Enterprise Singapore, the new agent of change

The formation of Enterprise Singapore through the merger of Spring Singapore and International Enterprise Singapore will help build strong local enterprises and create new jobs for Singaporeans, said Minister for Trade and Industry (Industry) S Iswaran yesterday. But he added that no government agency can address the challenges of the future economy on its own and economic transformation is a national effort that requires the active support of all stakeholders. Below is an excerpt from Mr Iswaran’s speech at the opening of the SBF Centre, where he announced the setting up of the new government agency.

With the changes in the business environment and shifts in technology, we have urged our companies and industries to transform themselves in order to succeed in the future economy.

This message of transformation applies equally to Government agencies. As industry trends and the needs of businesses evolve, so too must government policies and regulations. Government agencies must be prepared to adapt their programmes and, when necessary, restructure themselves to better serve Singaporeans and our companies.

We have seen some recent examples of this ethos which is ingrained in our Government system. In response to the convergence and the opportunities that arise from the convergence of IT, communications and media, the Info-communications Development Authority and the Media Development Authority were restructured to form the Info-communications Media Development Authority.

The JTC Act Amendment Bill tabled by the Ministry of Trade and Industry will transfer the Housing and Development Board’s industrial properties to JTC, thereby creating a single agency for all industrial land and space needs, to better serve the industry.

We need a similar rethink of the way our economic agencies work with local enterprises. Today, we do this mainly through Spring Singapore and International Enterprise (IE) Singapore.

Spring focuses on building the capabilities of start-ups and small and medium enterprises (SMEs). Spring also develops standards for Singapore products and services, helping to build our reputation for trust and quality. In addition, Spring is responsible for consumer protection.

IE aims to develop Singapore as the preferred international trading hub from which companies expand overseas. IE also provides tailored programmes and in-market support to help Singapore-based enterprises export and internationalise.

Spring and IE have developed strong networks and deep capabilities in their respective functions. IE has offices in over 35 cities, and in the first half of this year alone, helped more than 24,000 enterprises with overseas expansion.

Over the same period, Spring has helped to build capabilities in SMEs through projects that are expected to generate S$4 billion in value-add. Both agencies are doing good work and their efforts have had a material impact.

One measure is productivity, which grew by 1 per cent last year, and even more strongly in the first half of this year, at 2.8 per cent.

But we are in a new phase of economic development. With tighter domestic constraints, external demand will be an even more important driver of growth. To tap these opportunities, our companies must be able to respond nimbly to political and economic shifts, shorter technology cycles, and business model disruptions. They must have extensive networks internationally, superior capabilities, innovative products and strong brands to compete in this globalised digital economy.

As emphasised by the Committee on the Future Economy (CFE), the capacity to innovate, harness new technologies, scale up and internationalise are deeply intertwined for all companies regardless of their scale or stage of development.

Hence, to better support industry and enterprises in this dynamic economic environment, we will build on the strengths of Spring and IE by merging them to form a new government agency — Enterprise Singapore. Enterprise Singapore will integrate its knowledge of industries with its network of local and overseas partners, to comprehensively support our enterprises in their efforts to innovate and internationalise.

In arriving at this decision, we have carefully studied the feedback gathered from the CFE’s extensive industry consultations, as well as the call from various parties, including Singapore Business Federation and the SME Committee, for a consolidated government agency to champion the growth and development of SMEs.

Through Enterprise Singapore, start-ups will not only benefit from the capability development support that Spring has been providing, but will also be plugged into IE’s international networks, especially in fast-growing regional markets.

In the digital age, where speed and scale are critical, this will put our start-ups in a much better position to succeed.

SMEs will continue to receive assistance from Enterprise Singapore to build innovation capacity and strengthen competitiveness (programmes that are currently under Spring).

Enterprise Singapore will also enable SMEs to scale up and grow their international footprint through its wide network of overseas centres (presently under IE). For example, Enterprise Singapore can not only support a manufacturing company with a grant to augment its production capacity, but also concurrently work with them to develop an export marketing and channel strategy for its increased output.

Large local enterprises can work with Enterprise Singapore to strengthen collaboration within their industry clusters and deepen the capabilities of the SMEs that support them. These partnerships can be extended to jointly exploring opportunities in overseas markets.

With a holistic approach to meet the needs of companies, Enterprise Singapore will be better able to work with industry, trade associations and chambers, educational institutions and unions to create more good job opportunities for Singaporeans, and help Singaporeans in the workforce develop the essential skill sets and exposure to global markets. Finally, as we continue to drive industry transformation, this merger will enable us to respond more quickly and flexibly to changes in the economic environment, and position our industries for new growth areas.

Enterprise Singapore and the Economic Development Board (EDB) will form two critical and complementary economic pillars that will help formulate and implement strategies for the development of industry clusters and enterprises.

Enterprise Singapore will also work with EDB to strengthen collaboration between multinational corporations, SMEs and innovative start-ups, to enhance the competitiveness of Singapore’s economy, and our position as a global trading hub.

With the formation of Enterprise Singapore, we will be better positioned with one consolidated agency to build strong local enterprises and create exciting new jobs for Singaporeans in this new phase of our economic development. However, no government agency can address the challenges of the future economy on its own.

The future economy calls for transformation at all levels — individual, enterprise, industry and economy. Economic transformation is a national effort that requires the active support of all stakeholders. We look forward to working closely with all our partners as we build a vibrant economic future for Singapore.