BiZQ AprJun11 Chosendownload.sbf.org.sg/bizq/apr_jun11.pdfSBF will step up its engagement of...

APR/MAY/JUN 2011 [ B U S I N E S S P E O P L E O P P O RT U N I T I E S ]

UOTIENT

A publication of

BUILDING CAPABILITIESMANAGING THE NEXT GROWTH WAVE

DRIVINGTHE BUSINESSA CLOSER LOOK AT LEADERSHIP AND PEOPLE STRATEGIES

GLOBAL NETWORKSATTRACTING MID-SIZED ASIAN ENTERPRISES

BiZQ AprJun11 Chosen.indd 1BiZQ AprJun11 Chosen.indd 1 4/7/11 1:22:14 PM4/7/11 1:22:14 PM

CapD01_BizQ_Ad_275x205_FA_7MarP.indd 1 3/8/11 11:06 AM

BIZQ BIZQ APR/MAY/JUN 2011 ] 01

SBF WELCOMES MR HO MENG KIT WHO JOINS US IN APRIL AS CEO.Mr Ho comes with a strong track record in policy work and has served in senior positions in the civil service, such as the Managing Director of the Economic Development Board and Deputy Secretary of the Ministry of Trade and Industry and the Ministry of Foreign Affairs. Mr Ho has an excellent understanding of government policies, particularly the schemes related to trade and business. He will be in an excellent position to lead SBF and help the Singapore business community. I hope you will give Mr Ho your guidance and support.

The double-digit GDP growth of 2010 continues to power the Singapore economy in 2011. Singapore’s ongoing transformation, coupled with the strong growth in the region, particularly with the impetus from China and India, are positive factors.

Singapore has undertaken bold measures in recent years, and these are bearing fruit. The nation’s move to diversify its economic base by attracting new, vibrant and exciting industries will lead to sustained growth. This optimism is refl ected in a recent Singapore Business Federation survey, which indicated that 80% of respondents are optimistic about Singapore’s growth prospects.

SBF’s engagement with world chambers and government agencies helps create opportunities for our members. I encourage our members to leverage business networking sessions and explore prospects for trade expansion and investment.

Despite such good news, we urge members to continue to focus on the fundamental challenges of seeking growth opportunities, raising productivity, attracting and retaining talent and managing costs effectively.

On a more refl ective note, our hearts go out to the people and government of Japan who have suffered from the recent earthquake, tsunami and nuclear plant disasters. While there has been some impact on the supply chain, the general view is that Japan will recover from this crisis with the support and solidarity of the global community.

I wish our members greater business opportunities for 2011.

SBFSAYS]

Greetings and best wishes to allour members!

TONY CHEW LEONG-CHEE CHAIRMAN

SINGAPORE BUSINESS FEDERATION

SBF’s engagement with world chambers and government agencies helps create opportunities for our members. I encourage our members to leverage business networking sessions and explore prospects for trade expansion and investment.

Upon approval Please sign:

Name and Date:

1 chairman msg.indd 11 chairman msg.indd 1 4/8/11 3:56:24 PM4/8/11 3:56:24 PM

02 [ APR/MAY/JUN 2011 BIZQBIZQ

Coverstory 22] MANAGING THE

NEXT GROWTH WAVESingapore is moving rapidly to a diverse economy

and many local companies are entering new growth sectors. BiZQ takes a closer look at how

fi rms are building up their capabilities.

01] SBF SAYSMessage from the SBF Chairman.

04] SBF UPDATESBF business survey reveals positive outlook for 2011.

09] EYE ON SMES SMEs give thumbs up to Budget 2011 goodies which help in boosting productivity and expanding overseas.

12] EYE ON ECONOMYBudget 2011 will inject buoyancy into consumer sentiment, while businesses need to raise productivity levels.

16] BIZ COMMUNITYEDB and SBF to attract global mid-sized companies and Asian enterprises.

18] COUNTRY INSIGHTSBiZQ looks into the growing trade links between Austria and Singapore.

20] GLOBAL BUSINESSSBF leads inaugural business mission to Kenya, Rwanda and Uganda to expand bilateral ties in the East African region.

CONTENTS]

APR/MAY/JUN 2011

UOTIENT

GLOBAL BUSINESSEast African nations offer attractive alternatives for investment with theirrapid development.

20



Name and Date:

2-3 contents WF.indd 22-3 contents WF.indd 2 4/8/11 3:54:01 PM4/8/11 3:54:01 PM


34

28] INDUSTRY TRENDSSingapore is among the top four cities in the Asia-Pacifi c in terms of its efforts in going green, and is making great strides in sustainable urban development.

32] MANAGEMENT GUIDELeadership and people strategies are the necessary drivers to grow the business.

34] IN BUSINESS WITH Keppel T&T helps its international portfolio of clients manage their supply chains in both Singapore and the Asia-Pacifi c region.

38] EXECUTIVE LIFESTYLEThailand will be showcasing some of its fi nest quality products in upcoming international events.

40] BOARDROOM TALKWe turn the spotlight on Mr Sean Lee, CEO of Marco Polo Marine Ltd.

IN BUSINESS WITH

Keppel T&T offers one-stop integrated logistics solutions.

PUBLISHERSINGAPORE BUSINESS FEDERATION

CHAIRMAN Tony Chew

CHIEF EXECUTIVE OFFICER Ho Meng Kit

CHIEF OPERATING OFFICER Victor Tay

ASSISTANT EXECUTIVE DIRECTOR (MEMBER RELATIONS) Cheryl Kong

DIRECTOR, CORPORATE COMMUNICATIONS Gerald De Cotta

10 Hoe Chiang Road, #22-01, Keppel Towers,

Singapore 089315 Tel: 65-6827-6828, Fax: 65-6827-6807

E-mail: [email protected] Website: www.sbf.org.sg

Business Quotient (BIZQ) is the offi cial publication of the Singapore Business Federation, reaching out to over 20,000 of Singapore’s business elite,

chief executives and entrepreneurs. The quarterly, published in collaboration with SPH Magazines, is your eye on Asian and global business trends,

bringing you up to date on industry developments, the economy, country profi les, stories about

successful companies and the people who lead them.

PUBLISHING AGENTSPH MAGAZINES PTE LTD

GROUP EDITOR Joanna Lee-Miller

CONTRIBUTING EDITOR Casuarina Peck

CREATIVE DIRECTOR Alex Goh

ART DIRECTOR Bernard Chia

SUB-EDITOR Winnie Fong

ASSOCIATE ACCOUNT DIRECTOR Kaz Lim

ACCOUNT MANAGER Jasper Lee

MANAGER, CLIENT MANAGEMENT Mavis Liang

MANAGER, PUBLISHING SERVICES Alice Chee

For advertising enquiries, please call6827-6828 or 6319-6326

This news magazine is published by SPH Magazines Pte Ltd (Registration No. 196900476 M) for Singapore Business Federation (Registration No. ROS138/2002TAP). Copyright of the materials contained in this magazine belongs to SPH Magazines Pte Ltd and Singapore Business Federation respectively. Nothing in here shall be reproduced in whole or in part without prior written consent of SPH Magazines Pte Ltd or Singapore Business Federation. Views expressed in this news magazine are not necessarily those of SPH Magazines Pte Ltd nor the Singapore Business Federation and no liabilities shall be attached thereto. All rights reserved. Editorial enquiries should be directed to the Editor, BiZQ, SPH Magazines Pte Ltd, Media Centre, 82 Genting Lane, Level 7, Singapore 349567. Tel: 65-6319-6319, Fax: 65-6319-6227, E-mail: [email protected]. Unsolicited material will not be returned unless accompanied by a self-addressed envelope and suffi cient return postage. While every reasonable care will be taken by the Editor, no responsibility is assumed for the return of unsolicited material. MICA (P) 094/06/2010. Printed in Singapore by Times Printers (Registration No. 196700328H).

38


Name and Date:

32

2-3 contents WF.indd 32-3 contents WF.indd 3 4/8/11 3:54:28 PM4/8/11 3:54:28 PM


SBFUPDATE]

SBF business survey reveals positive outlook for 2011 Companies surveyed said they would focus on overseas expansion, cost eff iciency, productivity and introducing new products and services, amid rising business costs.

C ompanies are upbeat about the Singapore economy and business in

2011, even though sales, operating costs and manpower challenges remain high on their list of concerns, a recent SBF 2010/11 National Business Survey revealed.

The poll, conducted in the fourth quarter of 2010 by DP Information Group, indicated that the sentiments of the business community about the Singapore economy in 2011 have improved signifi cantly, compared to sentiments in 2010.

Of the 1,053 SBF member companies which responded to the survey:

• 80% are optimistic about Singapore’s economic growth (vs 27% in 2010)• 69% expect businesses to be profi table in 2011 (vs 39% in 2010)• 51% of the respondents have

plans for overseas investments in 2011 (vs 37% in 2010).

The poll also revealed that 39% had experienced up to a 10% increase in operating costs, while another 41% experienced an increase of more than 10% in 2010. Labour costs topped the list of cost components affecting fi rms’ profi ts in the next one to two years.

The tightening labour market and the phased increment of the Foreign Worker Levy are expected

to drive wages higher. This will affect labour-intensive industries such as manufacturing and services. Increase in labour costs would lead to thinner profi t margins for businesses, and hence, heightened costs for products and services.

Growth initiativesSBF offi cials suggested that with business costs being a “continuous challenge”, one way for SMEs to tackle the issue would be to come together to form a supply chain cluster – a move that would serve them well in overseas ventures.

The poll revealed that 75% of respondents are increasingly looking to invest beyond Singapore’s shores as a strategy to grow their business in 2011.

While China is an obvious choice for many, with 88% citing the country as a site for an overseas venture, Africa is also gaining traction among SBF member companies, with 8% listing it as one of the top 10 markets to break into.

Aside from South Africa, countries such as Nigeria and Ghana are beginning to attract interest from Singapore companies. Last year, only 1% of those polled were keen to enter the African continent.

Respondents have indicated that their business strategies this year will hinge on growth-related initiatives:

• 61% aim to increase cost effi ciency and productivity, with a focus on

SBF NATIONAL BUSINESS SURVEY 2010/11 PRESS BRIEFING.

80%are optimistic

about Singapore’s economic growth (vs 27% in 2010).

Of the 1,053 SBF member companies which responded to the survey:

69%expect businesses

to be profi table in 2011 (vs 39%

in 2010).

51%have plans for

overseas investments in 2011 (vs 37%

in 2010).


Name and Date:

4-6n8 SBFupdate WF.indd 44-6n8 SBFupdate WF.indd 4 4/8/11 1:38:01 PM4/8/11 1:38:01 PM


investment in IT infrastructure, machinery and equipment.• 40% are considering to introduce new products and services.

To help companies pursue sustainable growth, SBF will assist its 17,000 members in overseas expansion and internationalisation, with programmes that are aimed at increasing cost effi ciency and productivity and capacity-building initiatives.

InternationalisationSBF will step up its engagement of overseas markets through its six dedicated business groups – the Middle East, Africa, ASEAN, South Asia, North Asia and Sustainable Development groups.

These business groups will forge forward with growth opportunities for its members, in new business areas such as sustainable development and urban solutions. In 2010, SBF led its members on 22 overseas missions to emerging and established markets to tap into trading and investment opportunities.

SBF will also engage in more free trade agreement (FTA) outreach programmes to familiarise companies on the benefi ts and opportunities of tapping into Singapore’s 18 FTAs. The survey fi ndings indicate that four in 10 respondents have benefi ted from FTAs, with the ASEAN Free Trade Area (48%) cited as being the most benefi cial.

Productivity initiativesSBF will initiate programmes to help companies strengthen their competitive edge and address their bottom line, through the automation and streamlining of business processes to optimise headcount.

In this regard, SBF recently launched the Business Process Improvement Programme with Motorola University, as part of its partnership with the Workforce Development Agency’s i3 Productivity Programme to help businesses increase their effi ciency.

Capacity building SBF will also look into introducing more programmes to help companies raise their resilience and competitive edge. In partnership with SPRING Singapore, SBF recently inaugurated the SBF Mentorship Programme and the SBF-Hay Group Human Capital Series that are aimed at grooming the next generation of SME leaders.

In addition, given the growing trend in sustainable and green initiatives, SBF will expand its Clean Energy Testbedding Community to launch a course with Temasek Polytechnic, so as to produce more professionals specialised in Sustainable Development.

As the apex business chamber in Singapore, SBF will help its members accelerate the pace of developing enterprise competitiveness through increasing productivity, internationalisation and capacity building.

The federation will continue to deliver relevant programmes to serve the needs of its members, facilitate better coordination between public agencies and the business community and help companies explore opportunities in new markets and areas of business. +

SBF launchesSouth AsiaBusiness Group

SBF offi cially launched the South Asia Business Group (SABG) during the India

Symposium and the India Trade Show in January.

Chaired by Mr Karan Singh Thakral, Executive Director of the Thakral Group, the SABG is a business networking platform that serves the needs of SBF members and the wider business community through value-added information exchange and services. It is open to all corporations, companies and individuals interested in India and the South Asian market.

SABG promotes networking opportunities between Singapore companies and relevant government agencies and organisations in the South Asian subcontinent which includes Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Seychelles and Sri Lanka.

SABG’s Vice-Chairmen include Mr Vivek Chhabra from Asia Pacifi c Breweries Ltd, Mr V. K. Rajan from Chesterton Suntec International Pte Ltd, Mr Vikas M. Gore from DP Architects Pte Ltd, Mr Ravi Manchanda from Standard Chartered Bank and Mr Soumen Mitra from Tata Capital Pte Ltd. +

MR KARAN SINGH THAKRAL (FIRST FROM LEFT), CHAIRMAN, SOUTH ASIA BUSINESS GROUP (SABG), WITH REPRESENTATIVES OF SBF, STANDARD CHARTERED BANK AND THE CONFEDERATION OF INDIAN INDUSTRY STANDING BEHIND THE PEACOCK LAMP THAT SYMBOLISES SABG’S LAUNCH.

SBF will help its members accelerate the pace of developing enterprise competitiveness through increasing productivity, internationalisation and capacity building.


Name and Date:



SBFUPDATE]

as those which help businesses internationalise, be more productive and build their capacities.

SBF Chairman Tony Chew agreed: “Mr Ho’s extensive experience in management in the public service will provide SBF with the strong leadership in its collaboration with its stakeholders.”

This will help SBF develop Singapore into a Global-Asia Hub with a vibrant corporate ecosystem, while spurring innovation and higher productivity, Mr Chew said.

SBF said that as a former managing director of the Economic Development Board, Mr Ho has had “extensive exposure to corporations, their business challenges and

S ingapore Business Federation’s new Chief Executive Ho Meng Kit

takes over from Mr Teng Theng Dar on April 8, 2011. Mr Teng announced his resignation in January after three years as CEO to pursue his personal interests.

Mr Ho, the former Ministry of Foreign Affairs deputy secretary, hopes his “appreciation of what the government aims to achieve for corporations” will help SBF “forge stronger partnerships with various trade organisations and public agencies”.

He said this will provide SBF members with better access to government programmes such

SBF welcomes new Chief Executive

the opportunities they look for”.Since joining SBF three years

ago, Mr Teng has helped raise SBF’s profi le in Singapore and developed its global business activities. He chaired the APEC Business Advisory Council in 2009 – the same year the APEC Leaders Summit was held in Singapore. A signifi cant achievement for SBF that year was the successful organisation of the APEC CEO Summit. He has also served actively as Singapore’s Non-Resident Ambassador to Oman.

Said Mr Chew: “Mr Teng has worked diligently to raise the profi le of SBF in the last three years. This has helped the federation enhance its position as the apex business chamber in Singapore. On behalf of the SBF Council, I would like to thank Mr Teng for his contributions and wish him success in the future.” +

SBF’s recent appeal to the Singapore business community to assist with

donations in support of relief efforts in Japan has helped raise $855,000.

The appeal, sent by SBF Chairman Tony Chew to several council members and major corporations on March 16, resulted in the bulk of the funds being raised within the fi rst 24 hours. SBF has channelled the relief funds collected to Japanese agency Chuoukyodoubokinkai after consulting with its counterpart business chamber Nippon Keidanren (Japan Business Federation).

Donors include Far East

Organization, Keppel Group, Pontiac Land Group, Sembcorp Industries Ltd, Asia Pacifi c Breweries (Singapore) Pte Ltd, Asia Resource Corp, YCH Group, Crescendas Group, Jurong Engineering Limited, Singex Venues Pte Ltd, Ho Bee Investment Ltd, Mayfi eld Investment Holdings Pte Ltd and Mr Bob Tan, SBF’s Honorary Treasurer.

Mr Chew said: “Japan has always been an important partner to Singapore, and our business community has enjoyed excellent relations with our Japanese counterparts. “In support of the government’s donation of seed money to help in relief efforts in Japan, I appealed

to our council members and the wider business community to make a contribution.”

In appreciation, SBF Council Member Seiji Kino who represents the Japanese Chamber of Commerce and Industry here, said: “I extend my sincere appreciation for your heartfelt expression of sympathy to the citizens of Japan, and your efforts to collect relief funds for those who have suffered from the recent earthquake.”

In addition, Japan’s Ambassador to Singapore, HE Mr Yoichi Suzuki, expressed the embassy’s gratitude towards the government and people of Singapore for the support given to the Japanese people. +

SBF raises $855,000 for Japan relief fund


Name and Date:


GES AD (205X275).indd 1 3/18/11 11:51:48 AM


SBFUPDATE]

INAUGURAL KALUGABUSINESS SEMINAR

SBF and the Kaluga Region Government Offi ce from Russia held the fi rst-ever Kaluga Business Seminar and Networking Session in March. At the event, participants learnt about the ongoing development of six industrial parks and several more in the pipeline. The regional government’s establishment of business, infrastructural and logistic support has led to the development of automotive, biotech and pharmaceutical, as well as logistics and transportation clusters, bolstered by the presence of international companies.

INVESTING IN THAILAND

The Thailand Board of Investment and SBF presented a seminar on Investment Opportunities in Thailand in February. The seminar highlighted some of the sectors with potential investment prospects such as electronics, alternative energy, trading, education and agro-business. Ms Pannee Chengsuttha, Director of Thailand’s Offi ce of the Board of Investment, was one of the speakers at the event.

SBF’s networking initiativesTURKEY’S EMERGING SECTORS

Turkey’s Foreign Economic Relations Board and SBF invited members to the seminar, Turkey as a Hub to Eastern Europe and the Middle East Region. The seminar highlighted the latest economic developments and emerging sectors in Turkey and updated the business community on potential business and trade opportunities, as well as operational strategies for the market. The Turkish market is known as a good sourcing hub for raw materials, textile and leather manufacturing and handicrafts, as well as an expanding automotive aftermarket and ICT industry.

ENGAGINGJOHOR BAHRU

SBF organised a half-day Business Know-How Seminar in March to help Singapore companies establish their businesses in Malaysia through the southern gateway city of Johor Bahru and the Iskandar Malaysia project. Participants gained useful knowledge, insights and contacts from offi cials from the Malaysia Industrial Development Authority, Iskandar Regional Development Authority and CIMB Bank, Malaysia.

PARTNERING THE PHILIPPINES

The Embassy of the Republic of Philippines, SBF and IE Singapore organised a lecture given by the President of the Philippines Benigno S Aquino III recently. This lecture offered Singapore participants an opportunity to learn about the latest developments in the country, as its economic reforms have placed greater emphasis on creating a more vibrant business environment to attract foreign investments and businesses. Despite the global economic crisis, the Philippines recorded its highest GDP growth rate in 34 years – a growth of 7.3% in GDP in 2010 from 1.1% in 2009.

OPPORTUNITIES IN BANGLADESH

IE Singapore, SBF and the Bangladesh High Commission jointly organised the iadvisory Seminar Series to explore trade and business opportunities in Bangladesh. The seminar gave valuable insights into business opportunities and challenges in the country with a focus on the most promising sectors: infrastructure, manufacturing and IT/ICT. Singapore’s total trade with Bangladesh was more than $2 billion in 2010. +

Over 250 company representatives attended International

Enterprise (IE) Singapore’s annual partnership seminar recently where its new Chief Executive Teo Eng Cheong told participants that more companies are seeking the agency’s help to expand abroad.

The report card he shared on IE Singapore’s activities last year

highlighted companies’ renewed interest in pursuing overseas expansion, after shelving such plans when the global downturn hit. He said Singapore-based companies invested $15 billion abroad within the fi rst nine months of 2010, about two-and-a-half times what was invested in the same period in 2009.

In its bid to help local companies pool resources and

gain competitiveness abroad, IE Singapore helped form 13 new groups last year under one of its more popular schemes – the International Partners Programme (iPartners).

The newly formed consortiums span sectors such as urban solutions, biomedical science, food as well as ICT, and are projected to bring in $586 million in overseas sales over the next three to fi ve years. +

IE Singapore programme seeks partners abroad


Name and Date:



Small and medium enterprises (SMEs) are pleased with this year’s Budget as the

Ministry of Finance (MOF) has announced that it will boost existing productivity schemes. In addition, companies looking to expand overseas can utilise a new foreign tax credit pooling initiative.

MOF said the National Productivity Fund (NPF) will be doubled, thus bringing its total fund size to $2 billion. In addition, $520 million a year will be allocated to the Productivity and Innovation Credit (PIC) Scheme.

The PIC Scheme covers six areas: R&D, Approved Design, Acquisition of Intellectual Property, Registration of Intellectual Property, Purchase or Lease of Prescribed Automation Equipment and the Training of Employees.

President of the Singapore Manufacturers’ Federation George

Huang described the top-ups to the NPF and the enhancements to the PIC as crucial for SMEs as business costs have increased – particularly since Singapore is at full employment and salaries have gone up.

For tax deductions, businesses can deduct from their taxable income 400% of the first $400,000 of expenditure for each of the six categories.

This is an increase from the current 250% and the cap of $300,000 of expenditure for each category. This means a company can receive $680 in tax savings for every $1,000 invested, up from $425 currently.

The Singapore government will also improve the current cash payout option under the PIC scheme. Instead of claiming tax deduction, SMEs can choose a cash payout of up to $30,000 for their

EYEONSMEs]

SME NEWS

Budget 2011 favours SME businessesSMEs give the thumbs up to the government for help

in boosting productivity and expanding overseas.

fi rst $100,000 of investments – an increase from the current maximum grant of $21,000.

Finance Minister Tharman Shanmugaratnam said SMEs also need help to expand their businesses in foreign markets. MOF will commit $850 million over the next five years and this fund will be administered by SPRING and IE Singapore.

He explained: “Our fundamental approach towards the SME sector must ultimately favour companies that are more dynamic and innovative. We must provide them room to grow – to attract managerial talent and skilled workers and to expand internationally.”

The foreign tax credit pooling scheme will reduce the tax liability for Singapore companies that are globalising. It is expected to cost the government $22 million a year. +

9-10 EyeOnSME.indd 99-10 EyeOnSME.indd 9 4/7/11 1:14:07 PM4/7/11 1:14:07 PM


EYEONSMEs]

SPOTLIGHT

Helping SMEs manage riskHELPDESK

EVENT

The Risk Management Assistance Fund (RMAF) will see a further boost of $11 million over the next three years to help SMEs build good risk management capabilities and enforce proper workplace safety and health systems.

The latest fund injection brings the total fund amount to $24 million. Almost $13 million has been disbursed to about 2,000 SMEs so far and another 2,000 enterprises are expected to benefi t from this scheme, said Manpower Minister Gan Kim Yong.

The scheme has also been enhanced to link the assistance to bizSAFE, a fi ve-level certifi cation programme that gives SMEs recognition for their efforts.

After receiving in-principle approval for the fund, RMAF

Two new marketing and customer service toolkits to help SMEs grow their businesses were launched by SPRING Singapore in November last year. Both are free self-help guides with tools and templates that SMEs can use to become more competitive.

The SME Marketing Toolkit arms SMEs with strategies and tactics to develop, implement and manage their marketing efforts. They can learn to assess market feasibility, come up with a marketing plan, develop a brand, make use of PR and advertising, manage sales leads and maximise their online strategies.

The Customer Service Toolkit provides a simple and effective framework to develop service excellence in SMEs – from embedding it as a culture in the leaders and team members, down to the specifi cs of defi ning the service standards that they aspire to deliver to their customers. Customised versions have also been developed for the retail, food and beverage and hospitality industries.

The toolkits are available on the EnterpriseOne website (www.enterpriseone.gov.sg). The SME Marketing Toolkit can also be downloaded from Marketing Institute of Singapore’s site (www.i-marketer.org/toolkit). +

ASIA PACIFIC ENTREPRENEURSHIPAWARDS (APEA) 2011June 24Marina Bay SandsAPEA 2011, the third in the series, recognises business leaders who have shown outstanding performance and tenacity in developing successful businesses within the region. For more information, visit www.enterpriseasia.org.

If you have any views, comments or suggestions about BiZQ or other SBF events, we want to hear from you. Please send your contributions to:

The Editor, BiZQ MagazineSingapore Business Federation#22-01 Keppel Towers,10 Hoe Chiang Road,Singapore 089315Or e-mail us [email protected].

applicants must now attain bizSAFE Level 3, which means they must have implemented risk management before the funds are disbursed to them. Successful applicants can claim up to $6,000, or up to 90% of the risk consultancy costs. Applicants may now apply for risk management audit funding of up to $800 per fi rm too.

Sixteen more industries will be covered under the Workplace Safety and Health (WSH) Act from September this year. They include the retail, recreation, education, banking and cleaning sectors.

In addition, the WSH Act will be extended to cover all workplaces from September 1. Companies that are not bizSAFE-certifi ed and have workers who experience injuries or fatalities will be heavily fi ned. +

LETTERS FROM OUR READERS

Giving SMEs a boost in marketing and customer service

Funding for BCM, bizSAFECompanies are urged to tap into the National Business Continuity Management Programme (BCM SS 540:2008 certifi cation) for business continuity and disaster recovery initiatives. For more information on how your company can apply for support, please contact SBF at 6827-6867 or e-mail [email protected].

9-10 EyeOnSME.indd 109-10 EyeOnSME.indd 10 4/7/11 1:18:01 PM4/7/11 1:18:01 PM


EYEONECONOMY]

Achieving sustainable long-term growth in the near future Singapore’s 2011/2012 budget will inject buoyancy into consumer sentiment, while businesses need to raise productivity.

A slowdown from a 14.5% growth rate in Singapore’s GDP in 2010 to a 5-6%

expansion in 2011 is likely to make some feel concerned about the near-term direction of the economy. However, this certainly does not appear to be the sentiment among economists, who hailed the slowdown as “welcome news” and the nation “reaching more sustainable levels of long-term growth”.

In a February update of the Singapore economy, the Ministry of Trade and Industry said that domestic factors such as capacity expansion in the electronics and biomedical manufacturing clusters will push the Singapore economy to expand between 4% and 6% in 2011.

Morgan Stanley Economist Deyi Tan expected Singapore’s 2011 GDP growth “to slow to a normalised

but still healthy level of 6%”. “If an upside surprise to global

growth materialises, the Singapore

economy will be experiencing

above-potential growth (of about 6%) for the second consecutive year,” she said.

The investment bank’s view of growth is predicated on its global economy view, which is based on high export and asset market linkages, as well as abundant liquidity which will continue to be key growth drivers for Singapore’s small and open economy.

Mr Leng Seng Choon from DMG & Partners Research gave another perspective to the outlook for the Singapore economy in 2011. Based on his latest update, he expected Singapore’s 2011 GDP to grow at 5.6%, closer to its long-term sustainable rate of 6% to 8%.

Manufacturing output, the backbone of the Singapore growth engine, will undoubtedly slow down markedly from 2010 with its forecast currently standing at 5% for 2011, grounded by slower external demand and further policy tightening in China. The services sector is expected to be the

key driver for the city state’s real GDP growth in 2011, amid rising share of regional consumption expenditure with respect to the overall global

consumer spending, he said.Some of the key themes

that will play out in 2011 are the upcoming general elections, tourism growth from the full 12-month operation of both integrated



Name and Date:

12-14 EOEconomy WF.indd 1212-14 EOEconomy WF.indd 12 4/8/11 3:30:01 PM4/8/11 3:30:01 PM


resorts, and the award of the Downtown Line’s operatorship which is driving interest in land transport and certain construction companies, he added.

From the perspective of more recent developments, the government’s recently announced 2011/2012 budget will certainly contribute to an already upbeat consumer sentiment.

Budget 2010/2011 – Levy hike is aimed at driving higher productivity There is clear consensus that the latest budget is expansionary – one with more goodies delivered to individuals than businesses. In the budget for the fi nancial year starting in April 2011, the government has set aside a $6.6 billion package to help Singaporeans cope with higher infl ation and improve their living standards. Of this, $3.2 billion will be provided to households and the remaining $3.4 billion will be reserved for longer-term social spending.

“Overall, the budget goodies are ‘slanted’ towards individuals

rather than the corporate sector. This is not surprising, given the government’s concern over rising infl ation in the country, and potentially, a general election,” said BNP Paribas Chief Economist Chan Kok Peng. Arising from the latest budget, the French bank has increased Singapore’s GDP growth forecast for 2011 to 6.8%, from its previous estimate of 6%.

While local households have a lot to cheer about, businesses were somehow caught off guard by a hike in the Foreign Worker Levy. In an effort to support Singapore’s national goals of encouraging productivity improvement and reducing the reliance on low-skilled foreign workers, employers can expect an average increase of $240 in the monthly levy per S Pass holder (a foreigner whose monthly basic salary is at least $1,800) between now and July 2013.

Finance Minister Tharman Shanmugaratnam said if Singapore

is able to achieve productivity growth of between 2% and 3% annually over the next 10 years, it will have attained the current productivity levels of developed countries like the US and Japan.

With the strong economic growth last year, Singapore should press on with the drive to raise productivity by upgrading the skills of workers, investing in productive equipment and relying less on cheap foreign workers, he said.

However, despite the longer-term national benefi ts, construction companies here will feel the pain as they will have to bear the brunt of the hike, with businesses experiencing an average increase of $320 per work permit holder.

Commenting to BiZQ on the hike, an Ernst & Young spokesperson said: “Businesses will be affected by the signifi cant increase in the Foreign Worker Levy that was announced. It is likely the Minister (of Finance) anticipated a negative reaction, and yet, the levy is set to be increased. This brings us to the realisation that the government is really serious about increasing >

With the government budgeting an increase in employers’ CPF contributions, coupled with the hike in the Foreign Worker Levy and the strong Singapore dollar, manufacturers will have no choice but to continue to increase productivity and innovation, and venture overseas if they want to remain in business. – Mr George Huang, President,

Singapore Manufacturers’ Federation


Name and Date:

12-14 EOEconomy WF.indd 1312-14 EOEconomy WF.indd 13 4/11/11 10:42:28 AM4/11/11 10:42:28 AM


EYEONECONOMY]

productivity – even if bitter pills have to be administered now.”

Commenting on the levy, Singapore Manufacturers’ Federation President George Huang hoped there “will be no more of such an increase” following the latest levy hike. “With the government budgeting an increase in employers’ CPF contributions, coupled with the hike in the Foreign Worker Levy and the strong Singapore dollar, manufacturers will have no choice but to continue to increase productivity and innovation, and venture overseas if they want to remain in business,” he added.

Concerns over inflationWhile most households can cheer on the account of the goodies being dished out, economists said the resulting effect – infl ation – would not be so pleasant. Most have shown their concern over infl ation by raising their 2011 forecast for the consumer price index.

The economists BiZQ spoke to currently forecast infl ation to be between 3% and 4% for

2011, higher than the historical trend average of 1.5% to 2%.

Demand-pull pressures from tighter capacity utilisation and elevated commodity prices will further compound infl ation risks. Morgan Stanley believes there are upside risks to its infl ation expectations because of the continued rise in global commodity prices, including that of fuel, said Ms Tan.

“Capacity utilisation rate, which is already tight as seen in the low unemployment rate, would stretch

further and lead to demand-pull pressures. Globally, higher commodity prices

would pose added cost-push pressures,” she added.

Given Singapore’s unique situation where infl ation is

imported, economists have differing views on

what the Monetary Authority of Singapore (MAS) is likely to do next with regard to managing the Singapore dollar.

DMG’s Mr Leng said its current forecast for the next policy

move in April 2011 would be that

MAS would “stand pat” and continue to monitor closely the pace of global recovery and fi nancial market volatility. The risk to this forecast would be that MAS would need to adjust the widening of the band slightly narrower, or even revise it from the currently forecasted +/- 3% of the parity to +/- 2%, he said.

In the April monetary policy review, Morgan Stanley expects the policy band to be widened to allow more room for appreciation to cushion near-term infl ation, and room for currency downside amid increased growth uncertainty from energy supply shocks.

In the bull case scenario where upside risks to global growth materialise, MAS may allow a one-off upward recentering of the policy band’s midpoint to the prevailing level of the nominal Singapore dollar exchange rate.

In the bear case scenario where growth slows to below trend, Ms Tan did not think MAS would revert to a zero-appreciation stance – as long as it is not a double-dip recession. The Singapore dollar will still be guided on an appreciation path, she said. +


Infl ation Trends

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

8%

7%

Consumer Price Index (Year on Year)

Jan ’00

SO

UR

CE:

CEI

C, M

OR

GA

N S

TAN

LEY

RES

EA

RC

H

Jan ’01

Jan ’02

Jan ’03

Jan ’04

Jan ’05

Jan ’06

Jan ’07

Jan ’08

Jan ’09

Jan ’10

Jan ’11

12-14 EOEconomy WF.indd 1412-14 EOEconomy WF.indd 14 4/7/11 1:31:49 PM4/7/11 1:31:49 PM


BIZCOMMUNITY]

Redefining Singaporeas a Global-Asia Hub EDB and SBF aim to attract global mid-sized companies and Asian enterprises.

T he Singapore government is stepping up efforts to woo global mid-sized

companies and Asian enterprises by roping in industry bodies, and fi rst on the Economic Development Board’s (EDB) list is the Singapore Business Federation (SBF). To mark the start of this partnership, a Memorandum of Understanding (MOU) was signed between EDB Managing Director Dr Beh Swan Gin and SBF Chairman Tony Chew.

EDB announced recently that it will partner several national chambers of industry and commerce (or what it called “multipliers”) to attract global mid-sized companies and Asian enterprises to Singapore.

The other “multipliers” – set-ups with strong business support services or global networks – will likely include country chambers such as the

Singaporean-German Chamber of Industry and Commerce.

Strategic visionAs Singapore’s apex business chamber, SBF’s activities are aligned to the Economic Strategies Committee (ESC) recommendations and support the vision of establishing Singapore as the Global-Asia Hub.

The ESC had earlier recommended that Singapore focus on being the Global-Asia Hub for businesses by establishing itself as a location to pioneer, test and export “future-ready” green urban solutions, a leading consumer business centre, a global base for complex manufacturing and manufacturing-related services, a leading Global-Asia fi nancial and business hub and a global node for commercialisation and innovation.

SBF proactively promotes

Singapore as an investment destination of choice. It also facilitates various market entry services for companies through its global networks with international chambers and government agencies. The chamber leverages its network of more than 60 global MOU partners, two-way business missions, six dedicated business groups and the platform of Global Entrepolis @ Singapore to spur collaborative business ventures and investments.

Mr Chew said: “The federation is well-placed to call on its extensive linkages with world chambers and government agencies to attract and anchor global mid-sized companies and Asian enterprises to Singapore.

“SBF has the ability to provide ready turnkey services for these companies through business partners which range from venture capitalists, fi nanciers and consultants to research institutions. SBF will seek out companies with innovation and knowledge-intensive activities, especially those with strong intellectual properties.

“We have seen numerous companies approaching us as an impartial organisation to provide strategic alliance and matchmaking facilitation. A mid-sized German-based marine company which provides ruddle and nozzle systems was looking to fabricate in Singapore. It cited closer proximity to Asian shipyards, better access to logistics and respect for intellectual property as important considerations. We successfully matched them to a local listed company with waterfront land access and quality fabrication capabilities. This is an example of how SBF can continue to provide such value-added services to global mid-sized companies.”

Echoing similar sentiments, Mr David Leong, Managing Director of

EDB PARTNERS SBF TO ATTRACT GLOBAL MID-SIZED COMPANIES AND ASIAN ENTERPRISES TO SINGAPORE. A MEMORANDUM OF UNDERSTANDING WAS SIGNED BETWEEN DR BEH SWAN GIN (LEFT), MD OF EDB AND MR TONY CHEW, CHAIRMAN OF SBF.


Name and Date:

16-17 BizComm WF.indd 1616-17 BizComm WF.indd 16 4/8/11 2:51:50 PM4/8/11 2:51:50 PM


PeopleWorldwide Consulting Pte Ltd, commented: “Organisations like the Singapore Business Federation cluster industries to create stronger bonds through their common interest – that is, penetrating into specifi c and targeted markets. It is also evident that such coalitions will bring about greater economic ballast and thrust for Singapore for as long as there is good stewardship of the coalition organisations.”

Asian business hubSingapore’s positioning as the Global-Asia Hub will resonate well with companies looking for a home base in Asia to drive innovation, their businesses and talent activities.

With Asia’s growing economic importance, Dr Beh said the EDB is seeing more global mid-sized companies that are interested to use Singapore as their base to make their foray into Asia, and also Asian enterprises keen to leverage Singapore as a launch point to regionalise and internationalise.

The global mid-sized companies and Asian enterprises have less in-house resources to drive their expansion strategies and may require facilitation when venturing into new and unfamiliar markets.

This initiative, therefore, aims to ease the initial set-up of smaller companies from the US, Europe and other non-Asian countries, as well as Asian enterprises in Singapore. These fi rms would be able to tap on the resources of “multipliers” which offer access to extensive global networks and strong business support services.

Already, several foreign companies have laid down deeper roots and more substantial operations since setting up in Singapore. Kulicke & Soffa Industries, Inc, a global leader in the design and manufacture of semiconductor assembly equipment,

has grown from a sales offi ce here in the ’90s to a fi rm that brings in manufacturing and R&D activities. It also announced the relocation of its global headquarters from Pennsylvania, US, to Singapore by the end of this year, with its newly appointed CEO Bruno Guilmart based here too.

Similarly, AAC Acoustic Technologies Holdings Inc, China’s largest manufacturer of miniature acoustic components – which opened its fi rst international headquarters here in 2009 to oversee sales and marketing, regional logistics and R&D – now intends to open automated production lines, expand to a larger facility and hire 100 more staff here over the next three years.

“With increasing business interest in Asia, companies today are seeking a strategic location to seize growth opportunities in the region. Singapore offers a unique vantage point for global mid-sized companies to orchestrate their activities across Asia, and for Asian enterprises to grow in Southeast Asia and beyond,” explained Dr Beh.

“By partnering with ‘multipliers’, EDB hopes to further strengthen our engagement with these companies and build on our long-standing partnerships with MNCs,” he added.

“Multipliers” strategySo what are the factors that are needed to ensure the success of EDB’s “multipliers” strategy for attracting global mid-sized fi rms and Asian enterprises?

“The key factor for the success of EDB’s ‘multipliers’ strategy is ensuring that the target markets are spread out strategically. It is also important for EDB to set a list of criteria for the type of companies and sectors it intends to attract,” commented Mr Phillip Overmyer, Chief Executive of the Singapore

International Chamber of Commerce.“As the fi rms that come to

Singapore will bring with them new ideas, technology and innovations, this initiative provides a great chance for companies here to learn from them, form partnerships and tap into new markets.”

“Using ‘multipliers’ to reach out to global mid-sized fi rms and Asian enterprises is a great idea on the premise that the selected ‘multipliers’ have suffi cient global clout and networking power,” said Mr Tham Sai Choy, Managing Partner of KPMG Singapore.

“It is also imperative that these ‘multipliers’ have enough resources to address the needs of the mid-sized fi rms and Asian companies when they are keen to move to Singapore. The ‘multipliers’ should therefore collaborate with local businesses and professional services fi rms in reaching out to the global mid-sized companies and Asian enterprises. This collaboration will not only attract such targeted organisations, it will also strengthen our existing industry sectors and create new business and job opportunities.” +

For more information, pleasee-mail [email protected] call 6827-6853.

MR THAM SAI CHOY, MANAGING PARTNER OF KPMG SINGAPORE, SAYS THE SUCCESS OF EDB’S “MULTIPLIERS” STRATEGY IS DEPENDENT ON THE MULTIPLIERS’ GLOBAL CLOUT AND NETWORKING POWER.

PH

OTO

S: E

CO

NO

MIC

DEV

ELO

PM

ENT

BO

AR

D (

MA

IN),

SP

H L

IBR

AR

Y


Name and Date:

16-17 BizComm WF.indd 1716-17 BizComm WF.indd 17 4/8/11 4:19:27 PM4/8/11 4:19:27 PM


COUNTRYINSIGHTS]

PH

OTO

(M

AIN

): P

HO

TOLI

BR

AR

Y

Austrian businesses keen to venture into Southeast Asia, including Singapore.

STRONGER LINKS WITH AUSTRIA

PAPER MILL ALONG THE WATERFRONT IN KEMATEN, AUSTRIA.

M uch as Singapore is a gateway to Asia, Austria has similarly positioned

itself as a commercial hub of Central and Eastern Europe – making it an important link between Europe and the world. As a testament to this, many international organisations such as the United Nations and the Organization of the Petroleum Exporting Countries have established key offi ces and headquarters in this land-locked country.

Singapore and Austria have a well-established trading relationship and Singapore is a key partner for Austrian businesses keen to venture into Southeast Asian markets.

Austria was Singapore’s 46th largest global trading partner in 2009 – which is in Austria’s favour with imports amounting to more than 89.6% of total trade. Bilateral trade between Singapore and Austria decreased about 20% from 2008 and a total trade fi gure of $1.28 billion was reported in 2009. Top trading products included electronic valves, ball or roller bearings and

In Singapore, Austrian fi rms who have set up offi ces here include Raiffeisen Bank, S.K. Rosenbauer Pte Ltd which designs and manufactures fi refi ghting and rescue vehicles, as well as SB Darron Pte Ltd which provides an extensive range of drilling products utilised in the oil and gas sectors.

In light of growing trade relations, the Austrian Federal Economic Chamber in partnership with the Singapore Business Federation (SBF), the Economic Development Board and IE Singapore, recently organised the inaugural Singapore-Austria Economic Forum in February.

Members of the Austrian business delegation who attended represented diverse sectors such as transportation, communications and renewable energy.

Investment opportunitiesThe event was aimed at fostering stronger trade and investment links between Austria and Singapore, and the forum provided participants with a deeper understanding of the economic prospects in both countries. +

For more information, contact Cindy Chua, Executive (Europe and Central Asia) at 6827-6828 or e-mail [email protected].

AUSTRIAN FEDERAL PRESIDENT DR HEINZ FISCHER (SECOND FROM LEFT), AMBASSADOR DR KLAUS WOELFER, SBF CHAIRMAN TONY CHEW AND SENIOR MINISTER OF STATE FOR TRADE AND INDUSTRY S. ISWARAN.

mechanical handling equipment.In addition, Singapore and

Austria signed the Agreement to Enhance Tax Cooperation in 2009 to avoid double taxation between both countries and this agreement came into force on June 1, 2010.

Growing linksOver the years, there have been a number of Singapore companies setting up operations in Austria. Companies who have a presence there include Sei Woo Polymer Techonologies Pte Ltd, Flextronics International Ltd, eSys Technologies Pte Ltd and Kobian Pte Ltd.



Name and Date:

18 CountryInsights WF.indd 1818 CountryInsights WF.indd 18 4/8/11 2:54:35 PM4/8/11 2:54:35 PM


GLOBALBUSINESS]

SEEKING EAST AFRICASBF leads inaugural business mission to Kenya, Rwanda and Uganda to expand bilateral ties in the region.

N ew markets in the Sub-Saharan African region are gaining interests among

several Singapore companies. Besides traditional markets like Southeast Asia and China, Singapore is the largest investor among all ASEAN countries in Africa, according to a report by the United Nations.

Currently, the East African market is relatively untapped and this region offers a lot of opportunities in infrastructure for Singapore companies.

According to Mr Shabbir Hassanbhai, Director of Indo Straits Trading Co Pte Ltd, local companies are well-placed to pursue services-related projects in Africa. Singapore companies can rely on their strong expertise and track record in sectors which include urban planning, transportation services, e-government, education methodologies, oil, gas and water

services and technologies, as they venture into these new markets.

African networkSince the launch of Singapore Business Federation’s (SBF) African Business Group (AfBG) last year, a huge step has already been taken to educate companies about the opportunities in Africa.

Last July, SBF and IE Singapore jointly organised the inaugural Africa-Singapore Business Forum (ASBF) where more than 400 delegates (with about a third of them from 17 of the 53 African countries) attended the forum. They were joined by eight African ministers from Angola, Cameroon, the Republic of Congo, Gabon, Mauritius, Nigeria and Togo.

Since then, AfBG has led a business mission to East Africa last December in conjunction with the visit by Mr Zainul Abidin Rasheed, Singapore’s Senior Minister of State

for Foreign Affairs, to Kenya and Rwanda. The business mission to Kenya, Rwanda and Uganda was the fi rst mission undertaken by SBF to the east Sub-Saharan African region since the SBF’s engagements with Africa in 2007.

The delegation visited Kenya’s capital Nairobi, Rwanda’s capital Kigali and Uganda’s capital Kampala. It was led by business mission leader Mr Hassanbhai, Chairman of AfBG and Singapore’s Non-Resident High Commissioner to Nigeria, and Ms Christina Tan, Vice Chairman of AfBG and Managing Director of GMT-Investcorp.

The business delegation of 17 members (representing companies in the consumer goods, luxury retail, security equipment, engineering, construction materials and services, information and communications technology and agrochemical sectors) was in East Africa to gain a

TEA PICKERS HARVESTING TEA ON A TEA PLANTATION IN LIMURU NEAR NAIROBI, KENYA.

PH

OTO

: PH

OTO

LIB

RA

RY


Name and Date:

19-21 GlobalBiz WF.indd 1919-21 GlobalBiz WF.indd 19 4/11/11 10:46:22 AM4/11/11 10:46:22 AM


better understanding of the general business environment, opportunities and challenges present in the region.

The visit to East Africa has shed light on the region’s potential as well as the possible areas of collaboration and partnerships with these countries for Singapore fi rms. With Kenya, Rwanda and Uganda now part of the newly established common market of the East African Community (EAC), the Singapore business community can leverage the free movement of labour, capital, goods and services within the EAC to advance its business interests.

Mr Eng Gagawala Wambuzi, the Ugandan State Minister for Trade, said the government is looking for partners in the construction industry, agriculture and the building of dams.

Early birdsAlthough Africa is a relatively new destination for many Singapore fi rms, some early birds have already established a presence in 23 of the continent’s 53 states. They provide technologies and services in a wide range of industries such as the development of ports and airport management.

Singapore’s trade with the continent amounted to $8.4 billion in 2009, averaging an 11% year-on-year increase since 2002. To date, a total of $9.6 billion in projects has been secured by Singapore-

GLOBALBUSINESS]

based companies in Africa – in the industrial, consumer products and construction sectors.

Rapid urbanisation in the region is another contributing factor to Africa’s growth. By 2030, more than 50% of Africans are expected to live in cities. Urbanisation at such rates is spurring the construction of more roads, buildings, water systems and infrastructure.

Africa’s annual investments in private infrastructure have tripled in the last decade, averaging US$19 billion (S$24 billion) in the past three years. Yet, further investments are still required to improve the quality of life for Africa’s increasingly large urban population. Singapore, as an expert in providing urban solutions, can thus signifi cantly contribute in this area.

Logistic challengesHowever, some experts warn that while the vast African continent presents a tremendous growth opportunity, this also comes with unique challenges.

It is not easy to manoeuvre around the region, given the

Africa’s annual investments in private infrastructure have tripled in the last decade, averaging US$19 billion (S$24 billion) in the past three years. Yet, further investments are still required to improve the quality of life for Africa’s increasingly large urban population.

heterogeneous nature and unique characteristics in each African country. Hence, it is important for companies to understand the business culture and conditions of these countries, by making personal visits to assess them.

Another challenge lies in logistics and transportation. For example, shipping goods from Singapore to Africa may be cheaper than the cost of trucking them after they reach the ports.

A Singapore company, Asiatic Agricultural Industries, found that the cost of transporting its pesticides and other crop-protection products into landlocked parts of the continent was nearly double, due to poor infrastructure and the lack of security in many areas.

Brighter outlookThe prospects for Africa are brighter than before. Political stability is gradually being attained and economic conditions have been

looking up. Africa’s growth has also been catalysed by its abundance

of resources, increasing urbanisation and affl uence

among its consumers. While many other economies around

the world are currently recovering from the

global economic slump, Africa presents a promising

alternative investment destination for businesses.

Mr Sumit Aggarwal, Head of Transaction Banking at Standard Chartered Singapore, said: “Singapore’s hub location, stable government, competitive workforce, forward-looking economic policies and pro-business environment have enabled the country to be the world’s gateway to Asia. So it is a natural fi t for Africa’s international ambitions.” +


Name and Date:

19-21 GlobalBiz WF.indd 2019-21 GlobalBiz WF.indd 20 4/7/11 1:44:51 PM4/7/11 1:44:51 PM


The Africa Business Group (AfBG) was formed under the auspices of SBF. AfBG was launched in July 2010 during the inaugural Africa-Singapore Business Forum.

Through SBF, AfBG is the platform to facilitate the exchanges between the Singapore business community and their counterparts from Africa. Partnering business associations and investment promotion agencies in the African continent, AfBG will assist local companies in making inroads into the fast-growing markets of Sub-Saharan Africa and play a part in the developmental needs of the region.

KENYA As the most developed economy in East Africa and the economic, commercial and logistics hub of the entire region, Kenya presents numerous opportunities with its extensive infrastructure and highly educated population.

In fact, Singapore signed an MOU with the Kenyan government in January 2010 to provide technical advice on the commencement of six of the Vision 2030 fl agship projects, which include establishing effi cient transportation networks, developing a free port in Mombasa and setting up affordable housing units.

With such developments in the pipeline, Singapore businesses can look forward to opportunities in these sectors and other development projects from Kenya Vision 2030.

Opportunities in East Africa

Africa Business Group

RWANDARwanda, one of the fastest-growing economies in Africa, has swiftly rebuilt and transformed itself into a thriving and safe country for investors since the 1990s. Ranked 11th in the world for ease of starting business, Rwanda is known for its

UGANDA Uganda is one of the fast-growing economies in Africa with a sixfold increase in the size of its economy over the last 24 years.

The country presents numerous opportunities to Singapore investors with its substantial natural resources of fertile soils, mineral deposits and recently discovered crude oil and natural gas reserves. Promising opportunities can be found in manufacturing, energy, logistics, value-added processing and services.

robust governance and investor-friendly climate.

In fact, through the facilitation of SBF, two of our local participating companies successfully registered and incorporated their fi rms in Rwanda – all within a day – while participating in the mission.

For the past few years, Singapore has offered its public-service expertise to Rwanda through the Singapore Cooperation Enterprise in the fi elds of civil aviation, city planning, social security and skills development. With such progress and potential opportunities in information and communications technology, transport infrastructure as well as energy and power generation, Rwanda holds many prospects for private sector engagements from Singapore.

PH

OTO

S: E

PA/C

LIC

KP

HO

TOS

(U

GA

ND

A),

STO

CK

.XC

HN

G (

RW

AN

DA

)


Name and Date:

19-21 GlobalBiz WF.indd 2119-21 GlobalBiz WF.indd 21 4/7/11 1:45:05 PM4/7/11 1:45:05 PM


COVERSTORY]



Name and Date:

22-27 CoverStory WF.indd 2222-27 CoverStory WF.indd 22 4/8/11 1:25:29 PM4/8/11 1:25:29 PM


Solar “leaves”, biofuels, managing new types of clinical trials and new specialised

storage facilities for high-value goods – these new fi elds are part of the existing and yet diverse economic sectors like the energy and chemical industries, biomedical science and logistics. Growing these new areas will widen Singapore’s industrial base and continue the transformation of her economy.

A new, young “leaf” – not so much an extension of a plant stem, but a product of the newly set up $2 million solar fuels laboratory by the Nanyang Technological University (NTU) – is a typical example. In about three to fi ve years from now, the lab is expected to produce an “artifi cial leaf” that will help deliver effi cient and cost-effective production of hydrogen in Singapore. This will mitigate the negative effects of climate change, NTU President Prof Bertil Andersson told BiZQ.

If some of these foundations fall neatly into place, as they are beginning to, Singapore will have

Singapore is rapidly diversifying its economic base to generate continued growth. BiZQ takes a look at how key government agencies are implementing “multiplier” strategies to attract fi rms in newer fi elds so as to spur growth for the republic.

Creating Singapore’s next wave of growth

new waves of growth in the next few years. Given the increasingly competitive regional economic landscape, the republic should achieve a sustainable GDP growth rate of 5% a year over the next few years.

The push on these frontiers has become focused. “Singapore cannot maintain its edge by simply relying on working models that served us well in the past. In fact, just continuing the course of ‘more of the same’ might well cause us to fail,” JTC Chairman Cedric Foo said in the agency’s newly released

annual report. “We must step up to the task at hand, rethink the fundamentals and concentrate on new areas so as to achieve sustainable long-term economic growth,” he added.

This is the personifi cation of the new Singapore. Attempting innovative approaches is not something new to Singapore businesses. However, what is gaining increasing importance is an intensifi cation of the efforts on the journey being undertaken. Analysts would say there are “hardware” and “software” dimensions to leverage innovation so as to manage the next level of growth for Singapore.

For example, in the national FY 2010 budget, the government introduced the Productivity and Innovation Credit as part of its strategy to drive new growth.

Then, the Ministry of Finance implemented tax deductions for investments in a wide range of activities, including R&D and design activities done in Singapore, automation via technology and the training of employees. The >

“ARTIFICIAL LEAF” TECHNOLOGY MIMICS THE PHOTOSYNTHESIS OF PLANTS, AND RESEARCHERS ARE OUT TO FIND COMBINATIONS OF CHEMICAL CATALYSTS THAT CAN SPEED UP THE ARTIFICIAL PROCESS.


Name and Date:

22-27 CoverStory WF.indd 2322-27 CoverStory WF.indd 23 4/11/11 10:48:32 AM4/11/11 10:48:32 AM


COVERSTORY]

scheme also covers registration and acquisition of intellectual property.

A few months ago, the government announced its commitment of $16.1 billion over the next fi ve years to spur research, innovation and enterprise. These efforts will undoubtedly continue.

Many companies are also recognising the importance of such initiatives and taking advantage of them. At the recent opening of the Asia-Pacifi c Solutions centre in Singapore by US giant Eastman Kodak, COO Philip Faraci said Singapore was chosen because “the capabilities here are so good that it is now important for us as a company to embrace such expertise and really utilise it as part of our toolkit”.

While the company could have located its latest multi-million-dollar investment anywhere in the Asia-Pacifi c, it chose Singapore as the location of the new centre which is intended to boost research, product development and operations management activities in inkjet printing and packaging solutions. The centre will also be the worldwide headquarters for Kodak’s Packaging Solutions business unit.

TAKING SINGAPORE TO A HIGHER LEVELWhile the global aerospace sector is still recovering from the global fi nancial crisis of 2009, Singapore’s transportation and its peripheral sector have been abuzz with a string of developments. This will create the platform for Singapore to benefi t from the sector’s growth in new areas in the next couple of years.

Singapore’s goal is to position itself as the destination of choice in Asia for talent, maintenance, repair and operations (MRO) in this sector because of its high growth potential. In this regard, local government agencies are taking an increasingly

comprehensive approach to ensure the availability of fi nancial services and provide a strong logistics network to make Singapore an attractive destination.

Speaking at a major MRO Asia event recently, Mr Lim Kok Kiang, Director of Transport Engineering at the Economic Development Board (EDB), said driving innovation will be the key to growing Singapore’s MRO sector for the transportation industry.

For Singapore to enjoy the “forthcoming wave of growth” in the global MRO sector, “the republic will have to continue to upgrade

and innovate to enhance its offerings”, he said.

Winning business with the aircraft manufacturers

does not necessarily involve providing

the cheapest deals – the challenge

Singapore cannot maintain its edge by simply relying on working models that served us well in the past. In fact, just continuing the course of ‘more of the same’ might well cause us to fail.– Cedric Foo, JTC Chairman


Name and Date:



lies in providing the best value. Innovation will be a key element which will help add to this value, he noted.

These efforts are already starting to pay off. In the past six months, Singapore has

drawn signifi cant commitments from the likes of Praxair

Surface Technologies, Eurocopter South East Asia (ESEA) and Fokker Services Asia to grow the transportation and transport engineering sectors.

For example, Pratt & Whitney has just established its Global Services Engineering (Asia) operation in Singapore to develop new repair processes for aircraft engine parts. This is the fi rst such centre for Pratt & Whitney outside the US. The development of proprietary work and repair processes will become increasingly important with the use of new technologies such as composites and all-electric systems in new-generation aircraft.

ESEA, the regional subsidiary of

one of the biggest helicopter makers in the world, told BiZQ it has just expanded its operations in Singapore and is moving up the value chain too.

The company, which has been operating in Singapore since 1977, has relocated its previous operations at Seletar Aerospace Park and added new capabilities. The new facility will now house staff from EADS Innovation Works – the worldwide research centre network for Eurocopter’s parent company EADS. This move will enable EADS to work closely with ESEA in R&D activities, along with collaborations on promising innovation projects.

ESEA’s newly inaugurated operation has also become the authorised unit for design modifi cation and repairs on Singapore-registered helicopters in terms of structures, avionics and electrical systems integration, as well as cabin interiors and furnishing.

Making an equally signifi cant commitment to Singapore recently is Fokker Services Asia, which is eyeing signifi cantly higher value-

added work – beyond the scope of the new hangar it has just opened at Seletar Aerospace Park.

Fokker Services Asia Vice-President for Finance Andre Hermsen said the company intends to grow its airframe MRO activities and extend its product portfolio soon with a third platform next to its Fokker and Advanced Test Reactor capabilities.

Beyond this, the company is looking to enhance its logistics support capabilities for the region, by increasing its local stockholding and further localising its supply and repair chain – including the set-up of a component repair shop in Singapore within the next couple of years, he added.

“In the longer term, we also anticipate the expansion of our capabilities, with an engineering offi ce to tap into the ever-increasing pool of know-how in Asia. The aim is to support the regional market by getting regional support,” he said.

THE PUSH FOR RENEWABLE ENERGY Given the comprehensive approach being undertaken by Singapore to develop new sectors, renewable energy is another area where more is being done. The pursuit of sustainable and renewable energy has never garnered greater interest, especially in a world witnessing disruptions in fossil fuel supplies as well as the insatiable demand from an increasingly industrialised world.

Singapore embarked on a conscientious attempt to promote and use sustainable sources of energy in 2007. Efforts to train researchers and attract businesses in this area have since gained traction with government-led support.

A few weeks ago, a UK government-funded report said Singapore has emerged as the country with the greatest >

FROM LEFT: MR YEOH BOON KANG FROM BK CONSULTING ENGINEERS, MR LIM CHING KIAT, GM OF CHANGI AIRPORT GROUP, MR RAJ RAMANUJAM, MD OF FOKKER SERVICES ASIA, MR LIM KOK KIANG, DIRECTOR OF TRANSPORT ENGINEERING AT EDB, MR ANDRE HERMSEN, VICE-PRESIDENT OF FINANCE AT FOKKER SERVICES ASIA, MS TANG WAI YEE FROM JTC, MR DANIEL NG FROM CIVIL AVIATION AUTHORITY OF SINGAPORE AND MR JOSEPH PHANG, MD OF SHARIKAT NATIONAL WERE AT THE GROUND-BREAKING CEREMONY FOR FOKKER SERVICES ASIA’S NEW HANGAR AT THE NEW SELETAR AEROSPACE PARK’S WEST CAMP ON DECEMBER 1, 2010.


Name and Date:

22-27 CoverStory WF.indd 2522-27 CoverStory WF.indd 25 4/11/11 10:49:28 AM4/11/11 10:49:28 AM


investments in energy-saving technologies, according to ReEx Capital Asia’s report that was shared with BiZQ.

The report cites the three reasons why Singapore

has potential: a favourable regulatory

environment, the most developed environment for energy-saving

companies and its adherence to market-

based fuel prices.At the opening of Neste Oil’s biofuel

plant in March, Deputy Prime

Minister Teo Chee Hean reiterated Singapore’s aspirations to widen its lead as a major global energy and chemicals hub. In addition, he said: “Singapore is committed to grow the energy and chemicals sector in a competitive and sustainable manner.

“In Singapore, we are actively pursuing projects that could leverage bio-renewable raw materials for the production of fuels and chemical products. Singapore’s strategic location in the heart of Southeast Asia – a region of diverse and abundant bio-renewable feedstock – promises

several exciting opportunities.” Support from the government

aside, businesses around the world are increasingly trying to stamp their footprint in Singapore.

Neste Oil Corporation has just opened its bio-renewable diesel plant in Singapore, making it the world’s largest renewable diesel plant with a capacity of 800,000 metric tonnes a year. The Finnish company is using its Singapore facility to supplement its two other operations in its native country.

But it is not only the bigger-named players that are gravitating to the republic, as mid-sized fi rms with newer forms of sustainable energy and processes are following suit too.

Green Power Asia, a German-linked company specialising in sustainable energy solutions, believes there is a unique opportunity to set up dedicated co-generation facilities in Singapore with the aim of reducing emission levels, said its Director and Head of Energy Business and Operations Pete Tin.

In setting up such a facility to meet its customers’ needs later this year, Mr Tin said Green Power Asia would be able to reduce its clients’ energy consumption levels by 30%.

investment potential for energy effi ciency improvements and techniques in Southeast Asia. Singapore could take up to US$1.1 billion (S$1.39 billion) worth of

NESTE OIL CORPORATION HAS JUST OPENED ITS BIO-RENEWABLE DIESEL PLANT IN SINGAPORE, MAKING IT THE WORLD’S LARGEST RENEWABLE DIESEL PLANT WITH A CAPACITY OF 800,000 METRIC TONNES A YEAR.

COVERSTORY]



Name and Date:


Few local companies have risen above the clutter in

the competitive business of designing toys. But home-grown Play Imaginative has done exactly that.

Established in 2004, the company which specialises in developing original toys, created its Trexi product for international markets. The brainchild of Creative Director Darren Gan, Trexi has now become a medium for designers to express their ideas and thoughts.

It exists in the form of a three-inch action fi gure with a unique rotating head and articulated limbs. According to Mr Gan, the uniqueness of Trexi lies in its characteristic as a platform which summons creativity. Mr Gan labels his toys as “affordable art” – a very apt term for these pieces which cost between $8 and $400.

Exemplifying the emergence of new, innovative Singaporean enterprise, Play Imaginative has been able to integrate art, graphics and product design to

carve out a market in the toy industry. Mr Gan said being the “only art toy company in Southeast Asia, Play Imaginative has created a thriving niche in many markets today like Japan, South Africa and the US”.

To further extend its market reach, Play Imaginative will be opening three new retail stores in Singapore and one in Hong Kong in the near future.

Alongside other products and merchandise streams, the Trexi series now contributes an estimated 25% of Play Imaginative’s overall revenue. While its brand may not be a household name yet, its clientele includes global fi rms like Nike and DHL, as well as government agencies such as the EDB.

“The success of making a toy depends on three key factors – design, concept and value,” said Mr Gan. He believes that newcomers to the industry are often able to offer fresh ideas and new styles, and can inject more vibrancy and creativity to toy designs.

Designing toys is not child’s play

MR DARREN GAN, CREATIVE DIRECTOR OF PLAY IMAGINATIVE, WITH A RANGE OF TREXI DOLLS BEHIND HIM.

“The combination of gas turbine technology with supplementary fi ring infrastructure will contribute to the reduction of greenhouse gases,” he told BiZQ.

The company’s electricity-generating operation, which will be completed before the end of 2011, would be able to support industrial users for the next 15 to 20 years, he said.

Far-fl ung California-based Viaspace Green Energy has also announced its plans to set up a Singapore operation. This company will bring a very unique product to Singapore: It has developed a proprietary industrial raw material called King Grass, which has the same properties as corn stover and wheat straw, and can be used to produce cellulosic biofuels and biochemicals.

With a diverse range of industrial expertise and new processes now arriving in Singapore, the nation will certainly be able to experience the next wave of economic growth. +

The capabilities here are so good that it is now important for us as a company to embrace such expertise and really utilise it as part of our toolkit.– Philip Faraci, COO,

Eastman Kodak

PH

OTO

S: P

HO

TOLI

BR

AR

Y, S

PH

LIB

RA

RY,

NES

TE O

IL C

OR

PO

RA

TIO

N &

GET

TY IM

AG

ES


Name and Date:


28 [ APR/MAY/JUN 2011 BIZQ

industrytrends]

Efforts are in place to transform Singapore into an eco-friendly hub in Asia.

S ingapore is among the top four in a new study ranking Asia-Pacific cities in terms of

their efforts in becoming green. The republic came in first with regard to water management and green building policy.

The comprehensive study, conducted by consulting firm Solidiance, also reported that Tokyo, Seoul and Melbourne are ahead of Singapore in their efforts to reduce their carbon footprint. The other cities in the top 10 include Osaka, Sydney, Auckland, Busan, Taipei and Hong Kong.

This study, released in February, looked at various factors such as economic, environmental and social policies that contribute to how eco-friendly each city is. The criteria included carbon dioxide emissions, renewable energy use, waste output and management, public transport ridership and water management.

In addition, the Canadian-based World Green Building Council (WGBC) gave Singapore high marks in green building efforts and water efficiency in its climate change report last September. It said Singapore’s development in these two areas was a combination of long-term vision, holistic urban planning, sound environmental policies and high regulatory standards.

The Singapore government has already identified the clean

technology sector as a major pillar of growth for the country. According to the WGBC report, this sector is expected to contribute US$3.4 billion (about S$4.3 billion) to GDP by 2015 and provide 18,000 jobs.

Growth opportunityThere has been a conscious effort by the Singapore Economic Development Board (EDB) in its cooperation with various government agencies to develop R&D competencies in the biomedical sciences, as well as information and communications technology.

Strong governmental support through the Inter-Ministerial Committee for Sustainable Development (IMCSD), along with its recommendations

and the concerted efforts of various government bodies, also encourage the local construction industry to consider green building developments. These efforts are aimed at showcasing Singapore as a hub in such fields, so as to entice multinational firms to invest their resources here.

Dr John Keung, CEO of the Building and Construction Authority (BCA), said that going green is no longer an option but an absolute necessity.

“As a small city state with limited resources and growing needs, we have to use our land, water, energy and other resources

prudently, pragmatically and with an eye on the future. In this way, we ensure

Singaporeans are able to enjoy both

economic growth and a good living environment

now and in the future,” he said.

According to the Solidiance report, Singapore shows great potential to be the next regional green building hub, especially with regard to cultivating tropical eco-friendly building solutions.

Green buildings minimise the impact on the environment by

lowering demand on resources and materials and this, in turn, reduces pollution, waste and environmental degradation.

Increasing awareness on global warming, declining supplies of food and natural resources like fresh water and arable land, as well as environmental problems such as top soil erosion and leaching brought about by development, has

Green BuildinGs

Plants at treelodge@ Punggol are irrigated by Processed rainwater, which is collected from the roof and filtered.

Mac ID

RyanTitles

BIZQ April-June 2011

7th8th9th

Mac ID

RyanTitles


7th8th9th

28-30 IndustryTrends WF.indd 28 4/7/11 1:48:01 PM

BIZQ APR/MAY/JUN 2011 ] 29

and the concerted efforts of various government bodies, also encourage the local construction industry to consider green building developments. These efforts are aimed at showcasing Singapore as a hub in such fields, so as to entice multinational firms to invest their resources here.

Dr John Keung, CEO of the Building and Construction Authority (BCA), said that going green is no longer an option but an absolute necessity.

“As a small city state with limited resources and growing needs, we have to use our land, water, energy and other resources

prudently, pragmatically and with an eye on the future. In this way, we ensure

Singaporeans are able to enjoy both

economic growth and a good living environment

now and in the future,” he said.

According to the Solidiance report, Singapore shows great potential to be the next regional green building hub, especially with regard to cultivating tropical eco-friendly building solutions.

Green buildings minimise the impact on the environment by

lowering demand on resources and materials and this, in turn, reduces pollution, waste and environmental degradation.

Increasing awareness on global warming, declining supplies of food and natural resources like fresh water and arable land, as well as environmental problems such as top soil erosion and leaching brought about by development, has

helped strengthen the case for a sustainable manner of urban development.

One example of how committed Singapore is to sustainable urban development is the Punggol Eco-Town. It is a low-cost residential area serving as a live test bed for integrated solutions in sustainable buildings, including energy, waste as well as water management. The

Housing and Development Board aims to lower the cost of implementing these solutions and replicate

them islandwide.President of the Singapore Green

Building Council Lee Chuan Seng

said: “Sustainable development is now one of our key national priorities. We should encourage green thinking and integrate green initiatives into the design and construction of buildings,” he said.

Green Mark schemeBCA’s green building rating scheme, known as the Green Mark, is proving successful. According to Mr Lee, 551 new buildings and 65 existing buildings are now certified within Singapore.

The Green Mark provides a meaningful differentiation of buildings in the real estate market. It incorporates internationally recognised best practices in environmental design and performance which can have a positive effect on the corporate image, leasing and resale value of buildings.

Singapore’s HarbourFront Centre is one of the buildings which was recently awarded a Green Mark certification for an existing building retrofit. Some iconic >

Mac ID

Titles


7th8th9th


Name and Date:

28-30 IndustryTrends WF.indd 29 4/11/11 10:57:11 AM

30 [ APR/MAY/JUN 2011 BIZQ

INDUSTRYTRENDS]

buildings that are rated Green Mark Platinum include the Ocean Financial Centre in Raffles Place and Tampines Grande.

To encourage more green building retrofi ts, BCA has created a $100 million fund to help existing building owners with the costs. Mr Lee noted that such costs incurred can be recouped in a relatively short time frame. A retrofi t of a building requiring 24-hour operation such as a hotel will cost between $1.5 million and $3.5 million. But doing so will save $250,000 to $1 million a year – meaning it pays for itself in about four years or so.

BCA launched the fi rst Green Building Masterplan in 2006 to spearhead the delivery of eco-friendly buildings. The master plan focused on new buildings and those undergoing major retrofi tting. With the IMCSD setting a target of having 80% of all buildings

The Singapore Sustainability Awards (SSA) is an initiative of the Singapore Business Federation and comprises the Sustainable Business Awards (SBA) and the Green IT (GIT) Awards. Inaugurated in 2009, the awards aim to recognise companies for their outstanding sustainable business practices. The attainment of long-term sustainable development goals is an imperative that the Singapore business community must embrace to ensure continued success and a winning edge.

For more information, please visit www.sustainabilityawards.sg or contact the SSA Secretariat at 6827-6838 or e-mail [email protected].

The results of the winners of SSA 2011 will be announced in July. Past winners of the SBA include City Development Ltd, Senoko Energy Pte Ltd, Tetra Pak Jurong Pte Ltd and Samwoh Corporation Pte Ltd, while IRAS, Land Transport Authority and Trusted Hub Limited are some of the past GIT Award winners.

Singapore Sustainability Awards 2011

achieve the Green Mark certifi cation by 2030, the BCA unveiled the second Green Building Masterplan in 2009 to target existing buildings in Singapore.

As part of the IMCSD’s vision to develop a sustainable built environment, there will be opportunities for both local and foreign companies to test and develop innovative green building design and technology. Such technology encompasses solutions to ensure energy and water efficiency, indoor environmental quality and environmental protection. Energy management systems are also helping to enhance the effi ciency of building automation

and controls.To encourage

companies to invest in going

green, the Singapore government has initiated funding and incentive

schemes related to energy

efficiency, clean

energy, green buildings, water and environmental technologies, green transport, waste minimisation, environmental management systems and initiatives, clean development mechanisms and green IT.

Due to the wide ranging topics on the sustainability agenda, there is a rising need and expectation for a broad-based platform covering business, government and academic interests to address these issues holistically. The Singapore Sustainability Alliance was officially inaugurated earlier this year. Comprising the EDB, SBF, SEAS, SWA and WMRAS as the founding members, it is a triple-helix model with representations from government agencies, business chambers, industry associations and academic and research institutions. The Singapore Sustainability Alliance, through SBF’s representation, is also plugged into the International Cleantech Network (ICN) which connects leading clean-tech clusters around the world. +

THE OCEAN FINANCIAL CENTRE, TO BE COMPLETED IN THE SECOND QUARTER OF 2011, WILL BE ONE OF THE LARGEST OFFICE DEVELOPMENTS IN RAFFLES PLACE.

PH

OTO

S: S

PH

LIB

RA

RY

Mac ID

RyanTitles


7th8th9th

28-30 IndustryTrends WF.indd 30 4/7/11 1:50:13 PM


MANAGEMENTGUIDE]

BUILDING AWORLD-CLASS ORGANISATION

Leadership and people strategies are necessarydrivers to grow the business.

Companies with the best leadership distinguish themselves from their

global peers when they are open to new ideas, cultures and best practices, according to a recent Hay Group report.

Based on a survey of more than 3,700 corporate executives and 1,800 organisations worldwide, the 2010 report also revealed several factors about the growing global ambitions of some Asian companies.

According to the report, 77% of top Asian companies give

equal weight to ideas from their subsidiaries and their headquarters.

By empowering the human capital within an organisation with the aim of delivering improvement in a company’s performance, the key to building such effective businesses lies in adopting best human resource (HR) practices, said Victor Tay, Singapore Business Federation’s Chief Operating Offi cer.

“Over the course of the next decade, there will be increasing cross-border movement of people and organisations in the search of

optimal business environments as well as mergers and acquisitions which will inevitably impact your business and human resource management. To remain competitive, companies should emphasise people strategies to keep abreast of unending human-capital-related challenges,” he explained.

Singapore Business Federation (SBF) and the Hay Group recently organised a seminar – Building World-Class Human Capital – to help Singapore companies learn about various HR strategies to unleash the potential of their workforce.


32-33 MG WF.indd 3232-33 MG WF.indd 32 4/7/11 1:49:53 PM4/7/11 1:49:53 PM


The event was attended by 90 participants comprising business leaders and HR practitioners.

“There is no short cut to success,” commented Mr Angel Blanco, Hay Group’s Regional Director of Building Effective Organisations (BEO). “Making your human capital world-class requires you to fi rst deal with four key areas: management structure and governance, people and competencies, performance for growth, as well as engagement/climate/branding.”

He added: “By handling these well, you will bridge the gap between your company’s global aspirations and the actual outcomes. Whether you’re a small company with global aspirations or an established company seeking a new stage of growth, the same principles apply.”

The Hay Group recommended the Corporate Centre Model that is relevant to both SMEs and global companies, as there are areas where senior corporate management can add tremendous value to the business.

The key question lies in how the management team achieves the balance between centralisation and intervention. The optimal balance will vary according to the market and products which the company is targeting to develop.

Successful balanceBusiness leaders owe it to themselves to think this through, as this will have a profound impact on the company’s ability to grow sustainably and be successful globally, said Dr Andreas Raharso, Hay Group’s Dean of Global BEO R&D Centre, who briefed participants on the signifi cance of the Corporate Centre Model and the assessment of its confi guration to generate strategic growth.

The seminar outlined the series of thematic workshops that will be organised throughout the year, namely Structuring the Corporate Centre Model for Growth, Building a Globally Competitive Team, Rewarding for High-performance Growth and Growing the Family-owned Business.

SBF Mentors ClubAs the apex chamber for the Singapore business community, SBF Chairman Tony Chew also hosted a “Meet the SBF Mentors” luncheon that day. Twenty-fi ve SME business leaders networked with successful business mentors from the SBF Mentors Club.

Mentors who attended the networking luncheon included Mr Ernest Wong, Chairman of Invida Pharmaceutical Holdings Pte Ltd, Mr Joachim Ihrcke, Managing Director of Droege & Comp. Singapore Pte Ltd, Mr Kuah Kok Kim, Executive Chairman of MTQ Corporation Ltd, Mr Vijay Iyengar, Managing Director of Agrocorp International Pte Ltd and Mr Quek Keng Liang, Chairman of Singapore Logistics Association.

The SBF Mentorship Programme offers a robust platform for companies with potential growth prospects to receive valuable professional guidance in growing their businesses effectively.

BiZQ spoke to one mentor about what motivated him to join the SBF Mentorship Programme. MTQ’s Mr Kuah (left) said

he was encouraged to participate as a mentor as he could contribute to the business community in return.

Given his vast years of experience, he had encountered diffi culties which he could share with mentees so they would not have to go through

similar challenges, and hence would be able to accelerate their growth.

In addition, as a businessman, he looks forward to meet more business professionals in this dynamic environment to understand different trade perspectives.

Agreeing with such sentiments, Mr Johnny Soon (left), CEO and Chairman of Heatec Jietong Holdings Ltd,

said: “We believe this scheme will facilitate the sharing and exchange of knowledge and experiences between mentors and mentees. Having a mentor will help the fi rm as he will be able to provide relevant industry advice from his past experiences in tackling the challenges that we are facing.”

He said the company is currently dealing with challenges concerning overseas expansion, the identifi cation of new and related product offerings, streamlining of operations for better productivity and retention of good management personnel. +

For more information on theSBF Mentorship Programme,contact our Capacity Building Teamat 6827-6893 /6827-6835 ore-mail [email protected].


PH

OTO

S: S

PH

LIB

RA

RY

32-33 MG WF.indd 3332-33 MG WF.indd 33 4/7/11 1:50:36 PM4/7/11 1:50:36 PM


INBUSINESSWITH]

SETTING THE STAGE IN LOGISTICS

A sia is set to drive the global logistics market as regional economies

strengthen, especially in China and Vietnam. However, while Asian economies are robust, many companies face rising business costs and the challenge of meeting service delivery expectations.

In this regard, Keppel Telecommunications & Transportation Ltd (Keppel T&T), through its logistics arm Keppel

Logistics Pte Ltd, offers one-stop, integrated logistics solutions to help its international portfolio of clients manage their supply chains in both Singapore and the Asia-Pacifi c region. Among these clients are several of the largest global food and nutritional companies as well as international biomedical/health care fi rms.

The company’s logistics solutions include integrated operations, warehousing and transportation

services that can be customised to their customers’ needs – from the inbound movement of raw materials to the delivery of fi nished goods. State-of-the-art IT solutions, such as an automated storage and retrieval system, are used to improve inventory accuracies and bring about a faster order cycle period for their customers.

In Singapore, it manages about 1.1 million sq ft of warehousing space. Its Benoi Road warehouse is currently undergoing an expansion and is expected to be completed in the second half of this year. Once completed, the redeveloped warehouse will double its capacity to just over 215,200 sq ft and will be equipped with modern amenities. The additional warehousing space will help to support the growth of Keppel T&T’s businesses in Singapore and the region.

Keppel T&T offers one-stop integrated logistics solutions in the region to help customers manage their supply chains.


Name and Date:

34-36 IBW WF.indd 3434-36 IBW WF.indd 34 4/7/11 1:30:14 PM4/7/11 1:30:14 PM


The company currently has a regional logistics network in Singapore, China, Vietnam and Malaysia, operating through its main subsidiaries such as Keppel Logistics Singapore, Keppel Logistics (Foshan) Ltd (KLF), Keppel Logistics (Hong Kong) Ltd, Keppel International Freight Forwarding (Shenzhen) Ltd, Keppel Logistics (Malaysia) Sdn Bhd and Indo-Trans Keppel Logistics Vietnam Co. Ltd (ITKL Vietnam).

Expansion into ChinaKeppel T&T has been broadening its investments and scope of activities in China and Vietnam to capitalise on the potential of the region’s logistics sector.

Bilateral trade between China and Singapore rose more than 25% to $95.3 billion in 2010. China is currently Singapore’s third largest trading partner, especially with

operation of a green integrated logistics distribution centre.

The Tianjin Eco-City Integrated Logistics Distribution Centre will be located on a 2.8ha land plot within the Eco-Industrial Park and will be wholly owned and operated by Keppel T&T. It is expected to be completed by the end of 2012.

It will have a total estimated investment amount of $26.3 million, and feature a 377,000 sq ft modern warehouse space when completed. Keppel T&T’s logistics hub will help to draw high value-added manufacturing investments into Tianjin Eco-City and provide integrated logistics services for the eco-city, Tianjin Binhai New Area and northern China.

CEO of Keppel T&T Pang Hee Hon said: “This centre will extend our logistics footprint to northern China and further establish our presence in the country. We will be able to capitalise on the strategic position of the Tianjin Eco-City and its proximity to major industries in the Tianjin Economic-Technological Development Area and the Hangu district to meet the needs of clients with the best-in-class, integrated logistics services.” >

ARTIST’S IMPRESSION OF KLF’S NANHAI DISTRIBUTION CENTRE.

the China-Singapore Free Trade Agreement and the ASEAN-China Free Trade Agreement in place.

In China, Keppel T&T, through its joint venture company KLF, provides a wide range of logistics solutions and services which also include port operations and international freight forwarding. Refl ecting the pace of KLF’s China operations, its Lanshi port in Foshan continued to operate at maximum capacity in 2010 and handled a record 258,888 20ft-equivalent units despite stiff competition from neighbouring ports attempting to draw cargo traffi c away.

To help its operations expand, KLF’s Nanhai Distribution Centre (NHDC) will start operations early this year. With modern logistics features, NHDC will add 377,000 sq ft of warehousing space to Keppel’s footprint in the Pearl River Delta.

Keppel T&T made a signifi cant fi rst step into northern China recently when it announced that it will set up a new logistics centre in the Sino-Singapore Tianjin Eco-City (SSTEC). It signed an agreement in January for land use rights with the SSTEC Investment and Development Co. Ltd for the development and


Name and Date:

34-36 IBW WF.indd 3534-36 IBW WF.indd 35 4/11/11 10:51:50 AM4/11/11 10:51:50 AM


Green practicesThis logistics centre is expected to offer “green” services such as those in reverse logistics that can help customers adopt sustainable supply chain practices and achieve better resource effi ciency. The facility will also be fi tted with energy-effi cient features and state-of-the-art management systems that maximise utilisation of resources such as warehouse space and vehicles.

The Tianjin Eco-City is aimed at creating a “green” and sustainable community that meets the needs of an urbanising China and will be a modern township where 350,000 residents can live, work and play.

Exports to VietnamSingapore is the fi fth largest foreign investor in Vietnam, with 792 operational projects capitalised at US$17.3 billion (S$22 billion) by end 2009. The projects focus on the processing and manufacturing industries, real estate, infrastructure construction, entertainment, services and the hospitality industry.

In addition, Singapore’s top exports to Vietnam were refi ned petroleum products, data processing machines and civil engineering equipment parts. Top imports from Vietnam included crude petroleum, stone, sand and gravel, as well as offi ce machines.

To help transport goods across different parts of the country, Vietnam has been improving access to infrastructural services over the past 20 years. However, it has not resolved other issues of infrastructure effectively, and these have become a signifi cant hindrance to Vietnam’s growth.

To improve its competitive edge in the region and enable it to further integrate into the international economy, Vietnam will need around US$70-80 billion

INBUSINESSWITH]

with Tanimex Group to provide exclusive warehousing and handling services at Tan Binh Logistics Park in Ho Chi Minh City.

The joint-venture fi rm has 161,500 sq ft of warehousing space in the park, bringing ITKL Vietnam’s warehousing capacity in the country to a total of 340,000 sq ft (including three other distribution centres in North and South Vietnam newly opened in 2010).

“Our Vietnamese partnerships allow Keppel T&T to expand its network to tap into the opportunities offered by the rapid growth of Vietnam. As the exclusive operator for the Tan Binh Logistics Park, we will leverage its proximity to the city centre to meet the growing needs of commercial and industrial companies nearby,” said Mr Pang.

While global logistics volume growth is expected to taper off this year, intra-Asia trade continues to grow, aided by increasing consumption in the region, especially in China.

Coupled with an increasing trend of logistics outsourcing, the demand for third-party logistics is expected to be strong. Thus, the company is exploring opportunities to scale up and expand its logistics footprint in the existing markets, as well as grow its customer base in new logistics verticals. + P

HO

TOS

: KEP

PEL

CO

RP

LTD

Our Vietnamese partnerships allow Keppel

T&T to expand its network to tap into the opportunities offered by the rapid growth of Vietnam. – Mr Pang Hee Hon,

CEO of Keppel T&T

to upgrade its infrastructure over the next fi ve to 10 years.

Vietnam’s entry into the World Trade Organisation has led to a more open logistics market. More foreign logistics companies have started and expanded their operations in the country.

Foray into VietnamKeppel T&T is playing a stronger role in growing economies like Vietnam, which has a relatively undeveloped logistics industry. As an experienced foreign logistics player with a regional presence, the fi rm aims to have several logistics centres linking North and South Vietnam.

Last May, ITKL Vietnam formed a joint-venture company


Name and Date:

34-36 IBW WF.indd 3634-36 IBW WF.indd 36 4/7/11 1:32:06 PM4/7/11 1:32:06 PM

© 2

011

Nok

ia. F

aceb

ook

is a

reg

iste

red

trad

emar

k of

Fac

eboo

k In

c.

Nokia E7.Success finds itself in good company.- Touch and type plus large 4” screen- View, edit and create documents- Multiple email accounts- 8 megapixel camera, HD filming and HDMI output

nokia.com.sg/E7

62327_1_BIZ_Q_SPH.pdf Page 1 01/04/2011, 4:07 PM


EXECUTIVELIFESTYLE]

AMAZING THAILANDThe Land of Smiles has enjoyed rapid economic growth over the past two decades and its Department of Export Promotion has year-round activities catering to export products and services.

T oday, Thailand is a dynamic regional trading, fi nancial, aviation and

communications centre, with a strong national infrastructure that provides ready access to both regional and global markets.

Its vibrant export-led economy has seen strong growth in recent years. The country’s main export markets include the US, Japan, Europe and ASEAN, while new markets such as China, South Asia, Africa and Indochina are growing.

To help increase the value of its exports, Thailand has negotiated free trade agreements with Australia, China, India, Japan, New Zealand and ASEAN which have resulted in many more opportunities for doing business with the country.

Export diversityDiversity has become an essential element for the Thai export market. There is also an emphasis on one-stop sourcing of raw materials in and around Thailand, such as in the

Greater Mekong Subregion and through Southeast Asia. Such raw materials are turned into a variety of value-added products like processed and frozen food, agricultural goods, electronics, electrical appliances, furniture, garments, textiles, auto parts and accessories.

In addition, Thai service industries are in great demand around the world. Four key business sectors – Thai restaurants, spas, the health care industry and international education – are well-established. New service sectors like architectural design, construction, garage, printing, entertainment and other content industries are being developed to meet overseas demand.

Thailand’s Department of Export Promotion at the Ministry of Commerce provides a comprehensive range of services like those related to trade information and advisory, matchmaking link-ups, business networking, providing data on

Thai products and manufacturers and helping foreign businesses fi nd suitable trade partners. It also organises international trade fairs in Thailand, participates in numerous trade fairs abroad and arranges trade missions to targeted markets.

International fairsTwo upcoming events worth mentioning are the Bangkok International Gift/Houseware Fair 2011 (April 19 to 24) and the Bangkok International Fashion/Leather Fair 2011 (April 20 to 24).

Both events are aimed at displaying some of the fi nest quality products from local and international exhibitors. The fairs are expected to attract purchasers from all over the world including manufacturers, exporters and designers from Thailand and the region. +

For more information, visit www.bigandbih.com and www.biffandbil.com.



Name and Date:

38 ExecLifestyle WF.indd 3838 ExecLifestyle WF.indd 38 4/7/11 1:20:23 PM4/7/11 1:20:23 PM

C

M

Y

CM

MY

CY

CMY

K

100PLUS_205X275 Advert hbtw 1012.ai 1 3/8/11 3:36 PM100PLUS_205X275 Advert hbtw 1012.ai 1 3/8/11 3:36 PM


BOARDROOMTALK]

SIZING UPTHE MARITIME SECTOR

The Singapore government recently announced that it plans to promote the

growth of the maritime industry with the Maritime Sector Initiative which will take effect this June.

This new scheme will streamline and enhance existing maritime tax incentives. New tax benefi ts (like the certainty of withholding tax exemption for interest payments on loans to build or buy ships) will also be introduced to further entrench international ship operators and encourage the growth of the shipping-related services sector in Singapore.

This announcement is good news to trans-shipment companies such as home-grown Marco Polo Marine Ltd. Its CEO Sean Lee recently signed an MOU through its subsidiary Marco Polo Offshore (II) Pte Ltd to purchase a 40m Panamanian-fl agged utility vessel for a total cash consideration of US$4.87 million (S$6.23 million). Mr Lee is the 2010 winner of the Young Entrepreneur of the Year Award, which was presented at the Asia Pacifi c Entrepreneurship Awards.

Established in 1991, the company recorded a strong net profi t growth of 90% to $19.1 million in FY2010, on the back of a healthy broad-based revenue growth of 18% to

$64.3 million. The group’s business model consists of three synergistic business units, namely ship chartering, offshore marine, as well as ship repairs and shipbuilding.

BiZQ recently caught up with him to fi nd out his views about the recent budget and what he hoped to see more from the government with regards to the trans-shipment industry.

“For the maritime sector, the Singapore government has already put in place existing measures, such as the Approved International Shipping Enterprise Scheme (AIS), which the Marco Polo Group is currently enjoying,” said Mr Lee. “The introduction of the new Maritime Sector Initiative not only streamlines and enhances the existing maritime tax incentives, but also refl ects the government’s emphasis on the maritime sector, which is defi nitely welcoming for businesses in this industry.

“One of the core objectives of the government is to attract overseas international operators to base their activities in Singapore, in order to support the strategy of an international maritime centre. I view this as an important and necessary initiative as it will open up the economy, set Singapore as an international hub, with multiplier

effects on employment and GDP.“Having said that, the other

specifi c measures introduced, such as withholding tax exemption on payments of foreign loans taken to fi nance the purchase or construction of local or foreign-fl agged ships, and withholding tax exemption on foreign-fl agged ships, are laudable. However, they would have been better understood and accepted by businesses if the qualifying criteria and exemptions have been clearly defi ned.

“I would say the 2011 budget, in relation to the maritime industry, is certainly a response to the current business environment of cost pressures, and it is reassuring to know the Singapore government is placing emphasis on the important sectors in Singapore, although longer-term measures would have been more benefi cial to businesses in the long run,” he added. +


Mac ID

RyanTitles

BIZQ April-June 2011 AX: 8699851

We do not accept responsibility for any error,defect or inaccuracy which is not noted onthe proof. Therefore customers are advisedto thoroughly check and examine the proofprior to authorising the digital files for printing.

7th

8th

9th

40 BT WF.indd 4040 BT WF.indd 40 4/7/11 1:27:02 PM4/7/11 1:27:02 PM

Keppel Corporation Limited, 1 Harbourfront Ave #18-01 Keppel Bay Tower Singapore 098632Tel: (+65) 6270 6666 | www.kepcorp.com

Co Reg No: 196800351N

KeppelAwardAD1275x205CMYKp.indd 1 4/4/11 6:52 PM

BiZQ AprJun11 Chosendownload.sbf.org.sg/bizq/apr_jun11.pdfSBF will step up its engagement of...

Documents

Transcript of BiZQ AprJun11 Chosendownload.sbf.org.sg/bizq/apr_jun11.pdfSBF will step up its engagement of...