Distinguished Guests,

Ladies and Gentlemen

1.          I am pleased to join you at the opening ceremony of Franchising and Licensing Asia 2013 (FLAsia) [pronounced F-L-Asia].

Franchising and Licensing Industry has Potential for Growth in Asia and Singapore

2.               Franchising and licensing are important business models for our economy. As of 2012, Singapore was estimated to have in excess of 600 franchising systems, with more than 40,000 franchisees. The franchising and licensing industry accounts for 18 per cent of total domestic retail sales volume and generates a turnover of about 6 billion Singapore dollars. Its current estimated GDP contribution stands at 1.6 per cent of Singapore’s Gross Domestic Product (GDP), and this is projected to expand rapidly to about 3 per cent by 2017. Regional markets offer even more growth opportunity through exports and investments.

3.               Franchising and licensing is also an essential part of our “toolkit” to enhance the local enterprise landscape. It facilitates the transfer of skills and knowledge, and provides good opportunities to help aspiring Singaporean entrepreneurs jump-start their businesses and get their feet wet quickly.

4.               I am therefore heartened to see a significant 63 per cent increase from 2012 in the number of home-grown brands and concepts at the show this year. Last years’ Global University Entrepreneurial Spirit Students’ Survey also showed a healthy level of interest in entrepreneurship among students in Singapore Institutes of Higher Learning (IHLs). These are all positive signs that Singapore is evolving towards a more vibrant enterprise scene to support the next wave of growth.

5.               A good example of a success story is Academy of Rock. The company participated in FLAsia last year, and has since established franchises in Philippines and Kuala Lumpur. Academy of Rock’s entrepreneurial spirit has led them to win the Promising SME 500 Award, the Singapore Prestige Brands Award (SPBA) and the SME1 Asia Awards in 2011, 2012 and 2013 respectively.

The Government Continues to Support Entrepreneurs

6.               The Government is committed to supporting the franchising and licensing industry, as well as the larger enterprise landscape here in Singapore.

7.               We do so by providing a pro-enterprise environment with transparent regulations, a skilled workforce, financial and non-financial assistance for our companies, and a developed legal and intellectual property framework. These are all factors which encourage entrepreneurs to nurture their ideas and grow their businesses.

8.               The government is also committed to helping our entrepreneurs build up their capabilities and grow their businesses via productivity improvements. To-date, the National Productivity and Continuing Education Council (NPCEC) has endorsed and rolled out 15 sector productivity roadmaps. Companies can also tap onto SPRING’s Capability Development Grant for the development of innovative products, process re-design and automation, or to upgrade manpower capabilities.

Conclusion

9.                  I am confident that together, Singapore can continue to grow our enterprise spirit to help maintain our competitive advantage as a business hub.

10.               On that note, I wish all participants here today every success in your franchising efforts. Thank you.