Professor Lai Choy Heng, Vice-Provost, National University of Singapore,

Distinguished Guests,

Ladies and Gentlemen,

Good evening,

I am pleased to be here with you at the Cerebration 2006, NUS–IE Singapore Global MBA Challenge.

2.         With the world becoming increasingly globalised, businesses have to reposition themselves to stay in the game.  Similarly, Singapore-based companies need to look beyond our shores.  They need to set their sights on becoming regional and global players in order to remain relevant. They must leave their comfort zone and venture into international markets.  Many of them are well positioned to do so.

3.         Given our highly efficient sea ports and airports, Singapore is well-connected to the rest of the world. Such connectivity is further enhanced by our network of Free Trade Agreements (FTAs). These FTAs increase Singapore-based companies’ accessibility to international markets, making them more globally competitive.  By tapping on the agreements’ tariff concessions, companies can generate tariff savings and increase their export sales.

4.         Venturing overseas into international markets, however, is not an easy task.  According to a 2003 study by Bain & Company, for every successful company, there are probably five others that did not make it.[1]  Internationalising businesses face a myriad of challenges. The operating environment is different. The legal structure is different. The political climate might also be different. But some of these risks can be mitigated.  One way is to make sure we do adequate home work. Many successful companies have conducted in-depth studies to understand specific markets well and to evaluate carefully the feasibility of entering those markets before they actually put their money down. 

5.         Many of you would be familiar with Ya Kun Kaya Toast. This famous breakfast chain currently has 21 outlets in Singapore and 17 overseas. In Ya Kun's initial venture overseas into Indonesia in 2004, a country-wide feasibility study co-funded by International Enterprise Singapore (IE Singapore) was carried out. This study discovered that the Indonesian consumers are ready to accept Ya Kun's product offerings. Such studies help equip local business players with relevant information and allow them to make informed decisions.  Today, Ya Kun has 10 outlets in Indonesia.[2] 

6.         Cerebration, which provides real-life learning opportunities to a diverse student community, was conceived by the National University of Singapore (NUS) in partnership with IE Singapore to help local companies tackle issues associated with overseas expansion. With its theme – “Generating Relevant Knowledge Capital for Singaporean Enterprises to Achieve Their Global Ambitions – Start Here, Go Global” – Cerebration 2006 has raised awareness of globally competitive Singapore-based companies among the top business graduates in the world.  

7.         The NUS teams taking part in this competition comprises an international mix of students from the Business School’s: 40% local and 60% from China, India, South-east Asia, Europe and America. Cerebration also attracts a diverse group of participants from the world’s best business schools. The competition provides an opportunity for these students to practically apply the theories they learned in the classroom. 

8.         The competition uses real-life cases provided by several globally competitive Singapore-based companies. Participants will benefit from a unique learning experience.  They have the opportunity to develop their business acumen and to gain an insight into how an International Chief Executive Officer thinks.  All these without risking their own money.  

9.         I am also happy to find out that this event is organised almost entirely by students. This trust accorded to student organisers allows them to develop and hone their leadership qualities which are crucial in running an international business. I understand that the lead organiser of the Cerebration committee, Sunil Mishra, is juggling between this event and working at Standard Chartered Bank as well as attending seminars at the Business School.  

10.       Just as the business graduates are given valuable opportunities to extend beyond traditional classroom-based learning to design robust internationalisation strategies for companies, Singapore-based companies should also develop a global mindset ambition.  I encourage the industry and the academia to work hand-in-hand with IE Singapore to encourage and help more local companies to venture overseas so as to build an external wing to our economy.

Lastly, I would like to congratulate all the participants here because all of you have learnt something useful.  You are all winners tonight.  But a word of caution, the world is changing all the time.  We should never stop learning or we will be left behind.  We should continue to learn, to explore and to venture. You have made many friends during this competition.   I would certainly urge you to maintain contact and build a network among you.  Someday, we may see some great business leaders among you.

Thank you.