Friday, 11 February 2011
MEDIA RELEASE: NR/01/2011
SMEs Focusing on Productivity,
Upgrading and Growth
About 3,500 SMEs upgraded in 2010, creating close to 16,000 new jobs and generating value-added of $4.8 billion
1. Small and medium enterprises (SMEs) remained focused on productivity improvements, capabilities upgrading and growth as they rode on the global economic recovery in 2010. This continual deepening of their capabilities would prepare them well to meet the increased competition and seize new opportunities in the global market.
2. SPRING Singapore, the enterprise development agency, supported about 3,500 SMEs in more than 3,300 upgrading projects last year. These upgrading projects covered a wide range of areas such as productivity improvements; automation; product, process and technology innovations; service quality; branding; intellectual property management; management systems; business leaders training and design. When these upgrading projects are fully completed in the next one to two years, they will create close to 16,000 new jobs and generate an additional $4.8 billion in value-added to the economy.
3. With the global economy on firmer footing, SMEs’ healthier financial positions and improved commercial lending climate, SMEs took up fewer government loans last year than in 2009. Some 9,700 loans amounting to $2.7 billion were made to SMEs under the various programmes[1] administered by SPRING and its financial institution partners.
4. In partnership with chambers of commerce and business associations, SPRING attended to over 133,000 SME assistance cases through the Enterprise Development Centres (EDCs), EnterpriseOne call centre, online enquiries, outreach seminars and workshops. Specifically, the five EDCs at ASME, SCCCI, SICCI, SMCCI and SMa provided assistance and business advisory services to 9,900 SMEs last year.
Productivity
5. Many SMEs responded to the government’s call and the Economic Strategies Committee’s recommendation to increase productivity in order to be able to raise real wages and stay competitive. Based on the DP Information SME Development Survey 2010, 66% of SMEs have taken steps to raise productivity. Last year, SPRING rolled out two initiatives to help SMEs: the Productivity@Work portal, and the Productivity Management Programme (PMP). Both initiatives are under the SME Productivity Action Roadmap (SME-PRO), jointly driven by SPRING Singapore and the Singapore Workforce Development Agency.
6. Launched in June 2010, the Productivity@Work portal provides a platform for companies to access productivity concepts, download basic tools and other useful resources on productivity. Since its launch, the portal has had more than 23,000 unique visitors and some 6,900 downloads. The PMP was introduced at the five Enterprise Development Centres (EDCs) in October 2010. Productivity advisors at the EDCs conduct workshops and clinics to educate SMEs on productivity and help them identify specific productivity issues. To date, some 443 SMEs have been trained under PMP.
Innovation
7. More SMEs also undertook product, process and technology innovations to develop new products and services, upgrade or transform processes and diversify into other lines of business. Many also leveraged the resources and expertise in Singapore’s knowledge institutions such as A*STAR’s research institutes, and Centres of Innovation at the polytechnics and universities. Last year, SPRING supported 317 projects under the Technology Innovation Programme (TIP). A total of 36 scientists and researchers from the research institutes were also seconded to SMEs to provide technology expertise.
8. Under the Innovation Voucher Scheme (IVS), 333 vouchers worth $5,000 each were awarded to SMEs. SMEs redeemed these vouchers for technology-related services and consultancy at 19 knowledge institutions. In total, 619 innovation vouchers have been awarded to SMEs since the inception of IVS in March 2009.
9. SPRING also supported 23 Proof-of-Concept and Proof-of-Value projects under its Technology Enterprise Commercialisation Scheme (TECS).
10. In April 2010, the Infocomms Development Authority (IDA) and SPRING jointly launched the $20 million iSPRINT programme to support the adoption of innovative ICT technologies in SMEs and local industries to enhance their productivity and competitiveness. Over 300 projects were supported in the first nine months.
Service Excellence
11. More SMEs also viewed service excellence as a competitive advantage in securing higher customer loyalty, which had a direct impact on their profits. The multi-agency Customer-Centric Initiative (CCI) jointly led by the NTUC and SPRING focuses on helping enterprises in key service sectors--retail, food service, healthcare, transport, hotels and travel--to raise their service standards.
12. Last year, CCI supported 77 projects that involved 156 companies, across six sectors. A customer service toolkit was also launched in November 2010 to equip enterprises with the proper service systems and skills to embark on service excellence.
Business Leadership
13. SME CEOs have recognised the need to upgrade their management capabilities and build a healthy talent pipeline for future growth. Under SPRING’s Business Leadership Initiative launched in 2007, 252 SME leaders and managers were trained in various advanced management and executive development programmes in 2010, making a total of 650 trained to date.
14. Responding to the ESC’s recommendation to enhance SMEs’ access to human capital, SPRING rolled out two new programmes in August 2010 to help SMEs attract and develop new talents. The Management Associate Partnership (MAP) assists high-growth and dynamic SMEs to recruit and develop local university graduates while the Enterprise Internship Programme (EIP) places existing university and polytechnic students on short-term internships in these SMEs. In the four months since its inception, the EIP has successfully placed 28 interns in 13 companies.
Driving Industry Growth
15. Trade associations and chambers (TACs) are also taking the lead to drive industry upgrading and growth. Through the Local Enterprise and Association Development (LEAD) programme, jointly managed by SPRING and IE Singapore, TACs have initiated more projects to improve the capabilities of local enterprises and help them explore overseas opportunities. Last year, three new associations joined LEAD, bringing the total to 25 associations supported under the LEAD programme.
16. A key focus of LEAD is to train the TACs' manpower and enhance their capabilities. A study mission to the US was organised in August 2010 for the TACs' leaders and secretariat. They attended a conference by the American Society for Association Executives (ASAE) and visited well-established trade and industry associations to learn from their best practices. In addition, 122 executives from 13 associations have also been supported on various training courses, seminars and workshops to better equip them for association management responsibilities.
Entrepreneurship
17. Through the efforts of the Action Community for Entrepreneurship (ACE), with support from various public and private sector organisations, Singapore’s entrepreneurship landscape has become more vibrant and varied with budding and experienced entrepreneurs setting up new businesses. SPRING SEEDS invested in 15 innovative start-ups, bringing the total to 185 since it was introduced in 2001. Last year, SPRING’s Young Entrepreneurs Scheme (Yes!) also supported entrepreneurship programmes in 41 schools and funded 31 start-ups set up by youths below the age of 26.
Growing Globally Competitive Enterprises
18. The ESC recommended that the government should strive to double the number of Singapore companies with annual sales revenue exceeding $100 million by 2020 (ie. from 530 in 2007 to 1,000 in 2020). HSL Constructor, an integrated marine civil engineering and construction company, is an example of a local company that has grown rapidly over the last 5 years to become a regional player. It has expanded into Malaysia, India and Brunei, and has also formed an alliance to venture into Indochina. HSL won its first multi-million dollar design-and-build project last year to construct a multi-utility complex with a coal/biomass handling jetty at Jurong Island. Its annual sales revenue has increased by 4 times from $17.8 million in 2006 to an estimated $72 million in 2010, representing a CAGR of 42% over the last 4 years. It looks well on its way towards crossing the $100 million mark.
Focus for 2011
19. For 2011, SPRING will continue to support SMEs in their upgrading efforts and help them grow, specifically in the area of productivity improvements, innovation, service excellence, business leadership development and business capabilities upgrading. As part of the national productivity drive, SPRING will be launching new programmes to raise productivity in key industry sectors.
20. SPRING will continue to strengthen the environment for enterprise development, and work with TACs to develop, upgrade and grow key industry clusters. New programmes will be implemented to upgrade productivity in key clusters. At the same time, the entrepreneurship environment will be further enhanced, with particular emphasis to seed and nurture more innovative, high-growth start-ups. SPRING will also focus more attention on helping promising growth-oriented enterprises to become industry leaders and globally-competitive companies.
Conclusion
21. Mr Philip Yeo, Chairman, SPRING Singapore, observed: “SMEs have cultivated a good reputation for innovation, quality and efficiency. More SMEs have also begun to venture into overseas markets. Our industries and SMEs would need to continue their growth efforts through capability upgrading, the raising of productivity, driving innovation, and building a talent pipeline. SPRING Singapore will continue to provide the necessary resources and facilitation to help Singapore SMEs grow, glow and globalise.”
---End of Media Release---
About SPRING Singapore
SPRING Singapore is the enterprise development agency responsible for helping Singapore enterprises grow. We work with partners to help enterprises in financing, capability and management development, technology and innovation, and accessing new markets. As the national standards and accreditation body, SPRING develops and promotes an internationally-recognised standards and quality assurance infrastructure that builds trust in Singapore enterprises, products and services, thereby enabling their global competitiveness and facilitating global trade.
Please visit www.spring.gov.sg for more information and news about SPRING Singapore.
For media enquiries, please contact:
Ms Rozlin Farid Vanzandt
Manager, Corporate Communications
SPRING Singapore
T : +65 6279 3894
M : +65 9476 2502
[1] These programmes comprised the Local Enterprise Finance Scheme, Local Insurance Scheme, Micro Loan Programme and Bridging Loan Programme
.jpg)