Mr Oliver Tonby, McKinsey Managing Partner for Southeast Asia,
Distinguished Guests,
Ladies and Gentlemen,
Good morning. It is my pleasure to join you today at McKinsey’s 7th Asia Transformation Networking Event, and to launch the McKinsey Asia Consumer Insights Centre.
2. The theme for this year’s event – “Innovation in Action: Driving Lasting Business Performance” – would resonate globally and in Singapore, given our emphasis on innovation as a driver of growth and as a means to create value for businesses.
Singapore is constantly innovating for success
3. The Government recognises the importance of innovation in sustaining the competitiveness of our businesses, and has been working with several industries in that regard. One important sector where this effort has gathered significant momentum is manufacturing. The rise of emerging economies with lower cost structures and increasingly complex manufacturing activities poses a material competitive threat. Hence, the Economic Development Board is developing a Future of Manufacturing plan to facilitate the adoption of emerging and advanced technologies as well as anchor higher value-added manufacturing activities, so as to bolster our competitiveness.
4. Another effort is in the infocomm technology or ICT sector. The infocomm and media sectors are converging due to technological advancements and changing consumer behaviour. In recognition of this trend, the Ministry of Communication and Information recently announced the formation of an Infocomm Media Masterplan Steering Committee, to study how this convergence can enhance the way Singaporeans work, live and play. Businesses can take advantage of the opportunities to provide innovative products and services to new groups of consumers.
5. These efforts underscore Singapore’s commitment to become the Home for Innovation, where businesses continually reinvent themselves to stay ahead of the competition. Our efforts have begun to bear fruit – in 2012, Singapore was ranked 3rd, behind Sweden and Switzerland, in the Global Innovation Index[1], co-published by INSEAD and the World Intellectual Property Organisation.
Asia contains opportunities which need to be better understood
6. We are here today for the launch of the McKinsey Asia Consumer Insights Centre. This centre will serve as a cornerstone for McKinsey’s growth in Asia, providing its consulting talent from around the world with exposure to Asian markets. This helps develop them as thought leaders with a good grasp of the opportunities within Asia. Through the centre, McKinsey will also conduct Asia-specific research to provide insights into the factors that influence Asian consumer behaviour. The knowledge gained can, in turn, be developed into new consulting tools and solutions for its growing base of Asian clients. The McKinsey centre will help businesses generate a 360 degree view of consumers, and cater products that better suit their needs.
Singapore is the ideal location to innovate for Asia
7. Singapore welcomes businesses like McKinsey to capitalise on Singapore’s geographic and cultural proximity to the region to acquire a nuanced understanding of different segments of Asian markets, which can differ significantly from that of Western markets. In fact, Singapore already has an ecosystem of global research agencies, such as Nielsen, Kantar, Ipsos and Flamingo. In addition, the Institute on Asian Consumer Insights provides businesses with deep insights into Asian consumers to help them create strategies to address Asian markets.
8. Besides global research agencies, Singapore also hosts a vibrant array of businesses that generate market and consumer insights on Asia. Many leading businesses take advantage of our comprehensive ecosystem to innovate in Asia, for Asia. Two months ago, Medtronic – a global leader in medical devices – officially opened its global Centre of Excellence for Business Model Innovation in Singapore. The centre is responsible for designing, testing and scaling new business models for rapidly growing markets across Asia. Another example is Procter and Gamble, which has located its Asia-Pacific Headquarters and Innovation Centre for beauty, grooming and healthcare products in Singapore. The centre conducts regional consumer insights studies and brand management.
9. I am encouraged by the confidence of major organisations that have chosen to locate their key business activities here. The growing presence of such knowledge centres in Singapore creates an important supporting infrastructure for businesses that seek to better access Asian markets. This also validates Singapore’s attractiveness as a Pan-Asian knowledge hub to the global consulting industry.
Conclusion
10. I would like to congratulate McKinsey once again on the launch of your Asia Consumer Insights Centre. I look forward to a sustained and fruitful partnership between McKinsey and Singapore, and wish all of you an engaging and productive networking session. Thank you.
[1]Source: The Global Innovation Index 2012 – Stronger Innovation Linkages for Global Growth (2012).
