitration Centre (SIAC)
Court of Arbitration.
Dr Pryles, who is also
the former Chairman of
SIAC’s Board, is highly
regarded internationally
by the Chambers AsiaPacific as one of the
two arbitrators most in
demand in the region.
The Public Service
Medal (Friends of
Singapore) is one
of Singapore’s most
prestigious awards for
international business
leaders who have
contributed significantly
to Singapore’s economic
growth. It recognises
individuals who have
promoted Singapore’s
interests in both
their professional and
personal capacities.
Mr K Shanmugam,
Minister for Foreign
Affairs and Minister for
Law, acknowledged
Dr Pryles’s dedication
to building Singapore’s
028-034 Inside SBF.indd 34
Upon approval
Please sign:
Name and Date:
capability as an
arbitration hub.
He said: “Dr Pryles’
leadership of the SIAC
has helped Singapore
become the leading Asian
centre, as well as one
of the world’s leading
centres, for international
commercial arbitration.
We are fortunate to
have his unwavering
commitment and
unstinting support.”
Competence
and expertise
Dr Pryles said that the
award was a great honour
and that it “had been a
great pleasure working
in Singapore to help
develop a world-class
arbitration centre for the
resolution of international
commercial disputes”.
“Many people have
assisted, including the
Board and Court members
of SIAC who comprise
some of the leading
experts in the field of
international commercial
arbitration and our
secretariat,” he explained.
“The expertise,
competence and integrity
of the Supreme Court
were also vital to our
success, and provided an
“Singapore has
now become
perhaps the
leading place in
Asia to resolve
international
commercial
disputes.
Arbitration is
undoubtedly
the most
important
procedure for
doing so.”
indispensable foundation
for our development.”
SIAC provides
arbitration services to the
global business community.
Its arbitration awards
have been enforced in
countries such as Australia,
China, Hong Kong, India,
Indonesia, Malaysia,
South Korea, Thailand,
United Kingdom, United
States and Vietnam.
New case filings have
increased to 259 new
cases received in 2013,
up from 235 received
in the previous year.
According to the SIAC,
86% of the new cases
filed were international
in nature. Parties from 50
different jurisdictions from
around the world filed
cases at the SIAC in 2013.
Dr Pryles said:
“Singapore has now
become perhaps the
leading place in Asia to
resolve international
commercial disputes.
“Arbitration is
undoubtedly the most
important procedure for
doing so, but other forms
of dispute resolution are
being developed. I believe
that effective dispute
resolution is an essential
component for the
establishment of Singapore
as a leading financial and
commercial centre.
“To my mind, Singapore
already bears the
essential hallmarks of a
London or New York
in South-east Asia.”
•
SBF members can visit the SIAC
website at siac.org.sg for more
information on the various types
of arbitration services offered.
General enquiries can be emailed
to corpcomms@siac.org.sg.
03/04/2014 10:51
BizQ_SBF_205x275mm_FC-op
-
1
2014-03-18T16:07:27+08:00
Apr•May•Jun 2014
36
International Markets
Eyeing the
China Market
SBF leads delegation to the 3rd China International
Fair for Trade in Services (CIFTIS).
S
eizing opportunities
in the fast growing
regions of China
and South-east Asia,
Singapore small and
medium enterprises (SMEs)
have pressed ahead with
overseas expansions to
internationalise their
businesses for longer
term sustainable growth.
Some member
companies that the
Singapore Business
Federation (SBF) spoke
with recently have cited
the importance of good
market understanding,
local customisation and
branding as key success
factors for navigating the
complexities of operating
in foreign markets.
Getty Images & SPH Library
Expanding to China
According to the
International Monetary
Fund’s World Economic
Outlook 2012, China
is the country that has
seen the most significant
increase as a location
for expansion by SMEs.
Almost half the SMEs
surveyed were engaged in
China, up from one-third
in the previous year.
As China continues
to rise in economic
importance, Singapore
SMEs are realising the
value of engaging this
massive market of 1.35
36, 38 InternationalMkts AB.ed.AB.indd 36Upon approval
Please sign:
Name and Date:
STAYING
FOCUSED
A three-pronged
strategy for SMEs to
sustain business growth
INTERNATIONAL
EXPANSION
DRIVING INNOVATION
BR AND CREATION
billion people. A recent
report by HSBC stated that
average incomes in China
will increase sevenfold
between now and 2050,
from their current level
of US$2,500 (S$3,200).
Mr Poh Choon Ann, an
SBF business delegation
leader and Vice Chairman
of the SBF China Business
Group, observed: “China
is entering a new phase of
economic development.
Rapid urbanisation and a
growing middle-class have
spurred a greater demand
for quality services.
“Singapore companies
have a proven track record
in China, and are wellpositioned to add value
and contribute to the
growth of trade in services,
as the sector is liberalised.”
This optimism is
reflected in the findings of
the recent SBF National
Business Survey. Asia
remains the most popular
region among SBF
members (96% – refer to
table: Overseas Presence
By Region). Relative
geographical closeness,
cultural similarities, and
availability of business
opportunities have
contributed to this result.
In the table on page 38,
Top 10 Asian Countries, it
can be seen that Malaysia
(65%), China (62%) and
Indonesia (55%) have
remained the top three
Asian countries that SBF
members are engaged in.
CIFTIS’ focus on
urban needs
Many Singapore companies
are eager to play a role
in China’s ongoing
urbanisation. In the face of
rising demand for various
consumer services, many
industry experts say that
strong growth lies in
China’s trade services.
OVERSEAS PRESENCE
BY REGION
Asia
2013
2012
96%
94%
Europe
22%
22%
Americas
20%
21%
Middle East
18%
21%
Oceania
12%
14%
Africa
9%
10%
Source: SBF National
Business Survey
China’s economy is
proving resilient in the
face of a volatile global
economy. According
to The World Bank, the
strength of the Chinese
economy lies in its
stable fundamentals,
huge consumption
growth potential, and
sustained urbanisation.
Singapore companies in
China are also confident
of the Chinese economy
– it has remained a top
investment destination
for them in recent years.
In response to such
demands, Singapore will
be participating in the
3rd China International
Fair for Trade in Services
(CIFTIS) from May 28 to
June 1 in Beijing this year.
CIFTIS serves to raise
the profile of participating
companies and provide
invaluable opportunities
to build an efficient
network of potential
business services partners,
not only from China
but also from different
parts of the world.
As an international
platform for negotiation
and transaction, CIFTIS
aims to advance the
service industry and trade
in services though highlevel seminars, business
talks, exhibitions and
themed days. The event is
hosted by the Ministry of
Commerce of the People’s
Republic of China and
the People’s Government
of Beijing Municipality.
SBF, supported by
Singapore’s Ministry of
Trade and Industry (MTI),
is organising Singapore’s
participation at the
event. The theme of the
Singapore National Pavilion
p.38
03/04/2014 09:20
Apr•May•Jun 2014
38
International Markets
is “Enhancing Service,
Enriching Experience,
Liveable and Sustainable
Cities”. Its decor will be
focused on the following
six service sectors: Urban
Solutions and Environment
Services, Professional
Services, Financial
Services, Educational
Services and Skills Training,
Tourism, and Logistics.
Last year, the second
edition of CIFTIS was
attended by more than
1,300 exhibiting enterprises
from 117 countries and
regions, with 138,000
registered attendees;
contracts were signed
for 415 projects.
SBF led a 150-strong
Singapore delegation
to CIFTIS last May,
and the participating
companies were from
diverse industries such
as urban solutions,
logistics, and education
and skills training.
Some 27 Singapore
companies and business
associations showcased
their expertise in services
at the Singapore Pavilion
Focus of the
Singapore Pavillion
SPH Library
36, 38 InternationalMkts AB.ed.AB.indd 38Upon approval
Please sign:
Name and Date:
Source: SBF National Business Survey
1
URBAN SOLUTIONS
& ENVIRONMENT
SERVICES
65
MALAYSIA
70
64
62
62
CHINA
(incl. Hong Kong)
87
2
55
PROFESSIONAL
SERVICES
INDONESIA
3
THAILAND
59
56
41
47
42
FINANCIAL SERVICES
39
4
EDUCATIONAL
SERVICES & SKILLS
TR AINING
5
43
42
VIETNAM
36
37
37
INDIA
33
36
PHILIPPINES
30
TOURISM
6
28
24
25
JAPAN
LOGISTICS
there, including Hyflux,
Ascendas, DBS Bank, YCH
Group, Rajah & Tann,
RSM Chio Lim, Nanyang
Polytechnic, NTUC
LearningHub and SinoSingapore Guangzhou
Knowledge City.
CIFTIS organisers said
that total turnover reached
US$78.69 billion last year,
trademark enforcement
in China.
This new trademark
law will have a significant
impact on Singapore
businesses.
According to Mr
Ma Yu, Director/Chief
Representative, Patent
Attorney (UK, SG) at
Cinda Singapore Pte
Ltd, “Many Singapore
companies face difficulties
with and are anxious
about registering their
trademarks in China due
23
20
20
KOREA
Percentage (%) 0
2013
2012
2011
24
26
23
TAIWAN
China’s new Trademark Law
China has passed a new
trademark law that
becomes effective from
May 1, 2014.
The new law includes
some important changes
to the trademark
application and appeal
processes, and require
trademarks to be
registered and used “by
the principle of honesty
and credibility.”
In addition, there are
several notable provisions
designed to improve
TOP 10 Asian Countries
10
20
up 30.9% from 2012 when
the fair was launched. The
figure included US$10.89
billion in international
trade in services.
•
to the lack of protection
from squatting or
hijacking.”
He said: “These issues
are specifically addressed
in the new law. While
this new legislation may
not prevent trademark
hijacking completely, it is
definitely good news to
most companies.”
Enforcement issues
Intellectual Property
enforcement is another
issue most foreign
companies face. The
new law marks a positive
30
40
50
60
70
80
90
For further clarification
and information on CIFTIS,
readers and SBF members
can contact Ms Anne Tng
at anne.tng@sbf.org.sg.
move in strengthening
trademark enforcement
in several aspects,
including the definition
of infringement,
assessment of damages,
infringer’s duty of
disclosure, and others.
“This overhaul of the
trademark registration
process will make it more
efficient,” explained
Mr Ma. “Companies
can generally expect
successful registration
of their trademarks in a
much shorter time, and
probably at a lower cost.”
03/04/2014 09:20
39
SME Resources
Innovation Centre
To Help SMEs
Adopt Technologies
Getty Images
New product creation and technology adoption are
key to helping companies compete effectively.
A S$7 million Materials
Centre of Innovation
(MCOI) has been set up
to help 450 SMEs over
the next three years
adopt technologies to
create new products and
business opportunities.
The centre has been
operating since September
2013, and researchers
there have been working
with SMEs to help them
understand the complex
technology behind new
material development
in offering solutions or
creating new products
for commercialisation.
The centre is located
at A*STAR’s Institute of
039, 040 SMEresources.indd 39
Upon approval
Please sign:
Name and Date:
Materials Research and
Engineering (IMRE).
“Due to the nature of
our research and
development, and our
ability to customise
and adapt a material to
different functions, IMRE
will be a strong partner
to help give SMEs the
flexibility to adapt their
products to compete
better and respond
quicker in today’s fastpaced technological
environment,” said Dr
Leong Yew Wei, Centre
Manager of the MCOI.
He explained that the
centre is able to showcase
a whole range of materials
technologies to SMEs
by demonstrating how
the use of innovative
materials can provide
added value to their
products and processes.
One company which
has benefited is HVS
Engineering, an automated
maintenance solutions
provider. Researchers at
the MCOI helped HVS
adopt a new material that
allowed it to serve new
sectors like petrochemicals
and oil and gas, as well
as power stations.
HVS provides
maintenance solutions
for pipelines and building
systems and its Managing
Director, Mr Alex Chow,
said that the new business
opportunities could
add S$50–100 million
to its revenue over the
next five to 10 years.
He explained:
“Innovation like that with
new materials coming
on a continual basis
will certainly help our
growth going forward.”
Mr Chow said the
company made use
of Spring Singapore’s
Innovation and Capability
Voucher to finance the
project with MCOI.
Minister of State
Mr Teo Ser Luck said
at the centre’s launch
that SMEs need to
improve productivity
and move towards
higher value-added
activities as the Singapore
economy restructures.
He said: “The
Government has
supported the setting up
of Centres of Innovation
to help SMEs with
technology innovation.
“SMEs can tap on these
centres to develop new
CENTRES OF
INNOVATION
The Centres of Innovation
(COIs) provide laboratory
facilities, technology
consultancy and training
courses, and assist SMEs
in testing and developing
their technological
projects. Each COI has a
different speciality.
● Centre of Innovation
for Electronics (Nanyang
Polytechnic)
● Centre of Innovation
for Supply Chain
Management (Republic
Polytechnic)
● Food Innovation
Resource Centre
(Singapore Polytechnic)
● Environmental and
Water Technology Centre
of Innovation (Ngee Ann
Polytechnic)
● Marine & Offshore
Technology Centre of
Innovation (Ngee Ann
Polytechnic)
● Precision Engineering
Centre of Innovation
(SIMTech).
product concepts, build
prototypes, and testbed new applications.”
There are six other
COIs in Singapore,
located in various
polytechnics and A*STAR’s
research institutes.
These centres
have worked on 1,800
projects which have
benefited more than
2,700 companies.
The centres are focused
on food innovation,
marine and offshore
technology, environmental
and water technology,
precision engineering,
electronics, and supply
chain management.
•
03/04/2014 09:14
Apr•May•Jun 2014
40
SME Resources
SPH Library
MORE HELP
FOR SMES
The Innovation &
Capability Voucher
(ICV) has been expanded
to support SMEs in
implementing business
and productivity solutions.
The Singapore
Government recently
announced that an
additional S$10 million has
been set aside to fund the
enhanced scheme.
Beginning March 2014,
with the enhanced ICV
scheme, SMEs can look
forward to more support
with which to put their
business improvement
plans into action.
The scheme will
expand the scope of the
ICV beyond consultancy
services, to supporting
the implementation
of solutions in the
four capability areas of
innovation, productivity,
human resources
development, and
financial management.
The enhanced ICV will
enable SMEs that want
to implement solutions
to meet their business
challenges, but face
resource constraints,
to take their first step
towards capability
upgrading.
With the change, SMEs
can implement solutions
from these categories:
● Equipment & hardware
● Technical solutions
● Professional services
● Design & renovation.
Under the existing ICV,
each SME is currently
eligible for eight vouchers.
Each SME may apply for a
maximum of two vouchers
to implement its chosen
solutions with.
039, 040 SMEresources.indd 40
•
Upon approval
Please sign:
Name and Date:
SME Workshops
significance of cultivating a
safe and healthy culture at
the workplace, and have
a clearer idea how to
prepare for and endorse
their companies’
WSH policies.
Complexities in
Simple Practical
Corporate Tax
May 15
SBF Seminar Room 2,
Keppel Towers
The Inland Revenue
Authority of Singapore
(IRAS) is currently
administering the
Corporate Income Tax
(CIT) Rebate. Companies
will be granted a 30%
CIT Rebate capped at
$30,000 for three years,
from YA 2013 to YA 2015,
to help relieve rising costs.
As corporate tax
compliance gets more
complex, this workshop
will help participants
understand how to
comply with their tax
obligations and file their
corporate returns on time.
www.sbf.org.sg
Indonesia Labour Law
May 30
SBF Seminar Room 2,
Keppel Towers
Companies that intend
to enter Indonesia’s
market or are already
operating in Indonesia
need to observe the
country’s employment
regulations.
Members are
encouraged to attend
this workshop to acquire
a good understanding
of the various provisions
of Indonesia’s labour
law. Indonesia is also
the first country in Asia
to endorse all eight
International Labour
Organization (ILO) Core
Conventions concerning
the fundamental
rights of workers.
www.sbf.org.sg
www.sbf.org.sg
Upcoming Events
Making Strategic
Decisions on Capital
Expenditure
International Business
Fellowship (iBF) Executive
Program to Myanmar
June 3
July 6-12
SBF Seminar Room 1,
Yangon
Keppel Towers
Myanmar is now becoming
one of the world’s most
sought-after countries,
ready to open up and
woo foreign investors in
its construction industry.
Sign up to learn the
basics of doing business
in Myanmar. This fiveday intensive executive
programme includes
lectures, site visits and
networking sessions.
Capital expenditure
decisions deal with the
investment of funds in
fixed and current assets,
and what the returns on
such investments will be
over the next number
of years. The decision
process is important
because of the substantial
amounts of money
involved, and the impact
that such decisions have.
This workshop provides
participants with an
understanding of longterm decision making,
and the constitution of
capital expenditure.
www.sbf.org.sg
bizSAFE Level 1 for CEOs
June 4
SBF Seminar Room 2,
Keppel Towers
This workshop provides
senior management with
a better understanding of
the Workplace Safety and
Health (WSH) Act and its
subsidiary regulations
(Risk Management
Regulations and
Guidelines on Risk
Management).
Participants will gain
an understanding of the
For more details, e-mail
chihowe.teo@sbf.org.sg and
minqian.loi@sbf.org.sg.
LETTERS FROM
OUR READERS
If you have any views,
comments or suggestions
about BiZQ or other SBF
events, we want to hear
from you. Please send
your contributions to:
The Editor,
BiZQ Magazine
Singapore Business
Federation
10 Hoe Chiang Road
#22-01 Keppel Towers
Singapore 089315.
Or email us at
corpcomm@sbf.org.sg.
03/04/2014 09:14
TWF_BiZQ_275x205_R1.pdf
C
M
Y
CM
MY
CY
CMY
K
1
11/7/13
5:07 PM
40,000 Keppelites in over 30 countries are contributing towards
shaping a sustainable future through our businesses in Offshore &
Marine, Infrastructure and Property.
Passion and discipline drive us to deliver solid results year on year,
and emerge stronger through every challenge. We will fortify our
strengths and competencies, harnessing human, knowledge and
financial capital to shape Keppel’s future.
Keppel Corporation Limited
1 HarbourFront Avenue #18-01 Keppel Bay Tower Singapore 098632
www.kepcorp.com