S Iswaran
Singapore
“The Maritime and Port Authority of Singapore (MPA) has incorporated the requirements of the International Maritime Organization (IMO) 2020 regulation in its Prevention of Pollution of the Sea (Air) Regulations 2022. The Regulations are applicable to Singapore-registered ships and all other ships while they are in Singapore waters.”
“The Maritime and Port Authority of Singapore (MPA) plans to progressively roll out the charging infrastructure for electric harbour craft operations in the Port of Singapore from 2025.”
“Since 2018, the Land Transport Authority (LTA) has imposed minimum bicycle parking provisions covering different types of developments. The requirements are determined by multiple factors, including the developments’ use, location and gross floor area (GFA).”
“I had addressed similar Parliamentary Questions by Mr Gerald Giam on 29 November 2022 and 10 January 2023, as well as in my Ministerial Statement on 8 May 2023. The Member can refer to these past answers and statement as there has been no material change in the allocation of Certificates of Entitlement.”
“To encourage the uptake of electric cars, the Government has rolled out the Electric Vehicle Early Adoption Incentive and enhanced Vehicular Emissions Scheme. When taken together, it provides up to $45,000 off the Additional Registration Fee of an electric car upon registration.”
“The Land Transport Authority studies all potential changes to the Certificate of Entitlement (COE) system carefully, including conducting sensitivity analysis where appropriate.”
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“The Act also allows NLB to acquire materials which may not have been first published here but nevertheless speak about us and Singapore. However, the current legal mandate only covers materials that are in the printed form or are contained in some other physical form, such as music in a compact disc (CD). The Act has to be updated to keep pace with technological change. With the Internet and other advancements, there is a vast and growing amount of written and creative work that is produced, distributed and published only in the electronic form, such as e-books and e-magazines. As recently as April this year, Mediacorp announced that 8-Days and i-Weekly, its popular magazines on local entertainment, are moving to a digital-only format. More and more content is also being generated and published only on the Internet. For instance, there were more than 179,000 websites in the .sg domain as at June this year and this number is growing rapidly. Such electronic and online materials are important resources which capture the stories and collective memories of Singapore. If such digital material is not systematically collected in a timely manner, we will lose a significant part of Singapore’s published heritage. Therefore, we propose to amend the NLB Act to give NLB the powers to collect Singapore-related material in the electronic form. This will ensure that such material remains accessible for reference and research even after an e-magazine is no longer available in any digital repository online, or long after a once popular website ceases to operate. The systematic collection and preservation of such digital resources will allow future generations of Singaporeans to better understand and appreciate the evolution of our society. Others have already taken steps to do this.”
“Mr Speaker, I beg to move, “That the Bill be now read a Second time.” The National Library Board Act establishes the National Library Board (NLB) and sets out its functions and powers. The NLB Act was last amended in 2012 to incorporate the National Archives function. It allows NLB to collect and preserve the rich body of written and creative works of Singapore for posterity. These resources are widely consulted by researchers, historians, authors and curators, and frequently used for exhibitions, or cited in books and articles. Collectively, all these help to nurture Singapore’s heritage and culture, and allow current and future generations of Singaporeans to reflect on our shared history and identity. Today, NLB has the mandate to be the repository of all library materials published in Singapore. This collection is referred to as the Legal Deposit, and it has more than one million items covering the published history of Singapore. Some interesting examples of Singapore publications in the Legal Deposit include magazines from 1961 that vividly depict Singapore life in a different era. I may give you some examples: “Malayan Penfriends” for letter writing pen pals, and “The Scooterist: the magazine for all scooter riders”. There are also publications that have endured the test of time, such as the first edition of “Her World” from 1960, and newspaper collections, such as The Straits Times that date all the way back to 1845. So, it is a rich and important collection and is part of our collective heritage. To effectively build the Legal Deposit collection, the NLB Act stipulates that every publisher is required to deposit with NLB two copies of library materials published in Singapore.”
“The National Archives celebrates its 50th anniversary this year. We will leverage this Golden Jubilee to help Singaporeans uncover gems in our collections and better understand our shared history. Next year, we also commemorate the Singapore Bicentennial, the 200th anniversary of Sir Stamford Raffles’ landing on Singapore. Beyond looking at the 200 years from 1819, the Bicentennial will go back a further 500 years to the 14th century to appreciate the context of Singapore’s evolution leading up to 1819. It is an opportunity to reflect on our rich history, appreciate our transformation into a global city, and reaffirm the values that will take us forward as a sovereign nation. The Singapore Bicentennial Office will work with community and corporate partners to organise events that bring Singaporeans along this shared journey.”
“Even as we encourage Singaporeans to embrace digital technologies to improve their lives, we must be on guard against threats and risks that propagate through such technologies. One such threat is deliberate online falsehoods, which threaten our multiracial society by sowing discord, exploiting fault lines and undermining public institutions. Apart from building Singaporeans’ info-literacy skills, we will leverage technology to swiftly respond to such threats, including building up the Government’s “Factually” platform. In light of an increasingly complex communications landscape, we will develop a whole-of-Government Communications Roadmap to transform Government communications capabilities and leverage technology to improve the way the Government engages different age groups and communities. Public Service Broadcasting will focus on local content reflective of our rich cultural heritage and delivering it through traditional and digital platforms. We will do more to engage Singaporeans better. Singaporeans at all levels will have an opportunity to voice their views and suggestions. We will continue to expand our pool of community, youth and professional partners to widen our outreach to niche communities. We will also hold Listening Points in new areas to reach out to more segments of the population. Our libraries are national treasures, providing inclusive social spaces that foster lifelong learning. We will continue to build our Libraries of the Future and conduct more programmes to make every Singaporean an active library user. The National Library Board mobile app already brings our libraries to our fingertips; we will continue to digitalise more library services so that they are even more user-friendly.”
“We will improve connectivity with the 5th generation (5G) of mobile technology and increase international data flows. We will ensure our regulations remain fit for purpose, including the Broadcasting Act and the Personal Data Protection Act. We will introduce a Digital Readiness Blueprint to enable all Singaporeans to fully participate in and benefit from digital opportunities in their everyday lives. We will do more to help disadvantaged and vulnerable communities, such as seniors and the low-income, use digital technology. We will look into developing a basic digital access package and setting up touchpoints in the community to provide basic one-on-one assistance on using digital devices and accessing digital services. We will help Singaporeans build information and media literacy skills so that they are able to discern, evaluate and manage information in an increasingly complex digital environment. This will also allow Singaporeans to guard against the proliferation of falsehoods. We will also partner schools to equip students with coding, computational thinking and digital making skills to develop the next generation of future-ready Singaporeans. We will continue to keep our cyberspace secure, for it is the foundation of a Smart Nation. Our National Cybersecurity Strategy sets out a comprehensive approach to do so. We will implement the Strategy to strengthen our critical information infrastructure and develop our cybersecurity ecosystem. We will also grow our international partnerships, as cyber threats do not respect geographical boundaries. We will continue to contribute to multilateral efforts to develop cyber norms and work with international partners to drive the development of cybersecurity standards for emerging technologies.”
“The Ministry of Communications and Information’s (MCI's) mission is to connect people to community, the Government and opportunity. In support of our Smart Nation vision, MCI will grow the digital economy, strengthen Singaporeans’ digital readiness, and secure our cyberspace. MCI will also enhance Government communications and develop our libraries of the future. In a future increasingly shaped by digital technologies, Singapore must harness these changes to create opportunities for all. To that end, MCI will strengthen the Infocomm, Media and Design (ICMD) sectors as growth multipliers for Singapore. We will implement the Infocomm Media Industry Transformation Map and deepen our capabilities in digital technologies to grow the sector and create exciting new jobs. We will strengthen our media sector so that we can continue producing high-quality and inspiring content. We will forge ahead with the Design 2025 Masterplan to leverage design as an enabler of innovation and business transformation. A stronger ICMD sector will enable Singapore to accelerate digital transformation across the economy. We will expand our small and medium enterprises (SMEs) Go Digital programme to help our SMEs ride this new wave of growth, and develop more targeted Industry Digital Plans. MCI will also launch the Open Innovation Platform to promote innovation and enterprise. We will prepare Singaporeans for a more vibrant, innovation-driven digital economy. We will ramp up the TechSkills Accelerator (TeSA) efforts to equip more Singaporeans with relevant skills. We will launch Digital Leadership programmes to groom the next generation of leaders in digital transformation. Singapore’s digital economy will be supported by world-class infrastructure and regulations.”
“Mr Speaker, I thank the Member for his suggestions. There is a spectrum of ways in which verification, as the Member put it, can be done. This starts from declaration by the companies, obviously. But it also extends to the checks done by our agencies and also, in some cases, there is feedback that is received and they act upon that. The Member's point on external auditors, the remit of external auditors, in general, is, as the Member would appreciate, to render an opinion as to whether the accounts of the company are true and fair. It is not really about ascertaining compliance with conditions attached to Government's incentives and grants. However, if the auditors themselves are prepared to do it further, it is not costless. It will entail a cost. The question then is who bears the cost of doing that. But I think it is an idea we can think about. In general, I want to make a point that, as I have said in my reply, these claw-backs constitute a fraction of 1% of all such awards. So, materiality of the issue should be taken into account.”
“Mr Speaker, from 2013 to 2017, there were, on average, about 100 cases per year where MTI agencies had to claw back incentives from companies they were awarded to. This made up less than 1% of total incentive cases over the same period. These cases were largely attributed to non-fulfilment of deliverables or non-compliance with terms and conditions that were set out before the commencement of the projects.”
“The need to transform applies not just to individuals, enterprises and industries, but equally to Government agencies. We have not shied away from reinventing ourselves, both in terms of organisational structures and processes, for example, in the formation of ESG and some of the work that A*STAR is undertaking, and also in relation to our policies and programmes. We are changing, consolidating or adapting our programmes to new requirements in the market. We believe, ultimately, it will take the collective effort of all stakeholders for this transformation to succeed. We also believe that if all of us come together, with all hands on deck, we can position ourselves well to achieve sustainable growth and opportunities for all.”
“These consumers will receive a notification letter and information booklet from EMA in the next few weeks, which will explain how they can benefit from greater choice and flexibility in their electricity purchases. Retailers are also expected to start marketing to Jurong consumers towards the end of March. Mr Charles Chong is correct in expressing some concerns about whether consumers will be inundated with marketing materials. EMA has been working closely with the retailers to have a Code of Conduct, if you will, in terms of how they can market their products and to minimise the kind of confusion or stress that may be caused at the consumer end. There will be an online platform which can help consumers to easily compare the standard price plans offered by different retailers. That is another aid for consumer decision-making. And those who prefer to stay with Singapore Power (SP) on the regulated tariff can continue to do so and they will be no worse-off. So, in other words, you also have a "do-nothing" option and things will just carry on as per normal. This soft launch in Jurong will allow EMA, SP Group and retailers to gather feedback and finetune processes, before we continue extending the OEM to the remaining 1.3 million accounts, mostly households, in the second half of 2018. So, Chairman, if I can summarise, the new economic opportunities and challenges that I have outlined also call for new approaches. Everyone needs to transform, but no two transformation journeys are the same. Each company and sector must find its own path, based on its unique circumstances. The Government will provide resources and support for companies to develop their capabilities, to innovate and to internationalise, no matter what their starting point is.”
“We will closely monitor our economic competitiveness, international climate change developments, and the progress in meeting our emissions abatement goals, and factor these into any future reviews of the carbon tax. Meanwhile, we will also set aside funds from 2019 to enhance support for companies, including SMEs and power generation companies, to improve their energy efficiency. As the Minister for Finance has stated, we are prepared to spend more than the expected carbon tax revenue of nearly $1 billion in the initial five years to support worthwhile projects that deliver the required emissions abatement. Besides promoting energy efficiency on the demand side, we are also adapting policies on the supply side to better serve the needs of businesses and households. For example, the Energy Market Authority (EMA) has progressively liberalised the retail electricity market to allow more consumers the flexibility of choosing an electricity retailer and price plan that best meet their needs. We have steadily lowered the threshold for contestability to the present average monthly electricity consumption of at least 2,000 kWh. To date, about 50%, or about 49,000 accounts, of businesses that are eligible for contestability have switched to buying electricity from a retailer of their choice. Mr Charles Chong has asked what consumers can expect from market liberalisation. The OEM will allow the remaining small businesses and households the same flexibility that I have just described. OEM will commence in Jurong on 1 April, with about 120,000 households and small businesses.”
“One other initiative that is taking us closer to the vision of becoming a Global-Asia node of technology, innovation and enterprise is GIA, something that the Finance Minister talked about, and many Members would already have heard about. The aim is to create linkages with global startup hubs, to help entrepreneurs and students gain access to the global innovation network and work with like-minded companies. GIA is now present in San Francisco, Jakarta, Bangkok and Beijing. Members would notice that several or the majority of these are Asian cities. That is not by accident. It is actually a deliberate effort on our part to develop a deeper innovation network in Asia and also within ASEAN. The aim at the end of the day is to serve as an in-market entry point for Singapore entities to connect with the business and innovation community in these cities. Over the next four years, GIA will expand its reach across ASEAN and to other startup hubs around the world. Let me now turn to the topic of energy. Around the world, we know that countries are taking active steps to reduce their reliance on fossil fuels and meet their climate change targets. Against this backdrop, it is also in the interest of our companies to become more energy-efficient and reduce their carbon footprint. Mr Thomas Chua's understandable concerns about the impact of the carbon tax on businesses should be mitigated to some extent by the fact that we are starting with a lower uniform rate of $5 per tonne of emissions from 2019 to 2023, and we are focusing on the large emitters. This will help all businesses adjust to the new system and encourage them to reduce emissions.”
“It was launched recently in collaboration with the universities and industry. One of the solutions developed by the cross-disciplinary team under A*STAR AI is an automated real-time fault detection tool for predictive maintenance. This system has already been adopted by a few companies in the engineering and transportation sectors. A*STAR will elaborate further on its transformation process in due course. Our universities are also undertaking more industry relevant research, the importance of which Ms Foo Mee Har emphasised. Beyond the examples I have shared of the linkages between A*STAR and industry, the Ministry of Education's (MOE's) framework for the allocation of research funding to autonomous universities also takes into account industry collaboration, such as the number of industry projects and the amount of industry co-funding for R&D. As a result of this industry alignment, we have seen an increase in the number of licence agreements between the universities and industry, from about 20 in 2010 to 95 in 2016. It is on the uptick and we are seeing more of this happening. Funding models that are being used by NRF and the broader Research, Innovation and Enterprise Council (RIEC) system encourage more of these interagency collaborations together with the private sector. International collaborations also help us to stay abreast of global research and industry developments. The Campus for Research Excellence and Technological Enterprise (CREATE) brings together local and international researchers from diverse backgrounds to work on areas of strategic interest. This helps with knowledge transfer, capability-building and cross-fertilisation of ideas.”
“Between 2011 and 2016, A*STAR worked on more than 12,000 industry projects, attracting more than $2 billion in research investments from companies through joint collaborations and other open innovation platforms. In addition, with favourable licensing terms for local enterprises and the introduction of simplified licensing processes in 2013, the cumulative adoption of A*STAR licences has more than doubled from 191 in 2014 to 422 in 2016. In general, I think we are going in the right direction. But more can be done and today's research and innovation landscape in Singapore and around the world is vastly different from that a decade ago. We must expect that it will continue to evolve. So, we are encouraging our firms to be more innovative and transform. Equally, we want our public sector agencies to also become nimbler and be better partners to enterprises on their innovation and transformation journey. A*STAR aims to be more agile and flexible in the way it is able to harness research talent and funds to develop capabilities and skills at the leading edge and then transfer these technologies to industries in an even more efficacious manner than in the past. 7.00 pm A*STAR will do so primarily through a mechanism they call programmes that will bring together multidisciplinary teams from various institutions in Singapore in order to solve complex problems. Increasingly, many of the problems are of a multidisciplinary nature. You need not just someone from an engineering domain. You may need mathematicians, biologists and so on. This sort of structure is flexible and is able to draw on the talent that is needed in order to start addressing the more complex problems. An example of this is A*STAR's AI Initiative. They call it A*STAR AI.”
“Second, it can include platforms, like Tech Depot, that offer plug-and-play solutions which address substantially the needs of SMEs which may not have the capacity to undertake bespoke R&D but they are able to adopt broader R&D and technology outcomes. Third, the secondment of researchers to companies under T-Up to conduct R&D and also to develop new products and processes. This is a very successful programme by A*STAR where our researchers are actually seconded out to companies to work in these companies. In a not insignificant number of cases, the companies end up hiring them, taking them on full-time. That is a flow of talent that we are quite happy to encourage and support. And finally, licensing arrangements under the Headstart programme where collaborating companies can tap on royalty-free, exclusive IP from A*STAR for the first 36 months. We are always happy to learn and adapt practices from other jurisdictions in terms of best practices. Indeed, A*STAR and NRF continue to do this on an active basis. To punch above our weight and position Singapore as the Global-Asia node of technology, innovation and enterprise, we must have our finger on the pulse of global trends and ensure that our institutions are ready to respond to emerging opportunities. That is why A*STAR is proactively transforming itself to stay at the forefront of science and technology trends, help enterprises capture opportunities and attain higher levels of R&D outcomes and aspirations over the long term. Over the past two decades, A*STAR has nurtured a strong base of capabilities to support the innovation capacity of our industries.”
“The Skin Research Institute of Singapore (SRIS) is a collaboration between A*STAR, the National Skin Centre and Nanyang Technological University (NTU) to build R&D capabilities that can address common medical conditions like eczema, diabetic skin ulcers and tumours. Such R&D capabilities can also yield economic benefits. For example, the Ikeda Group, a local SME, has developed novel skincare products using A*STAR’s patented polymeric carrier technology. The technology allows active ingredients in the skincare serum to be loaded in individual carriers for greater effectiveness. Ikeda launched its new range of serums under the Irén brand in Singapore in December last year and plans to also export it. More broadly, R&D boosts the innovation capacity and competitiveness of sectors. Singapore's excellence in skin research has been instrumental in anchoring global industry leaders like P&G, L’Oreal and Amore Pacific. These MNCs have established skin and hair research labs in Biopolis, which has contributed to the growth of innovation partners, such as ingredients suppliers and contract research organisations (CROs), including university spinoffs, driving the robust and organic expansion of the Consumer Care sector. More broadly, A*STAR offers different avenues of support for enterprises with differing needs. Ms Chia Yong Yong cited several overseas examples of the modalities. I think this slide helps to illustrate the way we are going about it. This includes, firstly, direct engagement with companies through operations and technology road-mapping or project-specific collaboration agreements.”
“We focus on four domains: (a) advanced manufacturing and engineering; (b) health and biomedical sciences; (c) urban solutions and sustainability and (d) services and digital economy. In all of these domains, there is both a national or broader social benefit possibility as well as an economic benefit possibility. I do not think the two work at cross purposes. In many cases, in fact, they converge. The Government's investment in R&D has catalysed Business Expenditure on R&D (BERD) of $50.6 billion from 2006 to 2016. It is a growth rate of 6%. Both foreign and, increasingly, local companies have recognised Singapore's R&D value proposition and taken steps to deepen their R&D capabilities. This has also led to the creation of good jobs, with the number of Research Scientists and Engineers (RSEs) increasing from 22,000 in 2006 to more than 35,000 in 2016. The point that Ms Chia Yong Yong raised was beyond RSEs, what sort of jobs are being created. When I describe some of the ecosystem outcomes that we have achieved, it might give you a sense of it although it is difficult to have a direct correlation measurement of the exact outcomes beyond the direct job creation an R&D project may result in. Singapore's research efforts and outcomes are also acknowledged internationally and by global innovation reports. The Bloomberg Innovation Index has ranked Singapore as the third most innovative economy in the world. It takes into account outcome indicators, such as patent activity, high-tech density, productivity and manufacturing value-add. We are also nurturing public-private R&D partnerships to yield both social and economic benefits. Let me use our work in skin research to illustrate.”
“They can also strengthen their leadership pipeline through leadership and management courses which are available under SkillsFuture Singapore. But I do want to stress because I think Mr Leon Perera made the point about whether succession planning can be a condition for some of the Government schemes. I think that may tilt the balance because whilst we can encourage it, we can urge companies to think about this seriously, ultimately, the business owners have to take ownership. They have to decide and prioritise that succession planning is something that is of high priority and then undertake specific steps to put that in place. So, we have the tool kit, we have the general messaging and the entire gamut of stakeholders, whether it is our trade associations, consultants or Government department officers, they will impart the message. But we have to leave it to the business owners to ultimately make the choices and execute and act on it. Let me turn to R&D because Ms Chia Yong Yong and Ms Foo Mee Har have asked about our R&D strategies and progress. R&D is integral to Singapore’s development and competitiveness. As Ms Chia Yong Yong has emphasised, this is a long-term endeavour that requires not just thoughtful planning but also perseverance through cycles, because the outcomes may not always be apparent. But we need to stay the course. Under the RIE2020 Plan, we have made several shifts to harness technology and innovation to meet our national needs and to drive the next phase of economic growth. We invest about 1% of our GDP in RIE, which is comparable to the public spending of other small research-intensive economies.”
“We see this with companies like Jing King Technology Pte Ltd (JK Tech), that has established itself in chip cards and subscriber identity module (SIM) cards globally. To expand their business, the company has been exploring R&D in biometrics, electronic payments and data security. They have built a dedicated R&D team in Singapore, while seeking new opportunities in Vietnam, the Philippines, Indonesia and Thailand. Throughout this journey, they have tapped on Government support, including SPRING Singapore’s CDG as well as IE Singapore’s GCP scheme. To better support companies like JK Tech scale up, we will consolidate the CDG and GCP into the EDG in the fourth quarter of this year. Mr Liang Eng Hwa and Mr Teo Ser Luck have asked how this will benefit companies. I think Mr Teo Ser Luck already knows the answers because he was navigating this terrain when he was in MTI. Nevertheless, EDG will give companies the flexibility to bundle internal upgrading activities, domestic projects and international expansion plans in one application. In other words, you are able to, in a more flexible and integrated way, plan and seek out Government help for your business strategy. Even as we pursue these internationalisation and growth strategies, I agree with Mr Leon Perera that succession planning is an important issue for SMEs, especially the family-owned businesses. In this regard, as Mr Perera has already highlighted, there are several resources that SMEs can tap on. This includes information on succession planning and key issues to look out for on SPRING Singapore's SME Portal. They can also use the new EDG to engage consultants to help develop the succession plans and address strategic priorities and leadership gaps.”
“The importance of internationalisation is borne out by a survey of Singapore's investments abroad by the Department of Statistics from 2006 to 2016, which shows that income from our companies’ direct investment abroad grew by 6.1% pa, higher than the 5.1% pa growth in profits from their operations in Singapore. Looking ahead, one must expect that this differential growth will continue, given the nature and pace of opportunities in the region around us. ESG will also enhance IE Singapore’s network of Overseas Centres to help Singapore companies navigate the business and regulatory environment in overseas markets, gain market insights and access to networks with local partners. The Market Readiness Assistance (MRA) scheme helps companies defray the costs of foraying into new markets. We raised the grant support from 50% of qualifying expenses to 70% from 1 April 2015 to 31 March 2018. Mr Saktiandi Supaat and Mr Sitoh Yih Pin would be pleased to note that we will extend this higher grant quantum for a further two years till 31 March 2020. As Mr Saktiandi Supaat has observed, to be successful, our SMEs must have the people to navigate different languages and cultures, as well as social, political and legal systems which are quite divergent. The ASEAN Leadership Programme will help equip Singapore business leaders with a deeper understanding of Southeast Asian markets, and the skillsets to lead business expansions in the region. Senior Parliamentary Secretary Low Yen Ling will elaborate on this and other related programmes to develop manpower capabilities. Ultimately, for our companies to scale up to the next level of growth, capability development, innovation and internationalisation are deeply intertwined.”
“Senior Minister of State Koh Poh Koon will be able to elaborate further on the broader developments that we have in the startup space in Singapore. Secondly, for companies that are scaling up, ESG will provide support in key areas of capability development. As pointed out by Mr Saktiandi Supaat, many SMEs still require assistance for essential upgrading before they venture overseas. ESG will work through TACs and industry partners to support them. This includes the SME Centres, which Mr Thomas Chua referred to, which will continue to be a very important channel for ESG’s SME engagement. 6.45 pm ESG will also use the new Productivity Solutions Grant (PSG) to support the adoption of pre-scoped solutions so that the broad base of SMEs can use them to improve their operational efficiency and productivity. Senior Minister of State Sim Ann will be elaborating on these points. Access to financing is also critical for long-term growth. ESG will continue SPRING Singapore and IE Singapore’s partnership with our financial institutions to meet the working capital and growth financing needs of viable SMEs, and to facilitate access to credit lines and insurance cover for trade and projects in overseas markets. In addition, I am pleased to announce that ESG will extend the pilot Venture Debt Programme (VDP) by three years till March 2021. The VDP enables local high-growth enterprises to finance their expansion plans with less equity dilution. Seventeen companies from quite diverse sectors have benefited from the programme since its launch in October 2015. Thirdly, ESG will support companies to seize overseas opportunities to grow through several internationalisation initiatives.”
“Yet, if you look at their share of value add, that has quite the inverse pattern, which is not surprising but it tells us that, on the one hand, we are playing a large numbers game, but with a relatively modest value-add impact and, on the other end of the spectrum, the numbers are few but the value-add impact is significant. The resources and capabilities also vary considerably across this broad enterprise spectrum. Therefore, ESG will tailor its programmes to the needs of the different types of enterprises, bringing together the capability building and internationalisation functions of SPRING Singapore and IE Singapore. Mr Teo Ser Luck asked how ESG will support companies at different growth stages. First, ESG will create a more conducive environment for startups by combining SPRING Singapore's Startup SG initiatives and IE Singapore’s international networks. Beyond mentorship and funding, startups increasingly need to internationalise a lot earlier in their development in order to gain access to new markets and also acquire complementary capabilities. Evercomm is a startup that provides end-to-end energy management solutions to help its clients optimise their energy consumption. SPRING Singapore provided the company with the Startup SG competitive grant to commercialise its technology, and it also facilitated R&D collaborations with MNCs and foreign players. Evercomm also tapped on IE Singapore’s networks to navigate overseas markets. Today, the company operates in both Singapore and Taiwan. Looking ahead, ESG will help Evercomm explore new technology collaborations with partners in Israel, Germany and the US, whilst helping the company expand into the Asia Pacific region.”
“In view of these good outcomes, we have allocated $100 million over the next three years for an integrated PACT Programme, in other words, we are bringing the EDB and SPRING Singapore programmes together to support these and more forms of collaboration among enterprises to work and grow together in capability and business development. So, what sort of programmes will they support? First, in addition to what I have described between the big companies and the SMEs, it is projects amongst SMEs and startups, which will now also qualify for support under the integrated PACT Programme. Second, the scope of PACT will be expanded to include sourcing for services providers, as well as to promote the early adoption of new technologies among local enterprises. And third, based on feedback from many SMEs on the value of collective branding, resource pooling and venturing overseas together, PACT will also support such strategic alliances to move into new business areas in both domestic and overseas markets. So, in other words, it aims to help SMEs complement one another as a group as they venture into new areas, whether it is in Singapore or internationally. Mr Thomas Chua acknowledged that the PACT programme has, indeed, benefited SMEs and that there is a good track record in terms of the outcomes. Like our clusters or sectors, our enterprise landscape is also quite variegated. Micro and small enterprises account for a significant majority, with medium and large enterprises comprising 4% and 1% respectively of the total enterprise base.”
“The aim is to allow for knowledge transfer from the bigger companies to the SMEs to support them, for capability development targeted at the SMEs and the test-bedding of innovative solutions. On Mr Low Thia Kiang and Mr Teo Ser Luck’s query, to date, EDB and SPRING Singapore have supported about 180 projects, which have resulted in about 1,000 partnerships. But the important point that Mr Low Thia Khiang makes is that it is also about how it has made a difference for SMEs. It is hard to quantify this because some of the impact is qualitative, in terms of capability, but let me use an example. That is the partnership between Onn Wah Precision Engineering, a local precision machining supplier, and Schlumberger’s Singapore Well Testing Centre. That partnership was to develop high precision machining for oil and gas production instrumentation. This has created a new business opportunity for the company that now accounts for a substantial portion of Onn Wah's total revenue. If you take the retail space, the Dairy Farm Group worked with more than 320 SME suppliers to streamline their inventory and supply chain management. The SME suppliers were better able to track product movements and respond to changes in demand and enjoyed productivity improvements of up to six times in terms of the number of deliveries. So, in short, the overarching emphasis is to deliver benefits to our SMEs in terms of productivity improvement, new capabilities that might, in turn, lead to greater opportunities, the deeper links with their principals and, ultimately, leverage on all of these to go international.”
“The Infrastructure Office will work closely with private sector players – which is the point that Er Dr Lee Bee Wah raised – in the infrastructure ecosystem, supported by Government agencies like ESG, EDB, MAS and the Professional Services Programme Office. In short, the aim is really to bring together the different players in the infrastructure ecosystem that we have in Singapore – from the public sector, private sector, from the large companies to the small companies, those who do professional services, those who do financial services and those who can execute projects, so that we can bring our capabilities together to address this opportunity as a group. Er Dr Lee Bee Wah also had some comments on Government contracts, and I hope she has filed cuts in the MND COS because MND will be better placed to answer that point on construction contracts. As a whole, our ITMs are inclusive in their design. Not quite bespoke in the way that Mr Henry Kwek talked about it, but the ITMs aim to address the diverse needs of industries and enterprises. But there is a limit to how many of the over 200,000 enterprises that Government agencies can directly engage. That is why we have stressed the importance of partnerships with TACs, unions and other stakeholders, because they can play an important role to propagate the transformation message and broaden the reach of the ITMs. While competition is the natural instinct of companies, enterprises can also support one another to succeed in transformation. Currently, EDB and SPRING Singapore support collaborations between large organisations and local SMEs through the PACT programmes.”
“Staff can thus be cross deployed to better meet guests' needs in other areas and also learn new skills in the process. Altogether, the hotel is targeting a reduction in manning ratio of about 17% while enabling its employees to do more value-added jobs. We are also working on opportunities that cut across multiple sectors and ITMs. For example, the growing demand for infrastructure in ASEAN and developing Asia offers significant opportunities that span several industries, including financial services, professional services, precision engineering and construction. Last year, we introduced the Internationalisation Finance Scheme for Non-Recourse (IFS Non-Recourse) financing scheme. The aim was to help more SMEs participate in regional infrastructure projects, with risk-sharing between the Government and banks for loans that are secured on the project’s cash flow rather than the SME’s assets. This was based on feedback from the industry and an effort to help our SMEs participate in this larger opportunity. The Infrastructure Office, which Mr Low Thia Kiang and Er Dr Lee Bee Wah referred to, is a continuation of this effort. Identifying and structuring infrastructure projects and finding the right partners to finance and execute them remain a challenge both in ASEAN and developing Asia. Hence, the Infrastructure Office aims to: (a) build a deeper understanding of the pipeline of infrastructure projects in the region; (b) promote collaboration between foreign and local enterprises from the entire infrastructure value chain; and (c) facilitate the structuring, financing and execution of Asian infrastructure projects.”
“3 billion in 2020, and the creation of 2,000 new PMET jobs between 2015 and 2020. To achieve this, the ITM advocates the development of specialised logistics handling capabilities. If I can illustrate, Tee Hai Chem provides specialised logistics services for chemical and pharmaceutical products. Over the years, it has become a market leader, even supporting MNCs in their overseas operations. SPRING Singapore's programmes have helped the company develop these specialised capabilities, enhance its information technology (IT) and human resource (HR) systems, and upgrade its workers' skills. As a result, the company has grown by nearly 13% pa between 2012 and 2016 and created more than 60 good jobs. For other sectors, the focus is on improving productivity and becoming less manpower-intensive. One example is the accommodation sector, which has achieved notable success over the last two years. The sector has seen strong real VA growth of 4.2% pa and even stronger productivity growth of 5.2% in terms of real VA per actual hour worked. Recently, the Singapore Tourism Board (STB) reported record international visitor arrivals and tourism receipts for a second straight year in 2017. Our hotels, which are a significant part of the accommodation sector, can continue to benefit from Asia’s growing outbound travel only if they can boost productivity and lessen their manpower reliance, while maintaining service quality. Grand Park City Hall is an example of how this can be done. I recently visited the hotel which has tapped on STB’s support to adopt manpower-saving technologies. It is also part of a new regulatory sandbox with the Ministry of Home Affairs (MHA) and STB that will pilot the use of facial recognition technologies for a seamless check-in process.”
“Thank you. First, our sectors face a spectrum of external demand conditions. Within the manufacturing sector, on the one hand, the electronics cluster saw strong an annualised real value-added (VA) growth of 24.4% per annum (pa) between 2015 and 2017, boosted by robust demand for semiconductors to be used in smartphones and vehicles. On the other hand, the real VA of the Transport Engineering cluster contracted by 12.2% pa over the same period, due to the fall in demand for the marine and offshore segment. Secondly, we see more success in sectors which are better able to tap on external growth opportunities. For example, between 2015 and 2017, the real VA of externally-oriented sectors grew by 3.6% pa, compared to 0.7% pa for domestically-oriented sectors. Third, even among the domestically-oriented sectors, their ability to reduce manpower-intensity and raise productivity has varied. The real VA of retail trade and food services have grown over the past two years by 2.7% pa and 1.2% pa respectively. However, retail trade’s growth has been much more productivity-driven, with VA per worker rising at 3.3% pa, unlike the decline of 1.9% pa in food services. Using VA per actual hour worked shows better productivity performance for both sectors, but an even wider gap between the two. Given this variation, the ITMs aim to address each sector’s particular combination of challenges and circumstances. For example, the ITMs' support our externally-oriented sectors’ growth and aspirations for market leadership, through the development of high-value capabilities. A case in point is the Logistics ITM which is led by EDB, which envisages strong growth with a Compound Annual Growth Rate (CAGR) of 5% between 2015 and 2020, leading to a nominal VA of $8.”
“Mr Chairman, I thank the Chairman of the Government Parliamentary Committee (GPC) for Finance and Trade and Industry, Mr Liang Eng Hwa, and all Members for their comments and suggestions on our economic transformation. Singapore’s economy grew by 3.6% in real terms last year, higher than the 2.4% growth in 2016. This can be attributed in large part to the global economic recovery. However, our tripartite partners’ transformation efforts have also made a valuable contribution by enabling our enterprises and workers to benefit from new economic trends. Aggregate data, like GDP growth, give us a feel for the overall economy and its direction, but they do not tell us the whole story, especially the unevenness in the economic terrain. The pace and success of transformation vary according to the context of a particular sector or enterprise. And this variation is due to different capabilities, external demand conditions and even different levels of aspiration. 6.30 pm Our efforts to transform the economy must recognise this diversity of circumstances and needs. And our strategies must also be nimble and adapt with the times. That is why we are making changes to Government policies and programmes, and even to the way that we are organised. Let me elaborate. As Mr Henry Kwek has noted, although our overall economic performance has improved, the outcome varies across sectors. There are several reasons for this. Mr Chairman, may I have your permission to display some slides?”
“Silicon Valley and New York City are the top-ranked cities, with Tel Aviv ranking 6th.”
“Singapore's startup ecosystem has seen significant progress over the past decade. This is due, in part, to the concerted efforts of the Government, industry and other stakeholders to create an environment that is conducive for innovation and entrepreneurship. Young Singaporeans increasingly recognise entrepreneurship as a viable career pathway. Between 2010 and 2016, the proportion of startup owners who are locals aged 35 and below rose from 20% to 23%1. Surveys of young people in Singapore also affirm their growing entrepreneurial aspirations. For example, an NUS survey among tertiary students in Singapore reported that between 2011 and 2014, the percentage of students from Singapore Institutes of Higher Learning (IHLs)with strong entrepreneurial intent rose from 37.5% to 62.5%2. A global survey in 2016 also found that 74% of millennials in Singapore aim to become their own boss within a decade, compared to 50% globally3. While there is no standard definition of success for startups, Singapore's startup landscape has grown steadily over the past decade. Between 2003 and 2016, the total number of startups in Singapore doubled from 22,000 to 43,000. In particular, the number of high-tech startups4 increased from 2,800 to 4,300 over the same period. Singapore has also nurtured four of the five unicorns5 in Southeast Asia, namely, Sea (formerly known as Garena), Razer, Lazada and Grab. Given Singapore's fairly recent entry into the startup scene, Singapore has fared well in international benchmarking studies of global startup ecosystems. For example, in Startup Genome's 2017 Global Startup Ecosystem Report6, Singapore is ranked 12th overall, just below cities like Seattle and Paris and above Stockholm and Vancouver.”
“These investments are also made in key areas identified by the Committee on the Future Economy, such as advanced manufacturing, digital and hub services, as well as research and development activities across various industries, including biomedical manufacturing, electronics, infocomms and media, and logistics. In particular, there have been an increase in investments in digitalisation and robotics across various industries. For example, in 2017, Procter and Gamble announced plans to invest S$400 million to set up its first digital innovation centre outside of the US in Singapore; and Yusen Logistics broke ground for its first future-ready warehouse as part of a S$50 million investment to boost operations in Singapore. These new large investments reflect the continued confidence and commitment of MNCs in Singapore.”
“Multinational Corporations (MNCs) have been an important driver of Singapore’s economic growth. They have brought technology, technical know-how and well-paying jobs to Singapore, complementing investments made by Singapore companies. Singapore’s pro-business environment, strong connectivity and well-educated workforce have allowed us to continue positioning ourselves as a strategic base for MNCs looking to serve Asian markets. Even in a healthy economy, we expect to see a continuous churn of firms, with some bringing in investments while others moving out of Singapore due to a combination of internal and external factors. Firm-specific reasons for locating or relocating business functions and operations range from changes in management and strategy, as well as organisational restructuring in response to competition and the state of their respective industries. It is thus more indicative to look at overall trends instead of tracking decisions of individual firms. The total number of firms in Singapore has been increasing steadily, from about 163,600 in 2010 to 216,900 in 2016. Foreign-owned firms2 have been growing in tandem with local firms, making up around 16% of the total number of firms, 30% of employment and 56% to value-added (VA) throughout the period. Overall trends show that investments have continued to flow into Singapore in the past eight years. The stock of foreign direct investments (FDIs) has grown at a compounded annual growth rate (CAGR) of about 13%3, reaching S$1.36 trillion in 2016.”
“The National Trades Union Congress, a key partner in the ITMs, also plays an active role. For example, it provides students from the Singapore University of Social Sciences and the Singapore Institute of Technology with career mentorship and guidance as part of its Youth Career Network programme. We will continue the fruitful collaborations between ITM lead agencies, MOE/SSG, IHLs and other partners to prepare our IHL students for the future economy.”
“Industry Transformation Map (ITM) lead agencies have worked with the Ministry of Education (MOE), SkillsFuture Singapore (SSG), and Institutes of Higher Learning (IHLs) to help IHL students learn about the changing nature of industries and provide them with mentorship and work opportunities. First, the Skills Frameworks, which are an integral part of the ITMs, identify, amongst other things, the skills that are needed to meet changing industry needs. IHL staff, including Education and Career Guidance counsellors, factor relevant information on industry developments into career guidance to help their students make better-informed decisions. Since late 2017, such information is also available on the MySkillsFuture portal, which enables students and other Singaporeans to chart their own career and lifelong learning pathways. Besides MOE/SSG, ITM lead agencies also reach out directly to IHL students. For example, as part of a series of student outreach initiatives for the Aerospace ITM, final-year students from our polytechnics and the Institute of Technical Education will visit aerospace companies to learn about their advanced manufacturing and repair capabilities at the inaugural Aerospace Day @ Seletar Aerospace Park. Second, MOE/SSG have worked with the IHLs and the ITM lead agencies to enhance mentorship and work opportunities for students to learn more about their industry of choice and facilitate their transition into the workforce. For example, since 2015, over 1,700 polytechnic and Institute of Technical Education graduates have participated in 76 SkillsFuture Earn and Learn Programmes. The autonomous universities have also rolled out 10 SkillsFuture Work-Study Degree Programmes since February 2017.”
“The Economic Development Board, as the lead agency, has been working closely with industry stakeholders, trade associations, such as the Association of Singapore Marine Industries; unions, such as the Shipbuilding and Marine Engineering Employees’ Union; and other Government agencies, for example, the Agency for Science, Technology and Research, International Enterprise Singapore, JTC Corporation, Standards, Productivity and Innovation Board, SkillsFuture Singapore and Workforce Singapore, on the Marine and Offshore Engineering Industry Transformation Map (M&OE ITM). The M&OE ITM will be launched on 22 February 2018.”
“Hence, TACs and unions must help to propagate the message to their members. Individual workers and business owners must also take the initiative to find out more about the ITMs and how they can benefit from them. Finally, the ITMs are conceived as dynamic plans that respond to the changing economic environment. The FEC regularly monitors the progress of our ITMs, modifying strategies where necessary in response to new emerging trends. For example, the Hotels ITM was launched in November 2016, but several new initiatives were introduced just one year later in November 2017, including the Smart Hotel Technology Roadmap, to help hotel owners and operators transform their operations through technology adoption. Ultimately, ITMs are strategic roadmaps that must be owned by all industry stakeholders to sustain the competitiveness of our enterprises and create good jobs for our people in the future economy.”
“The development and implementation of Industry Transformation Maps (ITMs) is one of the strategies recommended by the Committee on the Future Economy (CFE) to transform our economy and create opportunities for our people. Each ITM is tailored to the needs of specific industries and brings together all relevant stakeholders, coordinated by a lead Government agency. As we have emphasised from the outset, the transformation of our industries requires the collective effort of the tripartite partners. In particular, trade associations and chambers (TACs), unions and businesses are actively involved in the Future Economy Council (FEC) and its sub-committees, with a key role in shaping and communicating the ITMs. For example, the Economic Development Board (EDB) has worked closely with its tripartite partners to develop the Aerospace ITM. This included a forum organised by EDB and the Association of Aerospace Industries (Singapore) in April 2017, for the business community to discuss the Aerospace ITM before its launch last month. Separately, the National Trades Union Congress (NTUC) Aerospace and Aviation Cluster consolidated valuable suggestions and feedback from union leaders. The ITMs aim to help all enterprises in their transformation journey, but especially small and medium enterprises (SMEs) which may lack the resources and capacity. This includes helping SMEs to raise productivity, develop talent, harness innovation and pursue internationalisation through Government schemes, such as SPRING Singapore's Capability Development Grant and the SMEs Go Digital programme. The formation of Enterprise Singapore will give further impetus to this effort. However, it is not possible for the Government to reach out directly to each of our over 200,000 enterprises.”
“In its 2010 report, the Economic Strategies Committee (ESC) set an aspirational goal of having 1,000 Singapore enterprises with annual revenues exceeding $100 million by 2020. Notwithstanding a challenging external environment in the intervening period, we have made progress towards this goal. As of 2016, we have around 800 such enterprises, up from around 580 in 2009. With the sustained efforts of our economic agencies to help enterprises scale up and internationalise, we remain on track to achieving the ESC target. The 2017 Committee on the Future Economy (CFE) affirmed ESC's focus on developing a strong base of globally competitive enterprises to create a vibrant corporate ecosystem in Singapore, grow the external wing of our economy, and create good jobs for Singaporeans. The CFE report highlighted the importance of providing high-growth and promising enterprises with focused support to help them scale up and become global leaders in their respective fields. The Ministry of Trade and Industry and its agencies, especially Enterprise Singapore, will continue to focus on this initiative and track the number of companies crossing $100 million in revenue as one of the indicators of growth and success of our enterprises, and review the indicators regularly.”
“] (proc text)] [(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)]”
“First, that enterprise development has been an important component of our economic strategy, and it is an essential complement to our efforts to attract foreign investments. Second, we are now in a new phase of growth, and we will need to sharpen our focus and efforts to support enterprise development and, in particular, productivity, innovation and internationalisation efforts. The future economy calls for transformation at all levels – individual, enterprise, industry and economy. Just as the companies are being exhorted to adapt to keep pace with changes in the global economy, Government agencies and their programmes must also respond with agility to the shifting needs of industries and enterprises. By combining the resources and capabilities of IE Singapore and SPRING Singapore under Enterprise Singapore, we will be able to provide holistic support to our businesses to develop deep capabilities, robust international strategies and strong partnerships with stakeholders. Enterprise Singapore will build on the good work that has been done by IE Singapore and SPRING Singapore to grow strong Singapore-based enterprises by helping them to develop deep capabilities and access global opportunities as we make the transition to the next phase of our economic growth. In turn, this will create greater value for our economy and good jobs and career opportunities for Singaporeans. Mr Deputy Speaker, Sir, I beg to move. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)] [(proc text) The House immediately resolved itself into a Committee on the Bill. – [S Iswaran.”
“From October to December last year, the Ministry of Communications and Information (MCI) worked with our economic agencies and Lianhe Wanbao to organise a series of dialogues to target the Mandarin-speaking SME business owners in sectors, such as wholesale trade, logistics, retail and F&B. I would like to add that many of my colleagues in the Ministry, such as Senior Minister of State Ms Sim Ann, Senior Minister of State Dr Koh Poh Koon and Senior Parliamentary Secretary Ms Low Yen Ling, have also been reaching out through a variety of channels in order to get the message out. We are working on various initiatives and we are working with the TACs and NTUC to help disseminate the message to a wider audience through their communication channels. The TACs have organised events, such as the SBF's Future Economy conference and exhibition last year, and NTUC helps amplify messages on transformation to its network of workers through dialogues, seminars and marketing collaterals. We value these partnerships and we want to build on them. Moving forward, Enterprise Singapore will work closely with the media, TACs and unions to propagate the transformation message to ensure greater outreach and awareness among employees. But again, it is important that our enterprises and workers also take the initiative to find out what is happening in their industry, what the changes are, and what they need to do in order to adapt themselves to these changes and be prepared for the next phase in the development of their sectors. This is an important responsibility that we cannot ignore. Sir, I believe I have addressed in the main the issues that have been raised by Members and I want to conclude by reiterating a few key points.”
“The point that Ms Jessica Tan made about sharing amongst SMEs, again, it is something where you can get these collaborations going in order to see how SMEs can rely on one another and perhaps pool some of their resources. Mr Henry Kwek talked about the SME Centres as a first stop. They are important nodes to provide customised business advice and help our SMEs better understand our Government initiatives. It is a two-way thing. It is not just about them going to SME Centres to apply for grants; it is also for SME Centres to convey and cascade information on Government programmes and initiatives. In 2016, we enhanced our SME Centres to provide business diagnosis, run upgrading projects and solve common business challenges. There are also plans for more of such group-based upgrading projects with other SME Centres, TACs and merchant associations so that more of our SMEs can benefit from them. Sir, ultimately, it is important to recognise that if we are to achieve a vibrant and thriving community of Singapore-based enterprises, all our stakeholders have to be co-owners of the mission and equal partners in the various change initiatives. It is critical that the message reaches the entire spectrum of enterprises and I thank Mr Henry Kwek and Mr Saktiandi Supaat for their comments on public communications and strengthening outreach to SMEs and the broader public. To promote the message of industry transformation, our agencies have engaged the target audience not only through the mainstream media but also through social media and other methods like dialogues and seminars. They have also stepped up efforts to work with the vernacular media like Lianhe Zaobao and Berita Harian.”
“So, we bring, first, a public sector, holistic perspective to the engagement and policies. Second, EDB and Enterprise Singapore will promote partnerships within the private sector, a point that has been raised by several Members. Through the Partnerships for Capabilities Transformation (PACT) programme, they will drive greater collaboration among MNCs, LLEs, our SMEs and also our startups so that they can reinforce one another's strengths and, in the process, we end up with a competitive industry and one that is able to compete globally. Third, it is the collaboration that we have with other industry stakeholders, like TACs, which are important agents of change within industries. Mr Henry Kwek spoke on the need to professionalise our TACs which SPRING Singapore and IE Singapore have already been doing and supporting through the LEAD programme. We had a further evolution of that through LEAD Plus, that was introduced in Budget 2016 to strengthen the leadership and secretariat teams at the TACs and also to improve their organisational processes and deliver new value-added services. In 2017, SPRING Singapore and IE Singapore committed $100 million from financial year (FY) 2016 to FY2020 to encourage industries to drive impactful cross-industry projects. We are supporting our TACs, in terms of their people, capabilities and ability to run programmes that affect the entire industry. I think there is scope here. The points that have been raised by Mr Saktiandi Supaat in the context of SMCCI, these are the areas where they can form the agenda for engagement between Enterprise Singapore and SMCCI, for example.”
“In the case of Enterprise Singapore, the mission is clear and, importantly, it builds on the work that has already been done by IE Singapore and SPRING Singapore. In terms of leadership, the Chairman-designate, Mr Peter Ong, is the former Head of Civil Service and has also served in MTI. The CEO-designate, Mr Png Cheong Boon, is the Second Permanent Secretary at MTI and has helmed several economic agencies. Together, they bring extensive leadership experience in the Public Service and in working with the business community. I am confident that they, and the senior management, will build a strong culture of the organisation and the mission orientation in Enterprise Singapore. Let me now move on to the point on partnerships and collaborations, which several Members have stressed. Even as we strengthen Enterprise Singapore in terms of its capabilities and programmes and so on, we have to ensure that the partnership and co-ownership of initiatives are something that is emphasised in the relationship with companies and industry stakeholders. That is the key to success. We have to collectively own this and work together on it. So, I agree with Ms Jessica Tan, Mr Patrick Tay and Mr Henry Kwek that all stakeholders must work closely together to understand the challenges and also to identify the opportunities. Broadly, we are doing this in three ways. First, is collaboration within the public sector. With the merger, Enterprise Singapore and EDB will form two critical and complementary Government agencies that will help formulate and implement strategies for the development of industry clusters and enterprises in Singapore. These agencies will also work closely with the Agency for Science, Technology and Research (A*STAR) and JTC, among other Government organisations.”
“In the unlikely event that it is not possible for certain operational reasons, the Enterprise Singapore management is committed to ensuring a seamless handover. This is important because it is not just the officer who is on the frontline, but also the team that supports him or her in the relationship with the companies. So, I think we have enough bench strength in the system to deal with the transition issues if, in fact, there is a change of account management. But in establishing Enterprise Singapore, we also have taken care to preserve the competencies, networks and culture that SPRING Singapore and IE Singapore have built over the years. So, I want to assure Members, especially Mr Liang Eng Hwa, Mr Patrick Tay, Mr Saktiandi Supaat and Mr Desmond Choo, that all IE Singapore and SPRING Singapore officers can look forward to augmented roles and opportunities and, in some cases, new assignments in Enterprise Singapore. As part of any move, whether it is an enlarged role or a new one, there will be training and mentorship that is relevant that will be provided. Enterprise Singapore will also continue to recruit officers from both the public and the private sectors because you need that blend of capabilities and they need the relevant industry and international business experience in order to support the mission. This will include tapping on industry experts to support the enterprises through counsel advice, which is something that Er Dr Lee Bee Wah has talked about. Mr Patrick Tay has also asked about the integration of the cultures and workflows of the two organisations. This is the perennial challenge of any merger. The key is to get the mission clear and the leadership correct.”
“On the one hand, we want customised programmes to help companies which have got specific needs and they have got higher ambitions or greater risk appetite; on the other hand, we want broad-based, easy schemes so that companies do not have to go through a major exercise of providing information in order to benefit from them. On the one hand we want easy access, on the other hand we want effective safeguards. These are the tensions in the administration of any Government programme. This is something that Enterprise Singapore will have to wrestle with. The last I checked, Enterprise Singapore officers, or today's IE Singapore and SPRING Singapore officers, are not caped crusaders. They are people like you and me. They are making an effort to reach out and do the best that they can. What we will find as we go forward is that they will try to find this balance, adjusting their programmes and schemes according to the needs of the companies on the ground but also with an eye to Singapore's long-term economic objectives and future. There were a series of questions on transition issues. First, on the resources. Enterprise Singapore will draw on the combined resources of IE Singapore and SPRING Singapore, except for the headcount and budget that goes with the consumer protection role which will be transferred to CCS. To ensure business continuity, companies will have the same account managers as far as possible. I want to stress that because many Members have raised this and it is an important point. So, whether they have been served by SPRING Singapore or by IE Singapore, the commitment is to try and ensure that they have the same account manager.”
“I want to assure Mr Louis Ng that Enterprise Singapore will continue SPRING Singapore's close collaboration with our agencies, such as the National Environment Agency (NEA) in order to encourage the SMEs to adopt efficient energy practices in their businesses, as well as to support the adoption of standards to ensure their sustainability. These practices, and I want to echo the point that Mr Louis Ng and others have made, they are not just relevant for the reason of sustainability of the environment but also because they make good business sense. In fact, many enterprises today differentiate themselves on the basis of their sustainable practices. So, we encourage it. Mr Gan Thiam Poh's query was whether there has been a good take-up rate of the programmes that support our local enterprises. As I said in the Second Reading speech earlier, both SPRING Singapore and IE Singapore have been able to reach out to more and more enterprises over the years and there has been good traction. I think this is something that will continue under Enterprise Singapore and it will reach out to more companies. We will share more details on any changes to the suite of schemes and grants at the upcoming Budget and Committee of Supply debates. Before I move on, I do want to highlight one thing. As we listened to the comments and ideas made by many of the Members who spoke today, I think the inherent tensions in some of our aspirations become quite apparent. On the one hand, we want one organisation because that would make it easy for everyone to know where to go to get what kind of help; on the other hand, we want the nimbleness and flexibility of small organisations because they can move around and be quicker in their response.”
“The BGP was launched in January last year to provide a one-stop portal for businesses to apply for grants without having to approach multiple agencies. This is an important step. And it includes grants administered not just by MTI agencies but also others like BCA's Building Information Model Fund. The plan is to add more grants to this portal progressively. And we share the objective of wanting to make things simpler for our companies. Enterprise Singapore will continue the review of its touchpoints, processes and schemes for that purpose. But at the same time, I agree with the point made by Er Dr Lee Bee Wah that whilst we have a quest for ease of access and efficiency in the administration of Government grants, they should not come at the expense of efficient and effective safeguards. The Government takes a strong stance against any case of fraud or abuse and will take stern enforcement action after investigations. Internal control systems are reviewed regularly and the lessons learnt, especially from some incidents of abuse, are incorporated to prevent future irregularities. It is not foolproof but it is an important part of the process of continuing to ensure that safeguards are in place. On the specific point about the transition, because the schemes are being administered by SPRING Singapore and IE Singapore today, and after 1 April, by Enterprise Singapore, the important element here is not so much to have an audit today but ensuring that there is a clear audit trail because all the officers will be working in the new organisation in one form or another, and it is important that we have the data, the analysis and the audit trails so that if there is a need for verification, it can be done, regardless of when that need arises.”
“And we have also worked with the TACs and companies to encourage greater collaboration in sharing of experiences so that they can enter markets more effectively, perhaps in partnership or at least learning from each other's experience, so that the pathway is a bit less difficult. But I do want to make one point. Ultimately, each entrepreneur has to weigh the risk-reward balance of any new venture before making a decision. This is the very essence of entrepreneurship and it is not something that can be supplanted by any Government agency or support programme. So, it is important that whilst we have this architecture of schemes and programmes to support our enterprises, our entrepreneurs have to step up, make the assessments and take the decision. Mr Leon Perera made a good point, which is that, at the end of the day, the levels of ambition may be different and also the appetite for risks, and we respect that. So, it is more about individual companies and their leaders making the choice and then benefiting from the appropriate schemes that are available from our economic agencies. I want to turn next to a set of questions around the programmes and schemes. Various Members have raised these questions and they have asked whether the Government schemes will be streamlined, if not now, then in the future, and in the process of the transition. Generally, the streamlining of Government grants is an ongoing process because we want to ensure policy efficacy, meaning that it is achieving its desired or stated objective; and also to ensure accessibility for businesses and, importantly, staying relevant in the context of the different circumstances. So, for example, there have been changes made to some of the processes.”