TRANSFORMING - spring.enterprisesg.gov.sg · meals. These ready-to-eat meals, which include Nasi Goreng Istimewa and Seafood Hor Fun, are prepared by culinary specialists using fresh

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TRANSFORMING ENTERPRISES FOR THE FUTURE ECONOMY2016/17 ANNUAL REPORT

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Contents

ORGANISATION CHART 2

CHAIRMAN & CHIEF EXECUTIVE’S MESSAGE 3

BOARD OF DIRECTORS & 4

EXECUTIVE MANAGEMENT TEAM

TRANSFORMING KEY INDUSTRIES 6

FOR SUSTAINABLE GROWTH

STRENGTHENING THE ECOSYSTEM 16

FOR HIGH-GROWTH STARTUPS

LEVERAGING PARTNERSHIPS TO EXPAND 24

THE SUPPORT NETWORK FOR SMES

BUILDING TRUST AND CONSUMER CONFIDENCE 32

IN THE SINGAPORE BRAND

ORGANISATIONAL DEVELOPMENT 40

LOOKING FORWARD 42

CONTACTS 44

MISSION

To help Singapore enterprises grow and to build trust in Singapore products and services

VISION

Global Singapore Enterprises

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Chairman & Chief Executive’s Message

2016 was a challenging year. Despite this, Singapore companies have made effort to transform and restructure their businesses, and build capabilities to ready themselves for an uplift in the economy. Some 16,000 enterprises were supported by SPRING to embark on about 16,700 projects. When these projects are completed, we expect them to contribute $7.8 billion of value-add to the economy. SPRING’s key focus was on transforming key industries for sustainable growth. Industry Transformation Maps (ITMs) were developed and rolled out for the Retail, Food Services, and Food Manufacturing industries. SPRING also supported the development of ITMs for the Logistics and Precision Engineering industries led by other agencies. The aim of these ITMs is to drive productivity and innovation, deepen skills and promote internationalisation. SPRING’s investment in developing an infrastructure to nurture high-growth startups has seen some success. Today, Singapore is recognised as having one of the top 10 startup ecosystems in the world in the Start-up Ecosystem Ranking 2015 report released by Compass[1]. We will continue to build a vibrant and conducive ecosystem so that startups can grow and flourish. All this has been made possible with active support of our partners, such as Trade Associations and Chambers, Institutes of Higher Learning and financial institutions. In the year to come, SPRING will continue to drive industry transformation, scale up promising SMEs, and strengthen Singapore’s position as a startup hub, while enhancing the enterprise ecosystem. We will deepen our collaboration with partners to support our SMEs, develop human capital as a key enabler and leverage quality and excellence to support growth.

[1] Based on the Start-up Ecosystem Ranking 2015 report released by Compass, a research platform that collects and analyses data about startups, entrepreneurs, industries and investors in local startup communities. It works with over 200 global partners such as Steve Blank, Global Entrepreneurship Network, CrunchBase etc. to study global startup ecosystems.

Mr Philip YeoChairman

Mr Poon Hong YuenChief Executive

CORPORATE DEVELOPMENT

Assistant Chief Executive,MS LEUNG WAI LING

GROWTH ENTERPRISE FUND PTE LTD

General Manager, MR NG SONG HOW

ORGANISATION EXCELLENCE

Executive Director,MS CHRISTOPHANE FOO

INTERNAL AUDIT &INVESTIGATIONS

Director, MS TAY LAY KHIM

INDUSTRY & ENTERPRISE DEVELOPMENT

Deputy Chief Executive,MR TED TAN

QUALITY & EXCELLENCEAssistant Chief Executive,MS CHOY SAUW KOOK

CAPABILITIES & PARTNERSHIP

Assistant Chief Executive,MS CHEW MOK LEE

FOODDirector,

MS TONG SHUH LAN

LIFESTYLEDirector,

MS CHEONG LAI PENG

BUSINESS SERVICESDirector,

MR JONATHAN LIM

MANUFACTURING & ENGINEERING 1

Director, MR JOHN LU


Director, MR HO CHI BAO


Director, MR JOHNNY TEO

INVESTMENTSGroup Director,

MR EDWIN CHOW

Director, MR JOHNNY TEO

CAPABILITIES DEVELOPMENT

Director, MS YEO MEOW LING

Deputy Director, MS CHARMIAN CHOONG

ENTERPRISES SERVICES &

PARTNERSHIPSDirector,

MS SAMANTHA SUDeputy Director, MS KAY SUGINO

FINANCING & INCENTIVES

MANAGEMENTDirector,

MR SEAN SEEDeputy Director,

MR DENNIS KUAH

HUMAN CAPITALDeputy Director, MS TAN KAIXIN

CORPORATE COMMUNICATIONS

Director, MS ALETHEA NAH

FINANCE &ADMINISTRATION

Deputy Director, MR JOSEPH YEO

HUMAN RESOURCES & ORGANISATION DEVELOPMENT

Director, MR MATTHIAS GOH

INFORMATIONTECHNOLOGY

Director, MR WONG MING FAI

Chief ExecutiveMR POON HONG YUEN

Deputy Chief ExecutiveMR TED TAN

Assistant Chief ExecutiveMS CHOY SAUW KOOK

Assistant Chief ExecutiveMS CHEW MOK LEE

Assistant Chief ExecutiveMS LEUNG WAI LING

CHIEF EXECUTIVE’S OFFICE

SPRING INVESTMENTSAssistant Chief Executive,

MS LEUNG WAI LING

PLANNINGDirector,

MR GEOFFREY YEO

INDUSTRY & ENTERPRISE 2Group Director,

MR EDWIN CHOW

INDUSTRY & ENTERPRISE 1Group Director,

MRS KEE AI NAH

INNOVATION, INTERNATIONALISATION & ENTREPRENEURSHIP

Group Director, MRS KEE AI NAHGroup Director,

MR EDWIN CHOW

Director, MR JONATHAN LIM

Deputy Director, MR TAUFIK AHMED

FAROOCKDeputy Director,

MS LIM SEOW HUI

Group Director,MR SIM CHOON SIONG

Group Director, MR SIMON LIM

Executive Director, MS CHRISTOPHANE FOO

SPRING SEEDS CAPITAL PTE LTD

General Manager, MR JOHNNY TEO

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ACCREDITATIONDirector,

MS CHANG KWEI FERN

CONSUMER PROTECTION, WEIGHTS

& MEASURESDirector,

MR JACK TENG

POLICY & PROMOTIONDirector,

MS LOH SOI MIN

STANDARDSDirector,

MR CHEONG TAK LEONGDeputy Director,

MR ADRIAN GOH

BUSINESS & SERVICE EXCELLENCE

Director, MR PATRICK LIMDeputy Director,

MR WONG AN WEI

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Mr Philip YeoChairman,SPRING Singapore

Board of Directors(AS AT 31 MARCH 2017)

Board Members

Mr Piyush GuptaDeputy Chairman,SPRING Singapore

Chief Executive Officer,DBS Group Holdings Ltd

Mr Andrew KwanGroup Managing Director, Commonwealth Capital Pte Ltd

Mr Mike BookerPartner, Bain & Company SE Asia, Inc

Mr Christopher WongHead of AssuranceErnst & Young LLP

Mr Renny YeoIndependent Director OEL (Holdings) Ltd

Mr Peter HoChief Executive OfficerHOPE Technik Pte Ltd

Ms Jeanne LiewPrincipal & Chief Executive OfficerNanyang Polytechnic

Mr Lim Der ShingCo-FounderJobsCentral Group

Mr Lim Kok KiangAssistant Managing Director Cluster Group EngineeringEconomic Development Board

Mr Ng Chee Peng Chief Executive OfficerCentral Provident Fund Board

Major General Melvyn Ong Su KiatChief of ArmyMinistry of Defence

Board Members

Mr Poon Hong YuenChief Executive OfficerSPRING Singapore

Mr Sim Giok LakChairman & Managing DirectorZicom Group Limited

Mr Satvinder SinghAssistant Chief Executive OfficerInternational Enterprise Singapore

Mr Ted TanDeputy Chief Executive

Ms Choy Sauw KookAssistant Chief Executive

Ms Chew Mok LeeAssistant Chief Executive

Ms Leung Wai LingAssistant Chief Executive

Mrs Kee Ai NahGroup Director,Industry & Enterprise 1

Mr Simon LimGroup Director,Capabilities & Partnership

Mr Edwin ChowGroup Director, Industry & Enterprise 2

Ms Christophane FooExecutive Director Human Capital & Organisation Excellence

Mr Saktiandi SupaatExecutive Vice PresidentHead of FX ResearchGlobal Markets, Global BankingMaybank Group

Executive Management Team

Mr Poon Hong YuenChief Executive

Mr Sim Choon SiongGroup Director,Quality & Standards

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TRANSFORMING KEY INDUSTRIES FOR SUSTAINABLE GROWTH

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Transforming key industries for sustainable growth

In today’s challenging and fast-evolving industry landscape, local enterprises must transform their businesses in order to thrive. In Budget 2016, it was announced that Industry Transformation Maps (ITMs) will be rolled out for 23 sectors to support companies in their efforts to boost innovation and productivity, grow their businesses in overseas markets, and upskill workers to take on quality jobs that are created. We launched ITMs for the Food Services, Food Manufacturing and Retail industries last year. We also worked with other agencies on ITMs for the Logistics and Precision Engineering industries.

Under the Food Services ITM, one key focus in 2016 was the drive for innovation and manpower-lean business formats. Food companies were encouraged to explore ways to meet the needs of consumers in more resource-efficient ways. These included the development and sale of ready-to-eat meals and implementation of food vending and self-help machines. The aim is to drive productivity through the mass adoption of technology. Workers can also be retrained to take on more value-added roles.

Companies were helped with listing of over 130 products on Tmall to ride the digital wave and kick-start overseas expansion

FOOD MANUFACTURING

Food innovation projects supported through Food Innovation & Resource Centre

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Pixel Automation

Our proprietary modular manufacturing solution, PixCells, will allow manufacturers to use the same line to produce different products, or mass-produce products with customised features. This revolutionary design provides our clients the flexibility and ability to bring to market their products in a shorter time. We developed this in-house over the course of a year with support from SPRING’s Capability Development Grant. It will be a great enabler of the Industry 4.0 smart manufacturing approach.

Mr Premarajan PonnambathManaging Director

We also identified internationalisation as a key strategy for food manufacturers to scale and expand. Beyond leveraging Singapore’s reputation for excellent quality and food safety, we also encourage companies to develop innovative products based on lifestyle and health trends to better compete in the global arena.

To that end, the Food Manufacturing ITM was developed with the vision of establishing Singapore as Asia’s leading food and nutrition hub.

Similarly, the Retail ITM aims to create a vibrant retail industry supported by a professional and skilled workforce, comprising highly productive retailers and local brand owners with global footprints. We encouraged the adoption of an omni-channel strategy for retailers to reach out and support consumers more effectively across both online and offline channels.

As part of our support for the Logistics and Precision Engineering ITMs, we worked to improve productivity through the deployment of integrated logistics systems, and helped boost the adoption of robotics and automation. The Forefront Additive Manufacturing Engineering Centre was also launched to transform the Precision Engineering sector through additive manufacturing.

FOOD SERVICES

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Outlets adopted kitchen automation386 Establishments

adopted front-end digitalisation

500Vending machine café launched at Sengkang

1st

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While innovation will help propel businesses into the future, Human Capital remains a key component of business growth. We helped SMEs strengthen their HR capabilities by identifying gaps and improving HR practices as well as fostering staff learning and development through initiatives like the HR Diagnostic Tool and the SkillsFuture SME Mentors Programme. Access to and attraction of talent were also made possible through internship programmes with the Institutes of Higher Learning.

PRECISION ENGINEERING

Robotics and automation projects supported

Proprietary products and technology development supported

HR capabilities projects supported

HUMAN CAPITAL DEVELOPMENT

SMEs adopted HR Diagnostic Tool

Yang Kee Logistics

Technology is a key enabler for our growth. With the support of SPRING and other partners, our planned Yang Kee Integrated Logistics Hub will include the world’s first framed multi-storey automated container depot that addresses the productivity issues the traditional logistics industry faces. This new facility with smart technology and new workflow will increase operational efficiency, and raise our overall competitiveness.

Mr Ken KohGroup CEO

Woo & Woo Precision Industries

It is important that we groom the next generation of leaders to ensure that our business continues uninterrupted. With support of SPRING’s Capability Development Grant, we were able to improve our compensation and benefit scheme to attract local talent. We have also put in place a comprehensive performance appraisal system, and staff learning and development programme. Staff performance has improved and our employer branding has also been elevated to attract and retain local talent.

Mr Jayern WooBusiness Development Director


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18Internships supported, helping 270 SMEs access talent

1,000

Retailers raised their capabilities in e-commerce and digital marketing

Supermarkets implemented self-checkouts (40% of total stores)

110

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RETAIL

Trucks from 80 companies adopted Electronic Container Trucking System (eCTS) under Container Depot and Logistics Association (Singapore) LEAD Programme in four months

LOGISTICS

900

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JR Group

Launched in August 2016 at Block 320C Anchorvale Drive in Sengkang, JR Group’s VendCafé operates round the clock and dispenses a selection of hot, pre-packaged meals. These ready-to-eat meals, which include Nasi Goreng Istimewa and Seafood Hor Fun, are prepared by culinary specialists using fresh ingredients and quality produce in a central kitchen. JR Group’s food production and safety processes are certified to Hazard Analysis Critical Control Point (HACCP) and meet the ISO 22000 food safety management standard. These give consumers added confidence in the safety and quality of the meals.

With the manpower crunch and high staffing costs in the food and beverage industry, increasing productivity through an automated solution like the VendCafé is a step in the right direction. Besides professional chefs, a small team of delivery staff and technicians are required to manage more than 100 Chef-in-Box vending machines located in major hospitals, university campuses, army camps and offices.

JR Group tapped on SPRING’s Capability Development Grant to help defray part of the investment costs of piloting this innovative concept, and will be rolling out more Chef-in-Box VendCafés at residential and industrial sites by 2017.

Ugene Laboratory Services

An industrial microbiological testing laboratory established in 1997, Ugene Laboratory Services provides clients with vital quality checks for food products, traditional Chinese medicinal products, and water and environmental analysis. As demand for its services grew, it began to face manpower constraints and sought to develop technology that would help address the problem.

Using SPRING’s Capability Development Grant, the company developed a two-arm robot that could process food samples and conduct tests for contaminants and bacteria quickly and accurately.

The robotics solution has reduced the time needed per test by 50%, enabling the company to conduct 35% more tests with the same number of staff. Additionally, the robot has freed staff from manual and repetitive tasks, and enabled them to take on new value-added activities such as identifying bacteria and conducting hygiene audits.

The quick and high-quality testing enabled by robotics has instilled trust among its international and local clientele. It now aims to grow its testing business through an automation project in pathogen testing system, and expand its clientele with the increased capacity.


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Soo Kee Group

Soo Kee Group believes in reinventing itself constantly to meet customer needs. It uses 3D printing technology, developed with support from SPRING’s Capability Development Grant, to produce wax moulds of customised diamond jewellery. This has shortened the turnaround time for delivery of the customised jewellery to three days; in comparison to the conventional method of carving out a mould to create the jewellery which takes three weeks. The Group has seen an increase in productivity and improved the conversion rate of sales by 10%, as customers are more likely to buy after viewing the 3D model.

For its Love & Co. showrooms, the company partnered Sarine Technologies to provide a comprehensive digital report of light performance of individual diamonds to customers. The report offers additional data on the brilliance, sparkle, fire and light symmetry of a diamond. It also implemented a Customer Relationship Management system to connect with potential customers based on their product preferences and diamonds viewed in store, via customised emails or Short Message Service (SMS). As part of its diversification and internationalisation strategy, the company launched SK Bullion, a one-stop bullion service provider with both an online and retail store, that offers buying, selling and insured storage services for investment-grade gold, silver and other precious metals, last year. This allows customers to trade and buy bullion online with convenience, compared to traditional physical trading methods at banks.

PBA Group

Precision Bearings and Automation (PBA) Group was founded in 1987 as a bearings and mechanical components trading company. In 1999, the company began producing its own brand of linear motors and high precision modules for use in automation equipment. It then evolved to focus on designing and distributing entire solutions that incorporate its linear motors into automation equipment.

Recently, the company moved into the development of robotic platforms that can be applied to multiple industries. Supported by SPRING’s Capability Development Grant, PBA Group partnered the Agency for Science, Technology and Research’s Singapore Institute of Manufacturing Technology (A*STAR SIMTech) to develop a prototype of an Autonomous Industrial Vehicle (AIV) for cleanroom factory use. PBA Group’s AIV is able to move faster and navigate tight factory spaces, as compared to existing models. It also includes a fleet management system which controls and monitors multiple AIVs simultaneously, assigning tasks and averting collisions.

PBA Group expects its robotics platform to go global within the next five years. Its focus on research and development has attracted investment from Taiwanese multinational corporation Delta Electronics. The company has also moved into providing robotic solutions using its linear motors to support small factories.


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STRENGTHENING THE ECOSYSTEM FOR HIGH-GROWTH STARTUPS

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Strengthening the ecosystem for high-growth startups

Over the past decade, Singapore has witnessed significant progress in the startup ecosystem. The total number of startups has increased from 22,000 in 2003 to 48,000 in 2015. In particular, the number of startups in high-technology sectors rose from 1,700 to 4,800 during the same period.

In the Start-up Ecosystem Ranking 2015 report released by Compass[1], Singapore was recognised as having one of the top 10 startup ecosystems in the world . This is a result of continued efforts by SPRING and our public and private-sector partners to build a vibrant and conducive ecosystem for startups to form, grow and flourish.

In April 2016, we collaborated with Participating Financial Institutions to launch the Venture Debt programme, which provides local high-growth enterprises and innovative startups with an alternative financing option to support their expansion plans.

Structo

It is important for owners of local hardware startups to surround themselves with partners that support their vision — be it mentors, venture capitalists, private organisations, or public agencies. Obtaining an investment from partners like Wavemaker, who jointly invested in our Series A round, helps propel the business. But investment does not necessarily have to mean money. For Structo, the best results come from investors and advisors who spend time with us, dedicating hours to understanding the business and providing strategic advice.

Mr Huub van EsbroeckFounder

We also appointed seven sector-specific accelerators in May 2016 to incubate or co-invest in high-potential startups in the Advanced Manufacturing and Engineering and Clean Technology sectors. Besides providing financial support, these accelerators offer valued resources such as mentorship, connection to business networks, and advice to help startups shorten their learning curve and go-to-market.

Over the course of the year, 42 startups supported by SPRING, had received third-party financing. Our investment arm, SPRING SEEDS Capital (SSC), co-invested $10.2 million in 16 high-potential startups, catalysing private investments of $26 million. SSC manages the SPRING Startup Enterprise Development Scheme (SPRING SEEDS), an equity-based co-financing instrument that helps high-potential startups grow and break into new markets. This is managed under Startup SG Equity, a scheme which catalyses private-sector investment for startups through government equity co-investment. Under Startup SG Equity, SSC supports early-stage startups across a wide range of technology and industry domain areas.

Local high-growth enterprises and startups obtained financing under Venture Debt programme

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[1] Based on the Start-up Ecosystem Ranking 2015 report released by Compass, a research platform that collects and analyses data about startups, entrepreneurs, industries and investors in local startup communities. It works with over 200 global partners such as Steve Blank, Global Entrepreneurship Network, CrunchBase etc. to study global startup ecosystems.

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Startups that successfully raised funds in 2016 include Structo, a developer of 3D printing systems for dental applications; Smart Animal Husbandry Care, an agritech startup that has developed a monitoring solution for animal health and reproduction detection; Ascent Solutions, which provides electronic cargo tracking; SmartKarma, which owns and operates a digital marketplace that provides investment insight into Asian markets; and Whizpace, provider of TV White Space technology for long-range wireless communication and Internet of Things.


Sector-Specific Accelerators appointed

Startups received third-party financing7

SPRING SEEDS Capital co-invested $10.2 million in early-stage companies, catalysing private investments of $26 million

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Zimplistic

Disruptive deep technology innovation has long development cycles and a very high risk profile in the early years. Our journey would not have been possible without the timely support from ACE Startups and the Technology Enterprise Commercialisation Scheme from SPRING, which helped us develop some very key technologies that made Rotimatic possible. A world’s first fully automatic kitchen robot, the Rotimatic aims to revolutionise the way people make healthy flat bread. We started selling our first Rotimatic machine in 2016 locally and in the United States. To help us expand to more markets, we are raising another round of funding to scale up production.

Mr Rishi IsraniCEO & Co-Founder

Ascent Solutions

The SPRING Startup Enterprise Development Scheme enabled us to develop our electronic cargo tracking system. We have acquired customers in Africa and Indonesia, and are getting interest from retailers for our RFID technology. The benefits of support from SPRING went beyond just funding. It increased our credibility with overseas clients and helped boost our global image.

Mr Lim Chee KeanChief Executive Officer

$26 million

$10.2 million

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Biobot Surgical

Biobot Surgical had been looking to commercialise its iSR’obot Mona Lisa, a surgical robot used for prostate cancer biopsies that is known for its minimally invasive procedure, high accuracy and lower risk of infection. The product’s potential attracted Zicom Group as it was what the Group needed to move up the value chain from being a manufacturer to a product owner.

In 2010, Zicom Group invested close to $5 million in Biobot Surgical, which has since more than doubled. To ensure the success of the collaboration, it identified and employed new talents in the areas of robotics design, medical image processing, software development and clinical applications.

Biobot Surgical is an excellent example of how partnerships can take a startup to the bigger leagues. The iSR’obot Mona Lisa is now being used in top clinical centres around the world, including the University Hospital of Tuebingen in Germany and Epworth HealthCare Hospital in Australia. Distributors have also been appointed in key markets such as Europe, Southeast Asia and Australia to expand the product’s reach.

The next phase of expansion includes enabling the robot to deliver treatment for prostate cancer as well as distribution in new markets like the United States and China.

PatSnap

PatSnap provides a suite of intellectual property (IP) analysis tools to Fortune 500 research and development (R&D) teams.

This SPRING-supported homegrown startup expanded its business to the United Kingdom (UK) in 2013. It aims to expand its operations to Los Angeles in the United States (US) by the second quarter of 2017. Both markets make up 70% of PatSnap’s clientele. PatSnap also has offices in Suzhou, Shanghai and Beijing in China. Having offices in these countries enables the company to better serve its clients. In early 2017, the company also unveiled an R&D centre in Singapore to help increase its research capacity and focus on product innovation. Today, PatSnap has grown from 30 staff in 2012 to over 500 staff across Singapore, the UK, US, and China, and has experienced revenue growth year-on-year.


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LEVERAGING PARTNERSHIPS TO EXPAND THE SUPPORT NETWORK FOR SMES

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Leveraging partnerships to expand the support network for SMEs

Partners play an important role in the effort to help SMEs. To expand and strengthen the outreach to more companies, SPRING deepened our collaboration and engagement with industry partners. We worked with Participating Financial Institutions (PFIs) to provide additional financing options to help SMEs cope during challenging times.

The SME Working Capital Loan provides debt financing support for SMEs through PFIs. It helps SMEs manage cash flow issues and supports their growth and restructuring needs. In 2016, some 4,300 SMEs benefitted from the SME Working Capital Loan.

To help address the financing challenges faced by the Marine & Offshore Engineering (M&OE) industry, SPRING developed the Bridging Loan for M&OE companies in tandem with IE Singapore’s Internat ional isat ion Finance Scheme (IFS).

Anewtech Systems

Our Intelli-Signage was developed in-house with support from SPRING’s Collaborative Industry Projects (CIP). This digital signage solution combines a highly reliable touchscreen system, an Age and Gender Recognition System by A*STAR’s Institute for Infocomm Research, content design software, remote management and data analytics. It is currently used by retail, food & beverage, and convenience stores in Singapore, Malaysia and Vietnam. Businesses can expect cost savings for in-store expenses of at least 25% within three years, while reducing the time taken to push out a new marketing campaign by at least 25%.

Mr Terence TeoManaging Director

We also deepened our collaboration with Trade Associations and Chambers (TACs). Our Local Enterprise and Association Development (LEAD+) programme works to strengthen TACs’ internal competencies so that they can play a larger role in driving sector transformation. In 2016, six TACs were supported through LEAD+ to encourage more TAC-led Collaborative Industry Projects (CIPs), impacting 600 SMEs. Through these initiatives, SPRING aims to spur group-based upgrading efforts to benefit more SMEs.

The TACs are also our key partners in running the 12 island-wide SME Centres. In 2016, about 30,600 enterprises were provided with one-on-one business diagnosis and advisory services on improving productivity, hiring and training by our SME Centres.

Research institutes and Institutes of Higher Learning are also important partners that have helped SPRING reach out to SMEs. Centres of Innovation (COIs) which are located at polytechnics and research institutes help SMEs enhance their innovation capabilities. To help SMEs innovate and capture opportunities in the growing health supplements and traditional medicine market, SPRING, together with Temasek Polytechnic, launched the Centre of Innovation for Complementary Health Products (COI-CHP) last year. Some 370 SMEs embarked on 430 projects across the seven COIs in 2016.

New TAC-led Collaborative Industry Projects, impacting 600 SMEs5TACs supported

under LEAD+6

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As we move forward, research institutes and Institutes of Higher Learning will take on bigger roles in helping SMEs roll out ready-to-go technology (RTG) solutions under the Technology Adoption Programme (TAP). TAP will enable technology adoption at the enterprise and industry-level. Between July and December 2016, 373 SMEs adopted technology solutions under TAP.


d’Doubles

To help finance our expansion and capture growth markets in ASEAN, we tapped on SPRING’s SME Working Capital Loan. This helped us finance bigger projects and has significantly improved our business performance as suppliers and partners have more confidence in our ability to deliver and manage large-scale projects. In addition, we can now reach out to more customers as we build our online presence and step up our digital marketing efforts.

Ms Choo LuyunCo-Founder

ECOSOFTT

Through the JTC-SPRING Joint Grant Call, we were able to build on our innovations and further develop our sustainable technologies. We had the opportunity to test-bed our technologies for waste water recycling, the Water SMART Blue Building system at JTC Cleantech Park One. The system is now fully deployed at Cleantech Park One, and has attracted interest from potential customers. In addition to co-funding support, SPRING also connected us with potential customers and partners, which has enabled us to develop at a much quicker pace. Mr Marcus LimCo-Founder & Managing Director

SPRING and our affiliate, the Intellectual Property Intermediary (IPI) Singapore, helped SMEs access intellectual property, and support their development and commercialisation of innovative products and services. Through call-for-collaborations by government agencies like the Housing & Development Board and the National Environment Agency, eight SMEs secured projects for cleaning, smart car parking, odour elimination at waste bin centres and managing households’ energy usage. In addition, IPI facilitated some 22 successful technology transfer and R&D collaboration agreements in areas such as fuel cell technology, smart labels for cold chain logistics and wearable technology.

Enterprises engaged by SME Centres30,600 SMEs embarked on 430

projects across 7 COIs370 SMEs adopted technology solutions under TAP373SMEs obtained SME

Working Capital Loan4,300

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Workforce Advancement Federation

The Workforce Advancement Federation (WAF) supports SMEs in building a sustainable workforce. Under the Local Enterprise and Association Development programme, WAF spearheaded a productivity journey for SMEs in the design services, construction, MICE and hospitality sectors, to improve industry-wide practices through the adoption of technology.

The project involved the development of a customised software integrated with a hand-held 3D scanning device called the 3D-Scan Visualiser. Unlike current solutions, the 3D-Scan Visualiser can scan interior spaces and populate the scanned data almost instantly into 2D and 3D floor plans.

Within five months, over 40 SMEs adopted the solution. Companies that have used the 3D-Scan Visualiser experienced 50% gains in productivity and minimised human errors. The 3D-Scan Visualiser has also helped address the lack of workers with interior space measurement skills.

Hyphens Pharma

Hyphens Pharma is a specialty pharmaceuticals company engaged in the sale, distribution and market development of pharmaceutical products. Over the years, Hyphens Pharma has leveraged its reputable brand to become a major distributor of pharmaceutical products in the region. It has also expanded with a suite of innovative therapeutic products under its own brands like Ceradan® and Therapeutic Dermatologic FormulaTM.

It acquired Ocean Health in 2016 to expand its business into the complementary health products space. With SPRING’s support, the company is now collaborating with the COI-CHP at Temasek Polytechnic, to validate the efficacy of an innovative product that lowers the glycemic index of refined carbohydrates such as white rice when consumed with the product.

Hyphens Pharma is also working closely with research institutions and Institutes of Higher Learning to develop more new and innovative therapeutic products.


32 33

BUILDING TRUST AND CONSUMER CONFIDENCE IN THE SINGAPORE BRAND

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Building trust and consumer confidence in the Singapore brand

Quality & Standards (Q&S) has been a key factor behind Singapore’s economic success. Our Q&S infrastructure ensures that Singapore products and services meet international standards for quality and safety. This gives investors and consumers the confidence in our products and services, and helps local companies access new market opportunities and remain globally competitive. Moving forward, the vision for Q&S is to be a “Key Pillar of the Future Economy” to support innovation and emerging areas. It is also a key enabler underpinning the ITM strategies.

In 2016, 560 companies were supported in their standards adoption as well as business and service excellence projects. 108 standards were developed or reviewed to address the needs of the industry.

As the national standards body, SPRING participated in 257 International Organization for Standardization (ISO) and International Electrotechnical Commission (IEC) technical committees in 2016. Some of these committees were in emerging areas such as biotechnology, robots and robotic devices, and electro-technical aspects of smart cities.

Aalst Chocolate

Attaining internationally recognised certifications like FSSC 22000 has led to improved productivity, food security and business growth for our company. Quality control management and improved processes have enabled us to expand our production activities efficiently. Our production volume has doubled since 2008 to 30,000 million annually. Today, we have five brands and export 98% of our products to over 45 countries.

Ms Connie KwanCo-Founder & COO

In 2016, the Singapore Accreditation Council (SAC), supported by SPRING, granted 60 new accreditations, bringing the total number of accredited Conformity Assessment Bodies to 569. In the international arena, Singapore was active at various accreditation fora. As the Chair of the Pacific Accreditation Cooperation, we monitored developing trends, established mutual recognition arrangements and influenced conformity assessment practices to facilitate trade.

We also enhanced the internationally-benchmarked Business Excellence (BE) framework and repositioned the Singapore Quality Class as a single mark of excellence to help organisations adapt to the changing business landscape. Last year, 201 organisations achieved or renewed BE certifications after an assessment of their management practices and organisational performance.

SPRING’s role in regulation and enforcement helps to inspire confidence in Singapore’s products and services, safeguard consumers’ safety, help consumers get what they pay for, and protect them against unfair trade practices. We conducted 1,174 spot checks on retailers and suppliers to ensure compliance with safety requirements. We also checked 12,033 weighing and measuring instruments for trade use to ensure they were accurate.

SPRING was appointed the administrating agency of the amended Consumer Protection (Fair Trading) Act (CPFTA) in 2016. The amendments aim to provide greater consumer protection against persistently errant retailers, while ensuring Singapore remains an attractive retail and business destination.

Companies supported in standards adoption and business and service excellence projects

560

Standards developed or reviewed108 ISO/IEC committees

participated in257

36 37Building trust and consumer confidence in the Singapore brand

Highlights of key standards launched in 2016

We launched the world’s first national Technical Reference for Bunker Mass Flow Metering, which sets out clear requirements for measurement and system integrity. This provides a fair basis for custody transfer between bunker suppliers and buyers in Singapore. The mass flow metering system can help marine vessel operators save up to an estimated three hours per refuelling when compared to manual tank sounding

We also introduced a Technical Reference for Remote Vital Signs Monitoring to support smart healthcare technology. This standard aims to improve the usage of patient data collected by the remote vital signs monitoring services and their integration with the Electronic Medical Record and Patient’s Personal Health Record. To this end, TR 45 will help by improving the interoperability of patient data collected by various remote vital signs monitoring services and ease the development of innovative applications that utilise vital signs data collected by medical devices.

New accreditations granted60Organisations with

BE certifications201Spot checks conducted1,174Weighing and measuring

instruments checked12,033

In addition, we launched the world’s first standard to improve Last Mile Delivery efficiency, which paves the way for a more efficient e-commerce supply chain. TR46 helps e-commerce retailers and logistics service providers reduce integration costs by up to 70% and integration time by up to 75% in the last mile process by eliminating the need to invest in and use multiple platforms. It also improves the accuracy and seamless exchange of data transfer, cuts down delivery timings and lowers delivery errors by 50%.

To raise the competency and professional standards of individual management consultants, TR 43 was launched. We introduced the Consultant Quality Initiative (CQI), which is aligned to TR 43, to better support our enterprises’ growth. With this, CQI provides SMEs a common set of references when selecting suitable management consultants for their business upgrading efforts. Between July and December 2016, 414 consultants were certified.

COURTS Singapore

Consumer safety and protection are highly important, and COURTS Singapore retails quality and SAFETY Mark approved electrical appliances in our stores. This assures our shoppers that the appliances we carry are safe and approved for local use.

Mr Ben TanCountry CEO

Singapore Electrical Testing Services

It has become a key requirement to obtain accreditation before offering certain services, and therefore, it is deemed to be a ‘de facto’ passport in our business. Being accredited by SAC sets us apart from the competition and enables us to compete with larger organisations. It also allows us to be listed under the ASEAN Electrical and Electronic Mutual Recognition Agreement as a recognised testing lab. This ensures that products tested by us will be accepted within ASEAN thereby reducing trade barriers for our customers.

Mr Robin SoonHead

38 39

Fong’s Engineering & Manufacturing

Established as a precision engineering company in 1982, Fong’s Engineering & Manufacturing produces medical devices today. As customers in the medical industry demand products of the highest quality, the company adopted ISO 13485, which enabled it to successfully enter the medical devices market.

In 2009, the company adopted the FDA 21 CFR Part 820 Quality System Regulation in order to meet regulatory and export requirements of the United States (US). As a result, it has become a US Food and Drug Administration (FDA)-registered foreign contract manufacturer for medical devices.

With the adoption of these standards, Fong’s Engineering & Manufacturing has seen an increase in supplier and consumer confidence in its products. It recorded a 15% to 20% jump in year-on-year revenue, with more than 90% of medical sales coming from overseas. The company is now exploring further expansion into overseas markets and developing its own range of medical devices.

Prime Structures

After 20 years in the business, Prime Structures Engineering decided to embark on changes to ensure it continues to grow in today’s business environment. To improve and achieve excellence in its work processes, customer service quality and business strategy, the company adopted SPRING’s Business Excellence (BE) framework and achieved the Singapore Quality Class in 2014.

Using the principles of the BE framework, it established a new “review and refine” process. This involved senior leaders, managers and staff gathering every quarter to review and discuss ways to improve their current processes and explore new project opportunities.

The company implemented a process to ensure that its staff communicate effectively with each other. High potential staff were identified and appointed as heads of 10 Strategic Business Units to work as a team to actively seek and win new business opportunities. It also grouped potential clients into segments based on the type of demand they had, which allowed the company to provide more customised service. This has significantly increased productivity and maximised value for clients as staff work to deliver projects tailored to the needs of each client. Adopting the BE framework, together with other initiatives that the company has put in place to improve processes, has helped the company increase its revenue by 10%.

By using the BE framework and applying its principles in areas such as customers, processes, people and strategy, the company hopes to grow into a multinational corporation by 2020 and achieve a turnover of $250 million by 2026.

Building trust and consumer confidence in the Singapore brand

40 41

Our staff are at the heart of everything that we do at SPRING. And as such, staff development and training continue to be a core focus. Besides deepening staff competencies in functional domains, we introduced on-demand learning to further cultivate a continuous learning mind-set. These initiatives aim to enhance our awareness of global trends, increase our access to knowledge through mobile learning, and deepen our business insights through fireside chats with local entrepreneurs.

Leadership training and teambuilding programmes were also organised for middle managers, to enable staff to learn from their peers and gain an appreciation of one another’s roles and challenges. This helped to forge closer bonds between teams across the organisation.

Last year also saw our inaugural SPRING Reboot – a full-day event during which staff envisioned the future of Singapore’s economy and SPRING at SG100. More than 200 ideas were generated from topics ranging from “New Growth Engines” to “Future of Work and the Workforce”. In the spirit of learning, the ideas were distilled into topics for teams from across the various Groups to conceptualise.

Beyond building internal competencies and strengthening of working relationships across the organisation, our corporate social responsibility initiatives also played an important role. The SPRING Cares committee, comprising staff volunteers, engaged staff through various Board-wide activities. These included regular field trips for underprivileged children through our adopted non-profit organisation Beyond Social Services, and the Kids@Work programme where staff bring their children to work and participate in fun activities together. In addition, we promoted the importance and created awareness of environmental sustainability through green activities. SPRING Cares also held our first Volunteer Day, when staff contributed and distributed food to the elderly at several residential estates, in support of the Community Chest’s Lion Befrienders and the Singapore Amalgamated Services Cooperative Organisation Senior Citizen’s Home.

ORGANISATIONAL DEVELOPMENT

42 43

In the coming year, SPRING will continue to build on our efforts to strengthen the business ecosystem for Singapore’s SMEs. In particular, we will increase efforts to scale up promising SMEs by sharpening the use of existing tools while exploring new forms of support. At the same time, we will continue to support companies in their innovation and product development journey, strengthen their leadership capabilities and help them internationalise.

Driving industry transformation will remain a key focus as we implement the strategies under the ITMs. SPRING plays a leading role for the food services, food manufacturing and retail sectors; and will support other agencies for precision engineering, logistics, hotel and air transport sectors.

We will also leverage the Quality and Excellence (Q&E) infrastructure in support of national initiatives, particularly the ITMs, and industry needs. This will help us continue to build trust and consumer confidence in the Singapore brand. We will encourage enterprises to use Q&E as a strategic business tool to grow, innovate and access new markets and business opportunities.

To strengthen Singapore’s position as a startup hub, we will continue to grow the startup landscape by building the infrastructure and a global network of entrepreneurs, startups and intermediaries. Our efforts include streamlining existing startup schemes under the umbrella branding of Startup SG, and creating partnership opportunities through a national network that facilitates business matching for startups.

SPRING will continue to deepen collaboration and engagement with our partners, and strengthen their capabilities and competencies so that they can better support SMEs in their transformation journey.

LOOKING FORWARD

44

SME Centre@SMCCI Singapore Malay Chamber of Commerce and Industry (SMCCI) 15 Jalan PinangSingapore 199147Tel: (65) 6293 3822Fax: (65) 6293 3905Email: [email protected]: www.smecentre-smcci.sg

SME Centre@SMF Singapore Manufacturing Federation (SMF) 2985 Jalan Bukit Merah Singapore 159457Tel: (65) 6826 3020Fax: (65) 6826 3021Email: [email protected]: www.smecentre-smf.sg

For assistance, you can visit satellite SME Centres located at the Community Development Councils (CDCs), Changi Simei Community Club and Ang Mo Kio Community Centre.

SME InfolineTel: (65) 6898 1800Email: [email protected] Website: www.smeportal.sg

SME CentresSME Centre@ASME Association of Small and Medium Enterprises (ASME) 167 Jalan Bukit MerahTower 4, #03-13Singapore 150167Tel: (65) 6513 0388Email: [email protected] Website: www.smecentre-asme.sg

SME Centre@SCCCISingapore Chinese Chamber of Commerce & Industry (SCCCI)9 Jurong Town Hall Road, #04-01 Trade Association HubJurong Town HallSingapore 609431Tel: 6337 8381Email: [email protected] Website: www.smecentre-sccci.sg

SME Centre@SICCISingapore Indian Chamber of Commerce and Industry (SICCI) SICCI Building31 Stanley StreetSingapore 068740Tel: (65) 6508 0147Email: [email protected] Website: www.smecentre-sicci.sg

CONTACTS

SPRING Singapore is an agency under the Ministry of Trade and Industry responsible for helping Singapore enterprises grow and building trust in Singapore products and services. As the enterprise development agency, SPRING works with partners to help enterprises in financing, capability and management development, technology and innovation, and access to markets. As the national standards and accreditation body, SPRING develops and promotes an internationally-recognised standards and quality assurance infrastructure. SPRING also oversees the safety of general consumer goods in Singapore.

FINANCIAL STATEMENT 2016/17 ANNUAL REPORT

Financial performance reviewFor year ended 31 March 2017

SPRING’s total expenditure in FY2016 was $99.8 million compared to $99.2 million in FY2015. The grant funding and revenue in FY2016 was $108.2 million, compared to the previous year’s $98.9 million.

In FY2016, SPRING had a net surplus of $8.4 million after Contribution to Consolidated Fund.

FY2016 FY2015 ($ million) ($ million)

Operating Income 7.7 7.5Operating Expenditure (98.4) (98.8)

Results from Operating Activities (90.7) (91.3)Other Income/(Expense), net 1.4 (0.4)

Deficit before Grants (89.3) (91.7)Grants 99.1 91.4

Surplus/(Deficit) for the Year, 9.8 (0.3)before contribution to consolidated fundsContribution to Consolidated Fund (1.4) - Net Surplus/(Deficit) for the Year 8.4 (0.3)

Operating IncomeSPRING’s operating income for FY2016 was $7.7 million, an increase of $0.2 million from $7.5 million in FY2015. The increase in operating income was mainly due to increased income from technical services.

9.0

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0

($ million)

Other operating income

Income from technical services

Income from courses

0.1

7.1

0.5

0.1

6.8

0.6FY2016 FY2015

Operating ExpenditureSPRING’s operating expenditure was $98.4 million for FY2016, a decrease of $0.4 million from $98.8 million in FY2015. The decrease was mainly due to decreased advertising, events, professional and consultancy costs. This decrease was partially offset by increased expenditures in staff costs, maintenance costs, depreciation and amortisation.

120

100

80

60

40

20

0

($ million)

Operating expenditure

Depreciation & Amortisation

Staff costs

41.1

4.0

53.3

45.3

51.0

FY2016 FY2015

2.5

GrantsIn FY2016, the grant funding was $99.1 million, which was an increase of $7.7 million from $91.4 million in FY2015. The higher grant funding in FY2016 was mainly due to funding received for new programmes and projects managed by SPRING.

SPRING Singapore1 Fusionopolis Walk, #01-02 South Tower, Solaris, Singapore 138628

Tel: +65 6278 6666 • Fax: +65 6278 6667 www.spring.gov.sg

Documents

TRANSFORMING - spring.enterprisesg.gov.sg · meals. These ready-to-eat meals, which include Nasi Goreng Istimewa and Seafood Hor Fun, are prepared by culinary specialists using fresh