Distinguished guests,

Ladies and gentlemen,

Introduction

1.               I am delighted to be here this morning with all of you to launch the Local Enterprise and Association Development, or LEAD Programme for short. The launch of the LEAD Programme today marks a significant step forward by the Government to work with the industry associations in our industry development efforts.

Why Industry Associations Should Take the Lead

2.               Since the 1960s, the Government has been spearheading the development of industry groups such as chemicals, petroleum products, electrical-electronic products and logistics. At that time, active Government support was necessary to induce rapid industrialisation. The Government took on the role of creating a favourable investment climate through the provision of liberal fiscal and tax incentives, as well as developing an infrastructure of industrial facilities and supporting services to attract private capital.

3.               The Government also designed incentives and assistance programmes to cater to and benefit the individual enterprise. I am sure you are familiar with the Local Enterprise Technical Assistance Scheme (LETAS) and the Start-up Enterprise Development Scheme (SEEDS). Enterprises can apply for LETAS or SEEDS regardless of the industry verticals they are in. The terms of the incentives are not customised based on the particular needs of the different industrial sectors.   While this approach has served us well, it does not provide enterprises with customised and focused assistance.    

4.               At the same time, industries in major economies such as Europe, Japan and Korea have adopted the model of private sector-led industry development. For example, industry associations in Europe are well-established and have a long history of serving the needs of their members. These associations serve as regulators for specific trade registration and skills certification. Some associations have even evolved to function as financial cooperatives and venture capitalists, to help seed and grow their industries in areas such as fashion, textiles and furniture.

5.               Closer to home in Asia, the Japan Electronics and Information Technology Association, or JEITA is another fine example of industry association leadership.  JEITA representatives highlight industry development issues regularly to their Government officials, allowing feedback from their members to be heard and acted upon. In addition, JEITA undertakes market research and information gathering activities. For instance, JEITA stations staff in overseas offices such as Beijing, Paris and New York to facilitate data exchange, gathering and analysis.

6.               Therefore, I spoke during the recent MTI Committee of Supply Debate on the need for the Government to foster even closer partnerships with our industry associations. I believe that going forward, we can achieve the next stage of our economic growth if we adopt an “Industry-led and Government-backed” approach.

7.               My belief has been supported by feedback from various sources ranging from industries, enterprises and academics. When Business Strategist Michael Porter visited Singapore in August 2001, he left us this advice: For Singapore to become an innovation-driven economy, the private sector needs to play a bigger role. After all, industry associations know private sector businesses best – in terms of the industry’s unique problems and challenges. They can play an instrumental role in the improvement and upgrading of their industries.

LEAD Programme

8.               I am therefore, pleased to announce that under the LEAD Programme, the Government has set aside $50 million over three years to help kick-start and accelerate the process of building up a base of able and willing associations to lead in industry development efforts.

9.               SPRING Singapore and IE Singapore will jointly implement the LEAD Programme. Through a Request-for-Proposal (RFP) arrangement, they will invite industry development plans from associations. An evaluation panel will be set up to assess the proposals.  SPRING and IE Singapore will take you through the details of the programme later on.

10.           The LEAD Programme signals the Government’s strong commitment to work with our industry associations to nurture our local industrial landscape. Geared at providing focused and customised assistance to the associations at the industry level, the LEAD Programme complements the suite of initiatives we have for individual enterprises.

Model Associations

11.           I am encouraged to see so many industry associations here today. I understand that three associations, the Singapore Food Manufacturers’ Association, the Singapore Furniture Industries Council, and the Textile and Fashion Federation, will be sharing their ideas and experiences on working with and helping their members. 

12.           These associations have come a long way. Some people had regarded them in the past as being part of the so-called “sunset industries”.  As Singapore’s economy developed and moved into higher value-added industries, some of these older and more traditional industries faced the prospect of becoming obsolete.  More and more labour-intensive operations were relocating overseas while companies struggled to stay afloat.  

13.           However, these associations did not allow the sun to set on them. Amidst intensifying competition, they took the initiative to champion the drive for industry development and internationalisation. They further took steps to become self-sustaining through profitable business models, organising activities such as trade fairs, missions and training programmes. By helping their members upgrade and expand, these associations not only turned around, but also turned in a very impressive performance. Today, the food, furniture and textile & garment industries boast a combined output of $5.3 billion, employ some 36,200 workers, and contribute a total of $1.5 billion of value add to our economy.

14.           Their achievements and contributions are indeed commendable.  Even more so is their instinct to survive and their resolve and resilience in facing up to challenges. They are truly masters of their own destinies. I look forward to hearing from these associations on their experiences in uniting their members to work together to re-invent themselves, and how they took decisive steps to strengthen their capabilities and take on the global competition.

Conclusion

15.           I urge all associations present to take the opportunity today to learn from one another, and pick up useful lessons on developing your own winning strategies.  The Government will continue to play a catalytic role, working closely with you to help you formulate and implement self-sustaining industry development blueprints.

16.           I encourage all of you to make full use of the LEAD Programme. Take the lead with LEAD. As the leaders of your industries, you are in the best position to put forth industry development proposals that will meet the needs of your members and help your industries move ahead. 

17.           On this note, I wish all of you a pleasant and fruitful morning. Thank you.