Singapore Government Press Release

Media Division, Ministry of Information and The Arts,

36th Storey, PSA Building, 460 Alexandra Road, Singapore 119963.

Tel: 3757794/5

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SPEECH BY PRIME MINISTER GOH CHOK TONG AT THE OFFICIAL OPENING OF CREATIVE RESOURCE, HEADQUARTERS OF CREATIVE TECHNOLOGY, AT THE INTERNATIONAL BUSINESS PARK, JURONG EAST, ON TUESDAY, 2 FEBRUARY 1999, AT 5.30 PM

To say that Singapore is proud of Creative Technology is an understatement. After all, Creative Technology is the first Singapore company to be listed on the NASDAQ in New York. That was way back in 1992. Creative Technology has set a world standard for multimedia technology for the personal computers (PCs). It is now a leading provider of multimedia products and PC peripherals. Today, nearly 60% of the world’s PC audio systems are built on the company’s Sound Blaster platform.

There is no doubt that Creative Technology is Singapore’s best known homegrown company in the global IT field. When compared to the other leading IT companies, Creative Technology’s annual revenue of over US$1.2 billion and a worldwide work force of 4,500 may be small. However, it occupies a commanding niche in the IT world. It is this capability to hold on to this niche which is noteworthy.

If you take a poll among Singaporeans and IT users, they will equate Creative Technology with Mr Sim Wong Hoo. Indeed, the story of Mr Sim Wong Hoo is a remarkable account of vision, determination and courage. He started Creative Technology from scratch. He thought global, and camped out at the Silicon Valley in California for several years. There, he learned the ropes of running a high-tech venture. He soon spotted the potential for audio in PCs. He created Sound Blaster which went on to become the international standard for audio in PCs.

It was not smooth sailing all the way for Mr Sim Wong Hoo. He made his share of mistakes. One major mistake was an ill-timed move into the production of CD-ROM drives. But when it turned out to be a flop, he was quick to bite the bullet. With nimbleness and a never-say-die spirit, he revamped Creative Technology and brought it back from the brink of financial disaster. Today, the company is again an attractive investment for stock investors worldwide.

The story of Mr Sim Wong Hoo and Creative Technology shows that pushing a new enterprise to achieve success requires not only skills but a tenacious inner passion. There must be a drive to beat the odds and to succeed. As a tiny nation in a competitive world, Singapore must embody such qualities to survive.

To sustain the next stage of Singapore’s economic development, we must have more technology entrepreneurship. The new buzzword for this is technopreneurship. This term is rather a mouthful but unless somebody comes up with a more catchy word, we will have to settle for it. We need more technopreneurs like Mr Sim Wong Hoo and many more knowledge-intensive companies like Creative Technology.

I am aware that technopreneurship is a risky enterprise. It is not every entrepreneur’s cup of tea and certainly not for the faint-hearted and the easily discouraged. But for those with the dare, passion, knowledge and skills, it can offer immense personal satisfaction, not to mention potentially lucrative rewards. Indeed, there are few undertakings in the world today that can rival the satisfaction derived from bringing one’s own idea to fruition and seeing how it benefits other people as well.

It is not easy to nurture an entrepreneurial spirit, spark brilliant ideas and motivate technological innovations which can develop into profitable commercial successes. Some people claim that it would be impossible to do so, and that you either have it or not have it. Yet, the Government must try. We can at the very least remove the rules and obstacles that inhibit the blossoming of an entrepreneurial spirit. Indeed, this whole exercise to foster technopreneurship is by itself an enterprise. Like all entrepreneurs, we have to experiment, take risks and suffer knocks. Everything is always impossible before it works. That is what entrepreneurs are all about – doing what people have told them is impossible. This is what the Government will try and foster – creating a technopreneur class.

Singapore has the basic ingredients for technopreneurship to take root. Our population is well educated, with a strong foundation in science and engineering. Singaporeans are generally technology-savvy and willing to accept new technological innovations. Our society is open and cosmopolitan. We are plugged into the world. We welcome foreign talent which we can use to supplement our domestic talent to build up a critical mass of creative and entrepreneurial scientific manpower.

The National Science and Technology Board (NSTB) and other agencies have been active in promoting technopreneurship in Singapore. For example, NSTB has a one-stop centre to assist technopreneurs and their start-up ventures with help in accounting, technical, legal and management consultancy, as well as business networking. It also recently launched a Technology Incubator Programme to provide business support and early financing. Under the programme, NSTB will appoint an Incubator Manager to assist the selected start-up in commercialising its innovation. NSTB will also provide grants to subsidise R&D and approved business expenses for 2 years, in return for a minority stake in the start-up.

But there is a feeling that Singaporeans are not willing to take risk. This arises from the perception that our society has a low threshhold for failure. One consequence of this is that few bankers are prepared to offer financial support for start-up ventures, especially when there are no physical asset collaterals. Some government policies are seen as unfavourable in helping to develop an environment conducive for entrepreneurial and innovative pursuits. The conventional belief is that creativity cannot flourish in a climate where good social discipline and strong traditional values prevail.

We have to change our attitude towards entrepreneurs. Our society must be more tolerant of those who tried and failed. We may have to review bankruptcy laws to see how they can be more forgiving to those who failed in business and to give them a second chance. Apart from changing such attitudes, the Government will develop more infrastructure for supporting knowledge-intensive entrepreneurial start-ups, such as linkages to California’s Silicon Valley and other similar centres, mechanisms for gathering technology and market information, and structures for marketing and technical support.

Access to financing is stated to be a major problem for technopreneurs. They should have easier access to funding from venture capitalists and other sources. It has been suggested that the authorities should consider setting up a financial institution dedicated to funding knowledge-intensive ventures. Another issue is the cost of entry for the start-up ventures. Many of today’s successful IT companies have humble beginnings in car garages and garden sheds. The Government could lower costs, especially the rental of office and research space. In this context, the Government is asked to consider relaxing the existing HDB rules which disallow the use of flats for businesses.

Clearly, the Government and the private sector have to adopt a coordinated and concerted approach in fostering an environment which is conducive for techno-enterprises to sprout and thrive. This is what the newly-established Technopreneurship 21 Committee chaired by DPM Dr Tony Tan will do. The Committee will work out the overall strategies for the promotion of technopreneurship in Singapore. It will also oversee the implementation of the various initiatives. It will be assisted by a public-sector working group headed by NSTB Chairman Mr Teo Ming Kian and a private-sector working group chaired by Mr Sim Wong Hoo. I look forward to receiving their recommendations.

In a world of rapid technological changes, a pool of entrepreneurial start-ups in the knowledge-intensive areas will help Singapore become a knowledge-based economy of global reckoning. These companies will complement our present strength in manufacturing and services and enhance our economic competitiveness. They will be a source of knowledge and innovation, creating new businesses and industries to serve not only the regional market, but also the bigger, more competitive and more sophisticated global market.

Mr Sim Wong Hoo is one of those who has successfully turned his dream into reality. I congratulate the man and the company for showing Singaporeans what an entrepreneurial spirit combined with technological vision can achieve. It is now my pleasure to formally declare Creative Resource open.