Teo Ser Luck
Singapore
“Mr Chairman, Sir, in the initial days when I set up offices overseas – whether it is China, Kuala Lumpur or Jakarta – I used a translator for the local contracts as well as for meetings. Lately, I have been using online platforms, especially in China and also in Malaysia.”
“So, in this day and age, with the world changing really fast, and with social media and information overload, how is the SPF or how is the Ministry going to maintain that public trust and confidence in our Police Force?”
“We have to put in some of these funds, for example, the $300 million additional funds put it into agri-tech, would the agri-tech in future provide a more comparative and affordable pricing for some of what it produces or these technology startups would be able to scale overseas, globally, have a commercial aspect to that.”
“Chairman, I am a heavy user of technology. And when I started on a technology project, I created a first layer of programming and algorithm where the machines started to learn. With more data collected, more and more, the machine gets smarter and it could make intelligent decisions or informed decisions for me.”
“We have tight regulations on financial institutions in their lending platforms and also non-bank lending platforms in regulating them, making sure that they do not go beyond their means to lend out to those that they cannot do the Know Your Customer survey or assess their credit readiness.”
“I believe there are three aspects of transformation that will impact the workers directly. First, the job redesign, change in the process, change in the scope of the job. Second, job shift, the job itself is no longer available and they have to change sectors. Changing sectors also requires a mindset shift.”
The complete record
Every one of 535 lines we hold for Teo Ser Luck, in date order, each linked to its source. Free to read, in full, without an account. Page 1 of 11.
“Chairman, recently I took a drive back to where I grew up in from when I was a baby until I was about 12 years old. It was in Hougang. We used to call it "Hougang luck kor jiok" in Teochew, which roughly translates to "Hougang six pieces of stone". Basically, when I mentioned that to the elderly folks, there is a certain warmth in that. Because of that, I realised that there are places where I had gone to when I was in Secondary school, such as Farrer Park where we used to play football, which are still being preserved. Strangely, the place I went back to, which is "Hougang luck gor jiok", where I grew up in, the rental unit above a provision shop is still there. It is just that one stretch of provision shops and some of the shops are still there – very old – but everywhere else has changed. So, that preservation was really meaningful to someone like me. I think, for every town, heritage is the identity and soul of the place. Would the Ministry consider having that as part of its policy when doing town planning for all the major towns to have a certain heritage to exist for a longer time period? Rejuvenating our City”
“Give them a chance to do so, so that, in future, Singaporeans will be more competitive, not just in Singapore, but overseas as well. Learning ASEAN Languages”
“This Asia-Ready Exposure Programme, if it can go beyond just cultural understanding and differences, it would really help to make that leap forward, and that leap forward is going beyond understanding about the culture, appreciating the culture, but to be able to make that leap into something more. And that something more, I will look at it this way – three points, mindset change. And a mindset change creates a certain attitude towards the region and the dare to venture abroad. Secondly, it is to be able to apply that learning. After learning about a culture, learn to apply that within the workforce or within their scope of work in future and to take on additional responsibilities from there. And, of course, hopefully, they are all willing to venture abroad. And that is the part I find it the hardest to persuade. I believe it is the comfort of Singapore as well that they are unable or unwilling to really venture abroad on a longer term basis to actually see what is out there, broaden their horizon. Global Ready Talent I think that is extremely important because if we want to do an Asia-Ready Exposure Programme, we might have to think beyond just understanding of cultures. Start them young right, but actually push them a bit further. I know that MTI has a Global-ready Exposure Programme and the Global-ready Exposure Programme was about internship and maybe offer a through train from Asia-ready to Global-ready; from cultural understanding to internship opportunities. Have companies offer those positions for them. But have the schools take them on in the beginning to understand that and then offer it later that they can actually intern overseas as well.”
“Chairman, I have two young staff in their late 20s who are working for me. Since then, I have worked with them very closely on different projects. And because my companies, we build our offices regionally, so the two of them I empower them to take on some of those projects. I must say that the two of them have a lot of promises and one of the common things I found was that they are very comfortable discussing about developments in Asia and being very resourceful about getting certain things done, even if it is beyond Singapore's shores. So, countries we talked about are China, Malaysia and Indonesia. I am quite pleased with their performance but I know it is hard to keep them. One of the common things I found was that they were exposed to cultural exchange programmes way back in school, starting from Secondary school. I will credit that as the first exposure on a regional basis that makes them feel comfortable in their working life later on. One of them actually had an Internship overseas as well. And that stint of about one and a half months he actually did really well. He did really well and you can tell from the knowledge that he has gained. I was quite glad that Deputy Prime Minister Heng announced about the "70-70" Asia-Ready Exposure Programme because I believe that when we give more of our students more of those exposures, it would help them in future, not just in their career, but companies that operate in Singapore or Singapore companies that want to venture overseas.”
“Mr Chairman, Sir, in the initial days when I set up offices overseas – whether it is China, Kuala Lumpur or Jakarta – I used a translator for the local contracts as well as for meetings. Lately, I have been using online platforms, especially in China and also in Malaysia. The online platforms that they produce locally enables me to do translation in double-quick time. Somehow, I have a thought – what if we have a local project, given our multicultural and multilingual society, a local translation project and then, put it online or using technology to enhance it, it would be wonderful. Because it not only enhances individuals in terms of translating the languages and also the meaning of certain words across different cultures and across different languages, it will also enhance or enable businesses to be able to conduct its business in different languages as well. So, I wanted to ask the Ministry whether it has such plans to be able to put up that online platform or to merge technology with languages. Digital Access”
“But you know that some of them at the heartlands who are micro enterprises may not have the chance at all. They are just looking for survival. But these micro enterprises at the heartlands, we call them "heartland enterprises", they have both a commercial and also a social impact on our lives. Having lived in an HDB estate for more than 25 years, there are a lot of the shops that I still visit today and that personalised approach keeps them going. Several of us continue to patronise those shops and they continue to be there. I know that MND and MTI are trying to spruce up these heartland enterprises. One of the major things they do in the past few years was upgrading the hardware facilities, the surroundings, hopefully, to capture the foot traffic. But you know, it is not just the hardware that we should upgrade. Maybe, it is the software as well. It is about helping these heartland enterprises maybe about a centralised inventory planning, financial planning, product innovation. And some of these things actually matter – bringing them online and become more e-commerce focused. And this may help them to draw in more customers instead of looking at just the foot traffic because, if it is just the foot traffic, they compete directly with the heartland malls and their prices. So, they may not have a chance to position themselves. Would the Ministry consider looking at the heartland enterprises and look at the software aspect to actually put in the funding to help them? Digitalisation”
“Mr Chairman, MTI was very clear in strengthening the local enterprises and I believe they have a pyramid where most of the enterprises at the bottom were actually lower in revenue numbers – micro-enterprises and then small, medium and large. This is a very good pyramid to show. Although we have over 200,000 SMEs in Singapore, every one is in its different places and most of them are actually micro enterprises. And I understand that MTI's strategy is quite clear. Those who move the needles, there is a lot focus on them. And some of those who move the needles, they are actually large companies. And we have a Scale-up Programme within MTI or EIG to help these companies to be strengthened. So, for example, what Mr Douglas Foo has mentioned about training the leaders, as well as after training the leaders, they make a transformation within a company and strengthen the company. But you might realise that a lot of the medium sized companies, even to the smaller sized companies, not micro enterprises yet, but smaller ones to the medium sized ones, they have a lot of potential. The Scale-up Programme today, if I am not wrong, actually comprises most of the very large companies or companies that have above $100 million revenue. But the medium enterprises and the small enterprises might have the innovation, technology, concepts and plans or very passionate and enthusiastic entrepreneurs or founders that run them that could potentially make them global. Would the Scale-up Programme include these enterprises as well, from the small to the medium size and have a larger wastage for them? Heartland Enterprises And I would like to speak more about the micro enterprises as well. If those who have potential, we can grow them.”
“We have to put in some of these funds, for example, the $300 million additional funds put it into agri-tech, would the agri-tech in future provide a more comparative and affordable pricing for some of what it produces or these technology startups would be able to scale overseas, globally, have a commercial aspect to that. I would like the Ministry to be able to elaborate further on what indicators are there for such an assessment. Industry Development”
“Mr Chairman, Sir, every year we put a lot of emphasis on encouraging start-ups, either catalysing more start-ups in different areas in terms of tech or tech transformation but also in creating the hardware, for example, the Launchpad and several other places where it is clean tech start-up area. That is very encouraging and it is good to know that this year we are putting additional $300 million into deep-tech and with some focus on a couple of key areas, including agri-tech. The question I have is that I do see many other related Ministries or relevant Ministries also putting in some of the investments into start-ups and also into technology. The question I have is whether there is synergy between them. And when we put in additional funds into it, what are the key performance indicators or indicators of success for such funds? I do not think we can compare a public fund for investments of this like the private funds where their ROIs is in terms of the immediate returns or short-term returns. But what exactly would be the indicator of success for our funds? Secondly, it is that for the deep-tech start-ups, these have very long gestation period because it is long gestation period, it is very hard to forecast how far it goes. The question is the success is dependent on the commercialisation aspect of these start-ups because you do not want to invest in start-ups where it is just another science project. If it is another science project, then you come out of the lab but there is no commercial value, there is no demand.”
“So, can I know from the Ministry what are the enhancements of the MRA, and are we able to move from funds to knowledge that can be imparted to facilitate the growth of SMEs overseas? 6.00 pm”
“What are the other measures that we can put in? FTA Impact With COVID-19, I was wondering whether the Free Trade Agreements (FTAs) can play a part? FTAs, in good times, actually help the SMEs, who understood FTAs and can launch their products overseas and get the full benefits out of them – tax incentives and other measures in regulations, in actually getting exceptions. But in not so good times, let us say, for example, right now, how do FTAs play a part? We have more than 25 FTAs signed so far – bilateral and multilateral. Where do they play a part? How can we use them more effectively? What can the SMEs do? Market Readiness Assistance I think one of the most practical methods for businesses in Singapore to actually overcome some of these challenges, for example, some of the crises that we faced today and some of the growth challenges, will actually be using some of the schemes that we have. One of the schemes that is also a beneficiary out of it is the Market Readiness Assistance (MRA). I am glad to know that the MRA will be enhanced. The important thing about launching businesses overseas is, firstly, the regulations; secondly, the knowledge on the legal aspect, the framework; thirdly, it is finding a local partnership. Sometimes, it is not about funds, because MRA provides the funds. But it is the knowledge that is the most important. Where can we get this knowledge? Can MRA offer more than just funds, dollars and cents, but actually coming in with certain knowledge? Because we have Enterprise Singapore (ESG) officers all over internationally and they are very good officers. They can provide their facilitation of good help and networking. I think this is most valuable to the SMEs and businesses who want to venture overseas.”
“Our economic growth is getting more and more challenging. I think each year, as we forecast our economic growth, you will realise that we keep revising our forecast. From last year to this year, we are revising downwards on the forecast. It is challenging, no doubt, and, with COVID-19, it is getting more and more challenging to actually get a part of the pie because other cities and economies are also getting more competitive. We are focusing on quite a few verticals and I know that we rely less on manufacturing now, which, in the past, was about 25% contribution to GDP. But right now, we are looking at it at 20% GDP. Although there is a lot of focus on precision engineering and some of the rest of the other sectors related to manufacturing, I think, for the long haul, it does not give as much stimulating growth to the economy as we need. So, that is where we are investing in technology startups or we are investing in financial services and all. However, for some of this growth, we are competing very intensively with other economies as well and that will pose a challenge to our economic growth as a whole. I think on a year-to-year basis, growing at 1.5% to 2.5%, we are sort of plateauing, although we are in better shape to do better than other economies. I would like to ask the Ministry whether there are immediate short-term to medium term strategies or any change to the current strategies that we have. With the 23 Industry Transformation Maps (ITMs) that we have focused on, I do not think we can focus on all 23. But what are the key focuses that we can have in order to boost the economy forward, maybe the next three to five years of economic growth that can be greater than 3%? Because we have not seen anything before with 5% to 8% anymore.”
“So, in this day and age, with the world changing really fast, and with social media and information overload, how is the SPF or how is the Ministry going to maintain that public trust and confidence in our Police Force? Moving forward, what are the measures and also plans that they will Implement and execute in order to uphold that trust? Because with that trust, then our enforcement officers can do their work and we can still continue to be ranked number one in the Global Order Index. Security Needs”
“Mr Chairman, growing up in the 1970s and 1980s, the Police was some sort of a mystic, so there is a mysterious part to the Police Force. When I was growing up in a Teochew kampung, my parents always say "mata liak" or Police will catch you, if you are not doing the right things. So, you have some fear but that transformed later on in school. When we went for a road safety campaign and we saw the policemen teaching us how to obey the safety rules, traffic rules and they were extremely friendly. So, it changed my perception that the engagement between the public and the Police was friendly, and you can have a lot of confidence and trust in them. In the latest Gallup poll, 94% of the residents or Singaporeans felt very safe to walk around the neighbourhood at night, and we were ranked first in the whole Global Order Index. We were also ranked first in Order and Security in the world. So, that is no mean feat because as I became a Member of Parliament, and I dealt with Sengkang NPC, every single one of the policemen, when they engage the public, that friendliness and confidence is there and you can tell that the public trusts them, so much so that even the smallest of things they would send a complaint or report to the policeman. That makes them really, really "see eh boh eng", very busy. As we made progress, I realised it is more and more difficult to maintain that public trust for our policemen, especially when there is social media. The social media, with its fake news or real news or even pictures. A picture, although it speaks a thousand words, but then again, if it is the wrong caption, then it would actually affect the trust and confidence in the policemen.”
“Chairman, I am a heavy user of technology. And when I started on a technology project, I created a first layer of programming and algorithm where the machines started to learn. With more data collected, more and more, the machine gets smarter and it could make intelligent decisions or informed decisions for me. As it goes on, I realise that some of my staff actually were being replaced for the role that they played but they could co-exist with the technology itself, and I realise that that is artificial intelligence (AI). AI was extremely helpful for the companies that I run. The staff themselves found that they could co-exist and become more productive and more clever in making the decisions. I am excited about the national AI project and I hope that the national AI project is not just internally focused, but externally focused as well. As long as it enables and strengthens companies and individuals and help Singaporeans in their daily lives, I think this AI Project will be very exciting instead of replacing jobs. 3.00 pm Government-to-Business (G2B) Processes for Smart Nation”
“So, because of that, we can work together, both public and private sectors, as well as all of us in the House, to help bring this economy back up again. [Applause.]”
“A lot of times, when it comes to this kind of crisis, we will look up to the Government to see what schemes to apply. I was telling my staff and my team this morning I do not think we want to do that. We look for competitiveness. We lower our price and we have to expand our market. Go overseas, go to new markets. Of course, I am already overseas. But where are the newer markets to expand your market and expand your revenue base? Because that is where we can help. And we realised that one of the markets that we are going to used to be 30% higher cost and is now 30% lower cost if I were to launch my product there and I thought "Why not?" That offers an opportunity. At the end of the day, it is important to know that a lot of these things that we are doing today, we have to change. We may call it "transformation". But I will just say that it is just a transition, it is just a change. If you have been selling your product from a shop, then it is time for you to think about selling it online, without the sunk costs, without additional labour, you sell it online, figuring out how to do the logistics and delivery. I think a lot of people say "We want to do it" but, at the end of the day, they may not do it. Most importantly is that at the end of COVID-19 or any other crisis or challenge, let us not give up. Let us not give up on what we can do because Singapore is in a much better shape not just in tackling the COVID-19 issues, the virus itself and making sure of healthcare but business-wise as well. I still see vibrancy in our businesses; I still see revenues rising for some of the companies. It is not everybody is doing badly.”
“But big companies have their own objectives, too. Unless a small company has value for the big companies, it is very hard to have a big company wanting to help a small company. So, what do you look for? Maybe an exit through the big company – let the big company acquire your small company or you just close it down, move on and move along. Secondly, COVID-19 does offer opportunities, too. For example, I had wanted to recruit this talent for a long time. But because of COVID-19, his company retrenched him. Suddenly, I have him available. Immediately, I recruited him. I would like to pay him the market rate, but I also could not afford it. So, he was willing to lower his salary and, suddenly, I have a great talent for IT in my company today and we are growing. He is glad that he joined a growing company. But he was willing to be able to say "I joined the company. I managed my expectations. Let us grow it together", which was an opportunity. So, the talents are out there. Whilst I know the Government tells us, "Let us train our workers, people and executives". Well, also look out for some of these access to talents. NTUC actually came up with the Job Security Council. Maybe it is something that we can have access to some of the PMEs over there to see where we can do the matching. So, it is not all about retrenchment but about growing, too. So, this COVID-19 is not exactly all gloom and doom for many companies. Some of us are actually growing. Thirdly is to focus on the demand. Companies should focus on the demand. Is your product really having that demand? Maybe during this time, there are a few things that you have to do. First, lower your price, right? Second, refine your product again. Third, reposition your product.”
“I think that is the most difficult part in terms of culture. But you can see our Government is so pro-business. Every which way, when there is a crisis, it will come up with more and more schemes. COVID-19 is a great example. You see a comprehensive slew of schemes and measures. Sometimes, I wonder, so many of them, I am also confused. Right? And I was also a culprit – creating those schemes and programmes as well. But at the end of the day, it is with good intention. The question is whether we are cushioning and detaching businesses from reality. Would they be more competitive when they go overseas? In COVID-19, I faced the same problem. I have both B2B and B2C businesses, especially B2C business dealing with consumers who are facing demand issues because the whole environment has been affected. So, there are a few things that go through my mind when it comes to COVID-19 – the crisis itself, how it affects businesses. A few points here. First, when I review my own businesses, all SMEs should ask ourselves whether we have the capital and resources like cash that can last us for the next two to three months if we are in the worst-case scenario – no demand, no revenue or minimal revenue. Can we handle or sustain? If we cannot, well, there are schemes where the Government is taking up a greater risk of the bank loan. So, borrow money, right? You can try. But I also know that, on the ground, sometimes it is difficult because the banks are not changing their risk assessment to let you have access to the capital. So, you have to keep trying. The first thing is to ask ourselves whether we have enough; second, maybe look for big companies. Right? And I am glad that Minister Chan, in one of the dialogues, said that big companies should help small companies. I hope so.”
“How the grants are rolled out is extremely important – a smart allocation of these resources and what kind of outcomes that we can get – those are the first things. And those schemes must be targeted to help, to be able to do so. I think more and more of those schemes for businesses are now very targeted. But having too many of those grants and schemes and we risk going into a welfare state for businesses. That, I would not encourage. Secondly, we must make sure that we define success carefully. What is business success? Some people say, "Raise as much capital as you can if you are a start-up so that you have millions and millions", but you make losses. If you are a unicorn, it is okay to make losses and you raise a lot of money. Well, I do not buy that. I am pretty traditional in some sense, maybe a Teochew businessman type, which is that all businesses still have to be profitable. You can raise a lot of money, you can make a lot of losses, but no end to come, you would not see the tipping point. You will struggle. You will still struggle. So, you will hone your skills in fundraising but not hone your skills in building the business. That is a worry. So, how do you define success? Is success an exiting of the business when you gain or what? I believe that success in business, to me, is about building a business with a social conscience. The product or services that you provide must have some social impact in order to make it very meaningful. But at the same time, commercially viable. That, to me, is the most important. Thirdly is to have the environment. So, whatever reserves and schemes we have are to be able to create the environment for some risk-taking, embracing failures, so that our people do not give up. They try and keep trying.”
“I am just lucky to be able to do so. I would not deny that some grants and programmes were made available for me or my company to be able to tap on them. But at the same time, it is very much dependent on ourselves as business people to do so, to be able to come up with solutions, with what the market needs and what the consumer wants and we can build a successful business from there. Sir, the Government grants, schemes and programmes throughout each year are not an end-all and be-all. They cannot be the most critical function or most critical part of the business. I know that many businesses apply for those grants and schemes, hoping for additional cash flow. Yes, they are temporary relief measures, but they are not permanent. At the end of the day, someone must want to buy your product, work with you and believe in your company in order to invest in it in order for it to grow. Sir, when I went through some of the speeches in the previous two days, I understand that Mr Leon Perera actually mentioned about slowing down some growth of the reserves and maybe putting in more investment into our people to be more creative, entrepreneurial and innovative. I do not disagree with that. But I think slowing down the growth of the reserves is not the way to go because, no matter what, we need to build up the foundation in order to take on the rainy days or challenges to come and deal with COVID-19. It is very clear that we have the facility and resources to handle some of these challenges. But, without which, we will find it a struggle to manage. It is like running the day-to-day business in every other way; you would want to have the reserves in order to handle some of these rainy days. Sir, more importantly, these reserves and how we use them are extremely important.”
“Mr Speaker, Sir, as the Budget Statement was read by Deputy Prime Minister Heng, I felt very privileged to be on both sides of the fence. I had been a part of the team that was trying to figure out some of the schemes and programmes to be rolled out each Budget and I am now on the other side of the fence as a beneficiary of some of the programmes and schemes itself. When I left the Ministry in the middle of 2017, I had wanted to set up my own ventures and businesses and I chose the most difficult path to do so. I chose businesses and ventures of a B2C nature, which is to create a consumer product, a consumer brand, starting from zero and I wanted to see if I could do it with the environment that Singapore offers, with all the different measures, grants and schemes that the Ministry offers. So, it has been a very good two-and-a-half years, but a lot of grinding and a lot of pain and also a lot of risks taken. It was not easy. But at the same time, I felt assured because I know that Singapore's business environment is one of ease of access as well as one that you could approach and feedback, where you could actually have help and assistance. But, of course, many in the business circle would say, "Well, you had been an officeholder, you were a Member of Parliament. So, you have an advantage." Not so. On the other hand, I took a lot of measures and also a lot of different ways to hide and not show which companies I owned and how I did it and actually worked behind the scenes really, really hard in order to grow those businesses. So, piece by piece, layer by layer, I built my business and I am very lucky, very blessed that, today, my venture in the consumer product business is profitable. I know many fall by the wayside and, out of 10, probably nine will fail.”
“Sir, some years ago, a resident approached me at a hawker centre seeking help for employment. He lives in a rental flat with his daughter, and he was sharing about how difficult it is to get employment. But his daughter is doing well in school. So, we managed to get him employment and started him off somewhere. We kept in touch. A few years on, he is still living in a rental flat, but the good thing is that his daughter is doing well in school and will probably graduate soon. He has told me that he is trying to have a proper home for her daughter and probably own a home of their own. I suppose his way out of rental and, in this situation, will all depend on his daughter, through her education and through his daughter doing well in school. But there are many who may not be in the same situation as him, where the children can be independent and make good through education. Many of them are from dysfunctional families. Owning a home provides security and assurance which are so important to keep the family intact, giving them peace of mind to focus on their future. It provides hope and creates dreams. So, what are the plans of the Ministry to help public rental tenants progress to own their own homes eventually? Home Ownership for Public Rental Tenants”
“It has been suggested that the Government should provide grants for SMEs to train employees and improve cyber defences. Yes, it has also been suggested that a Government hotline be established for businesses to obtain advice and report cybersecurity breaches without adversarial treatment from the Government. Cybersecurity”
“Recently, I had a chat at the workspace in my constituency. The workspace is occupied by many entrepreneurs and many of them build their business using the Internet or social media as a platform. So, I had a chat with this user. He runs an e-commerce company and he told me that one day, he woke up and he realised that there was no sale within his system. He was wondering why and, actually, his system was hacked. His customer database was hacked, as well as the entire website was hacked. What happened was he had to close the business for a few days and he almost had to close the entire business. Many businesses probably take cybersecurity for granted. If we could, we should educate more and more businesses, especially the smaller businesses and the startups which are building their businesses over the Internet, about cybersecurity. I would like to know whether the Government has any plans to help instil greater knowledge on cybersecurity and the importance of it in the near future. Assoc Prof Daniel Goh Pei Siong (Non-Constituency Member): Chairman, Budget 2019 has focused our attention on cybersecurity by adding the Digital Defence pillar to our Total Defence strategy. This is appropriate, coming after the SingHealth attack and the HIV Registry leak. There is one critical vulnerability that now needs addressing. In Singapore, the extensive interface between the private and public sectors means that cybersecurity for businesses is a critical vulnerability. The Ministry of Defence (MINDEF) has also been relying on private companies to drive technological innovation and adaptations. Will the Government thus consider implementing targeted initiatives to bolster the cybersecurity capabilities of businesses, especially our local SMEs, urgently?”
“So, how can Singaporeans be more prepared and what can the Government do to help prepare Singaporeans for this digital age in their daily lives, in finding new jobs, acquiring new skills, so that they could better adapt to this new world? Developing our People for Digital Future”
“There are many schemes and programmes rolled out for these local enterprises to help them in this new wave of the digital economy. But how effective have they been? And are we really seeing more and more companies coming forward? There are almost 200,000 SMEs around in Singapore but how many have taken up and gone digital? Singaporeans in the Digital Economy Over several weekends, at the grassroots and the community levels, I organised several small gatherings in different locations for residents. And over time, more and more residents would join such gatherings and we find that it is getting harder and harder to do things in a manual approach, including signing up for some activities or even knowing whether they are going to come or not, as well as conducting surveys with these residents. We figured that we should digitise the process and then make it a little bit more online that will be more accessible for them and, at the same time, easier to collect the data. Inclusive of my volunteers and the residents, not everyone is receptive to it. Of course, there are some elderly persons who find it very hard and so we will have to keep the manual process going. But it is an important process to prepare Singaporeans in this digital world because it is not just affecting their daily lives and everything that they do in the near future, but also in finding new jobs or new opportunities in their careers as well as acquiring new skills. My sense in this process of change is that in preparing Singaporeans to be able to adapt to this new digital world, we certainly still have a distance to go.”
“Many companies are still unprepared to go digital in the new world and in the future. And the Government has been making tremendous and focused efforts to help them go digital, coming up with several schemes and major schemes. But, for many companies, due to their business nature and the length of time they have been in business, they are still trying to figure out which part of the process can be digitised. So, it is not just knowing when to start and where to start, there are a couple of scenarios, in my sense, that these businesses cannot see the need to change. They have been entrenched in the business for too long and they possibly have a winning formula in their business as they have built such depth in their domain knowledge that they did not see the need to change. Some things are best relied on manual labour, not because it is more cost-effective but because it could possibly give them the efficiency and the margins that they are looking for. So, they do not find the need to change and no motivation to go digital at all. The business nature and the ecosystem around the business itself creates certain margins that they had for many years. So, status quo helps them to survive and going digital is a form of risk. Thirdly, it is the lack of the skill and knowledge within the company, that is, of the bosses, entrepreneurs, founders, staff, workers. There is a lot of unwillingness and real intent to change. But at the same time, they are reluctant to hire talents or changemakers into a company because that means giving up some of the ownership for those decisions that they have to make. So, how do we get them to digitise? In a sense, are we prepared to allow some of them to consolidate or even fade away if they do not go digital?”
“We have tight regulations on financial institutions in their lending platforms and also non-bank lending platforms in regulating them, making sure that they do not go beyond their means to lend out to those that they cannot do the Know Your Customer survey or assess their credit readiness. But for retailers, many of them go into the credit scheme where the consumers could live beyond their means, will purchase it and pay based on instalments. We have seen many of these through our residents when we meet them during the Meet-the-People Sessions when they come forward after having encountered problems with all their purchases – whatever they have bought, have to be repossessed. So, can the Government share if there are any regulations to tighten this, so that retailers may not over-extend their credit and consumers will not run into a risk? Consumer Matters”
“Firstly, we have to identify the nature of the product, services or the business model, make changes to those. It may not necessarily be automation or digitalisation. Secondly, it is talent and functional skills and these talent and functional skills, if these are developed with depth, they can build up the company. Third, it is leadership and mainly the mindset change of the leader. We have to be able to foster the partnerships between the big and the small companies. But it is not just by size, although size does matter. What is more important is to match and complement the knowledge or skills of these companies. The creativity and innovation of each company complement the resources and strengths of the other company, if we draw them together into a partnership, that will strengthen them as a company as a whole. In coming to the new year 2019, we are looking at the future, and there will be a fair bit of consolidation for some of the sectors, especially with the concern on DRC. Everybody is thinking about what to do with their own companies and their own sectors. So, it is important for us to look at some of the consolidation possibilities and combining the companies together and making them partner together. 12.30 pm What are the Ministry's plans moving forward to strengthen the companies? What are the Ministry's plans and initiatives moving forward to foster the partnership of these companies? Consumer There are ways for consumers when they purchase products to be able to buy beyond their means of their income or income stream. They go into a hire purchase or instalment payment scheme, and that creates some problems.”
“Sir, for several years since the Productivity and Innovation Credit started, to ITM, EDG and several other schemes, there has been a focused effort to provide resources for our local companies to be strengthened and be more competitive. Also, with the merging of International Enterprise (IE) Singapore and the Standards, Productivity and Innovation Board (SPRING) Singapore to form ESG, there is additional support and very focused effort through direct Government help to support these companies. The objective of strengthening our companies is to prepare them for the future and to compete effectively overseas. For several years, we have been asking them to transform to digitalise, to automate, but it is difficult for some of the companies, especially those in the services sector. I have recently visited companies which deal in flower arrangements and packaging of flower gifts as well as small businesses that deal with preparing "chwee kueh" and other local food. I wonder how they can digitise, and they were asking me, "Since you have been in business, how do we digitise some of these processes when we have a winning formula here using a lot of labour?" For some companies, they may not be able to transform and look beyond what they already have. It is difficult for them to scale as well. But we should continue to push companies to continue to develop some ideas on how to automate the processes and also to develop their IP. For many years, we have depended on the MNCs that are in Singapore and we form a large scale of local companies which are mainly suppliers who have not developed their own IP or their own branding that can scale them up for going overseas. I see a few aspects as well as potential for the companies to develop.”
“I believe there are three aspects of transformation that will impact the workers directly. First, the job redesign, change in the process, change in the scope of the job. Second, job shift, the job itself is no longer available and they have to change sectors. Changing sectors also requires a mindset shift. Thirdly, job displacement, that is, when the job they had is absolutely obsolete and there is no way the workers can find any other jobs with the current skillset or even upgrading some of the skillsets to the next level. Of course, we can say it is still a mindset shift and they are unwilling to change. But how can we help these workers, how can we help these employees, especially when those whose companies are undergoing transformation change to a great level? Higher Productivity of Older Workers”
“We have 24 Free Trade Agreements (FTAs) and Economic Partnership Agreements with 36 partners, including the recent European Union (EU)-Singapore FTA (EUSFTA). So many businesses, unfortunately, are unaware of what advantages these agreements bring to their businesses, especially those smaller local enterprises. FTAs are an effective platform to encourage internationalisation of companies. However, it is unclear if any companies are tapping on it. FTAs should also enable the efficient flow of trade volumes through technology and connectivity. There is also a need to review FTAs which may not be meeting the original objectives or did not impact the trade flows, the bilateral trades of the two countries or the region. It is also important to develop such relationships and build up new FTAs with emerging markets and countries. However, we should not jump ahead of the capacities of our local companies when building up or developing these FTAs because it may lead them to disappointment and, worse, great losses to the company. Does the Ministry have any quantifiable indicators that measure the impact of these different FTAs, for example, the number of companies benefiting from it? And what can be done to connect our local companies to these platforms that the FTAs can potentially help them? Industry Transformation Maps' Impact on Workers With the rollout of ITMs for 23 sectors, the focus has been on strengthening companies by transforming them. Transformation also meant changes in processes, business models and strategies. This will certainly impact employees at all levels within the companies that are undergoing transformation or change. There will be resistance to the change, and ITMs may not reach the level of success that would make a difference or what is expected.”
“Mr Chairman, Sir, though we achieved 3.2% gross domestic product (GDP) growth for 2018, which was actually lower than 2017 at 3.9%, there is a concern that we have achieved the 2018 growth through a declining quarter-to-quarter. The usual peak season at the end of 2018 did not happen for some of the sectors. Into 2019, there are many uncertainties. Based on the feedback and survey of small and medium enterprises (SMEs) by the different chambers of commerce, there is some pessimism. But with a forecast of 1.5% to 3.5% for growth this year, this range is only of moderate growth. Our economy is still dependent on manufacturing. The services sector is maintaining its growth trend. Manufacturing, being a pillar of our economy, over-reliance on this sector is a concern unless the manufacturing sector transforms itself to a higher value-add. As many local businesses are concerned with 2019, they harbour some of the hopes and dreams to go overseas. But what are the plans the Government has to implement a higher range of growth for the forecast, as well as strengthening the enterprises? Though I believe there is some investment sense in not putting all our eggs in one basket in all sectors, we have to be selective with our limited resources. What are the specific sectors that the Government may want to look at to help uplift the growth to the higher range of our forecast? 12.00 pm ASEAN Opportunities for Businesses”
“We have shared our vision to become a Smart Nation and there have been announcements and programmes implemented. And through Smart Nation, there are many opportunities we can help to liven all the startups and also local businesses. There is a high expectation for a Smart Nation project to bring to businesses efficiency, effectiveness as well as business opportunities, especially in the tech business community. However, instead of a growing interest thus far, there seems to be a lesser anticipation and excitement now about the projects and many have seen that the opportunities that they anticipated were not coming through. So, may I know whether the Ministry or the Prime Minister's Office (PMO) could update on what is the impact on the businesses so far in terms of opportunities as well as in doing business within the Smart Nation project? There are many projects that the private sector has embarked on, especially the tech businesses. We should be able to tap on these startups or companies that develop these technologies, and especially when they have developed advanced state-of-the-art developments in AI, machine learning or automation. GovTech does not need to set up another group or another committee to redevelop or reinvent the wheel. It could partner these companies to go into a trial and test process. And many of these technologies have been tested by the market. Do consider them before setting up another major project within GovTech or within the Government. Work with these companies out there. They can offer good help and better help. Could PMO update the business community what are the initiatives available through the Smart Nation project and what are the opportunities that will be available in future.”
“The Government and private sector must work together, come together to help to build this environment and a culture with a vibrant ecosystem, enhance the platforms for people to start and offer equal opportunities to startups, not just the first-time startups, but serial entrepreneurs as well – those who have failed first time, failed second time and trying it again. Allow more of them to bid for public sector projects and give them a chance to have a go at it. This, in turn, will encourage entrepreneurial dare, thinking and doing. The Singapore economy needs a new vision, a new direction. I support the initiatives of Minister Chan Chun Sing in developing Singapore into a data hub, attracting a good mix of talent, focusing on strengthening the local sector to become globally competitive and relevant. We have to know where we are going and how to get there. It has to be a new direction that can sustain us for the next decade and we need a sense of where we are every step of the way. But we cannot manage what we cannot measure. We probably need new indicators to measure economic growth and success. And, what does that mean? We need to better reflect how our economy and local businesses are doing, and whether growth and wealth that we have created have really benefited people’s lives, jobs and wages. One thing is for sure: what brought us here can no longer take us further. Let us move forward with a new vision, direction and strategy. With that, I support the Motion. 3.48 pm”
“In Singapore, the startup environment has certainly progressed – Launchpad, Block 71 and many, many other pockets of development in Singapore. We see many more Singaporeans launching their new businesses, especially in the tech area. But the reality of setting up a business is that it is not easy and failures are more than successes. Startups achieve both social and economic objectives so we have to continue to support them. They can influence a culture; inject new hope and new life into the economy. We can focus on growing startups but create the ecosystem and environment, not just giving out grants or subsidies; create opportunities for them. First, let us be optimistic about startups. Being optimistic about startups means giving them hope, giving them encouragement but not unrealistic to think that the startups in Singapore can become unicorns. Most of them would not become unicorns with the size of Singapore's market. Our market has its limitations. We can start and develop our solutions here. It is a springboard but you definitely have to launch your business or startup almost immediately overseas – markets beyond Singapore – to commercialise what you have developed with a chance to succeed or survive. Secondly, in this digital economy, we have to learn as quickly as possible what our community needs. It requires a culture that encourages people to try things and test things and fail. And when it comes to launching a product, imperfect is perfect – we cannot wait until perfection. And that is business. Every entrepreneur walks this fine line between what is fixable and what is fatal. The important thing is that they push their experimentation to the limit but we need to embrace failure for success.”
“As I have mentioned, transformation is either innovation, consolidation or expansion. And once it is clear whether a company or a sector requires either of the different stages, Government support would then be holistic. If we leave it to the market, there will be inefficiencies. ESG should take a more active role in this process to strengthen companies and help them internationalise or consolidate. It should take a more proactive approach than to just leave it to the trade associations. Trade associations are a helpful vehicle but trade associations have their limitations. That said, I would also urge trade associations to step forward, especially those which have received help, but, sometimes what they can do is far from what we expect. They will do their best but there are limitations and there are different interests. ESG should continue to work hand-in-hand with them, take a more proactive role. Trade associations must continue to play their part but make an effort to galvanise the industry, the sector, make that a priority, beyond just asking for grants or subsidies. As for grants and schemes, we can streamline the grants and schemes across different Ministries. I am sure between MOM, MCI and MTI or other Ministries that offer grants or subsidies to businesses, there are many of them out there, you can streamline them. Maybe it should be streamlined under the ITM for each sector. That way, there is a better chance for businesses to gain a better understanding, awareness and access to these grants and schemes with ease, and the effect and the impact can be more widespread. I also believe that the startup environment is important because startups, although they are young companies, inject new life into the economy.”
“So, the ITM strategy is not just about skills nor innovation; it may also be facilitating this consolidation, having a broad view about what the sector should do and, also in this consolidation process, transition to workforce within the sector, change their jobs, you can skill them, skill them differently so they have jobs all across different sectors. Some sectors may slow down in order to scale quickly and we should facilitate that. Sometimes, when a sector shrinks, it may not be such a bad thing to happen so that they can come back stronger; and stronger companies can rise up. Let us also clear barriers to business. There are some low-hanging fruits: administrative costs. Administratively, you cannot deny some of the daily issues businesses face. The process that companies have to deal with when applying for support and grants, we need to streamline that a lot further. The administrative fees across different departments that add to the business cost; maybe we should review that. Let us help to review and, if possible, reduce them. I believe what we can do is not to add to the burden of the businesses. Small or big businesses, they do create jobs. That is why Enterprise Singapore (ESG) plays a very critical role. Now that it is a one-stop agency for businesses, I hope that the ease of access increases. Hopefully, the integration is successful and they do not behave like International Enterprise Singapore and SPRING again but, really, as one, one-stop shop. ESG needs to identify industries that require consolidation, expansion or innovation but not all industries should be managed in the same manner. Not all 23 sectors that have launched their ITMs should be managed in the same mode.”
“Where do I get the contracts?" So, yes, innovation is critical. But, more importantly is commercialising or realising the gains of what they have innovated. Companies will have to compete internationally but there will be some that can never be competing internationally or go beyond the shores of Singapore, they will fall by the wayside. So, maybe ITMs have to go beyond work skills development or company capability development into opening up more paths and business opportunities. That calls for more effective trade missions and also a more successful way to hunt as a pack. As the Government Parliamentary Committee (GPC) Chairman for Trade and Industry, Mr Liang Eng Hwa mentioned we need to hunt as a pack. But our success rate of hunting as a pack needs to be improved, too. We also have to give local companies a chance to work on public sector projects and contracts. And with real business volume and in a tight labour situation, we can rest assured that the companies will have to become productive, to innovate and to transform. Businesses need to play its own part because the responsibility cannot be shouldered by the Government alone. They have to make changes and take steps. Some will succeed, many would not. In that sense, we will see business closures and that is part and parcel of the process to help the sector become stronger. And when there are business closures, there is consolidation. It is part and parcel of building a stronger industry.”
“But it must impact and we have to get it right; we have to get the broad directions right. It has to go through the trials and tribulations but it will never be good enough. So, we have to keep reviewing it, keep refining it. Many of our policies and programmes are well-intentioned. They have the right objectives but, at implementation, we need to improve a lot more. For example, the objectives of the Industry Transformation Map, are good. I think it will help if we achieve the outcome that is desired but, somehow, the implementation needs to be improved. The Industry Transformation Map (ITM) plans have not been widespread throughout the different sectors of industry. The impact is felt at some level but not felt throughout. The broad direction was that we expect the industry to change but that needs a good number of enterprises to undergo radical changes. Radical changes include business model change, workforce skills upgrade, product redesign, internationalisation, so that the sector can become more productive and competitive. You need critical mass for the whole sector to transform and to change. But in every sector, businesses are at their different phases of development. I look at it in three different broad categories in these phases of development: innovation, consolidation and expansion. Within that, they are of different sizes, shapes, forms and different phases and they are built upon different types of structures. ITM within a sector cannot be a one size fits all. ITM can also not be about disbursing grants or transformation through technology. Not all businesses can be transformed through technology. So, in reality, many of the businesses will tell you? "Before I transform, before I invest in innovation, where is the business volume?”
“Mr Speaker, Sir, I rise in support of the Motion. I agree with the President that we need to develop a vibrant economy by strengthening local companies, supporting startups and investing in technology. I also agree that we need to go through trials and tribulations before we reach that stage. I learnt business the hard way because it is so dynamic. I can never get it right all the way and I still do not get it right all the time. I left Singapore in 1997, I lived overseas trying to do business in north Asia, Hong Kong, China, Thailand and India. And I was in the logistics business. I tried to sell warehouse space, but then that did not give me any winnings or contracts. So, I learnt to sell solutions. I realised that the Internet was buzzing and progressing really well. So, I learnt to develop a software. And I kept changing the software and refining it by listening to the customers, make more changes, but I never changed what my core solutions were. After about nearly nine months without any business, I got my first contract, a very small contract. But it taught me a lesson that nothing is perfect and, if you try to find the perfection, you can never get there. So, that is how business succeeds. Business succeeds in its imperfection: finding gaps, filling them and succeed in its imperfection. This needs trial and error and refining. But that also taught me that you cannot have one size fits all for all customers. You just look at our coffee shops and the coffee. It has got kopi c kosong, kopi, kopi o siu tai, lots to choose from. Every customer has different preferences. So, business succeeds not because it is perfect but because it is imperfect or because it impacts. Our policies and programmes will never be perfect.”
“Mr Chairman, for many SMEs, going digital is a very difficult decision to make but it is a very critical one. For some, they look at it as a disruption but, for others who are successful, it is an opportunity. The SMEs Go Digital Programme that is under MCI has certainly made some headway but there are more that we can do. SMEs can implement information technology (IT) in two different ways: (a) internal, which is a process change in order to become leaner and save on manpower and become more cost-efficient; (b) external, which is to really change their business model, so that their products and services can be sold or marketed more efficiently. It is an important part for them to shift their mindset, not just on process change. I would like to ask the Ministry how we can help these SMEs, especially the smaller ones that are traditional businesses, to reap the benefits of digitisation and, secondly, how such programmes can be enhanced.”
“The LEAD programme has provided resources for many TACs to upgrade their secretariat services and general services, as well as implementing several different schemes for the Government and the Ministry. TACs are an integral part of transforming the different sectors. To me, they are actually the catalysts for things, like the ITMs, to effect the change in the sector itself. Although the membership base of many of these TACs is not representative of the entire sector, most of the major companies, I believe, are members of these sectoral or general trade associations. But we need to make sure that whatever schemes that the trade associations implement and the LEAD grants that are given to trade associations are effectively used and allocated. We have to make sure that the KPIs set for them are at the level where the impact is felt at the sector level and also at the enterprise level. However, they will need greater support as well from the Ministry, especially when we have the ITMs coming on board for so many different sectors. With the ESG coming into place, with the integration of SPRING Singapore and IE Singapore, could I ask the Minister to share how successful LEAD has been and, under ESG as the administrator, how they can continue to work effectively for the trade associations as well as the chambers? Taking Advantage of Tech Disruption”
“Along with the grant portal, and ESG as the administrator, we believe that this will help streamline many of the processes. Could the Minister elaborate how such integration could benefit companies and review examples of how it could help? Partnerships for Capability Transformation (PACT) Many large companies or MNCs, both foreign and local, have set up their base in Singapore. And this not only provides jobs but opportunities to grow our local SMEs through partnership with the large companies. And since the setup of PACT, there have been examples of such partnerships in the areas of innovation, capability, upgrading and knowledge transfer. Most importantly, the scheme provides long-term business opportunities for the SMEs with the larger companies. I believe that the programme can still expand and be enhanced to support more partnerships across different sectors. But these sectors have to be selective. Not all sectors you could actually enhance and some partnerships cannot be forced. Some of these large companies can also help the SMEs, not just by providing volume of business but consultancy, for example, in digital marketing or branding. And such public relations branding and digital marketing are somehow knowledge that is lacking in many of our SMEs. It is not in the area of just volumes of business, but it is in the area of services, too. It is good to know that the different partnership schemes will now be streamlined and integrated into one. Could the Minister share with us how PACT has been performing so far and how would the integration benefit the companies in future? Business Succession Planning”
“And with ESG, many of these grants and schemes will be integrated into one single grant. However, this has also caused uncertainty as to whether the different types of grants that cover different gaps will actually be covered by a single grant. For example, there are different grants that are available today, such as the automation grant under CDG. The aim is to automate processes but there are issues as well. The data has shown that equipment manufacturers made up the majority of the payments. So, could the Minister share how SMEs have actually benefited from this grant and how SMEs from other areas have also benefited from this grant, and whether productivity in these respective companies has actually increased? There is also a grey area where equipment manufacturers could potentially push for more sales and use the grant to upsell their equipment. So, these are the processes that should be tightened. Hopefully, with the setting up of EDG, and integrating it with the different grants of CDG and GCP is a step in the right direction to be more stringent in the process of tightening this. Submission of claims has also been an issue for some. Submission of claim for a grant can only be made after a project is completed. We would like to request that it will be helpful to some of the SMEs that once the grant is approved, that there will be an initial advance payment to the SMEs to help them. However, if the project cannot be seen through to completion by the SMEs, a penalty could be considered to be in place, if they fail to meet the required milestones. So, integrating all the grants into a single grant for ease of access and application is the step in the right direction. We believe that this will develop the capabilities of the companies better and more effectively.”
“Yes. Mr Chairman, forming ESG has been good news for the business sector, and many TACs and businesses have called for a single agency to focus on supporting local businesses. We have nearly 200,000 SMEs and they are at different stages of growth, ranging from startups to micro-enterprises, medium- to large-sized companies. It will not be easy and impossible to assist all of them. 5.00 pm The first principle of business is to be self-reliant and build a business that is commercially viable that there is demand for your products or services. Companies should actually manage your expectations when it comes to grants and schemes and expectation of a single agency like ESG. Competitiveness is as important as self-sufficiency and both form the essence of what we call the first principles. We have to find a position of not too little and not too much, and that should form the approach; a middle way for economic planners and companies. This middle way between extravagance and want implies a view of the balance sheet that looks for long-term profitability rather than short-term success. And it should be closely linked to the idea of self-sufficiency. ESG should then play a facilitating role to help kickstart ventures, support international growth as a focus, and develop capabilities for the companies and strengthen them to compete. It should be less about grants than the need to change for the enterprise to scale and grow. These are what will really help the companies. Could the Minister share what ESG would do for enterprises at different growth stages and also ideas on internationalising Singapore's SMEs? Enterprise Development Grant The Government has been assisting companies, especially SMEs, at their different stages of development through grants and schemes.”
“I have three cuts. So, I can take them together?”
“Like many of my male colleagues in this House, we have fond memories of NS, and NS is the rite of passage for all Singaporean males, regardless of background, and only in NS we get to mix around with peers of different backgrounds, different status and come together and work together. So, besides preparing our young people, our young men, for operations, it also has an important role in enhancing social cohesion. NS, in that sense, is an integral part of our society. And what is SAF doing to build more common experiences and improve cohesion between NSFs from different walks of life during their service? NS Effectiveness”
“The Finance Minister has announced the Budget growth cap cut to 0.3 times GDP growth in this year's Budget, following on from the 2% downward adjustment to the budget caps of Ministries and Organs of State. This highlights the current fiscal climate prudence as we face the "new normal" of slower growth rates. At the same time, we have witnessed an increase in the variety and danger of non-conventional threats to Singapore's security, in particular, in the cyber domain and by terrorists. MINDEF and SAF have invested resources to build our capabilities in these fields in the last few years. Given the increasingly tight fiscal climate and the widening spectrum of threats that MINDEF and SAF now has to defend against, some worry that we may spread our defence dollars too thin. To fund the development of capabilities in emerging fields, MINDEF would likely have to exercise more prudence and possibly undertake some cost-cutting measures. Could MINDEF elaborate on the specific prudence and cost-cutting measures that it is undertaking? Future of SAF”