UOTIENT - sbf.org.sg · our water systems now will have a direct impact on our quality of life tomorrow. The technologies being developed by Boustead’s Water & Wastewater Division

OCT/NOV/DEC 09 [ B U S I N E S S P E O P L E O P P O RT U N I T I E S ]

UOTIENT

HELPING LOCAL BUSINESSES BUILD CAPACITY

SUPPORT FOR SMEs

SPECIALREPORTAPEC CEO SUMMIT/GLOBAL ENTREPOLIS@ SINGAPORE 2009

CLEAR SKIESAHEADIS THE GLOBAL ECONOMYBOUNCING BACK?

BACK IN VOGUERETAIL INDUSTRYKICKS BACK TO LIFE

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Are you reAdyfuture?

Developing new areas and sustaining those already in existence is a basic challenge for the future. It’s a challenge requiring high levels of expertise and experience. It’s a challenge Boustead is ready to face.

Start with a planFor more than 180 years and

across 75 countries, the Boustead name has become synonymous with trust, integrity and delivering results. Our Geo-Spatial Division looks at every requirement a community needs, from urban planning, water management and transport to healthcare, industrial development and defence.

Fuel for growthEvery community needs energy

for homes, business and industry. Boustead’s dedicated Energy-Related Engineering Division is a specialist in developing efficient energy systems to fuel growth and look after future requirements.

Somewhere to liveA community is based

around the people who live in it. Boustead’s Real Estate Solutions Division has designed and constructed numerous large-scale industrial parks and built entire townships consisting of thousands of individual homes.

Water for lifeIt’s clear the way we manage

our water systems now will have a direct impact on our quality of life tomorrow.

The technologies being developed by Boustead’s Water & Wastewater Division will ensure present and future needs are met.

A global presenceWhile many things will change in the future, one thing

that won’t is Boustead’s commitment to excellence on a global scale. Through invention, adaptation and evolution, Boustead will focus on making the future both exciting and rewarding for our clients, consumers, employees and shareholders.

No matter what the future holds, we’re ready.

Engineering the world of the future

www.boustead.sg

for the

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BIZQ BIZQ OCT/NOV/DEC 09 ] 01

SINGAPORE IS HOSTING THE ANNUAL MEETINGS OF THE 21 ASIA PACIFIC Economic Cooperation (APEC) economies this November. As this year’s chair, Singapore will host the APEC Leaders Summit, as well as the meetings of the APEC Business Advisory Council. It will also present the APEC CEO Summit – a dialogue among the heads of state, captains of industry and the business community from Asia Pacifi c and beyond.

Separately, Global Entrepolis @ Singapore (GES) makes a return on Nov 11-12, 2009 with an exciting line-up of business leadership conferences, a high-powered business awards night, business matching and networking opportunities. GES 2009 is organised by SBF-Pico Events Pte Ltd and is jointly presented by the Singapore Business Federation and Economic Development Board. A highlight of GES 2009 is the APEC SME Summit, which is being held as part of APEC 2009 in Singapore.

I strongly recommend that our members attend these forums to access top business leaders and tap into business opportunities and linkages.

The Singapore Business Federation has put in much effort to extend these platforms to you and I hope you will leverage off them. I look forward to seeing you at the various events organised in conjunction with APEC 2009 and Global Entrepolis @ Singapore.

Over the past 12 months, the Federation has been working closely with the government on measures to help businesses weather the downturn. These measures, which range from fi nancial and manpower help schemes to IT-related initiatives, have proven to be timely and are beginning to inject momentum into the recovery.

I urge members to consider these initiatives, which are mentioned in our cover story. Take advantage of them and become more competitive.

Best wishes.

SBFSAYS]

These measures, which range from fi nancial and manpower help schemes to IT-related initiatives, have proven to be timely and are beginning to inject momentum into the recovery.

APEC Summit and GES 2009 Bring Opportunities to Singapore’s Doorstep

TONY CHEW LEONG-CHEE CHAIRMAN

SINGAPORE BUSINESS FEDERATION

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02 [ OCT/NOV/DEC 09 BIZQBIZQ

Coverstory 24] BUILDING CAPACITY

Since the Singapore government announced several fi nancial

initiatives early this year, there have been equally robust efforts from various organisations, including

SBF, in reaching out to help local SMEs tide the downturn.

01] SBF SAYSMessage from the SBF Chairman.

04] SBF UPDATENews and happenings at SBF.

09] EYE ON SMES Helping SMEs grow their businesses.

11] EYE ON ECONOMYTaking stock of emerging trends in Singapore.

14] SPECIAL REPORTA feature on the APEC CEO Summit and Global Entrepolis @ Singapore 2009.

18] BIZ COMMUNITYBiZQ interviews the Prime Minister of the Netherlands, Jan Peter Balkenende.

20] GLOBAL BUSINESSSBF has been working hard to tie up with various regional organisations in China to help members explore investment opportunities.

22] COUNTRY INSIGHTSBiZQ gives an overview of the opportunities available in Sri Lanka for Singapore businesses.

CONTENTS]

OCT/NOV/DEC 09

UOTIENT


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40

32] INDUSTRY TRENDSSingapore’s young and energetic retail scene is encouraging major players to show off their brands in our latest retail real estate.

34] TECHNOLOGYExecutives on the move are driving the demand for smartphones with location and directory services.

35] MANAGEMENT GUIDEMore senior professionals are seeking to upgrade themselves through executive education programmes.

36] IN BUSINESS WITHBiZQ interviews SIM Pte Ltd’s CEO,Mr Lee Kwok Cheong.

38] EXECUTIVE LIFESTYLE Kuriya Dining restaurant at Great World City serves creative Japanese cuisine.

40] BOARDROOM TALKSpotlight on Mr Teo Siong Seng, President of the Singapore Chinese Chamber of Commerce & Industry.

35

BOARDROOM TALKSCCCI’s Mr Teo Siong Seng.

PUBLISHERSINGAPORE BUSINESS FEDERATION

CHAIRMAN Tony Chew

CHIEF EXECUTIVE OFFICER Teng Theng Dar

ASSISTANT EXECUTIVE DIRECTOR (MEMBER RELATIONS) Cheryl Kong

DIRECTOR, CORPORATE COMMUNICATIONS Gerald De Cotta

10 Hoe Chiang Road, #22-01, Keppel Towers,

Singapore 089315 tel: 65-6827-6828, fax: 65-6827-6807

E-mail: [email protected] Website: www.sbf.org.sg

Business Quotient (BIZQ) is the offi cial publication of the Singapore Business Federation, reaching out to over 20,000 of Singapore’s business elite,

chief executives and entrepreneurs. The quarterly, published in collaboration with SPH Magazines, is your eye on Asian and global business trends,

bring you up to date on industry developments, the economy, country profi les, stories about successful

companies and the people who lead them.

PUBLISHING AGENTSPH MAGAZINES PTE LTD

GROUP EDITOR, CUSTOM PUBLISHING Joanna Lee-Miller

SENIOR EDITOR Azreen Noor

CONTRIBUTING EDITOR Casuarina Peck

ASSOCIATE CREATIVE DIRECTOR Alex Goh

ART DIRECTOR Bernard Chia

SENIOR DESIGNER Shawn Kiyotaka Fukuzaki

EXECUTIVE SUB-EDITOR Esther Lew

GROUP ACCOUNT MANAGER Charmaine Soh

ACCOUNT EXECUTIVE Yuyeth Robles Tagama

ASSISTANT MANAGER, CLIENT MANAGEMENT Mavis Liang

EXECUTIVE, CLIENT MANAGEMENT Angela Ow

MANAGER, PUBLISHING SERVICES Alice Chee

For advertising enquiries, please call6827-6828 or 6319-6326

This news magazine is published by SPH Magazines Pte Ltd (Registration No. 196900476 M) for Singapore Business Federation (Registration No. ROS138/2002TAP). Copyright of the materials contained in this magazine belongs to SPH Magazines Pte Ltd and Singapore Business Federation respectively. Nothing in here shall be reproduced in whole or in part without prior written consent of SPH Magazines Pte Ltd or Singapore Business Federation. Views expressed in this news magazine are not necessarily those of SPH Magazines Pte Ltd nor the Singapore Business Federation and no liabilities shall be attached thereto. All rights reserved. Editorial enquiries should be directed to the Editor, BiZQ, SPH Magazines Pte Ltd, Media Centre, 82 Genting Lane, Level 7, Singapore 349567. Tel: 65-6319-6319, Fax: 65-6319-6227, E-mail: [email protected]. Unsolicited material will not be returned unless accompanied by a self-addressed envelope and suffi cient return postage. While every reasonable care will be taken by the Editor, no responsibility is assumed for the return of unsolicited material. MICA (P) 201/06/2009. Printed in Singapore by Times Printers (Registration No. 196700328H).

32INDUSTRY TRENDS

Singapore’s fashionable retail industry is back in vogue.

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SBFUPDATE]

A SEAN is looking at implementing a streamlined ASEAN Customs Transit System (ACTS) that aims to lower the cost of doing business in the region. Faster customs clearance of goods via ACTS will lead to signifi cant savings in logistical time and cost for companies.

At an SBF-organised ACTS workshop held in July, some 110 participants from the business community representing the aerospace, construction, engineering, logistics and lifestyle sectors, learnt about how this system will be one of the key pillars towards the realisation of the ASEAN Economic Community (AEC) by 2015.

Assisting the ASEAN countries to implement the International Customs Transit System is the ASEAN-EU Programme for Regional Integration Support – Phase II (APRIS II).

Two experts from the ASEAN-EU team for APRIS II, Mr Des Grimble and Mr Gordon Linington, briefed the Singapore business community on the proposals and the position reached so far in the drive towards more effi cient movement of goods within the ASEAN region. The experts are to gather feedback from the business community in order to

forward such input to the ASEAN countries’ Customs authorities for their consideration and approval.

Both experts noted that when taken together, the implementation of the package of measures under the ASEAN Transit Framework Agreement will deliver signifi cant benefi ts to regional trade through reduced costs and shorter, more reliable, journey times.

Across the ASEAN bordersStreamlined ASEAN Customers Transit System aims to increase business profi ts.

industry. Both Mr Grimble and Mr Linington replied that the key factor lies in implementation of agreements to achieve the declared aims.

Upon a query from DHL Express Singapore, Mr Raymond Yee, Vice President, Customs & Regulatory Affairs for Asia Pacifi c, it was indicated that the proposed transit procedures will currently not provide for simplifi ed clearances for de minimis/low-value shipments typically carried by express carriers.

Movement of goods In addition, it was clarifi ed that the proposed procedures cover movement of transit goods between two customs offi ces through a third country. This, in theory, could include transfers between bonded zones through third countries, including airport bonded zones. Highly compliant traders could have their transit documents discharged at their premises.

Under AEC, customs integration involves the implementation of an ASEAN Single Window (ASW) to strengthen coordination and partnership among ASEAN Customs Administrations. Other than intra-trading, foreign investment, as well as imports to and exports from the region, can only be increased if competitive advantages are offered; one of which is the speedy, cost-effective and safe transport of goods among ASEAN countries as well as into and from the region.

The next steps to implement the ASEAN Customs Transit System are the completion of the technical documentation, detailed work programme, and inauguration of the pilot system over the North-South corridor starting with Thailand, Malaysia and Singapore. +

EXPERTS SAID THE ASEAN TRANSIT FRAMEWORK WILL REDUCE COSTS AND DELIVERY TIMES.

ATTENDEES AT THE Q&A SESSION DURING THE SBF-ORGANISED WORKSHOP.

During the question and answer session, Mr Lok Hwee Chong, TNT Express Worldwide’s Regional Customs & Regulatory Affairs Manager for Asia, noted that the Blue Card Insurance Scheme has been agreed upon by the ASEAN Insurance Council but there remains the question of implementation and whether it is restricted only to vehicles specifi ed under the Transit Framework or for the entire transport

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Malaysia-Singapore robust trade strengthens ties

T rade ministers from Malaysia and Singapore say that the global economy is showing signs of stabilising over the last several months. Malaysia’s International Trade and Industry Minister, Dato Mustapa Mohamed and Singapore’s Minister for Trade and Industry, Mr Lim Hng Kiang said that while the economic crisis appears to have bottomed out, it is still too early to expect the global economy to recover soon.

The ministers addressed the Singapore business community at a seminar and dialogue session entitled “Business Opportunities in Malaysia” held in conjunction with Dato Mustapa‘s recent trade and investment mission to Singapore comprising some 120 Malaysian business delegates from the manufacturing and services sectors. It was aimed at enhancing bilateral economic relations between both countries, as well as attracting companies from Singapore to invest and do business in Malaysia. The programme included a dialogue session between participants and the two ministers moderated by SBF Chairman Mr Tony Chew.

The seminar, attended by some 700 Singapore participants, was jointly organised by the Malaysian Industrial Development Authority (MIDA), Malaysia External Trade Development Corp (MATRADE), Malaysia’s Ministry of International Trade and Industry (MITI), SBF and IE Singapore.

Investment relationsDato Mustapa updated Singapore’s business community on its political and economic developments; bilateral relationship between Singapore and Malaysia; trade performance; Singapore investment in Malaysia;

Malaysia’s services sectors; investment opportunities in Malaysia; Singapore investment in Johor and Iskandar Malaysia; and tourism and airlinks with Singapore.

Delegates from the Malaysian side attending the dialogue session were from sectors including electronics, machinery and equipment, pollution control equipment, metal fabrication, ICT products, automotive parts and components, cosmetics, processed food and plastic and rubber products. Other sectors include business consultancy services, engineering services, industrial estate and property development and regional establishments.

Business networking platformAside from the seminar and dialogue session, the Malaysian delegates and their Singapore counterparts also engaged in individual meetings after the seminar to facilitate discussions on potential business proposals.

SBF Chairman Mr Chew reiterated on the close relationship enjoyed by both countries. He said: “Malaysia and Singapore have been each other’s top trading partner for many years. This underscores the importance of the strategic trade and business relationship shared by both sides – a relationship that continues to grow

Recent visit by Malaysia’s trade minister underscores strategic investments between Singapore and Malaysia.

SBF’S BUSINESS FACILITATION EFFORTSSince 2007, SBF has organised two visits to Iskandar Malaysia in September 2007 involving 110 representatives of SBF member companies, business chambers and trade associations.

SBF also supported a seminar by Nusajaya on the Southern Industrial Logistic Cluster in June 2008 attended by 350 participants from the Singapore business community.

SBF also organised several Malaysia Market Development activities in 2009 such as the SBF-MSBC Roundtable with Dato Mustapa, the SBF Business Dialogue with the Governor of Bank Negara Malaysia, and supported a seminar on “Malaysia: Your Near Shore Outsourcing Destination” with OM, an MDEC subsidiary unit.

THE MALAYSIA-SINGAPORE EVENT REFLECTS THE STRONG BILATERAL TRADE BETWEEN THE TWO COUNTRIES.

despite the current global economic slowdown.”

He also welcomed Malaysian Prime Minister Najib Tun Razak’s recent announcement of economic liberalisation measures to attract foreign direct investments in 27 services sub-sectors and the fi nancial services sector. +



SBFUPDATE]

Enhancing business preparedness through BCM

SBF, supported by the National Security Coordination Secretariat (NSCS) and the Singapore Police Force (SPF), organised the 2009 National Security Dialogue to engage the business community to build a more resilient corporate culture amid challenging trends presented by transnational terrorism.

More than 650 business representatives engaged in a dialogue with Senior Minister and Coordinating Minister for National Security, Prof S Jayakumar, and other panelists including Senior Minister of State for Law and Home Affairs, Associate Prof Ho Peng Kee; and Minister of State for Trade and Industry, and Manpower Mr Lee Yi Shyan.

Issues concerning national security and the role of businesses in countering terrorism were exchanged between the panelists and the business community.

The session was moderated by SBF Chairman Mr Tony Chew.

Business leaders’ preparedness for unexpected events that can disrupt business operations was one of the key issues highlighted by Prof Jayakumar.

He said that emergency response plans must be handled by businesses

SBF organised 18 BCM outreach events as of August this year with plans to launch the National BCM website and online toolkit.

with the support of the Safety and Security Watch Group and the government. Businesses are also encouraged to adopt Business Continuity Management (BCM). As announced in November last year, the Singapore government is providing fi nancial incentives to defray the cost of BCM implementation.

In his address, Mr Chew called on the business community to view efforts in building corporate resilience as an investment.

“Enhancing corporate resilience will pay immediate dividends in terms of robust operations. In the longer term, companies will also benefi t from branding themselves as resilient and reliable” he said. “A BCM-ready

SBF’S ROLE IN NATIONAL BCM PROGRAMMESBF, in collaboration with SPRING Singapore, is jointly driving the national initiative to encourage early adoption of BCM by companies. To help companies access essential resources to become BCM-ready, SBF will launch a National BCM website towards the end of this year comprising self-help assessment toolkits for companies to benchmark their BCM readiness against the SS540 standard.

In addition, SBF will facilitate awareness and adoption of BCM through ongoing briefi ngs, seminars, workshops, newsletters and media advertorials, as well as rendering assistance to companies to tap into government funding for SS540 certifi cation.

private sector will help enhance Singapore’s reputation as a trusted hub for reliable and quality service.”

SBF’s outreach effortsAt the end of August 2009, SBF received 237 BCM enquiries from companies since the launch of the National BCM programme. Twelve companies have applied for BCM certifi cation through SBF.

A recent SBF survey revealed that 85% of the 328 respondents are aware of BCM, while 50% had a Business Continuity Plan (BCP) in place. Of the 50%, one-third was focused on measures to contain fl u pandemics.

SBF also organised four major BCM events on top of another 12 small-scale outreach events, reaching out to more than 3,000 participants.

Several of these events had been organised with the support of key associations such as Association of Small and Medium Enterprises (ASME), Singapore Chemical Industry Council (SCIC), Singapore Computer Society (SCS), Singapore Hotel Association (SHA), Singapore Institute of Directors (SID), and Singapore National Employers Federation (SNEF). +

MORE THAN 650 EXECUTIVES ATTENDED THE RECENT NATIONAL SECURITY DIALOGUE SESSION.



Protecting your business during H1N1 outbreak

M inister for Health,Mr Khaw Boon Wan, strongly encouraged businesses to be more prepared as Singapore moves from the containment to the mitigation stage of the fl u pandemic.

During a recent dialogue session organised jointly by the Singapore Business Federation (SBF) and the Singapore National Employers Federation (SNEF), he cautioned more than 1,300 participants that businesses have a long way to go in terms of being prepared for the onslaught of the virus.

He said that businesses were strongly urged to learn from the 2003 SARS and H1N1 experience, and gear up for a possible third wave of pandemic.

The dialogue session panel included SBF Chairman, Mr Tony Chew; SNEF Vice President, Mr Bob Tan; Ministry of Health’s (MOH) Dr Lyn James, Director of Communicable Disease; and Ministry of Manpower’s (MOM) Mr Ng Chun

SBF-ISCOS initiative offers second chances

Pin, Director, Tripartite Programme and International Relations.

Speakers from SBF, MOH and MOM also gave participants an updated overview on Infl uenza A H1N1. Ms Rita King, Senior Director, SBF, apprised participants on the National Business Continuity Management (BCM) Programme, where SMEs can defray part of the cost for obtaining SS540 certifi cation in BCM.

Mr Lau Weng Hong, Deputy Director, Labour Relations, MOM also informed participants that they can tap up to S$20,000 for Work-Life implementation through the WoW! Fund (Work-Life Works Fund) when they implement telecommuting and part-time work. Visit www.mom.gov.sg/work-life for more information. +

PANELISTS AT THE BUSINESS CONTINUITY DIALOGUE GAVE AN OVERVIEW OF H1N1.

S ingapore Business Federation (SBF) and the Industrial and Services Co-operative Society Ltd (ISCOS) recently launched a new initiative called Corporate Doors to engage local companies to employ at least one ex-offender in its workforce.

SBF has taken the lead role to promote Corporate Social Responsibility among these companies through the Corporate Doors initiative. To date, more than 50 companies have pledged their commitment to employ ex-offenders.

ISCOS has already awarded these companies a Certifi cate of Appreciation for their commitment

to employ ex-offenders. In addition, SBF received a token of appreciation award for its effort in committing to engage more than 15,000 of the nation’s top businesses (SBF members) to employ ex-offenders.

SBF will serve as a platform for ISCOS to contact businesses to carry out its work, said SBF CEO Mr Teng Theng Dar. He said: “There must be a starting point. We must take a bold step forward and allow second chances.”

The Singapore Corporation of Rehabilitative Enterprises (SCORE) has more than 1,700 employers willing to hire former inmates. +

VOICES FROM OUR READERS

BiZQ is starting a regular feedback column this issue. If you have any views or suggestions about the magazine, we want to hear from you. Please send your contributions to the address below or e-mail us at [email protected].

The Editor, BiZQ MagazineSingapore Business Federation10 Hoe Chiang Road#22-01 Keppel TowersSingapore 089315.

“I read every issue of BiZQ. There are several sections in the magazine which I have found very useful: SBF Update on member-centric events and networking sessions, as well as SME News on business and policy updates.”Mr Mohan K Vaswani, Chairman of Tolaram Corp Ltd.

“I would like to be updated on SBF resources such as the various regional business groups and SBF Markets & Advisory Service and SME Helpdesk.”Mr Alvin Tan, Managing Director of Eastpoint International Marketing Pte Ltd.

“I would like to read more about industry-specifi c topics such as shipping and marine, transportation and logistics, as well as the aerospace industry.”Dr Anthony Chia, Managing Director of Esterline Sensors Services Asia Pte Ltd.

“The sections on SBF Update on incoming trade delegations and Eye On Economy are very useful. I believe that free trade agreements and international protectionism will shape business prospects for my company in the next three years.”Mr Tan Kok Hiang, Executive Director of Viz Branz Ltd.



SBFUPDATE]

Bahrain should be one of the top choices for Singapore companies to establish their presence, and serve as a starting point into the Middle East, said speakers at a recent SBF seminar.

The seminar – Bahrain: the Quality Location to Develop Your Middle East Business – was held for the local business community in conjunction with the visit of the Undersecretary for Industry Affairs of the Ministry of Industry and Commerce of the Kingdom of Bahrain, Mr Osama Mohammed Arrayed.

He was accompanied by Mr Paddy Gallagher, Marketing Manager of Bahrain International Investment Park (BIIP) and Mr Antony E Keenan, Business Development Manager of Bahrain Economic Development Board (BEDB) in Hong Kong.

The event featured insightful presentations by BIIP and BEDB on the investment and business

opportunities in the Kingdom of Bahrain. About 60 participants were briefed by the visiting delegation on the latest economic developments and overall market dynamics as well as emerging industries and opportunities in Bahrain including tourism, healthcare, manufacturing and IT services.

There are currently 39 project ideas in a diverse range of areas including electronics, pharmaceuticals, aluminium downstream and engineering for companies to consider.

A highlight of the event was the experience sharing by Mr K K Kuah, a Middle East Business Group (MEBG) member, who is Chairman and CEO of MTQ Corp Ltd. MTQ is a leading engineering solutions provider specialising in the

Bahrain’s easy access toMiddle East markets

Overall trade between Singapore and Thailand reached S$34.5 billion last year, up from S$31.5 billion in 2007, say offi cials at a recent seminar jointly organised by SBF, Thailand Board of Investment (BOI) and Thailand Convention & Exhibition Bureau (TCEB).

Giving participants an insider’s perspective were Thailand BOI’s Ms Chitra Kulvanich, Director, General Administration Bureau; and TCEB’s Mrs Supawan Teerarat, Exhibition Director and Acting President.

Ms Kulvanich informed participants how to break through

fabrication, repair and maintenance of oil fi eld equipment.

Mr Kuah said: “With the help of SBF, IE Singapore and Bahrain Economic Development Board, MTQ found a suitable site in Bahrain to build a brand new oil fi eld equipment repair and service facility to serve the Gulf Cooperation Council (GCC) region.”

He also told those present that MTQ is now in the stage of fi nishing the design of their facility, and has engaged a Bahrain-based architect. He noted that he is impressed by the quality of Bahrain’s local workforce as his business requires a stable group of skilled workers. +

INSIGHTFUL PRESENTATIONS BY BIIP AND BEDB ON THE INVESTMENT AND BUSINESS OPPORTUNITIES IN BAHRAIN.

Signifi cant investment and trade boost in Thailand

the current economic challenges with intelligent investment, while Mrs Teerarat gave tips on how to capture the ASEAN Market through an exhibition in Thailand. Sharing his experience of doing business in Thailand was Mr Aekaraj Guruvanich, Regional Consultant of HRnetOne.

Speakers said that investors can consider business leads in six industries – agriculture and agro-industry, alternative energy, automotive, electronics and ICT,

fashion, and value-added services including entertainment, healthcare and tourism.

Bilateral relations are underpinned by the strong ties between Singapore and Thai offi cials cultivated through broad institutional linkages like the Thailand-Singapore Civil Service Exchange Programme (CSEP) and the Singapore-Thailand Enhanced Economic Relationship (STEER). +

STRONG LINKS BETWEEN SINGAPORE AND THAILAND ARE CULTIVATED THROUGH TRADE EXCHANGE PROGRAMMES.



EYEONSMEs]

SBF, NUS launch Business Advisors Programme (BAP) initiative

SME NEWS

Advisory programme provides platform for business experts to guide SMEs in their business strategies and operations.

SBF and the National University of Singapore (NUS) have launched the SBF-NUS Business Advisors Programme (BAP) to help SMEs gain expert business advice and market knowledge.

More than 130 participants, comprising of NUS alumni, invited guests and SME owners were atthe launch.

Supported by SBF and SPRING Singapore, the BAP initiative matches and deploys displaced NUS alumni who are Professionals, Managers, Executives and Technicians (PMETs) to SMEs for short-term consulting assignments ranging from three to 12 months.

This programme capitalises on the expertise, experience and market knowledge of the PMETs to help SMEs in their business strategies and operations. The BAP aims to match 30 PMETs and SMEs over the next 14 months, with each match resulting in a BAP project.

Lending a helping handSMEs stand to benefi t from the BAP as the business advisors will be able to help in several ways.

For example, these advisors will be able to assess business strategies and expansion plans; analyse branding and marketing development; fi nancial management; infocomm technology management; human resource operations; as well as manufacturing management.

SPRING Singapore will support the SBF-NUS BAP by funding 70 per cent of the project fees – the monthly consultancy fee that an SME uses to engage the PMET as a consultant or business advisor.

The total payable fee per month for each project is capped at S$5,000. The remaining fees will be borne by the SME.

SBF’s guiding roleWith more than 15,000 members, SBF will facilitate the selection and matching of PMETs and SMEs. SBF is part of the BAP Steering Committee that will evaluate the scope of work of the business advisor and the proposed project.

In addition, the BAP Steering Committee will be able to evaluate and recommend the project matches for the fi nal approval for SPRING Singapore’s funding.

Mr Gideon Lim, Managing Director of Web Synergies, offered his insights from an SME perspective at the event and also shared how SME owners can gain from such a programme, which taps on the business advisors’ expertise and skills.

SBF CEO Mr Teng Theng Dar said: “This collaboration between SBF and the NUS is aimed at facilitating business, manpower and technology capability building by enabling SBF members to tap on the talent pool of students, faculty and alumni from the university.”

With the launch of the BAP, SBF will continue to play a pivotal role in helping its member companies cope with talent management and fulfi ll their business needs amid the economic uncertainty. +

TAPPING INTO EXPERT RESOURCESThe BAP programme is suitable for SMEs with the following profi le:• Fixed assets not exceeding S$15 million (group basis)• Employing no more than 200 employees (for companies in service sector)• At least 30 per cent local equity• Committed not to displace existing employees• Committed to follow through on the implementation after the engagement is concluded

For more information on SBF-NUS BAP, visit http://bizalum.nus.edu.sg/efl yer/2009/SPRINGSBF/nus-spring-sbf.aspx.

Contact SBF at 6827-6834 or e-mail [email protected].

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SME HELPDESK

SBF helps members network overseas through business groups

THE ASEAN BUSINESS GROUP IS A HIGH-LEVEL B2B PLATFORM FOR SBF MEMBERS.

SBF business groups aim to enhance trade and economic linkages between local and overseas partners.

T he success of the Middle EastBusiness Group which was inaugurated in 2007 has spawned the formation of three other geographic business groups within SBF. A distinct feature of these business groups is the presence of resource partners who share their invaluable business experience with SBF members.

China Business GroupChina Business Group (CBG) is a high-level networking platform that is open to corporations, companies and individuals interested in the China market. This business group enables SBF members to channel their feedback and views to various Chinese government bodies.

CBG organises business-matching sessions, project facilitation, business missions, seminars, forums and workshops, business-leader round table and other business events.

For enquiries on China Business Group, please e-mail Ms Luan Wei at [email protected].

South Asia Business GroupSouth Asia Business Group (SABG) aims to enhance trade and economic linkages between Singapore andmarkets in the South Asian subcontinent. This business group assists members in identifying and developing new business opportunities in South Asia.

SABG actively organises business missions, project facilitation, market seminars, business matching, CEO round table, and other B2B and B4B events to keep members

updated on the latest business developments and connect them to markets and opportunities.

SABG membership is free and applications are invited from all interested parties who are keen to participate in this networking platform.

For enquiries on SABG, please e-mail Mr Teo Chi Howe or Ms Teo Weina at [email protected].

ASEAN Business Group ASEAN Business Group (ABG) is a high-level B2B and B4B business networking platform aimed at serving the needs of SBF members through value-added information exchanges.

It aims to develop and promote networking between Singapore companies and their ASEAN counterparts as well as relevant government agencies and organisations in the ASEAN member countries.

ABG will facilitate as a deal maker and catalyst for businesses between Singapore, ASEAN countries and other countries in China, the Middle East and South Asia through various platforms including e-links.

For enquiries on Asean Business Group, please e-mail Ms Loong Lai Yong at [email protected]. +

NEW EDITION

SBF is the National Committee in Singapore of the International Chamber of Commerce (ICC), the world business organisation based in Paris. As such, SBF has ready access to a host of ICC publications.

Now you can order these informative publications direct from SBF. For more information, please refer to www.sbf.org.sg.

COMMENTARY ON UCP 600UCP600, ICC’s new rules on documentary credits, came into effect on 1 July 2007.

Now, members of the Drafting Group that produced the new UCP 600 have collaborated to produce this Commentary explaining the rationale behind the changes in the new rules.

Containing an analysis of each article and sub-article of the new UCP, as well as cross-references to the changes from UCP 500, this book offers a unique insight into the thinking of those who drafted the new rules.

[email protected]’s Financial Facilitator Programme by EBIS helps companies better leverage on the S$2.3 billion loan package announced in late November 2008. Through this programme, companies can obtain assistance with their bank loan application and better understand their fi nancing options.

SBF has set up FUNDSASSIST@EBIS to support enquiries on loan and fi nancial issues. To make an appointment with a professional fi nancial advisor, call 6827-6830 or e-mail [email protected].

WEBSITE RESOURCE

EYEONSMEs]

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EYEONECONOMY]

Industry maintained its GDP growth forecast for 2009 at -6.0

to -4.0 per cent.Putting it in

perspective, OCBC economic research head Selena Ling said that the

worst appears to have bottomed out for the Singapore economy.

“However, after the strong quarter-on-quarter rebound in the second quarter 2009, the subsequent Q3-Q4 quarter-on-quarter GDP growth points may pale in comparison, albeit we expect a sequential improvement in the second half of this year compared to the fi rst half of 2009,” she added.

Voices from the marketWhat do Singapore companies have to say? After a detailed analysis by Singapore’s big and small enterprises, the conclusion is that there is really a mixed bag out there.

Oversea-Chinese Banking Corp, which posted 10 per cent earnings in the second quarter to June 2009 over the same period a year ago, >

Contraction slows. Where forth from here?

The contraction has slowed. Fragile recovery. A quick and sharp recovery. These are some of the catch phrases that have emerged in the past few weeks as some glimmer of hope of a turn-around sets in.

T here have been many factors fuelling the recent optimism.According to the latest quarterly economic data released by the Singapore Ministry of Trade and Industry in early August, several forward-looking and sentiment-sensitive indicators have started to turn around.

In the US, the ISM Purchasing Managers Index (PMI) and the Composite Leading Indicators (CLI) have improved noticeably. The US housing market has also shown stronger signs of bottoming out.

Other advanced economies have shown similar signs of improvement. At a macro level, the OECD composite leading indicator has increased for four consecutive months.

Similarly, in Singapore, several indicators show that businesses are now feeling less pessimistic about the outlook for the rest of the year, the Ministry said.

Bouncing backIn a similar vein, the Asian Development Bank (ADB) has

predicted a veritable V-shaped recovery. After halving from 6 per cent last year to an estimated 3 per cent in 2009, growth in East Asia (excluding Japan) is forecast to bounce back to 6 per cent in 2010, the Bank said.

Citing a broad, if still hesitant, recovery in exports, stronger production and rising stock markets, the ADB’s twice-yearly report concluded that the outlook has improved, even from a few months ago.

Rise in GDP fi guresThe latest quarterly economic data in Singapore also showed that the republic’s second-quarter GDP rose by a seasonally adjusted 20.7 per cent compared to the previous quarter.

This performance represented a signifi cant improvement from the 12.2 per cent contraction in the fi rst quarter of the year. Strong gains in the manufacturing sector underpinned the improvement.

But the reality is that the Singapore Ministry of Trade and

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stated: “There is growing consensus that the worst is over for the global economy and global fi nancial markets, but the pace of recovery remains uncertain. We will continue to be disciplined and prudent as we strive to grow our customer businesses

in our key markets,” CEO David Conner said in a media briefi ng recently.

Moving over to a

smaller Singapore company with a manufacturing orientation, specialist furniture maker Design Studio said that it used the slowdown to push into targeted markets.

“Our successful penetration into niche projects in Singapore and overseas together with enhancements made to strengthen business processes have indeed paid off in the challenging economic

environment. Even though the ride was rough, we have braced the storm,” Executive Chairman & CEO Bernard

Lim told BiZQ.“We have excelled and

surpassed expectations in spite of the unfavourable business climate. We are on schedule

to complete a number of local and overseas projects in the second half of 2009 and expect a better performance for FY2009 compared to FY2008,” he added.

Bucking the trendIn a similar industry, KLW also bucked the trend. “Weak consumption appetite in the major economies and Singapore had presented a challenging six months for its retail and trading businesses,” said Executive Chairman Lee Boon Teck.

“Our trading sector, which supplies to major chain stores, was the most affected by the current poor market sentiment. Our gross margin also took a hit as we increased our marketing efforts in our retail arm. To stimulate buying sentiment, we gave out more discounts and participated in more event opportunities to maintain our brand presence,” he said. The company just delivered on a three-fold increase in profi ts for the full year.

On the outlook, he said: “The retail sector remains challenging for the coming months until the economy emerges from recession in Singapore and Malaysia where our stores are located. The management’s main focus in this business is to contain cost so as to tide over this diffi cult period.”

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Recovery aheadThere are also a good number of companies from a cross section of other industries which have little visibility of recovery in the road ahead. One such player is Rickmers Maritime, a publicly listed business trust which owns and operates container ships under stable long-term, fi xed-rate charters to leading global container liner companies.

Chairman Bertram R. C. Rickmers said:

“With increases in volumes appearing moderate

and with only limited freight rate improvements reported, the container liner industry continues to face severe revenue pressure ahead. Our current focus is to take delivery of our new ships and we will postpone any further acquisition until such time when the fi nancial market improves.”

Electronic components player Elec & Eltek said that the global electronics industry “remains mired in one of the steepest slowdowns in its history.” The only way to counter this ongoing challenge is “not (to be) complacent and (the group will continue its relentless effort on cost management and effi ciency improvements for the rest of the fi nancial year,” said Vice Chairman Chadwick Mok. +

EYEONECONOMY]


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New Magazine Advert[BizQ] FINAL.pdf 8/18/09 9:00:12 PM


SPECIALREPORT: APEC SUMMIT/GES 2009]

APEC BUSINESS ADVISORY COUNCIL 2009

W hen US President Obama meets with the 63 APEC Business Advisory Council (ABAC) business leaders at the ABAC Dialogue with Leaders this November, a key feature of the annual 4th ABAC Meeting, special attention will be given to address APEC’s critical business concerns and issues surrounding regional economic integration, protectionism, sustainable development and capacity building.

An important annual event in the calendar of the Asia-Pacifi c Economic Cooperation (APEC), the ABAC Dialogue with Leaders is the only unique meeting platform that provides for the 21 APEC Leaders and the 63 members of ABAC to consolidate the year’s work programme, deliberate and assess progress, and shape future undertakings.

ABAC Singapore, the national secretariat and under the auspices of SBF, is the host of the 4th ABAC meeting 2009. The discussion at this year’s ABAC Dialogue with Leaders is anticipated to continue to focus on APEC’s mid- and long-term Bogor Goals of free and open trade and investment for APEC.

ABAC 2009 work programmeEconomic recovery and guarding against protectionism are major concerns for the APEC business community since the economic downturn last year. The protectionist stance taken, despite the pledge made twice at the November 2008 Lima and G20 Declarations to refrain from raising new trade barriers for the next 12 months, heightened uncertainties for the APEC community.

Besides the usual year-end report and set of recommendations submitted to APEC leaders, ABAC presented an additional set of short-term recommendations in May 2009, which called for immediate actions to stimulate economic recovery and support against protectionism.

Other commendable initiatives by ABAC this year include the correspondence sent prior to the G20 London Summit in April, to urge APEC leaders to maintain ‘standstill’ on their promises against protectionism, adhere to clear and consistent pro-trade actions and impress upon their non-APEC G20 counterparts to do the same.

ABAC Singapore and SBF have been actively seeking feedback and views on business issues and concerns, and connecting with the APEC business community.

Early this year, four ABAC outreach events were organised by ABAC Singapore and SBF to raise awareness on the work of the APEC and ABAC to the business community, strengthen APEC public-private sector engagement, and collate feedback and sentiments from the business community.

Close to 200 business people from the APEC business community have participated and benefi ted immensely from the ABAC activities and events.

ABAC continues to ensure that business concerns are heard and delivered to the attention of APEC policy makers.

Companies should be assured that their voices will be well represented by ABAC. +

Important role of ABAC in channelling the business voice in the regionABAC Dialogue with Leaders to focus on critical business concerns and issues and APEC’s Bogor Goals of free and open trade and investment for this region.

SBF AND USABC PROMOTE BUSINESS GROWTHSBF and the US-APEC Business Coalition (USABC) jointly organised a dialogue luncheon between APEC trade ministers and several regional business leaders in July. The APEC trade ministers were in Singapore for the annual APEC meeting of Ministers Responsible for Trade (MRT).

During the event, Mr Lim Hng Kiang, Singapore’s Minister for Trade and Industry, Mr Ron Kirk, US Trade Representative, and Mr Pascal Lamy, Director-General of the World Trade Organization (WTO) shared their views on core issues surrounding the APEC trade agenda.

This included the strategic importance of APEC, prospects for regional economic integration, and the importance of public-private dialogue in developing policy agendas.

The panel speakers fi elded questions on a range of issues from among the 100 senior business executives from across the APEC economies.

ABAC MEMBERS AT THE “ABAC DIALOGUE WITH LEADERS 2008” IN LIMA, PERU.

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G lobal Entrepolis @ Singapore (GES) 2009 promises to be an exciting and impactful event with its line-up of business leadership conferences, a high-power business awards night, business matching and networking activities.

Its theme “Building Connections, Unlocking Opportunities” offers attendees a platform to understand the current business challenges, as well as identify trends and successful strategies for the future.

Infl uential speakers such as Mr Jack Ma, Chairman and CEO of Alibaba Group; Mr Richard Li, Chairman of PCCW; and Mr Dave Girouard, President, Enterprise of Google Inc, USA, will discuss current business issues and winning strategies in the current turbulent market.

Together with the country business forums and the prestigious Forbes “Best under a Billion” Awards Night, GES is expected to attract more than 1,000 delegates over the two days. With the gathering of local and foreign delegates, GES is the ideal platform for successful business networking and business matching.

GES is organised by SBF-Pico Events Pte Ltd and is jointly presented by the Singapore Business Federation and Singapore Economic Development Board.

Since its inauguration in 2003, GES has become a major event on the Singapore business meetings calendar attracting global participants from close to 60 countries.

GES 2009 is showcasing four business summits: the APEC SME Summit, Global Diaspora Business Summit, Latin Asia Business Forum and the Indo-China Business Leaders Bridge Forum.

GLOBAL ENTREPOLIS @ SINGAPORE (GES) 2009

Building connections, unlocking opportunitiesSingapore’s premier event showcases APEC SME Summit with renowned speakers to discuss current business issues and strategies.

APEC SME SUMMIT 2009The APEC SME Summit 2009, held in conjunction with Global Entrepolis @ Singapore (GES) 2009, is targeted at senior executives and business owners of growing and mid-sized companies.

Based on the theme “Thriving in Turbulent Markets”, the APEC SME Summit 2009 is part of the series of APEC 2009 meetings hosted in Singapore. It is organised by the APEC Business Advisory Council (ABAC) and SBF.

This summit provides a high-level platform for business owners, top management executives, senior business managers, thought leaders and entrepreneurs to share best practices and experience, debate current business issues, discuss winning market strategies, network and strike up new partnerships.

DELEGATES AT THE SME SUMMIT IN LIMA IN 2008.

APEC SME Summit 2009This summit features a distinguished panel of experts who will share their views on how businesses can manage the current market downturn to remain agile and resilient.

Global Diaspora Business Summit 2009The event bridges the various diasporas’ business communities from India, China and other countries through established networks.

This year’s summit will focus on investment opportunities in China and India as well as other promising emerging economies.

Latin Asia Business Forum 2009 Organised by International Enterprise (IE) Singapore, this forum explores how Asian companies can position themselves to expand in the Latin American market. The forum is the region’s premier networking avenue for business and government leaders to promote economic opportunities in Latin America and Asia.

Indo-China Business Leaders Bridge Forum 2009 Entrepreneurs can learn about investment and business opportunities in Vietnam and link up with Vietnamese companies and trade agencies. +

Listen to insightful views from speakers such as Mr Teng Theng Dar, Chair ABAC 2009 and CEO of SBF; Mr Christophe Bezu, Senior Vice President and Head of Region Asia of Adidas Group; Mr Dan Neary, Vice President and General Manager for Asia Pacifi c of Skype; and Mr Didier Chenneveau, Chief Supply Chain Offi cer of LG Electronics.

The speakers will engage in collaborative discussions with the audience on strategic business issues; look at how companies can better adapt to the economic downturn and build a more resilient organisation; explore how companies can gain access to new markets; and uncover new opportunities.

For more information, visit www.globalentrepolis.com.

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SPECIALREPORT: APEC SUMMIT/GES 2009]

Removing barriers for business growth in APECBusiness communities call on APEC governments to remove unnecessary business regulations. ABAC survey reveals top-three priority areas for reform.

R emoving unnecessary regulations that hamper business operations is one of the key steps to improve the business environment within the Asia Pacifi c, said the APEC Business Advisory Council (ABAC) Singapore and SBF.

The ABAC-SBF dialogue session on Removing Barriers for Business Growth in APEC was held in July in conjunction with the presentation of key indicative fi ndings of the ABAC Ease of Doing Business (EODB) Survey. The survey was conducted from March to June, gathering more than 200 regional respondents.

Structural reform within APEC and improving the ease of doing business in the region was the top issue at the dialogue. A panel discussion was led by Mr Teng Theng Dar, SBF CEO and Chair of ABAC 2009; Ambassador Michael Tay, Executive Director of APEC Secretariat; Ms Chong Siak Ching, President and CEO of Ascendas Pte Ltd and ABAC Singapore Member; and Dr Cheong Wei Yang, Deputy Director, Industry Division, Ministry of Trade and Industry and Singapore Representative to APEC’s Economic Committee.

The panelists stressed the importance of “behind-the-border” reforms like cutting down of regulatory procedures required by government agencies, as a complementary process to traditional “at-the-border” trade liberalisation efforts like tariff reduction. They also updated participants on various initiatives at APEC to improve the business environment and promote structural reform in the region.

One major issue discussed during the dialogue session was whether APEC may become a European Union

(EU) in future where freedom of employment, free visa and one currency would be enjoyed by EU member economies. To this, Ambassador Tay said that as APEC members are known as economies rather than as nation states, APEC is one of the few multilateral bodies that allow China, Hong Kong and Chinese Taipei to be represented on a common platform.

ABAC EODB surveyThe ABAC survey, which drew reference from the 10 indicators of the World Bank’s Doing Business Report, garnered inputs from the Asia-Pacifi c community on the areas of regulatory reform that should be implemented by governments.

Two hundred and eighteen respondents, of whom 16 per cent were from Singapore, were asked to rank in terms of priority, the regulatory area most in need of improvement. Among the 10 indicators, “Dealing with Permits”, “Starting a Business” and “Protecting Investors” emerged as the top-three areas for regulatory reform.

Respondents who provided feedback on doing business in Singapore recognised that “Dealing with Permits” remains the top priority area in need of regulatory reform in Singapore. However, they felt that “Employing Workers” was an area of concern for businesses operating in Singapore, instead of “Starting a Business”. This comes as the World

Bank’s Doing Business Report 2009 ranked Singapore 10th in the world in terms of the ease of starting a business.

In general, respondents, half of whom represented the SME sector in the APEC region, also provided recommendations, for example, to unify procedures among various levels of government, and making use of online applications to facilitate the application of permits and licences. One tool would be to allow all permit applications from government agencies to be made available through a single website.

ABAC shared the overall results of the survey with APEC Senior Offi cials during their meeting in late July, and their input formed part of the basis for APEC’s endorsement of fi ve priority areas for regulatory reform: Starting a business, getting credit, trading across borders, enforcing contracts and dealing with permits. These reforms will make it faster, easier and cheaper for businesses to operate in the region.

SBF CEO Mr Teng said: “All that we are hoping for is for other non-critical and non-essential regulations to be reduced or removed, to enable businesses to grow and contribute to overall economic prosperity.” +

PANELISTS AT THE ABAC-SBF DIALOGUE SESSION GAVE INSIGHTS ON APEC’S ROLE IN IMPROVING BUSINESS IN THE REGION.

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Q Why is APEC 2009 so important to Singapore and the local business community?The world is emerging out of a crisis and into a new world where the rules of the game need to be redefi ned. Singapore, as Chair of APEC 2009, is well-positioned to demonstrate that the new world must be one of open borders – where trade, investment, capital and talent can fl ow freely.

Being host to the APEC CEO Summit allows Singapore to showcase its sound investment and pro-business environment, which would hopefully create new investment opportunities for businesses.

The APEC CEO Summit which will draw over 800 top CEOs from the region, will offer tremendous networking opportunity for our local business community. The CEO Summit will also offer businesses a platform to provide inputs to policy makers.

Q As Chair of the APEC CEO Summit, what would you like to see as a result of the event?I hope that the APEC CEO Summit will bring about insights that will pave the way for new and enlightened economic and social policies, new and sustainable business models that will enable us to build a new global economy. I hope that new partnerships will be forged during the Summit. +

For more information on this event, visit http://ceosummit.apec2009.sg.

Singapore is hosting the APEC CEO Summit, a prestigious two-day business forum that is the only platform that brings together top CEOs from the Asia Pacifi c and APEC’s Leaders to discuss the most pertinent economic and business issues facing Asia Pacifi c.

Delegates from the 21 APEC economies, as well as leading business fi gures from the Middle East and India are expected to attend the APEC CEO Summit Singapore 2009.

BiZQ speaks with Ms Chong Siak Ching, President and CEO of business space solutions provider Ascendas, and Chair of the APEC CEO Summit 2009 Organising Committee, about her thoughts on chairing Singapore’s premier business event of the year, and the importance of APEC Singapore 2009.

Q What are some of the highlights that we can expect to see at the APEC CEO Summit 2009?APEC is an economic organisation that accounts for nearly half the world’s trade and more than half the world’s GDP. The APEC CEO Summit provides an avenue for the region’s top businessmen to interact with one another and for decision makers to help shape the region’s economic policy and business environment.

At the APEC CEO Summit this year, participants will have the opportunity to engage with various APEC Leaders to strategise how governments and businesses can rebuild the global economy. We anticipate the participation of 15

Building a stronger future for global business in Asia Pacific

leaders including President Hu Jintao, President Lee Myung-bak, Prime Minister Kevin Rudd and Prime Minister John Key. We have invited President Barack Obama to share with us his thoughts and priorities for this region.

Apart from APEC Leaders, participants will benefi t from the views shared by Thought Leaders like Mr Lee Kuan Yew, Mr Shaukat Aziz, Mr Kishore Mahbubani, Dr C Fred Bergsten and Mr Bjorn Lomborg, to name a few.

Q What is the signifi cance of the APEC CEO Summit in this current economic environment?The theme for the Summit, Rebuilding the Global Economy: Crisis and Opportunity, is a call for action by governments and businesses to focus on opportunities to rebuild the global economy, looking beyond the crisis and learning from it.

This is also an opportunity for the world to embark on a journey of sustainable recovery and growth, and by working together on this, all economies will emerge stronger from this crisis.

We hope that topics that discuss the future of the global fi nancial architecture, the world trade regime, corporate governance, environmental sustainability and technological innovation will contribute to policy deliberations that would spur regional, and indeed, the world’s long-term growth and potential. There is no better time to chart a collective path towards that than now.

APEC CEO Summit provides a platform for business leaders to interact with APEC Leaders to help shape the region’s economic policy and business environment.


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BIZCOMMUNITY]

BiZQ speaks with the Netherlands’ Prime Minister Jan Peter Balkenende about the country’s drive towards a knowledge-based economy. He will elaborate on this when he visitsPM Lee Hsien Loong in Singapore this October.

Innovation in the Netherlands

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Q In which specifi c area of research is the Dutch government looking to invest in order to promote science and technology?The Dutch government had already drawn up a robust agenda for strengthening the Dutch knowledge economy before this crisis. Examples are food and high-tech systems, including nano-electronics and the automotive industry. We believe this approach is needed to maintain our competitiveness in the international arena in the long run.

The economic crisis has increased the importance of innovation and enterprise in further boosting the growth potential of the Dutch economy. We have taken additional measures to stimulate corporate innovation and help private-sector researchers. This includes extra support for research projects in areas in which the Netherlands has a strong position. The government has also invested in attracting highly educated professionals to the Netherlands.

Q Are such investments designed to foster physical infrastructure development, or to promote private-public sector initiatives?The stimulus package the government presented in March 2009 increases investments on all fronts. For instance, investments are being made in sustainability, energy security and innovation. Proposals include infrastructure and construction. The government has brought forward

visiting the Marina Barrage. And a number of MOUs for future cooperation on water management will be signed during my visit.

Singapore and the Netherlands have many things in common: We are densely populated countries and rank among the 10 most competitive economies in the world. We are both trade hubs for our regions – Singapore for Asia, and the Netherlands for Europe. It is therefore not surprising that our ports are working closely together. And we face similar challenges: Rising sea levels caused by climate change, stiff competition from low-cost countries and an ageing population. We will discuss with our friends in Singapore ways to overcome these challenges and how we can mutually benefi t from our business and scientifi c knowledge in that respect.

Q Can you outline the main goals of the Innovation Platform? The Innovation Platform was established to diminish bureaucratic barriers to innovation, strengthen the Netherlands’ competitiveness through close cooperation between the business and scientifi c worlds and encourage key sectors of the Dutch economy to excel. These include food and fl owers, water, high-tech systems, the creative sector, chemicals, pensions and social security. Our main goal is to put the Netherlands back in the Top 5 of the World Economic Forum’s Global Competitiveness Index. +

maintenance plans for roads and waterways. To keep the Netherlands safe in the face of global warming we will also continue to invest in protection against rising sea levels. These investments will also ensure that the Netherlands remains the leading country in water management.

As far as supporting private-sector innovation is concerned, we have three main initiatives. The fi rst is temporarily increasing fi scal support to companies for their employees involved in research and development. The second is a programme that allows companies to temporarily transfer their researchers to research institutes. This allows private-sector researchers who are threatened with losing their jobs during the recession to be seconded to public research institutes, such as universities and technology institutes. The third involves providing additional funding of 100 million (S$208 million) to support research projects in areas in which the Netherlands has a strong position.

Q What is the goal of the current high-level mission? In which specifi c areas does the Netherlands want to work with Singapore?The mission’s principal goal is to strengthen and intensify the economic and scientifi c ties between Singapore and the Netherlands. We are working closely together in water management and the life sciences, for example. In this context, I look forward to


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SBF TAPS INTO CHINA’S NEW, EMERGING OPPORTUNITIES

GLOBALBUSINESS]

The Singapore Business Federation has been working hard to tie up with various regional organisations and local governments to explore specifi c opportunities for its members. We take stock of these efforts here.

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+

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COUNTRYINSIGHTS]

S ri Lanka is the most affl uent populace in the South Asian sub-region. It has high literacy rates, especially in IT. It is also an attractive in- and out-bound destination for small- and medium-sized businesses. It is a market also known for rapid investment growth in manufacturing for re-export and business process outsourcing.

Now, with the civil war ended, political stability is another big plus point.

It is for these reasons that the Board of Investment of Sri Lanka, Singapore Sri Lanka Business Association and the Singapore Business Federation, the publisher of BiZQ, got together in June to foster greater bilateral trade and investment opportunities.

The meeting in Singapore, organised by SBF, was led under the auspices of Mr Anura Priyadarshana Yapa, Sri Lanka’s Minister for Mass Media & Information and Minister for Enterprise Development & Investment Promotion.

At the outreach session, Mr Yapa said that Sri Lanka is one of the safest places in the world for investment. “We are one of the few countries in the world to have eliminated terrorism and now the government is focused on rapid

OPPORTUNITIES ABOUND IN SRI LANKA

A PIECE OF SRI LANKAWhen Singapore-based Shing Kwan Group decided to build two 39-storey towers to deliver 750,000 sq ft of prime offi ce, retail and commercial space, it was making history by becoming the largest foreign investment in Sri Lanka.

Co-owner of The World Trade Center in Colombo, the World Trade Centre is now the tallest building in South Asia.

Having been in the market for decades, the legendary founder of the group, S.P. Tao, once told the media at a Sri Lankan Board of Investment event: “As a foreign investor, I have no problems regarding the Board of Investment (BOI). They did a really good job. They understand investors. All their terms have been attractive.”

The tycoon has also said that the construction sector is one of the best areas to invest in Sri Lanka, which is why the company followed up with the famous Havelock City. Havelock City is the single largest mixed-use real estate development project to be undertaken in Sri Lanka.

The company told BiZQ that construction of the fi rst phase of the residential apartments comprising 226 units has already commenced. The target date for completion of this phase is 2009. The entire project is targeted for completion in 2010-2011.

economic development of the whole country.”

Singapore investorsSri Lanka’s Ambassador to Singapore, H.E. Jayathri Samarakone said that the country offered some of the highest rates of return to investors in Asia.

She noted that some Singapore companies like the Shing Kwan Group and the Prima Group have

made strides in the country through more than 20 years of presence.

The ambassador also suggested that other businesses should take advantage of emerging growth opportunities.

According to the Sri Lanka Board of Investment, more than 70 per cent of foreign direct investments into Sri Lanka comprises re-investments, indicating a high level of satisfaction among investors.

Sri Lanka has a diverse and multi-faceted economy. BiZQ gives an overview of the opportunities available for Singapore businesses.

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SBF raises market awarenessSpeaking from the Singapore perspective, SBF CEO Teng Theng Dar said that it is the objective of Singapore’s apex business chamber to “raise market awareness of emerging business opportunities in Sri Lanka and to facilitate linkages between our companies.”

“We are very encouraged that Singapore businesses have turned their attention on the Sri Lankan market. Singapore companies that have recognised the business potential of Sri Lankan markets have been investing for many years despite the military confl ict there,” he said.

Both countries have had a warm and growing economic relationship over the years.

Singapore is now Sri Lanka’s 72nd largest import partner. In turn,

SRI LANKAN MINISTER ANURA PRIYADARSHANA YAPA REACHED OUT TO THE SINGAPORE BUSINESS COMMUNITY.

Singapore is Sri Lanka’s 30th largest export partner. Total trade between both countries grew about 10 per cent to hit S$1.5billion in 2008, compared to S$1.4billion in 2007, according to offi cial statistics.

The main import items from Sri Lanka are currently refi ned gold and copper, fabrics, electronics-related, milk-based, seafood and jewellery products.

The main export items to Sri Lanka are petrochemicals (liquifi ed petroleum gas, diesel, butane), electronics, aeronautical, precious metals and jewellery products.

Mr Teng highlighted several companies that have found a niche in Sri Lanka. These included the Shing Kwan Group of Companies (see sidebar), the Prima Group (grains and fl our-based products), Ghim Li

Group (clothing apparel), Banyan Tree (hospitality) and BP De Silva Holdings (jewellery).

“We wish to create more success stories of Singapore-based companies entering and engaging the Sri Lanka market where the diverse, multifaceted economy presents many new and nascent opportunities in different industry sectors,” he said. +

TechSys Ltd

E-W Information Systems Ltd

Hellocorp (Pvt) Ltd

VSR Consultants (Pvt) Ltd

Delmege Forsyth & Co Ltd

Coastland Coconut Exports

Inventures Asia (Pvt) Ltd

Rank Group of Company

Alankara Skr (Pvt) Ltd

SRI LANKA: OPPORTUNITIES FOR SINGAPORE ENTREPRENEURSDuring the recent visit to Singapore organised by SBF and the Sri Lanka Business Association, the Sri Lankan companies below shared their areas of business interests.

COMPANY BUSINESS OPPORTUNITIES BEING PURSUEDBUSINESS ACTIVITY & INTEREST AREA

Information, Communications and Telecommunications (ICT) software, ICT consulting, product quality testing and assurance, product focus spanning, enterprise resource planning, business intelligence, workfl ow solutions, website host services

IT and IT-enabled services

Business Process Outsourcing (BPO)

Business Process Outsourcing (BPO), healthcare & infrastructure

Import, marketing and distribution of packaged food & non-food products, medicinal & laboratory equipment, pharmaceuticals, home appliances, garden & automotive parts

Export of fresh coconut products and import of motor vehicles into Sri Lanka

Group’s interests range from logistics, consultancy, commodities trading, chemicals & pharmaceuticals

Hydro-power, wind power, trading and consultancy

Manufacture of fi ne fi nished jewellery with gold or platinum studded with diamonds and coloured stones (precious/semi-precious)

Aims to position company’s products and service offerings in Singapore through alliances and partnerships.

Pursuing joint venture partners for the setting up of IT businesses in Sri Lanka to address domestic and overseas markets.

Looking for potential customers to outsource back-offi ce functions.

Interested in joint ventures in IT/BPO, healthcare and infrastructure projects. Exploring investment and joint venture opportunities.

Looking to meet potential trading and joint venture partners in its areas of business.To promote export of tea products in various forms. To meet manufacturers of medical and lab equipment, medical consumable products. To meet partners to develop low-cost housing.

Sourcing for joint venture partners for the export of coconut products.

Aims to form a joint venture with a Singapore company in consultancy and to seek business opportunities in commodities, chemicals, pharmaceuticals & logistics.

To gather necessary information and scope regarding the energy sectors mentioned.

To fi nd new suppliers to provide company’s manufacturing facilities.

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COVERSTORY]

Build CapacityHelping Singapore’s SMEs

When the global fi nancial crisis began, the Singapore government moved quickly to help Singapore companies with several fi nancial initiatives announced early this year. Since then, there have been equally robust efforts from all fronts, including SBF, to help Singapore SMEs tide the downturn. BiZQ takes stock.


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First, the 2009 budget was moved forward to January to set the tone for the Singapore government to introduce stimulus measures to fi re up the domestic economy amid the backdrop of the global fi nancial crisis. Along with the announcement came various key initiatives like the Job Credits Scheme, the SPUR effort to re-train workers and professionals as well as the fi nancial Risk-sharing Initiative to help companies access bank loans.

Many of these ground-breaking initiatives helped deliver the much needed support required by Singapore’s small- and medium-sized enterprises (SMEs). After all, today, 160,000 SMEs hiring about 1.7 million workers faced greater adversity in the downturn compared with Singapore’s bigger businesses.

More than six months since, an array of other high-profi le initiatives have reached the market place. These include: Private-public sector schemes to lower operating costs for businesses; multilateral organisational efforts to educate Singapore companies on existing initiatives; help for companies to meet emerging technical specifi cations in the sunrise industries; schemes to develop human resource capabilities in Singapore enterprises; efforts to launch more forays into overseas markets; and leveraging infocomm for sustained growth.

SBF lends helping handIn recent months, extra efforts have also been made by the Singapore Business Federation (SBF) in delivery programmes that lend to longer-term sustainability, especially in business continuity. One such area, which has been the subject of much public discussion related to fl u pandemic situations. (See related story on Business

Continuity Programme).SBF is in full support of these

initiatives that have emerged in the past few months. This is because helping SMEs build capacity and resilience to tide through the current economic downturn has been a key priority of the Federation. It is part of SBF’s goal of building cornerstones to encourage businesses to adopt best practice to strengthen internal processes.

SBF works with the Ministry of Manpower, Infocomm Development Authority of Singapore (IDA), Spring Singapore, IE Singapore, the Singapore National Employers Federation, and key business chambers

and trade associations to initiate programmes to help Singapore enterprises enhance capability and competitiveness.

“SMEs tend to be the hardest hit in an economic crisis, especially like the one we are facing right now. It is important that governments and business representative groups work closely together and provide business facilitation and capacity-building support to help SMEs that are competent, viable and have growth potential to tide through these diffi cult times,” said SBF CEO Mr Teng Theng Dar. >

SBF’S ROLE IN HELP SCHEMESAt the Federation’s seventh Annual General Meeting in June, SBF Council Chairman Tony Chew affi rmed that the apex chamber will continue to proactively represent the concerns of the business community to government and facilitate their efforts to leverage help schemes and tap into business opportunities locally and overseas.

Besides facilitating dialogue between the business community and government on business cost and cash fl ow issues, SBF also organised key national policy briefi ngs on government help schemes, wages, employment and security issues. These briefi ngs were useful in updating members on the latest developments, and in facilitating feedback, which SBF relayed to the government agencies for their decision-making.




COVERSTORY]

GETTING IT HELP THROUGH ASASThe Accounting Software Assistance Scheme (ASAS) is an initiative by the Infocomm Development Authority of Singapore (IDA) and Inland Revenue Authority of Singapore (IRAS), aimed at helping Small and Medium Enterprises (SMEs) to improve their fi nancial and book-keeping practices.

ASAS SUBSIDY The subsidy applies to any local SME that meets the following criteria:

• Has at least 30% local shareholding. • Has less than S$15 million fi xed assets. • Has less than 200 employees (applicable to non-manufacturing sector only). • Is GST-registered and will remain GST-registered for at least 12 months after application. • Currently not using an accounting software.• Has not applied for or obtained any other fi nancial assistance, such as subsidies or grants, for the purchase or implementation of any accounting software. This includes the subsidy under the ceased SPRING Singapore’s GST Assistance Scheme.

The subsidy defrays up to 50% of the qualifying costs, capped at S$1,500 per eligible SME. The qualifying costs include:

• Purchase of accounting software. The software must be listed under the IRAS Accounting Software Register (www.iras.gov.sg). • Installation/deployment of the accounting software.• Training on the use of the accounting software.

Driving Infocomm@SMEOne of the latest initiatives to help Singapore SMEs was announced by Mr Sam Tan, Parliamentary Secretary for Trade and Industry and Information, Communications and the Arts at the 13th Infocomm Commerce Conference. Having painted the backdrop of uncertain economic outlook, he said trade

associations and chambers have established a strong network with the SMEs and the feedback gathered from them shows that SMEs recognise the importance of infocomm technology as an enabler of

competitive advantage.“Infocomm can add a formidable

international channel of revenue generation through web presence, as well as reduce the cost of operations through a plethora of operational effi ciency tools and systems,” he said, as he launched new efforts under IDA’s umbrella Infocomm@SME.

In June 2008, IDA launched the SME Infocomm Package (SIP), which subsidises SMEs in the set-up of their fi rst website as a means to increase their market presence. The subsidy was raised from S$1,000 to $2,000 per SME in April this year, to lend a more substantial helping hand during these challenging times. To date, SIP has helped more than 2,500 SMEs.

In addition to having a web presence, companies can use the multitude of social media platforms such as Facebook and Twitter to reach out to their customers. The increasing availability of enterprise platform services such as cloud computing, Software-as-a-Service

and unifi ed communications offer SMEs alternatives to high upfront ICT outlays, he said.

In this context, Mr Tan announced that IDA, together with the Inland Revenue Authority of Singapore, has just launched the Accounting Software Assistance Scheme (ASAS). ASAS provides up to 50% subsidy for SMEs to acquire their fi rst accounting software to improve their fi nancial and book-keeping practices.

SMEs can purchase an accounting software that meets IRAS’s requirements, and can claim

a subsidy of up to $1,500 per SME, including software customisation and training costs.

SMEs planning to improve business processes or develop new capabilities using infocomm can get support through the Technology Innovation Programme (TIP), jointly administered by IDA and SPRING. TIP incentivises SMEs on the use of infocomm to transform their businesses. >

INFOCOMM CAN BOOST REVENUE GENERATION THROUGH WEB PRESENCE.



COVERSTORY]

HR CAPABILITY PACKAGEIn October 2008, Spring Singapore and the Workforce Development Authority introduced a Human Resource (HR) Capability Package, which aims to help SMEs address their HR capability gaps. Ernst & Young Advisory was commissioned to develop the package in a pilot involving 20 SMEs from various industry sectors.

Small and medium enterprises (SMEs) can tap on the HR Capability Programme if their company meets the following criteria:

• At least 30% of the shareholding is local. • The company’s group fi xed assets are below $15 million. • The company has no more than 200 employees (for companies in the services sector). • The proposed project is carried out for Singapore-based operations only. • At least one staff who is currently handling HR functions will be assigned to be part of the project team and he or she must have attended the MFT workshop for HR Capability Package prior to project commencement.

In the past two years, at least 40 SMEs have received TIP support, with a total grant of more than S$4 million being awarded.

In the same vein of leveraging IT as well as trying to drive business costs lower, IDA, IE Singapore and Singapore Telecommunications Limited (SingTel) have just announced a major effort to bring cloud computing to Singapore companies.

The aim is to bring cloud computing, which provides business services on demand, such as hosted e-mail, web publishing and human resource applications, within reach of Singapore companies and to lower their business costs.

In making the announcement recently, SingTel’s Business Group Executive Vice President Bill Chang said that cloud computing allows businesses to improve their productivity and yet lower their IT costs by up to 90%.

Speaking on the collaboration, Mr Yew Sung Pei, Assistant Chief Executive Offi cer of IE Singapore, said: “This partnership (with SingTel) is in tandem with IE Singapore’s mission, and is an excellent example of how the public and private sectors can work together to increase business opportunities for our local enterprises in the global marketplace.”

He added: “Through the programme, we hope to work closely with SingTel to identify promising Singapore-based software developers and proactively match them with potential partners and customers overseas by leveraging SingTel’s connections and our global networks.”

Home-grown Sakae Sushi, one

of the fi rst Singapore companies to adopt the SingTel service, said its annual IT costs have gone down to a four-fi gure sum from tens of thousands of dollars per year.

Tuning into help programmesAnother key initiative launched a few weeks ago was jointly organised by the Ministry of Manpower, the National Trades Union Congress (NTUC) and the Singapore National Employers Federation, which is very closely aligned to SBF.

Called the Tripartite Upturn Strategy Teams (TRUST), this effort is aimed largely at advising companies on how best to tap initiatives such as the Skills Programme for Upgrading and Resilience (Spur) and the Jobs Credit Scheme.

Manpower Ministry Director for tripartite programmes Ng Chun Pin told BiZQ that many SMEs were unfamiliar with measures such as Skills Programme for Upgrading and Resilience (Spur), which covers worker training; and Jobs Credit, which subsidises employers’ wage

BUSINESSES CAN IMPROVE

PRODUCTIVITY AND LOWER IT

COSTS VIA CLOUD COMPUTING.

bills for local workers.Fresh efforts are being directed

at SMEs whose employees do not belong to unions to enable them to get help in accessing government programmes so that they can weather the economic downturn.

“As far as priority is concerned, we will target non-unionised companies as well as SMEs. Because where there are unions, the unions will go in and help them. Many SMEs may not be aware of the full range of help measures, so that’s the purpose of the TRUST teams to approach them and present to them the slew of >


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STRENGTHENING SINGAPORE’S RESILIENCE AGAINST BUSINESS DISRUPTIONSPlans are underway by the SBF to launch a fl u pandemic Business Continuity Programme (BC

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