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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“One indicator of the increasing uptake of public sector IP by industry is that the Agency for Science, Technology and Research (A*STAR) issued over 1,000 licences to companies under RIE2015, four times the number under the Science and Technology Plan 2010 (S&T2010). Third, public agencies are developing an IP framework to harmonise the management and utilisation of public sector IP. This will enhance the speed and certainty of the licensing process to encourage companies to license public sector IP. The framework also incentivises public researchers to actively seek out commercialisation opportunities through the sharing of financial returns with the inventors of the IP. Finally, public researchers who wish to spin off their IP into startups can access a comprehensive spectrum of support. As a first step, Innovation and Enterprise Offices (IEOs) provide public researchers with mentorship and training in business development skills, advice on IP rights and access to platforms and networks that link them to potential investors. Public researchers who go on to establish startups can tap on Startup SG grants and equity co-investments with private sector partners, as well as co-working space, lab facilities and mentoring support from public and corporate incubators, such as A*StartCentral. An example of a local startup supported by A*StartCentral is MiRXES (pronounced MER-REXUS), which develops diagnostic test kits for the early detection of gastric cancer and breast cancer. Spun out by A*STAR researchers, MiRXES successfully secured funding through A*StartCentral's investment-onboarding programme to link up startups with committed investors. MiRXES is now planning to expand its manufacturing facility in Singapore to supply overseas markets.”
“Since the launch of our first $2 billion National Technology Plan in 1991, Singapore has built up a strong base of research and development (R&D) capabilities through steady and consistent investments. In 2015, Gross Expenditure on R&D (GERD) reached a new high of $9.5 billion, an increase of 11.8% from 2014. Our Research Scientists and Engineers (RSE) talent pool similarly reached a new high of 35,000 in 2015, up 6.6% from 2014. We are now making several shifts under the $19 billion Research, Innovation and Enterprise (RIE) 2020 plan to accelerate the translation of research into industry applications and economic value. This will ensure that Singapore is well-positioned to harness our RIE investments to drive the next phase of our economic growth. First, to tighten the linkages between our R&D capabilities and industry needs, we have increased the Industry Alignment Fund (IAF) from $1.61 billion in RIE2015 to $1.75 billion in RIE2020. This fund supports our public researchers for collaborations with companies, including multinational corporations (MNCs), large local enterprises as well as SMEs and startups, on research projects with potential economic impact. Companies provide both cash and in-kind contributions to show that they value the R&D conducted. Second, we have enhanced support for public researchers to develop their upstream intellectual property (IP) into prototypes through Gap Funds, which support smaller, early-stage projects with disruptive technological potential, as well as larger projects for market validation of technology. Such translational R&D projects help to de-risk the commercialisation pathway of our public sector IP and facilitate the adoption of such IP by industry.”
“To feature Singapore's local brands and designers more prominently, STB and SPRING have collaborated with JTC Corporation to develop a Singapore Designers Showcase (SDS) dedicated to profiling the best of our local designers and their individual brand stories. This will be sited at the heart of Orchard Road and ready in 2018. To enable our local retailers and brands to tell better stories and deliver memorable experiences for visitors, STB has also set aside grants, such as the Experience Step-Up Fund. Local retailers and brands can use this fund to develop unique keepsakes for tourists or enhance retail experience for shoppers to encourage spending in Singapore. To generate more buzz for retailers, STB is working with strategic industry partners to anchor marquee retail-centric events along Orchard Road, such as the Star Wars – Experience the Force Event, in collaboration with The Walt Disney Company (Southeast Asia) and F1 Pit Stop @ Orchard, where attendees can participate in unique themed activities and purchase exclusive merchandise.”
“Tourists today seek immersive, hands-on and authentic local experiences. They are keen to explore a destination’s offerings, whether in terms of its rich food heritage, diverse cultures or unique precincts. The Singapore Tourism Board (STB) launched the Passion Made Possible brand in collaboration with the Economic Development Board (EDB), to tell the story of Singapore and Singaporeans. We wanted to bring out Singapore's uniqueness as a destination, by sharing our experiences and achievements with the world. This will help to attract tourists who are increasingly drawn to experiential travel, complementing our established reputation as a vibrant, safe and multicultural destination. Tourist Guides (TGs) play an important role because today's tourists have the best experiences when their travel is facilitated by people with deep knowledge of local experiences and products. Our TGs must be able to conduct immersive and interest-based tours and have strong storytelling capabilities. STB has been working with training providers to offer Professional Development Courses for TGs to strengthen their knowledge and skills. STB has also worked with tour operators to curate or refresh more than 20 tours, incorporating stories linked to the Passion Made Possible brand. We are also taking steps to apply the new brand to the retail sector. Tourists today increasingly seek out locally-designed products and learn about the people who created them, that is, how passion is made possible among local retailers. Some of our local product makers and retailers receive support from the Standards, Productivity and Innovation Board (SPRING) Singapore to grow their brands and capabilities.”
“In addition to the Startup SG schemes, the private sector has stepped up to play a role. For example, the Action Community for Entrepreneurship (ACE) organises networking sessions, workshops and professional services clinics to help budding entrepreneurs and startups. ACE further facilitates peer mentoring and support by bringing together entrepreneurs of similar profiles to share their experiences and learn from one another through its Peer Group programme. Singaporeans aged 25 and above who are keen on becoming entrepreneurs can also tap on their SkillsFuture Credit to undertake eligible courses on entrepreneurship and innovation. These courses can be found on the SkillsFuture course directory.”
“Singapore’s startup ecosystem has seen significant progress over the past decade. The total number of startups doubled from 22,000 in 2003 to 43,000 in 2016. In particular, the number of technology startups has increased from 2,800 to 4,300 over the same period. Entrepreneurship is also increasingly recognised as a viable pathway alongside many other career options. A global entrepreneur survey conducted in 2016 found that 74% of the Singapore-based respondents aged 18 to 30 intended to either start their own business or become self-employed in the next 10 years. Young working adults and other budding entrepreneurs keen to start their own businesses can tap on a wide range of available support schemes under the Standards, Productivity and Innovation Board (SPRING) Singapore's Startup SG framework. The framework consolidates the Government’s startup programmes for budding entrepreneurs to easily identify the schemes most relevant to their needs to help them develop and scale their ideas. Under the Startup SG framework, first-time entrepreneurs can tap on the Startup SG Founder scheme which provides funding support by matching $3 for every $1 raised by the entrepreneur, up to $30,000. The scheme matches successful applicants with mentors who provide guidance and connections to business networks, in order to help the startups accelerate their growth. Entrepreneurs embarking on technology startups can tap on the Startup SG Tech grant, which supports the commercialisation of proprietary technology solutions. Startup SG Equity catalyses additional funding from the private sector by co-investing in startups with third-party investors. More information on the schemes and their areas of support can be found on the Startup SG website.”
“As we bring them together, we think we can create a more durable economic model, complemented by what we have in terms of foreign investments. This will guide the ethos and culture in their work and the programmes. The second point is on the leadership. This is why we have been very deliberate in the choice of the Chief Executive Officer (CEO)-designate who is the current Second Permanent Secretary in the Ministry of Trade and Industry but he has also got extensive experience through SPRING Singapore where he was CEO previously and also JTC, and he was CEO there as well. In that capacity and in some of his earlier work, he has worked extensively with the business community. Therefore, he understands the requirements and so is also empathetic to the needs of the SME community. So, that is another important consideration. Having said all that, the next six months or so are going to be important. There have been numerous exercises already in terms of town halls and engagements with senior management. The senior officers will be deeply engaged, not only to bring the two organisations together, but to enhance their capacity to work with the industry going forward and to build a vibrant culture in the organisation as well.”
“Mr Speaker, I thank the Member for his supplementary questions. On the first, I want to emphasise, first and foremost, the highest priority in this process is to ensure a smooth transition. And that means no dilution or diminution in terms of the services rendered to the wide swathe of SMEs that we have in our ecosystem. I note that there may be some concerns about this. But in fact, the objective of the exercise is to strengthen the way we are able to work with enterprises and to afford them a greater continuum of support across different stages of their evolution. So, that being the case, I fully expect that with the merger and creation of Enterprise Singapore, we will have a stronger hand in the way we are able to work with enterprises and through TACs to enable their growth and competitiveness to be strengthened. The second point on the ethos and culture, that is an important point to be emphasised. In any merger, that is one of the first questions that arises anyway because you are bringing in two organisations together. You are trying to synthesis their missions and, as a result, there will always be questions about how one will prevail over the other, or will we be able to bring about a merger that actually results in one plus one being three, or more than two anyway. So, this is where the focus is on getting the mission and leadership right in the first instance because, if we cannot get that clear, then it will be much harder to follow through. I have already stated what the mission is, and to restate it, it is really to create globally competitive Singapore enterprises which have deep capabilities, and that applies to the whole range of enterprises from startups to scale-ups and large local enterprises.”
“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. Enterprise Singapore will also work closely with EDB to drive collaboration between multinational corporations, innovative startups and enterprises of all sizes. We believe that Enterprise Singapore will be well-positioned to build globally competitive local enterprises with deep capabilities and the ability to create good jobs for Singaporeans. We look forward to working closely with all stakeholders to fulfil this important mission.”
“And this is a message which must equally apply to Government agencies so that they adapt their programmes and, when necessary, restructure to better serve Singaporeans and our enterprises. Last week, I announced the merger of SPRING and IE to form a new Government agency, Enterprise Singapore, which aims to better meet the needs of companies in this dynamic economic environment. We will be able to do more for and with our enterprises by leveraging the combined resources and levers of both SPRING and IE Singapore. In arriving at this decision, we have also studied the feedback from various parties, including our TACs, as well as Members of Parliament (MPs) past and present, for a consolidated Government agency to champion the growth and development of small and medium enterprises (SMEs). Enterprise Singapore will integrate its knowledge of industries and its network of local and overseas partners to comprehensively support our enterprises, regardless of their size or stage of growth. Through Enterprise Singapore, startups will not only benefit from the capability development support that SPRING has been providing but also be plugged into IE's international networks. SMEs will receive assistance to build their capabilities and seize opportunities in overseas markets to take their growth to the next level. Large local enterprises can work with Enterprise Singapore to strengthen collaboration within their industry clusters and enhance the capabilities of the SMEs that support them. In addition, Enterprise Singapore will deepen its partnerships with industry stakeholders, TACs, educational institutions and unions, to build strong local enterprises and create exciting new jobs for Singaporeans.”
“Thank you, Mr Speaker, and may I add my congratulations on your election as Speaker. Over the years, the Standards, Productivity and Innovation Board (SPRING) Singapore and International Enterprise (IE) Singapore have been the key economic agencies supporting Singapore companies' efforts to build up their capabilities and expand into international markets. Both agencies also work closely with other Government agencies, such as the Economic Development Board (EDB), Info-comms Media Development Authority (IMDA) and Workforce Singapore (WSG), and this is to ensure that they meet companies' specific needs. In addition, we have 23 Industry Transformation Maps (ITMs) which bring together Government agencies and non-Government stakeholders, such as Trade Associations and Chambers (TACs), Institutes of Higher Learning (IHLs) and training providers, to deliver integrated planning and implementation efforts to address the specific needs of each industry vertical. But as we have all acknowledged, the economic environment is changing quite rapidly because of global digital connectivity, technological shifts and new business models. That, coupled with our tighter domestic constraints, means that external demand will be an even more important driver of growth. Our companies must be able to respond nimbly to geopolitical and economic shifts, shorter technology cycles, and business model disruptions to tap on these opportunities. The Committee on the Future Economy (CFE) has emphasised this and also the importance of the capacity to innovate, harness new technologies, scale up and internationalise, which are increasingly intertwined for all companies. Hence, we have urged our companies and industries to transform themselves.”
“The Monetary Authority of Singapore will also be working with MoneySENSE, the national financial education programme, to raise consumer awareness on business schemes that come with upfront cashback. While upfront cashback payment to consumers does not constitute moneylending under the Moneylenders Act, it is still a form of credit extension to consumers. The Government is watching closely the practice of businesses offering significant cashback amounts with their schemes. We take a serious view of business practices that irresponsibly entice consumers to take up excessive credit and will not hesitate to take action or review our regulations, if necessary, to restrict such practices.”
“Today, hire purchase schemes and moneylending activities are regulated under the Hire Purchase Act and the Moneylenders Act respectively. Hire purchase is one of a range of options that consumers can choose from to finance their purchases. Hire purchase schemes are private commercial arrangements. We do not have information on the number of hire purchase schemes in the market and the default rates of such schemes. The various consumer financing options come with different terms and conditions to cater to the different needs of consumers. Some business schemes offer upfront cashback and gifts to attract consumers. However, consumers should be aware of the tradeoffs between the different schemes available in the market. For example, schemes without any upfront cashback or gifts typically have lower interest rates and the repayment period is shorter. Conversely, schemes with very attractive upfront cashback or gifts, come with much higher interest rates and a longer repayment period. The total amount that consumers pay for their purchases would be higher under such schemes, potentially more than double the value of the goods they purchase. The Hire Purchase Act specifies the minimum information that companies must provide to consumers in writing before they enter into a hire purchase agreement. This includes information on the charges for early settlement of the agreement; effective interest rates; interest rates for overdue instalments and administrative charges. We strongly encourage consumers to review the terms carefully and assess their ability to meet the financial commitments before signing the agreement.”
“Under the Multi-Level Marketing and Pyramid Selling (Prohibition) Act (MLM Act), it is unlawful to promote or participate in a MLM scheme or arrangement; or register a business designed to promote MLM schemes or arrangements. However, not all multi-level marketing activities are prohibited under the Act. The Exclusion Order specifies the schemes which are excluded from the MLM Act, such as insurance businesses, which are licensed under the Insurance Act; and master franchise schemes and direct selling schemes which fulfil certain conditions. Companies do not require a special licence to operate using MLM techniques. As such, we do not have a record of the number of companies operating using MLM techniques. Over the past five years, CASE has received, on average, less than 10 complaints a year relating to MLM schemes, compared to the average annual total of 24,000 complaints received. Hence, there are no plans to review the current laws on MLM activities. We urge members of the public to exercise due diligence when deciding whether to participate in business schemes, particularly those which offer get-rich-quick promises. Should members of the public suspect that certain activities are illegal MLM schemes, they should make a report to the Commercial Affairs Department.”
“As part of this collaboration, IE Singapore actively introduces Singapore companies to partners and agencies in China to access opportunities in Chongqing and western China across different industry sectors. The Chongqing Logistics Development Platform (CLDP)2 and the Multi-modal Distribution and Connectivity (DC) Centre3, both of which involve Singapore and Chinese companies, are examples of such projects and opportunities. Singapore has been an early supporter of China's B&R initiative. In June 2015, we became one of the founding members of the Asian Infrastructure Investment Bank (AIIB). In November 2015, China and Singapore launched the Chongqing Connectivity Initiative, the third Government-to-Government project between Singapore and China. More recently, Singapore signed an MOU with China in May to bolster our collaboration on projects and opportunities arising from the B&R initiative. Through these efforts, our companies will have the opportunity to invest and participate in the B&R. IE Singapore will continue to connect Singapore companies with key Chinese and foreign companies to explore B&R ventures in China as well as in third-party markets through its network of overseas centres.”
“The Belt and Road (B&R) initiative opens up opportunities for Singapore companies to partner the growing pool of Chinese companies venturing into various countries across Asia. The Government agencies are helping our companies prepare themselves for these opportunities by enhancing their capabilities, internationalisation efforts and deepening their expertise in our region which is a key B & R market. For example, Singapore companies can tap on IE Singapore’s enhanced Internationalisation Finance Scheme (IFS) and the new Global Ready Infrastructure Talent (GRIT) Programme, which provide companies with greater financing, risk-sharing and talent support as they undertake mid-to-large scale infrastructure projects in the region. IE Singapore has also recently launched the "Go Southeast Asia" Award to match high-potential final-year undergraduate students with Singapore companies and support their internships in Southeast Asia. ASEAN is a key B&R market for the internationalising Chinese companies. In 2016, Singapore was China’s largest overseas investment destination amongst countries within the B&R initiative, constituting 29% of China's total ODI in B&R countries1. Our local companies bring market knowledge of regional countries and have complementary strengths in the areas of transport and logistics, utilities, mixed-used park development, construction and financing. A recent example of such collaboration is the joint venture between Surbana Jurong and the China Highway Engineering Consulting Corporation to pursue highway and infrastructure-related projects in the B&R countries. Within China, the Chongqing Connectivity Initiative (CCI) is a key priority and demonstration initiative that Singapore and China are collaborating on under the B&R.”
“This framework will facilitate skills recognition and support the design of targeted training programmes for skills and career development. These efforts are part of our Industry Transformation Map (ITM) to strengthen the competitiveness of the Electronics industry. The Electronics ITM will be launched later this year.”
“Singapore has a well-established semiconductor cluster, with leading global firms in Integrated Circuit (IC) design, wafer fabrication, as well as assembly and testing, supported by an ecosystem of equipment vendors and suppliers. Between 2011 and 2016, the manufacturing output from our semiconductor cluster grew at a compound annual growth rate (CAGR) of 4.3%14. Singapore continues to be an attractive location for high-value semiconductor manufacturing activities. For example, last September, Micron opened its expanded 3D NAND flash memory fabrication facility in Singapore, an investment totaling S$5.4 billion that will create 500 new skilled jobs. New end-applications, such as industrial Internet-of-Things and autonomous vehicles, will continue to drive strong demand for semiconductors and present growth opportunities for Singapore. Under the Research Innovation Enterprise 2020 (RIE2020) Plan, we have set aside S$3.2 billion for Advanced Manufacturing and Engineering to support key industry sectors, including Electronics. The Government has also been partnering companies in the adoption of advanced manufacturing technologies to increase productivity. For example, Infineon recently announced a S$105 million investment to transform its Singapore manufacturing facility into a Smart Factory, with automated guided vehicles to transport chips across the facility. The Government will continue to support our workforce to acquire the relevant skillsets to benefit from the new job opportunities. For instance, we are working closely with the industry, trade associations and unions to co-develop a Skills Framework for the Electronics industry, which will map out career pathways, job roles, requisite skills and wages.”
“The Competition Commission of Singapore (CCS) recently completed a market study which examined the formula milk industry in Singapore and the nature of competition at each level of the supply chain. It will publish its report this week. Should there be any evidence of companies acting in concert to increase prices together, CCS will investigate the anti-competitive behaviour under the Competition Act. There are several measures that can be taken together to encourage greater price competition among brands. The Government will simplify and streamline import requirements, as well as remove unnecessary barriers to entry, in order to bring in more options for parents, without compromising food safety. HPB is supporting a review of the Sale of Infant Food Ethics Committee, Singapore Code of Ethics, which will include extending its coverage to all infant formula for infants up to 12 months of age. The Agri-Food and Veterinary Authority (AVA) will tighten its regulations on labelling and advertising further. The Ministry of Trade and Industry and other Government agencies, such as MOH, HPB and AVA, will increase consumer awareness, encourage good practices in hospitals, facilitate more formula milk options, and further tighten regulations on labelling and advertising. The Consumers Association of Singapore will also remind businesses to price their products fairly and look into consumer feedback on potential profiteering.”
“The Health Promotion Board (HPB) and international organisations, including the World Health Organisation (WHO), strongly encourage breastfeeding as it can provide the nutritional needs of infants, with the added benefits of promoting mother-child bonding. In some cases, infants cannot be exclusively breastfed and will need infant formula. All infant formula sold in Singapore, regardless of price, meets Singapore's Food Regulations and the nutritional needs for infants to grow healthily. Some infant formula companies give the impression that their particular brands of milk powder can do more. The scientific evidence for this is weak. Without better information, parents rely on the claims made by infant formula companies or are misled into using price as a proxy for the quality of the product. Public awareness is important to support parents in deciding what is best for their children. HPB, together with healthcare institutions and healthcare professionals, will get the message out, especially to mothers-to-be. All hospitals, both public and private, encourage and support breastfeeding. They will provide infant formula when needed. The Ministry of Health (MOH) will work with industry players to make available more infant formula options in hospitals to enhance market competition. All public hospitals offering maternity services are already Baby-Friendly Hospital Initiative (BFHI)-certified today, but private hospitals have yet to come on board. BFHI-certified hospitals are committed to actively encourage and support breastfeeding targets and are not allowed to enter into sponsorship arrangements with milk powder companies.”
“To help SMEs understand the M&A process, connect them with potential buyers and find opportunities for collaboration, SPRING has partnered organisations, such as Singapore Exchange (SGX) and United Overseas Bank (UOB), to hold sharing sessions on M&A and networking events. Past events include the SME Financial Management Growth Seminar by SGX and SPRING, the UOB-SPRING M&A Seminar, and the Singapore Furniture Industries Council's Funding Seminar. SMEs looking to better understand the M&A process can also approach any of the 12 SME Centres for assistance. SMEs which are looking to embark on acquisition will need to formulate a strategy, identify suitable targets, and conduct due diligence and post-transaction integration. Companies which need support in these areas can tap on CDG to engage consultants with declared M&A expertise certified by one of the three certification bodies under SPRING's Consultant Quality Initiative.”
“The Government has several initiatives to support small and medium enterprises (SMEs) in planning for business succession. First, SMEs which need assistance to develop business succession plans can tap on the Standards, Productivity and Innovation Board's (SPRING’s) Capability Development Grant (CDG) to defray the costs of engaging external consultants. Areas which can be supported include the development of customised talent management programmes to address a company's specific needs, strategic priorities and leadership capabilities required. Second, to help SMEs strengthen their leadership capabilities, future leaders can attend leadership and management courses supported by SkillsFuture Singapore, such as the Leadership and People Management Workforce Skills Qualifications (WSQ) training programmes or the SkillsFuture Singapore (SSG)-Singapore Management University (SMU) NextGen Leadership Series. For exposure to key overseas markets or critical business functions, companies can tap on the SkillsFuture Leadership Development Initiative (LDI) to design leadership development roadmaps and implement relevant on-the-job leadership development opportunities. Third, SMEs looking to upgrade their talent management and succession planning capabilities can send their human resource (HR) practitioners for HR WSQ programmes offered by SkillsFuture Singapore through its Continuing Education and Training (CET) Centres. The WSQ Specialist Diploma in Human Capital Management includes an elective unit on succession management. SPRING works with partners to educate and assist SMEs in mergers and acquisitions (M&A).”
“Similarly, the Meetings, Incentives, Conferences and Exhibitions industry has used BIF to develop event management solutions for better operational effectiveness. There are several ongoing plans to enhance productivity across the tourism sector, such as the launch of a Travel Agent Roadmap in August 2016, which seeks to enable the travel agent industry to overcome manpower constraints and low technology adoption through various initiatives. As different tourism industry partners have different needs, STB will continue to work closely with them to build their capabilities to achieve better productivity gains.”
“The Singapore Tourism Board (STB) launched the 1st Hotel Productivity Plan in 2011 to enhance productivity in the sector through initiatives, such as driving hotels' adoption of manpower-lean technology, encouraging sharing of best practices amongst hotels and redesigning of back-of-house processes. From 2011 to 2015, the nominal value-add per worker in the hotel industry increased at a compounded annual growth rate (CAGR) of 4.14%, which exceeded the national average CAGR of 0.95%.5 Building on this plan, the Hotel Industry Transformation Map was launched in November 2016. One key strategy is to build manpower-lean business models through productivity. STB has made good progress in collaborating with other Government agencies, as well as the industry associations, such as the Singapore Hotel Association, unions and workers, to implement initiatives under this strategy. For example, STB has worked closely with Workforce Singapore and McKinsey and Company to develop the Lean Hotel Initiative (LHI), a four-month programme to guide hotels in identifying and implementing productivity measures. From April 2017 onwards, hotels participating in LHI will undergo training in lean operations, as well as on-the-job coaching by McKinsey consultants. The Business Improvement Fund (BIF) was enhanced in April 2015 and aims to support tourism companies in areas, such as technology adoption and enhancement of business processes, to boost operational efficiency and improve competitiveness. Since 2015, the enhanced BIF has supported 93 projects across different industries. For instance, the hotel industry has tapped on BIF to implement Radio Frequency Identification technology for inventory management and robotic deployment in housekeeping functions to reduce the reliance on manpower.”
“Since large-scale natural gas imports began in 2001, our natural and town gas networks have been expanding to meet growing demands from power plants and industry. Over the past 10 years, PowerGas has extended our pipeline network by about 650 kilometres, or about 23% of the entire network. The natural gas network today covers our industrial estates in western and northern Singapore, while the town gas network spans much of the island, including most of the remaining industrial estates. This will benefit industries that presently use more carbon-intensive fuels, such as diesel. Only the Seletar industrial estate is not presently connected to either the natural gas or town gas networks. This is because the companies sited there are in the aviation and supporting industries and presently do not require sufficient volumes of gas to justify extending the gas network there. As the development of the pipeline network is capital-intensive, the Energy Market Authority will continue to extend the natural gas and town gas networks to serve areas where there is sustained gas demand growth. JTC will also factor in the utility needs of the industry, that is, power, water and gas, when planning for new industrial sites. This will assist to lower the last-mile connectivity cost as a whole for companies. Besides switching to cleaner fuels, such as natural gas, to reduce their carbon emissions, companies can also utilise renewable energy, such as solar power or implement energy efficiency measures. For instance, Apple had signed an agreement with local solar company Sunseap in 2015 to provide clean energy to power its entire Singapore operations. Companies can also tap on various energy efficiency grant schemes to improve their energy efficiency.”
“Mdm Speaker, Singapore uses imported natural gas to generate 95% of its electricity needs. There are only a handful of Organisation for Economic Co-operation and Development (OECD) countries that rely on natural gas as their main fuel source for power generation. These are Mexico, the Netherlands, Ireland, Turkey and Japan, which use gas for 40% to 57% of their electricity needs. Based on the latest available data for these five countries, Singapore's regulated electricity tariffs were, on average, about 1% higher over the period from 2011 to 2015. However, it is more meaningful to compare our regulated electricity tariffs with Ireland, Turkey and Japan, which rely mainly on imported natural gas, similar to Singapore. When compared to these countries, Singapore's regulated electricity tariffs were, on average, 13% lower over the period from 2011 to 2015. 11.40 am”
“Actually, Mr Lee Yi Shyan can comment on this, because he used to be the Chair. [Laughter.] But let me say this. As the Member and also Mr Chairman has observed, the previous avatars this committee was really to address were something very generalised, like the Goods and Services Tax (GST) increase. There was a concern then because the GST has a broad-based effect, and then you do have some concerns about how the tax, in turn, is transmitted through into prices. In the case of water, it is a very specific tax. Its incidence is, therefore, very targeted. In general, if you look at most of the common commodities and products that are being produced, water, as a proportion of costs, is quite small and should not, therefore, warrant the same kind of concerns. Having said that, if there are any reports of profiteering or suspected profiteering, that is something we are quite happy to see whether there is appropriate action that can be taken.”
“Mr Chairman. I assume the Member's focus is not just on expatriate families but, in general, on high consumers of electricity. In general, the right policy is to make sure everybody understands it. Electricity is not cheap in Singapore. I think we are all aware of that. It is fully priced and there is a reason for that, not unlike the discussion we had on other utilities and in the context of Singapore and in the context of this debate. So, that is our primary focus. And then, when we offer the support or subsidies, these are for the families that need them more. In general, we are relying on, first, the approach we take in pricing. We have not gone down the path of punitive pricing, also because who is to say who is consuming too much and who is consuming appropriately? You may be in a family in a 3-room flat, but you may be over-consuming. And you may be in a family living in a condominium, but you may be under-consuming. To set thresholds, there are too many variables involved, and it starts to get the Government into areas that are quite fraught. I would suggest that the right approach is what we have embarked on. It is not perfect by any means, but it is, in general, a methodology that encourages conservation. If people are relying on their companies to pay the bill, then the company should look into their electricity consumption.”
“I thank the Member for his question. To the best of my knowledge, we do not have any formal scheme for the secondment of private sector individuals to the Ministry or our agencies per se. But I think the intent behind this suggestion was more that the private sector should be deeply involved in our economic planning and development processes. And that is something that is quite a pervasive system. If you look at the CFE process, more than 80% of the members in the main committee were from the private sector. When you go below that, the 9,000 people who were consulted were almost entirely from the private sector. That is a key part of the work. In the ITM process, we are involving businesses in a very intrinsic way, not just in the planning, but in the implementation, review, adaptation and so on. I would add that we have a lot of secondment out from the public sector to the private sector. But I am not sure about the private sector to public agencies, because often the feedback is that they need more talent, not that they want to offer their talent to the public sector.”
“Chairman, I will keep the reply short. The answer is that it is in the early stage of the scheme. Obviously, the contract sums have to be reasonable because they must be within the reach of whether an early-stage company or an SME. What we will do is, SPRING will work with the Government agencies, as I said, to develop the model, and then we will see how we go from there. As for financing, I think we have a range of schemes available. We have to see whether that is adequate or there are special needs required.”
“The focus is on the development of deep skills for our people and building enterprise capabilities for higher productivity, innovation and internationalisation. These are priorities that we have been working on for many years, and we will continue to do so in the context of a more dynamic environment that we are in today. And ITMs are going to be a key mechanism for us to achieve this. We will adjust our strategies and programmes in response to changes in our environment and adopt a proactive and forward-looking regulatory stance. And we believe that, collectively, these efforts will help ensure that our economy remains vibrant with thriving businesses and good opportunities for Singaporeans.”
“That is why we have introduced the Internationalisation Finance Scheme (IFS) Non-Recourse Financing Scheme (Non-recourse Finance), through which the Government will co-share banks' risks in providing non-recourse loans to SMEs for such projects and these non-recourse loans are secured only by the project's assets and its cash flows which will enable SMEs to take on more projects. IE Singapore will give more details later. At the other end of the spectrum, infrastructure developers who are working on large overseas projects face a different kind of challenge. One, in particular, is to secure loans for large projects undertaken on behalf of the sovereigns of developing countries. And these can be for projects involving rail, ports, airports, conventional power plants and desalination plants, and the typical value exceeds half a billion dollars. Commercial lenders typically require insurance cover against sovereign risks of emerging markets, while foreign developers rely on their respective export credit agencies for such insurance coverage. Singapore-based developers do not have access to such facilities. So, to help level the playing field for Singapore-based developers, the Government will enhance the existing IFS administered by IE Singapore, to provide insurance against default of payments by sovereigns in selected emerging markets. This is an important and measured step in the Government's efforts to help unlock private financing for Singapore-based infrastructure companies and help them secure projects which leverage their capabilities. IE will give more details. Sir, I have outlined the work that MTI is doing in some of the sectors to illustrate how we are transforming industries and growing the economy, even as we enter a time of greater uncertainty.”
“15 pm And much of the demand in emerging Asia will be for small-scale projects in water and wastewater treatment plants, discrete small scale independent power plants, and renewable energy projects like solar farms and mini-hydro plants. Such projects range in value typically between S$5 million and about S$70 million. That is about the right scale for SMEs. So, Memiontec, for example, is a company that has built deep capabilities in water asset developments in Singapore. They have capabilities in engineering, procurement, construction management and operations and maintenance works for water reclamation and water treatment. In Singapore, they built a wastewater treatment plant to clean water before it is discharged from our Semakau landfill. Last year, the company also ventured successfully into infrastructure development overseas because they secured a deal to build, own and operate a water treatment plant that would convert water from Jakarta's West Flood Canal into clean water for Jakarta's residents. Memiontec is keen to scale up and secure more of such projects. We want more of our companies, especially our SMEs, to be able to tap on these growing opportunities. But their expansion is constrained by limited access to project financing for small projects. Typically, commercial lenders are less prepared to provide financing to SMEs unless they put up personal guarantees or recourse to the company's assets. And this makes it difficult for the SMEs to scale up.”
“In fact, even the industry players, many of whom are local enterprises, have given me similar feedback. On Mr Yee Chia Hsing's point, I should clarify that grid charges are not levied on solar PV owners or any other generation source for that manner. The key point here is this. The electricity price that we pay, there is a grid charge component. That does not go to the company or the entity generating the electricity. That goes to the grid company and, in our case, SP PowerGrid. That is to cover the cost of building and maintaining the national power grid. So, whether you are a conventional generator of electricity or a solar generator, you are basically getting the price that is net off the grid charge. Mr Yee Chia Hsing also suggested tiering electricity tariffs to penalise the heaviest electricity consumers with higher rates and then use that to subsidise lower-income households. As a practical matter, I want to say that such an approach is quite problematic. For example, how would you determine the tiers for such differential pricing because the circumstances for households and their needs vary quite widely even if they live in the same type of housing. So, it becomes inherently an invidious exercise. Our approach is to price electricity right fully from the first electron and then we provide targeted assistance through the tiered U-Save rebates. The outcome, in some ways, from an equity point of view, is not unlike the intent that Mr Yee has in his suggestion. Let me now turn to infrastructure. Mr Liang Eng Hwa and Mr Henry Kwek noted that as Asia urbanises, the demand for urban solutions will rise. This goes beyond energy infrastructure to water, waste management, telecommunications and transportation infrastructure. 7.”
“As a result, solar power has become competitive against the price of electricity from the grid which we also do not subsidise. The global impetus to reduce carbon emissions is another contributory factor. Looking beyond 2020, we plan to further raise the adoption of solar power in our system to one gigawatt peak (GWp). The Energy Market Authority (EMA) has studied this matter quite carefully as renewable energy resources like solar are intermittent in nature and, therefore, they can affect our system stability. And noting that the cost of intermittency must be balanced against the cost of carbon emissions, perhaps represented by a carbon tax, EMA has concluded that one GWp of solar can be accommodated in our system. This will support the achievement of our 2030 climate change pledge to reduce our emissions intensity by 36% from 2005 levels by 2030. However, specifically and in response to Assoc Prof Daniel Goh's point, unlike some jurisdictions, we have not set binding targets for renewable energy. The reason is because often, such binding targets result in subsidies and other measures in the effort to get that target and, in the process, they distort price signals and market behaviours. Instead, our policy has been to ensure that energy, regardless of the source of generation, is priced right to fully reflect the cost of generation and then we let the market work out the equilibrium. That is why we have avoided Feed-in Tariffs that are common in other jurisdictions, with binding renewable energy targets. Feed-in Tariffs subsidise solar electricity by pricing it higher than electricity from the grid. Instead, what we have done is invested in the development of solar PV technology and the result showed that this has served us well.”
“We will maximise deployable space in our dense urban setting, by increasing the use of building integrated PV. We will also explore the application of regulatory sandboxes to microgrids and floating PVs. Finally, we will continue building capabilities in R&D, new renewable energy and energy management technology and financing for the sector. With these efforts, we expect sustainable growth in our clean energy sector, with more enterprise and job creation, potentially 2,000 new PMET jobs in the sector by 2025. The sector will also help address Singapore's energy security, competitiveness and sustainability needs. We have already seen the growth of home-grown enterprises like the Singapore solar company Cleantech Solar, which has developed capabilities in roof-top solar system integration and remote monitoring from Singapore, and it has ventured into the region. This includes a roof-top solar project that Coca Cola recently established at its bottling facility in Cambodia. This is Coca Cola's first flagship solar project in Southeast Asia and its system performance is being monitored and optimised in Singapore. And if Members look at it, the water feature is in the shape of a Coca Cola bottle. Let me now address Assoc Prof Daniel Goh's question on setting renewable energy targets and Mr Yee's point on the costs of connecting solar facilities to the grid. In 2014, we announced a plan to raise the adoption of solar power in our system to 350 MWp by 2020. Since then, the installed capacity has risen from less than 20 MWp to 126 MWp today. It is noteworthy that this growth has been achieved without any subsidies. Rather, it has been aided by the cost of solar power coming down and modular efficiencies improving with technological developments.”
“To help our SMEs participate in these opportunities, we will adopt a more targeted, systematic approach to using lead demand, through an enhanced Partnerships for Capability Transformation (PACT) programme which we have already been doing. And this new programme will be called PACT through Government Lead Demand, or Gov-PACT. Today, EDB and SPRING's PACT programme have the collaboration among large organisations and local SMEs, something that some Members mentioned. We want to build on that to foster more collaboration between Government agencies and SMEs. Under the Gov-PACT programme, SPRING will work with agencies to put out calls for proposals where SMEs can co-innovate in identified strategic areas, with the Government committing to procure the solution if the specifications are met. Through this programme, SMEs will be given opportunities to develop, test-bed and validate new solutions. SPRING has budgeted $80 million to support SMEs under this programme. Senior Minister of State Sim Ann will elaborate further. One sector that has benefited from the Government Lead Demand approach is the clean energy sector. The SolarNova programme aggregates public sector demand for solar photovoltaic (PV) panels, and it has catalysed our solar PV industry. Mr Yee Chia Hsing had asked about the future plans for the clean energy sector in Singapore. The clean energy industry here has grown a small base of about 10 companies in 2007 to around 100 companies last year. And we are committed to developing it further, through a number of initiatives. We will enhance Singapore's position as a living lab and extend the use of lead demand to help more Singapore-based companies build their track record and pursue regional opportunities.”
“Recognising that companies have different commercialisation needs, public agencies adopt different approaches to engage industry that include licensing, that is, exclusive or non-exclusive licensing, and also the assignment of IP. Conditions may be imposed to ensure that companies are, in fact, committed to creating value from the IP. We are making publicly-funded IP more accessible to companies. In particular, we will create a National IP Protocol to provide companies and public agencies with a clear and consistent framework to access publicly-funded IP. With this, companies will have greater clarity over IP ownership practices and standardised and simplified IP negotiations. More importantly, companies will be able to bring innovative products and services quickly to market and reap value. We will share more information on the National IP Protocol in the second quarter of the year. Mr Liang Eng Hwa and Mr Henry Kwek have asked how we plan to implement the CFE recommendations on lead demand. We want to leverage more lead demand to catalyse innovation and business opportunities for companies. The Government is investing in several areas which are both significant from a domestic needs viewpoint and also in terms of growth possibilities. These include healthcare, urban solutions, security and the Internet-of-Things. These are also areas of opportunity for our smaller and innovative enterprises so that they can build their capabilities and strengthen their track record. This is especially so as the Government can be a valuable reference customer for SMEs which are seeking to capture more deals and venture overseas.”
“6 billion of industry R&D investments in Singapore. Secondly, on licensing, over the past 10 years, A*STAR's licensing activity has grown by close to five times from 221 licensing agreements in Science and Technology Panel of 2010 (S&T2010), to 1,030 licensing agreements in RIE2015. Around 70% of the licences were with SMEs. Thirdly, we track A*STAR's Growing Enterprises Through Technology Upgrade (GET-Up) programme, which is really a programme which provides SMEs with support in technology adoption through the secondment of researchers and technology road-mapping. In RIE2015, a total of 202 SMEs benefited from the programme. Finally, we track spin-offs. The number of A*STAR's spin-offs has increased from the S&T2010 to 71 in RIE2015. The follow-on funding has also increased from $46 million to $90 million for the same period. Collectively, these outcomes suggest and indicate that we have been able to get good value out of our investments in R&D. But it is not something that we take for granted because there is always more that can be done and that is why I will elaborate on the range of measures that we are undertaking. Importantly, these measures have also anchored investments and good jobs in Singapore, as well as uplifted the capabilities of local companies. Some of these are hard to quantify but if you ask the EDB officers, if you ask others in the industry, the qualitative engagement and traction within the industry have been very strong. Ms Chia Yong Yong also asked about how we can assure that IP generated from public sector R&D is managed well to reap economic and societal benefits. Fundamentally, we want our IP policy to ensure that we create and capture value for Singapore through the IPs that we generate.”
“And this is an inherent flexibility that we want to build up in the institution so that they can be more responsive to the market. Equally importantly, these programmes will provide companies with a convenient modality to collaborate with multiple public research performers on complex, multidisciplinary challenges. One example of such innovation is in the manufacturing sector and it is nano imprinting. I just want to say a little bit about it because it is a bit technical. I, myself, am just grappling with understanding some of the fundamentals of it. But it basically taps on capabilities, such as nano-fabrication, simulation and modelling. This process enables the creation of textures and patterns at the nano-meter-scale, that is, 10 to the power of minus nine, so as to impart special properties to materials. Examples of such properties include anti-reflection, adhesive and water repellents. It can be applied to materials, such as plastics, glass and metals. Given the growing industry interest in this area, A*STAR has set up the Nano-imprint Foundry that is hosted at the Institute of Materials Research and Engineering (IMRE), which pools together capabilities from IMRE, as well as the Institute of High Performance Computing (IHPC) and the Data Science Institute (DSI). They are pooling different resources from various institutes together in order to take this nano-imprinting effort forward. Ms Chia Yong Yong and Mr Perera also asked about the economic impact of our public R&D activities and how this is monitored. We track a spectrum of performance indicators to ensure that our investments generate good outcomes. Firstly, on industry R&D investment. In the RIE2015 tranche, A*STAR undertook close to 9,000 industry projects which catalysed more than S$1.”
“SPRING has worked with partners, such as the National University of Singapore (NUS), the National Research Foundation (NRF) and the Infocomm Media Development Authority (IMDA), and incubators to co-organise startup competitions judged by angel investors and venture capitalists at events, such as Tech Venture 2016 and InnoFest 2016. The winning teams win prize money and a validation of their business plans and execution ability. Ms Chia Yong Yong has asked about the structural changes that we will effect to achieve our objectives in research and innovation. Mr Charles Chong has also asked about A*STAR's reorganisation. As Members would recall, as Deputy Prime Minister Teo Chee Hean, in his capacity as Chairman of NRF, announced in February this year, A*STAR has embarked on a transformation effort to bring R&D innovations to industry more quickly and in a more targeted and collaborative manner. A*STAR's research has always been geared towards meeting the needs of industry and society. They have always had that as their mission orientation. However, with the gathering pace and complexity of technological advances, more and more innovations are occurring at the interstices of disciplines. So, companies must increasingly draw on multidisciplinary capabilities to develop new solutions and they need to do that with greater speed. A*STAR will move towards more flexible, multidisciplinary programmes. These programmes will also be term-limited, meaning that A*STAR will then have the flexibility to start new programmes in line with evolving industry interests and needs, as well as phase out programmes which are no longer effective in meeting the needs of industry.”
“Mr Charles Chong, Ms Chia Yong Yong and also Mr Leon Perera have asked about our objectives in investing in research and innovation and how we can strengthen the research, innovation and enterprise ecosystem. As Members have already noted, under the RIE2020 Plan, we have made several shifts to ensure Singapore is well-positioned to harness technology and innovation to drive our next phase of economic growth. Let me just illustrate what I mean. First, our research framework is focused on four domains which hold significant economic opportunities and serve important national needs. These are: (a) advanced manufacturing and engineering; (b) health and biomedical sciences; (c) services and digital economy; and (d) urban solutions and sustainability. Then there are some fundings set aside for the white-space elements. Second, to tighten linkages between our R&D capabilities and industry needs, we have increased funding for public-private research collaborations under the Industry Alignment Fund (IAF). So, that is going to bring the public sector and the private sector closer together. Thirdly, to spur the best ideas, we have increased the proportion of competitive funding that is open to all public research performers. So, it is not dedicated; it is open. And that is increased from 20% to 40%. These shifts combine to bring about a significant directional move in our RIE ecosystem. 7.00 pm Mr Perera asked how we can leverage competitions as a means to develop IP.”
“In addition, as the Minister for Finance has announced, we will establish the GIA, whose objective is to help our startups build networks and seize export opportunities in global innovation hubs and new demand markets. A key component of GIA is to build a network of Innovation Launchpads around the world. Today, our Institutes of Higher Learning, companies and agencies, already have established their own networks overseas. GIA will integrate them into one network which companies can then tap on readily to bring their innovations out to relevant markets. If I may use the example of ViSenze, a local startup providing visual search and image recognition solutions for the e-commerce sector, which has experienced the value of networks first-hand. In 2016, IE Singapore introduced ViSenze into the Mastercard Start Path accelerator programme in London, a competitive programme geared towards accelerating the growth of promising startups. Through that programme, ViSenze was exposed to Mastercard's panel of international specialists who linked them up with their network of potential global business leads. This enabled ViSenze to expand their presence in the US, as well as enlarge their global customer network. With GIA, we hope to connect more of our SMEs and startups with the right people and networks in other parts of the world. These will also enable the best foreign ideas and talent to interface with Singapore companies and to find local partners. This will not only enrich our innovation ecosystem but also strengthen our value proposition as a base for foreign companies to come here, test-bed new products and then expand into the region. Let me turn to innovation.”
“We should accept them as part of the natural revolution in our system and not always looking for someone to put the blame on when something does not always work out the way we intended it to. As part of the effort to stay open and connected, we want to help our companies to deepen linkages with overseas networks and partners and seize opportunities in new markets. This is really in the context of our internationalisation efforts. To ensure seamless support for our enterprises' internationalisation effort, we will strengthen the coordination of our agencies' overseas operations under the consolidated "Singapore Centres". These Singapore Centres will serve as the key point of contact for Singapore-based companies when they enter overseas markets, as well as for overseas investors to better understand the business environment in Singapore. The Singapore Centres will also broaden and deepen our understanding of new markets, including at the city and regional levels, in order to better support our companies as they go overseas, and this is a point that we have emphasised in the course of the CFE studies as well. That we need to, well beyond the broad understanding that we have of these markets, and have a much deeper appreciation for second-tier cities, third-tier cities and other regional opportunities. We have so far established Singapore Centres in nine key markets and they have been well-received by both local and foreign companies. Some examples include Beijing, Shanghai, Guangzhou, Frankfurt, London and Mumbai. We will extend the Singapore Centres to all the other 36 overseas locations where EDB and IE Singapore are present.”
“The current guidelines Business 1 zones, which require companies to use at least 60% of their space for core industrial activities, may be too restrictive for some companies, especially those that are already making this transition. JTC, SPRING and URA have been working on a more flexible industrial land zoning approach, which will be piloted at a multi-tenanted building to be developed by JTC and located within Woodlands North Coast. Instead of the "60/40" guideline, JTC will introduce more flexible guidelines so that companies can co-locate service-driven activities alongside their manufacturing operations. Companies that have offshored their lower value-added activities can also maintain their more knowledge-intensive activities here, while retaining close oversight of their operations overseas. Market response and feedback to this pilot will be studied, and it will inform any further steps that we take. More broadly, vibrant live-work-play-learn environments also play a growing role in the attraction and retention of talent. So, beyond flexibility at the development level, we will also pilot greater land use flexibility at the district level in our upcoming growth centres, starting with Punggol. The Minister for National Development will be elaborating on this approach. However, having outlined some of these moves that the Government is making and the general posture that we are taking, I want to caution that even as the Government adopts greater flexibility in regulations, we must remember that we will be entering unchartered waters and we must be prepared that things may not always turn out as planned, in which case, we should be ready to change course or cut losses as such risks are part and parcel of the innovation process.”
“At last year's COS, I spoke on the Health Sciences Authority's (HSA's) initiatives to create an enabling regulatory environment for the Medtech industry. Since then, an interagency workgroup led by MTI, comprising HSA, EDB, SPRING, A*STAR and IE Singapore has developed additional recommendations. To allow innovative medical devices to gain quicker access to market, HSA will establish a priority review scheme. Applications submitted under this scheme will be prioritised for review, thus shortening turnaround times to register the device. Patients and healthcare providers will also benefit from earlier access to innovative medical devices. To give medical device developers greater regulatory certainty, HSA will also launch a "pre-market consultation scheme". With this, companies can consult HSA on the regulatory requirements for devices at the product development stage, well before any formal submissions to register the device for sale or use in Singapore. HSA plans to roll out these initiatives in the second half of this year and will share further details with the industry. More broadly, to address some of the other points in terms of regulations that have been raised, the Pro-Enterprise Panel (PEP) will continue engaging the industry to identify areas where regulatory processes and compliance costs are of concern to businesses, and work with the agencies to provide solutions. As Miss Cheng Li Hui rightly noted, it is important that we ensure our regulations are not an inadvertent burden to businesses. I also want to say that our regulations have to keep up with the latest industry trends. And one example is in the area of land zoning. In manufacturing, we are seeing more servicisation, and business models are shifting from production-led to service-driven activities.”
“So, I just want to say that it is not just about looking at the sectors where we see or assess that there is growth potential, because transformation is needed not just where there is significant growth, but also in sectors where there are other structural challenges, such as, for example, in retail. Therefore, we need the transformation and the adaptation that we are looking for through the ITMs to make sure the companies in that space are well-positioned for the future. I want to turn now to the role of the Government and what the Government is doing on its part to respond to some of these changes. As a key enabler, it is important for the Government to be agile in response to changing industry needs, as has been emphasised by Members Mr Yee Chia Hsing and Mr Lee Yi Shyan. Regulation is a case in point. Singapore, as we all know, is well-regarded for its transparency and ease of doing business due to our robust legal system, well-developed infrastructure and skilled talent pool. We have to build on these strengths with a more nimble regulatory posture that safeguards legitimate interests, whilst being more responsive to the changing needs and circumstances of industries. And if we do this well, it will be another competitive differentiator for Singapore, especially in an era of rapid technological changes and intense competition. So, to that end, we do want a more forward-looking regulatory regime that supports innovation, so that new products and services can be test-bedded and brought to market more quickly. And this is also in line with the CFE recommendations on regulations, which Mr Liang Eng Hwa and Mr Henry Kwek enquired about.”
“Senior Minister of State Sim Ann will elaborate on our efforts to enhance the capacity of TACs in this regard. Ms Foo Mee Har asked about the progress and outcomes of the ITMs that have been launched so far and the lessons that have been learnt. I think she is rightly focusing on the implementation elements because that is really where the rub is and that is where we will see the biggest outcomes. I have spoken in detail about the progress of the Food Manufacturing ITM and how it will involve and benefit workers, companies and TACs. We will adopt a similar model for the other 17 ITMs which will be launched by the end of this financial year, meaning financial year (FY) 2017. It will take time, however, before we can get substantive information to assess the progress and effectiveness of the ITMs. Nonetheless, I would like to emphasise that the ITMs are not static plans. They will be regularly reviewed, by tracking KPIs, and the plans will be updated and modified as we learn more through implementation. Ms Foo also asked if we should prioritise sectors with high-growth potential and established sector partnership structures for the ITMs. The 23 ITMs account for about 80% of our GDP and, generally, they meet the kind of criteria that Ms Foo has mentioned, and they will all be launched by the end of the FY, as I have said. But the pace of implementation will, to an extent, depend on the response from the industry and the commitment of the stakeholders. We also have broad-based schemes to support the needs of companies in the non-ITM sectors as well.”
“He works directly with the chief operating officer to develop marketing plans and initiatives to increase sales and brand awareness in all key markets. Aalst is also in the process of starting student placements under the SkillsFuture Earn and Learn programme. But the company's growth has also created opportunities for older workers. Mr David Choy, who is now 62, spent much of his career working in the ship maintenance line. At the age of 52, he made the switch to the food manufacturing industry by joining Aalst. He upgraded himself through continual training and development, especially as more new equipment were acquired by the company. Today, he is the "go-to" guy for assistance with Aalst's machinery and he and his life experience is really testimony to the benefits of skills upgrading. So, to sum up, the ITMs encompass a suite of programmes to help our companies scale up and transform. The aim is to transform every sector, enable enterprises to grow their top-lines and enhance their productivity and competitiveness. Workers will also benefit from these ITMs because they will gain a clear view of the career pathways in the sector and the skills that are required. To better match skills supply with industry demand, SPRING is working with the unions and industry to develop a Food Manufacturing Skills Framework. Workers can use the framework to map out their careers, assess skills gaps and tap on programmes, such as the Adapt and Grow Initiative of MOM, to enhance their employability. This framework will be ready by 2017. Also, TACs like the Singapore Food Manufacturers' Association (SFMA) and SMF will play an important catalytic role as the industry embarks on projects to internationalise, innovate and develop people and technical standards.”
“I hope Members had a chance to try or sample some of their chocolates in the Members' Room earlier. When I last checked, they were all gone, so I am assuming it is because they were consumed. Established in 2003, as the first Singaporean-owned chocolate manufacturer, Aalst has grown rapidly over the years. Government agencies have supported Aalst as it enhanced productivity through automation, ventured into new overseas markets and invested in research and innovation. With SPRING's Capability Development Grants, Aalst has invested in a series of productivity projects, including an automated production line to improve the efficiency of chocolate production and packaging. It helped Aalst increase production capacity by 70%, which allowed it to scale, meet higher export demand without the need to increase manpower. Internationalisation has been at the core of Aalst's business strategy from the very beginning, because Singapore's domestic chocolate consumption clearly cannot sustain its growth. Ninety-eight percent of this company's revenues are from exports, and a key success factor has been branding. Aalst has used IE Singapore's Global Company Partnership grants to build a brand framework tailored for different markets. It is now an established player, partnering large companies like Dunkin' Donuts, Unilever and Nestle in various markets and projects. 6.45 pm Over the years, the company has also leveraged SPRING's SME Talent Programme to identify the right people for its needs. Mr Dean Ng was one of Aalst's first employees under the SME Talent Programme. He joined the company in 2013 as a marketing executive and has since been promoted to a brand manager.”