16/04/2015 10:34 SILVER THE YEAR YEAR 2014 MARKETING MAGAZINE’S MAGAZINE’S MAGAZINE OF MAGAZINE LOCAL BUSINESS LOCAL MAGAZINE OF THE MAGAZINE help SMEs help rental leasing rental Understanding Portal, iHub to will affectwill firms Apr•May•Jun 2015 BUDGET FOR BUSINESSES? FOR BUDGET How Budget 2015 2015 Budget How BUSINESS GRANTS PORTAL FAIR TENANCY AGREEMENT TENANCY FAIR Remembering Lee Kuan Yew Please sign: Please Upon approval Name and Date:

Business Quotient / Business / People / Opportunities A PUBLICATION OF SINGAPORE BUSINESS FEDERATION •Cover BizQ Apr-Jun15.indd 2 BIZQ_275x205.ai 1 3/23/15 5:23 PM Apr•May•Jun 2015 1 Chairman’s Message

Forging Ahead on a Firm Foundation

The late Mr Lee Kuan Yew left an SBF’s National Business Survey 2014/15 indelible mark on the development and indicated that high wage costs arising future of Singapore. His passing was an from a tight labour market, growing occasion to reflect on the significant competition, and uncertainty in the contributions he bequeathed to our economic environment are key concerns. nation as its first Prime Minister. His This is understandable, especially since enduring legacy of a resilient and thriving some key sectors, such as manufacturing, Singapore has served us well at home continue to struggle from both internal and internationally. Today, the Singapore challenges and volatile external demand. brand is highly regarded all over the Other key sectors face similar challenges. world and is synonymous with reliability, trust and quality. This has been a boon However, not all is downcast as businesses to both our economy and business. As a at large are still optimistic about prospects tribute to Mr Lee, let us forge ahead to for 2015. They have to manage costs build a better Singapore for all, on the to pursue growth through constant firm foundation he and his team have pursuit of technological improvements, built over the past 50 years. enhancement of business processes, and searches for new opportunities. In this issue of BiZQ, we look at Singapore Budget 2015 and its To help members leverage the measures implications for business. We welcome announced in Budget 2015, SBF the SkillsFuture initiative, and are will be organising a briefing on the committed to helping our members SkillsFuture programme in May to better understand and tap on its provide an update on this initiative. It various help schemes to build will also engage members through various capabilities. We appreciate that platforms to help them build resilience our budget recommendation through innovation, productivity and for extension of the Wage internationalisation. Credit Scheme and deferring any planned increases in On this note, I welcome feedback and foreign worker levies have been continued dialogue in furthering the accepted. We also appreciate the interests of our business community. enhancement of Government assistance programmes to spur internationalisation and industry collaboration, through the Collaborative Industry Projects (CIP) and Partnership S.S. Teo for Capability Transformation Chairman (PACT) schemes. Singapore Business Federation

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2 Apr•May•Jun 2015

BiZQ is going green! We will be going digital from the July issue onwards Contents Economy Watch Singapore Primes 06 for Growth MAS’ recent announcement to rein in the rise of the Singapore dollar has surprised several market watchers.

LKY Tribute Farewell, Mr Lee 10 SBF and the Singapore business community came together to honour the late Mr Lee Kuan Yew and the role he played in building the country.

Commentary Fair Tenancy 14 Agreement This framework aims to help tenants and landlords of business premises understand lease agreements. Blue Jean Images/Corbis BiZ Feature Forward-Looking 18 Budget 2015? Business Quotient (BiZQ) is the Seven in 10 Singaporeans support official publication of the Singapore Business Federation, reaching out to over 21,000 of Budget 2015, and programmes like the Singapore’s business elite, chief executives Silver Support Scheme and the SkillsFuture and entrepreneurs. The quarterly, published in collaboration with SPH Magazines, is initiative are good for the economy. your eye on Asian and global business trends, bringing you up to date on industry developments, the economy, country profiles, stories about successful companies and Cover photo: SPH - ABOVE: Singapore businesses need to plan ahead to manage manpower issues the people who lead them. The Straits Times if they want to remain competitive.

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Fast Facts EVENT IUCN WORLD PARKS CONGRESS DELEGATES 6,000+ FROM 170 COUNTRIES LOCATION SYDNEY, AUSTRALIA DATE NOVEMBER 2014

World parks delivers global promise in SydneY

The 6th International Union for Conservation of Nature (IUCN) World Parks Congress took place in Sydney in November 2014 with a promise from the more than 6,000 delegates to protect planet Earth's most precious natural areas.

THE PROMISE OF SYDNEY all contributed to the higher than expected "In less than 15 years the park has become delegate numbers. a much-loved setting for Sydneysiders, The once-in-a-decade IUCN World Parks hosting 6,000 events and welcoming almost Congress, held at Sydney Olympic Park in "We found a geographical and a thematic 14 million visitors each year," Alan Marsh said. November 2014 saw a doubling of delegate purpose. Sydney is an attractive destination, numbers from the previous congress in so people saw this as their chance to combine "Today the park is 640 hectares, twice the Durban in 2003, with more than 3,500 a visit with our congress," he said. size of Sydney's central business district. international visitors attending. Ambassador of the congress and former It is home to 400 native plants, 200 native The meeting, hosted by Parks Australia head of Parks Australia, Peter Cochrane animal species and a range of alternative and the New South Wales National Parks was instrumental in securing the meeting energy generation, waste and water and Wildlife Service, focused on sharing for Sydney. He adds further that Australia's recycling, and sustainability solutions." global role in environmental conservation knowledge and setting the agenda for was a strong factor in securing the event, At IUCN's request the event used green conserving the world's natural environment. with many countries looking to Australia power, sustainable service wear, and This could not have been achieved without for ideas and action. where possible locally sourced produce. support from the New South Wales and Australian Governments, and professional "The conservation work we do with Following in the footsteps of his late conference organiser, ICMS Australasia. Indigenous Australians throughout protected great-grandfather Nelson Mandela who Indigenous areas has inspired many other opened the previous congress, Luvuyo On the fi nal day, delegates from more than countries to take on similar initiatives," he Mandela welcomed the event to Sydney. 170 countries listened intently as The Promise said. of Sydney was announced - setting out an He promised to continue the former South ambitious agenda to safeguard the planet's TAKING A CONGRESS OUTDOORS African president's work to engage the youth natural assets, ranging from halting of today in the "conservation conversation" rainforest loss in the Asia-Pacifi c to tripling For an event that has as its core theme, parks, of tomorrow. After this inspirational address, ocean protection off the coast of Africa. people and planet, Sydney Olympic Park was delegates moved outside for drinks and considered the perfect destination for the canapés in the pleasant Sydney spring THE APPEAL OF SYDNEY World Parks Congress. Located 8km west of evening. the central business district, it incorporates Prior to business sessions each day, delegates According to Congress Director Trevor parklands, bicycle tracks, extensive sporting were invited to take guided ecology walks, Sandwith, Sydney's global appeal was and recreational facilities, hotels, apartments, among the key factors that saw a doubling and offi ce buildings. as well as wetland and bird watching tours of delegates from the Durban meeting. throughout the precinct. Sydney Olympic Park Authority CEO, Alan He said the attractiveness of Sydney Marsh, said IUCN's decision to hold the Delegates staying at Sydney Olympic Park combined with a progressive program, meeting in the precinct was a powerful walked to the venues while ferries and special Australia's geographic location and the validation of the effort that has gone into train services were organised for those environmental challenges being faced by transforming this part of Sydney's landscape staying in the city, further helping to reduce many nations in the Asia Pacifi c region, into one of its most popular parklands. the carbon footprint of the congress.

VISIT AUSTRALIA.COM/BUSINESSEVENTS/ASSOCIATIONS FOR EVERYTHING YOU NEED TO PLAN YOUR AUSTRALIAN EVENT. Apr•May•Jun 2015 4

Publisher Biz Voice Singapore Business Federation Business Grants Portal 10 Hoe Chiang Road, #22-01 Keppel Towers, 24 to Help SMEs Singapore 089315, Tel: +65 6827-6828, Existing business grants and Fax: +65 6827-6807, E-mail: [email protected], trade association hub to focus on Website: www.sbf.org.sg capability development. chairman Teo Siong Seng chief executive officer Ho Meng Kit Innovations chief operating officer Helping SMEs Tap into Victor Tay assistant executive director 28 Integrated Solutions (member relations) Singapore Government provides Cheryl Kong more support for SMEs via Innovation and Productivity Initiatives. corporate communications senior director Jinny Claire Sim manager Inside SBF Liew Lixia senior executive Leaders in Rachelle Lee 30 Sustainability Practices A record number of companies Publishing Agent participated in the recent SPH Magazines Pte Ltd Singapore Sustainability Awards. group editor-in-chief Caroline Ngui group editor International Markets Joanna Lee-Miller Closer Collaboration editorial & creative senior editor 36 with Indonesia Dora Tay Strategic cooperation between SBF contributing editor and KADIN reflect investment Casuarina Peck opportunities in the country. sub-editor Annabelle Bok associate creative director Jayson Ong SME Resources art director Online Learning Winnie Ong senior designer 38 Online learning helps employees Mohamed A Rahman learn better, says Singapore Business Institute. managing director Dennis Pua general manager Christopher Chan In Style sales & client management associate account director Travel in Style Kaz Lim Inject a little elegance into your account manager 40 travels with some luxurious leather Lin Mi’er luggage, designed for the business senior executive, traveller. client management Neo Pei Shi publishing services team head This news magazine is published by SPH Magazines Pte Ltd (Registration No. 196900476M) for the Singapore Business Federation (Registration No. ROS138/2002TAP). Copyright of the materials contained in this magazine belongs to SPH Magazines Pte Ltd and the Singapore Business Federation respectively. Nothing in here shall be Alice Chee reproduced in whole or in part without prior written consent of SPH Magazines Pte Ltd or the 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 For advertising enquiries, 6319-6227, E-mail: [email protected]. Unsolicited material will not be returned unless accompanied by a self-addressed envelope and sufficient return postage. While every reasonable care will be taken by the editor, no responsibility is assumed for the return of unsolicited material. MCI (P) 116/03/2015. Printed in Singapore by please call +65 6319-3022 Times Printers, Singapore (Registration No. 196700328H).

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Apr•May•Jun 2015 6

Economy Watch Minister of Trade and Industry Lim Hng Kiang “Singapore will make further Singapore Primes investments in the coming years to for Growth build up its research capabilities and MAS’ recent announcement drive innovation.” to rein in the rise of the dollar.

alls for a mindset MAS’ 2015 change in the pursuit OUTLOOK FOR C of productivity, slow inflow of foreign INFLATION direct investment into IN SINGAPORE Singapore’s manufacturing sector, and a push for It expects Singapore’s the small and medium inflation to range between enterprise (SME) sector to be the future growth engine for the republic have been the key headlines hogging the -0.5% to spotlight in recent weeks. The one news that came as a 0.5% surprise was the decision by the Monetary Authority of Singapore Singapore economy remains (MAS) to tolerate a slower on track to grow its GDP at a appreciation of the Singapore moderate pace of between dollar against a trade-weighted basket of currencies. In simple terms, the late January 2% to 4% announcement meant that the de facto central bank will “manage” the Singapore dollar in a manner that does not allow it International’s Director, Mr to appreciate faster against a key Manu Bhaskaran, had already group of currencies. flagged grave concerns about the This announcement, which encroaching prospect of deflation surprised many market watchers, in Singapore. came on the back of a drastic cut Speaking at the National in the MAS’ outlook for inflation Business Survey (NBS) seminar in Singapore. The announcement hosted by the Singapore Business (See side story: “Inflation in like the United States (US) and Federation (SBF) , he said: “There Singapore Expected to Ease”) stated those in the Eurozone. are definitely deflationary pressures that the MAS expects Singapore’s The Quantitative Easing in Singapore. The consumer price 2015 inflation to range between (QE) policies in the US and index is down, the real estate bubble -0.5% to 0.5%, down from its earlier the Eurozone have been aimed is deflationary… Downsizing is forecast of 0.5% to 1.5%. squarely at reversing a deflationary always deflationary.” environment. Now, it appears that He added: “I continue to believe Spreading out into the region this deflationary phenomenon is that Singapore is going to go In the past few years, deflation reaching the shores of Asia. through a deflationary cycle. We are has become the new normal, Prior to the MAS announcement, only at the start of the cycle.”

RF123; SPH – The Straits Times plaguing developed economies one economist, Centennial Group p.8

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7 Singapore Businesses Scout for Overseas Opportunities

Businesses remain undeterred manufacturing and services to SBF CEO Ho Meng Kit in seeking fresh opportunities in construction and trading. ASEAN and China despite growing In the survey, 21% of the “The need for challenges at home, Singapore respondents were large enterprises – productivity Business Federation’s (SBF) latest multinational corporations and large annual National Business Survey locally-owned companies – and 79% improvement (NBS) revealed. were small and medium enterprises. resonates with About 70% of the respondents in the survey indicated that they Challenges facing companies a vast majority have an overseas presence and Businesses indicated that high of our members. that their top markets are mainly labour costs are currently their top from Asia – namely Myanmar, challenge, with higher levies and Many of them, Indonesia and Cambodia. curbs on the growth of the numbers particularly our The survey results showed that of foreign workers contributing to another 60% of businesses are a tight labour market, resulting in small companies will aware of the ASEAN Economic upward pressure on business cost. Community (AEC); of these, about Specifically, 83% of all continue to benefit 70% believe that it will present respondents said that high labour from Government opportunities for investments. costs were their top challenge The latest annual survey was in 2015, with another 59% citing support to improve conducted in the final quarter of increased competition as an issue. their productivity.” 2014, and drew more than 950 A further 56% pointed to the responses from SBF members uncertain economic environment across a range of industries from as a key challenge. In the context of reducing described Singapore’s productivity business cost, companies have performance as ‘disappointing’. Our highlighted rentals and foreign survey shows that the need for BUSINESS worker levies as key concerns to productivity improvement resonates overcome. with a vast majority of our members. SENTIMENTS On foreign worker policies, the “Many of them, particularly our 1 findings revealed that businesses smaller companies, will continue to HIGH LABOUR COSTS have suggested that the Government benefit from Government support consider increasing the foreign to improve their productivity.” worker quota and having industry- Mr Ho added: “Another specific dependency ratios. important focus for our members is 83% Industry sectors that have internationalisation. I am glad that indicated a heightened need for the more of our members are exploring 2 Government to reduce business cost business opportunities overseas. INCREASED COMPETITION included manufacturing, logistics “The AEC will take formal shape and transport, services and trading. by the end of 2015. The survey In addition, sectors that indicated findings indicate that we are still 59% an increased need to look into some way to having widespread more granular foreign worker awareness of the AEC among 3 policies included construction, businesses. As the AEC comes into ECONOMIC ENVIRONMENT manufacturing, information place, the flow of goods, services, UNCERTAINTY technology and services. capital and people will expand.” Summing up the views of SBF would like to invite more businesses expressed in the annual companies to work with the NBS, SBF CEO Ho Meng Kit apex chamber to leverage the said: “In Prime Minister Lee Hsien opportunities offered by the AEC,

56% SPH – The Straits Times Survey in fourth quarter of 2014 Loong’s New Year Message, he he concluded. •

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Apr•May•Jun 2015 8 Economy Watch

Mr Bhaskaran predicted that this will lead to the MAS making a policy change in April, although just days after he spoke, the central bank surprised the markets with its policy change. MAS: Surprise move In the announcement, the MAS said that it had kept its “modest of biologic medicines – medicines biomedical sciences industry with and gradual” appreciation of the produced in living cells. further investments. Singapore dollar policy in place The newly designed plant, “Singapore will make further since April 2012. Amgen’s first major manufacturing investments in the coming years to While deflation looks set to investment in both Singapore and build up its research capabilities seed in Singapore, there is light Asia, only requires a quarter of and drive innovation,” he said. further ahead in the tunnel. the capital cost and a third of the This will enable Singapore to While the inflation forecast operating expense of conventional seize opportunities offered by in Singapore has eased, the MAS bio-manufacturing plants. the introduction of new and maintains that the Singapore At the official launch of Amgen’s disruptive technologies in the economy remains on track to grow new plant, Minister of Trade and industry, and improve productivity its gross domestic product (GDP) Industry Lim Hng Kiang said that and efficiency through methods at a moderate pace of between 2% Singapore will continue to support such as continuous processing, he and 4% in 2015. manufacturing sub-sectors like the explained. • UOB Global Economics and Market Research Head Francis Tan, told BiZQ at SBF’s NBS seminar that Singapore will experience a “level shift down” in GDP growth Inflation in Singapore Expected to Ease rates, with the economy expected In a surprise monetary policy services, MAS said, adding that to register 3.3% in 2015. announcement in late January, the consequently, inflation has declined Similarly, DBS Bank (which Monetary Authority of Singapore in recent months. predicted a 3.2% growth for this (MAS) revealed that its outlook for “Going forward, MAS Core year) said that the manufacturing inflation in Singapore has shifted Inflation and CPI-All Items inflation sector is not likely to give the significantly, largely due to the are expected to ease further, before Singapore economy a boost in 2015. decline in global oil prices. rising in the second half of the year The consensus is that there is It said that in October 2014, it with some recovery in global oil expectation that the slump in the projected that Core inflation would prices and in view of the base effects manufacturing sector will persist. pick up gradually into early 2015 associated with the low inflation “With the rise in the stocks of before easing in the second half of in the fourth quarter of 2014. For finished goods, which reflects the year, and that Consumer Price 2015 as a whole, global oil prices stockpiling, and with all sub- Index (CPI)-All Items inflation was are unlikely to show a significant indexes having declined over the expected to stay subdued in rebound and should remain much previous month, the belief is that late 2014 and throughout 2015. lower than the US$93 (S$130) there has been a lack of significant “Since then, global oil prices have average recorded last year.” improvement in global demand over fallen sharply, amid significant Looking ahead, the extent the past months,” said DBS Chief increases in supply and weaker to which businesses will pass Economist David Carbon. prospects for global demand.” accumulated costs on to consumer While underlying cost pressures prices may be somewhat constrained Value in manufacturing sector stemming from a tight labour in the near term by the moderate Notwithstanding the underlying market remain, the pass-through to economic growth environment. sentiment towards manufacturing, consumer prices has been, to-date, Car prices and imputed rentals global biotech giant Amgen recently slightly weaker than anticipated. on owner-occupied accommodation committed S$200 million to a new At the same time, enhanced will also continue to dampen overall manufacturing facility in Singapore. medical subsidies, including those inflationary pressures amid the The new plant has technology that under the Pioneer Generation increase in the supply of Certificates enables greater speed, productivity Package, have led to a one-off of Entitlement and newly-completed SPH – The Straits Times and flexibility in the production reduction in the prices of healthcare housing units. •

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SIM-JOCE_Apr_BizQ - 1 2015-02-23T16:45:24+08:00 Apr•May•Jun 2015 10 LKY Tribute

Tribute to Mr Lee Kuan Yew

he Singapore Business Federation and the Singapore T National Employers Federation, together with the Singapore business community, came together on Saturday, March 28, 2015 for a tribute session in honour of the late Mr Lee Kuan Yew. Mr and Mrs Lee Hsien Yang, Trade and Industry Minister Lim Hng Kiang, and representatives from 28 Trade Associations and Chambers were among the 1,600 people present at the event. Mr Lee’s visionary leadership put Singapore on the world map and earned the city-state its reputation as a key Trade and Industry Minister Lim Hng Kiang said in his tribute to regional and Mr Lee Kuan Yew that the Singapore story is Mr Lee’s continuing global centre legacy; a minute of silence was observed at the end of the event for business. as a mark of respect for the founding father of Singapore.

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Mr Lee Kuan Yew’s stewardship not only made Singapore one of the most successful multicultural societies in the world, but also – with true entrepreneurial spirit – put Singapore on the world map. His visionary leadership created a conducive environment for businesses to thrive in, supported by world-class infrastructure, a highly efficient Government, and a skilled workforce. Mr S.S. Teo, Chairman, Singapore Business Federation

Mr Lee Kuan Yew gave many Chinese businessmen opportunities to take part in building the economy and expand their businesses into robust local enterprises. His remarkable achievements will endure forever, and his convictions and charisma will remain in people’s memories. Mr Thomas Chua, President, Singapore Chinese Chamber of Commerce and Industry

With Mr Lee and his party in place in the early years, the Singapore Indian Chamber knew that the dream of economic mobility would take shape because of his deep passion for bringing the Chinese, Indian and Malay business fraternities together so that we Representatives from the business community shared their tributes to the late Mr Lee Kuan Yew; Dr Ho Nyok could all fully participate in the Yong, President of the Singapore Contractors Association country’s economic development Ltd, added a personal touch to his tribute with a rendition and share in its prosperity. of an excerpt of Amazing Grace on the harmonica. Mr R. Ponnampalam, Vice-Chairman, Singapore Indian Chamber of Commerce and Industry

The story of modern Singapore is a journey, and Mr Lee was the trailblazer who led the way for 50 years. As Prime Minister, Mr Lee recognised the importance of trade and industry and the Japanese Chamber of Commerce and Industry will always remember the generous guidance and support he extended to the Japanese business community. Mr Fumio Otani, President, Japanese Chamber of Commerce and Industry, Singapore SPH – The Straits Times p.8

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Apr•May•Jun 2015 12 LKY Tribute The American business community has deep and strong roots in Singapore. Mr Lee’s unwavering determination to attract investments to create good jobs and good incomes for the people of this nation fostered the hospitable environment that has encouraged our businesses to expand and diversify alongside Singapore’s. Dr James R. Andrade, Chairman of the Board, the American Chamber of Commerce in Singapore

As the world business During the days of Singapore’s organisation, we have benefited nascent economy, Mr Lee greatly from Mr Lee’s foresight boldly pursued economic and judgement – not just in policies that were built on the Singapore but across the world foundation of the rule of law, as a whole. His remarkable freedom of trade, good corporate achievements, transparent governance, and a clean and stewardship and other works efficient Government. These have won the highest respect were critical ingredients for the of the international business development of Singapore’s community. We look forward financial sector. Today, the to future collaboration with the banking industry has firmly Government of Singapore and its established itself as a major business community, recognising pillar of our economy. Singapore’s continued work Mr Samuel Tsien, Chairman, to secure Mr Lee’s legacy of a Association of Banks in Singapore thriving economy with sound legal system and economic inclusiveness. The hospitalit y industry has Mr Terry Mcgraw, Chairman, benefited enormously from International Chamber of Commerce, Mr Lee’s astute leadership, which and John Danilovich, Secretary-General, saw Singapore transformed into a International Chamber of Commerce multi-faceted tourist destination within a short span of 50 years. Mr Lee Kuan Yew established He has left us a wonderful legacy industrial peace by enacting labour – an efficient, clean and secure laws to regulate fair conditions Flowers, condolence nation with a vibrant multi-racial of employment for workers notes and other gifts society that we are all proud of. and stabilise labour were placed around Mr These are also the oft-cited key management relations for Lee Kuan Yew’s portrait reasons for Singapore’s strength employers. He formed o utside the event hall; the business community as an exciting and safe tourist the National Wages took time to pen destination. Council to ensure orderly condolence messages Mdm Kay Kuok, President, wage increases, paving the at the tribute event. Singapore Hotel Association way for strong tripartite cooperation. Tripartism and industrial peace has enabled companies to expand and workers to enjoy the fruits of economic growth. Dr Robert Yap, President, Singapore National Employers Federation

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13 Today’s Singapore is brimming with many international brands, especially in the F&B industry – many actively use our city-state as their springboard into Asia. Thanks to Mr Lee’s vision of having an open economy with free trade, the injection of overseas F&B investments has encouraged our local players to shape up and reach their highest potentials. Mr Andrew Tjioe, Restaurant The atmosphere Association of Singapore was sombre at the tribute event; the SICC members have all condolence book from the business benefited from the business- community was friendly policies first established presented to Mr by Mr Lee Kuan Yew. He and his Lee Hsien Yang. team were focused, driven and committed to improving the lives of Singaporeans. He knew this could only be achieved by creating and sustaining a vibrant economy. Proof of their success is visible all around us. Mr Landis Hicks, First Deputy Chairman, Singapore International Chamber of Commerce

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Apr•May•Jun 2015 14

Commentary Mr Seah Kian Peng, CEO of NTUC FairPrice “The Fair Tenancy Framework The Key to will provide more transparency of being FAIR business rental Developed on the principle of fairness, data and establish the Fair Tenancy Framework aims to a reference leasing help both tenants and landlords of practice for the business premises better understand industry.” lease agreements and terms.

operate on a free market principle. As there are currently no laws or industry standards governing tenancy agreements, some landlords and tenants enter into contracts where one party has greater influence over the other. This is more prevalent in agreements involving small businesses.

Guiding principles At an industry forum held at SBF nfamiliarity, lack of The Fair last April, around 37% of the knowledge and contracts Tenancy forum participants called for fair Uwhere one party has greater Framework aims to establish a tenancy legislation while a further influence over the other are some set of clear leasing guidelines and 35% requested for a fair tenancy of the issues that have become negotiation principles for small framework. associated with Singapore’s businesses looking to rent premises As legislation is rigid and would commercial rental market for for commercial, industrial, retail, introduce compliance costs, the businesses. and food and beverage activities. SBF-led SME Committee (SMEC) Companies in Singapore have long consulted with the business lamented about these issues, and Global tenancy acts community and decided to establish one firm told BiZQ that unreasonable Many countries like Australia, the Fair Tenancy Framework. rental increases are part and parcel of Korea, Belgium and the United This Framework, comprising a business costs for many. Kingdom (UK) have already set of guidelines, were developed “We have been suffering all these legislated tenancy agreement based on feedback and studies on years. We are happy to see this acts to protect both tenants and the impact of rental overheads on initiative because rental is, on the small retailers. In the UK, there business operating costs. average, 20% of our overall business is an additional voluntary code The SMEC eventually set up the cost,” said Mr Ang Kiam Meng, comprising checklists and model Rental Practices Working Group Chief Executive of Jumbo Seafood tenancy templates to help tenants (RPWG) to lead the charge in Restaurant and President Adviser in negotiations and renewals. developing the Framework. to the Restaurant Association of In Australia, a 2008 study by the Chaired by Ms Cynthia Phua, Singapore (RAS). Home Productivity Commission Chairman of the SMEC working Mr Ang’s comment summed up concluded that fair rental practices group on rental practices, the the sentiment held by many of the should include better access to RPWG comprised representatives business associations who gathered tenancy information, disclosure from the Association of Small at the launch of the Singapore statements, and simple, low-cost and Medium Enterprises (ASME), Business Federation’s (SBF) Fair dispute resolutions. the RAS, the Singapore Retailers SPH – The Straits Times; 123RF Tenancy Framework guidelines. In Singapore, tenancy practices p.16

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Apr•May•Jun 2015 16 Commentary

Association (SRA), industry practitioners and experts from real estate agents, the Singapore Mediation Centre (SMC), and SPRING Singapore. In developing the Business Leasing Guide and Basic Reference Lease Agreement for Business Space, the RPWG consulted with the Singapore Government and some private sector landlords, drawing extensive references Agreement for Business Space. workshops for its members. The from current market practices and We are coordinating with various Federation will also be working existing lease agreements. Government agencies to consider closely with partners such as the Mr Teo Ser Luck, Minister of using these in their tenancy ASME, RAS, SRA, other relevant State for Trade and Industry and practices and lease agreements. trade associations and chambers, Advisor to the SMEC, said: “The The feedback has been positive as well as the SMC. Outreach Government commends SBF and so far and they are supportive activities will also be extended to the SMEC for taking the initiative of the principles laid out in the intermediaries such as real estate in developing this Framework. I Framework.” agents and legal firms through congratulate RPWG for its SBF Chairman S.S. Teo said: their respective trade and balanced approach in developing “As the apex business chamber professional associations. the Business Leasing Guide and representing both large companies Ms Phua added: “As we were the Basic Reference Lease and SMEs, SBF took the approach developing the Framework, there of developing a Framework that was much consultation with tenants, is premised on the principles of landlords, legal and real estate fairness, one that will retain its professionals on their concerns, FAIR TENANCY relevance regardless of market especially the availability of useful conditions. I look forward to the rental data, lease clauses and fair FRAMEWORK wide acceptance and adoption of principles of lease negotiation. The Framework sets down key the Framework by the business “With the disclosure of the reference points to help tenants community.” Businesses Rental Data, the Guide and landlords work out rental and the Reference Lease Agreement, agreements under three initiatives: Industry reference we aim to help both tenants Private sector landlords have given and landlords understand their ● Rental Data Transparency the initiative the thumbs up. respective roles and responsibilities, SBF worked with the relevant Mr Wilson Tan, CEO of as well as the perspectives of either Government agencies to develop CapitaMall Trust Management party, in order to conduct open, rental data information for Ltd, said: “CapitaMall Trust transparent and fair negotiations.” businesses; congratulates the SBF-led RPWG, Mr Seah Kian Peng, CEO of which has developed the Business NTUC FairPrice, observed: “The ● Education and Awareness Leasing Guide and Basic Reference Fair Tenancy Framework will SBF developed the Business Leasing Lease Agreement for Business Space. provide more transparency of Guide and the Basic Reference Lease The Framework provides a source business rental data and establish Agreement for Business Space to of reference to the industry.” a reference leasing practice for help small businesses understand In agreement, Mr Manohar the industry.” ● lease terms and conditions; Khiatani, President and CEO of Ascendas, said: “This SBF-led For more information on the Fair ● Creation of a Preferred Dispute RPWG’s development of a voluntary Tenancy Framework and to download Resolution Channel framework is commendable, and it the complete Business Leasing SBF is facilitating partnerships will serve as a useful platform for Guide and Basic Reference Lease between trade associations and discussions between landlords and Agreement for Business Space, visit chambers and the Singapore their tenants.” www.sbf.org.sg/fairtenancy. Mediation Centre for mediation To raise awareness and encourage Links to Government rental data for to serve as a preferred dispute greater acceptance of the use of business spaces, a feedback channel and resolution channel to resolve issues the Guide and Reference Lease a schedule of events and workshops SPH – The Straits Times between tenants and landlords. Agreement, SBF will be conducting can also be found on the page.

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Think : Best Quality, Eco-Friendly, Cooling Innovation

Bangkok Refrigeration, Heating, Ventilation and Air-conditioning Fair 2015 (Bangkok RHVAC 2015) and Bangkok Electric & Electronics Fair 2015 (Bangkok E&E 2015) are the biggest one stop sourcing centers for the technologies, products and related services. This fair serves as a platform for a wide range of ideas and information among all the professionals and experts of the industry and also help the industry leaders to share their experiences with others. The synergy of Bangkok RHVAC 2015 and Bangkok E&E 2015 provides an unsurpassed two-in-one attraction for visitors. Under the main concept of “Think : Best Quality, Eco-Friendly, Cooling Innovation” in line with the upcoming ASEAN Economic Community (AEC), with environmental care, energy saving and new innovative discoveries, hoping to use the AEC stage to showcase high quality products to the world.

Trade Day Public Day At 13-15 AUGUST 2015 16 AUGUST 2015 BITEC Bangna, Hall 101-104 Time 10am - 6pm Time 10am - 6pm Bangkok, Thailand Apr•May•Jun 2015 18 BiZ Feature

A Budget for Businesses?

How Budget 2015 will affect businesses in Singapore.

ndustry experts observed that supported Budget 2015 and the Singapore’s longer term economic while Singapore’s latest fiscal takeaway appears to be that newly objectives, with some fine policy announcement was introduced programmes like the rebalancing in the short term. driven by long-term pursuits, Silver Support Scheme and the Several experts from KPMG many companies still face SkillsFuture initiative are good for complimented the Budget on Ishort-term challenges like high the economy and society at large. being strong and forward looking. business costs and how to cope This is especially so as some 1.5 “The announcement of this with restructuring issues. million taxpayers in Singapore are year’s Budget, at the midpoint of Credit Suisse Singapore benefiting from a new personal our economic restructuring, was an economist Mr Michael Wan said income tax rebate of 50%. opportune time to take stock of that Budget 2015 focuses more on the progress of our productivity the long-term supply-side rather Long-term business goals and innovation initiatives,” said than the short-term demand side So, what were the takeaways for KPMG Singapore Managing – boosting measures that analysts businesses operating in Singapore? Partner Tham Sai Choy. were expecting. There were many accolades that “We were especially heartened

TongRo Images/Corbis; 123RF TongRo Seven in 10 Singaporeans Budget 2015 continues to pursue that innovation will be more

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Mr Irvin Seah, DBS economist remain challenged.” “Instead of He added: “The next lead for investors will come from further taking the policy changes to rekindle growth carrot-and-stick as domestic pressures intensify.” approach of starving Pro-business elements While the Singapore Business companies of Federation welcomed several pro- foreign workers and business elements of Budget 2015 (Refer to story: SBF Welcomes A subsidising the costs Progressive Budget That Invests In of technological The Future), the concern of high operating costs remains. investment, the SBF CEO Ho Meng Kit focus is now explained: “While businesses are still optimistic about their on promoting prospects for 2015, the global economic environment has turned innovation and more uncertain, with lower forecast helping local for global growth. “There is a clear need to manage companies improve costs to provide businesses with a their revenues via conducive environment for growth. Lower oil prices will help many internationalisation.” companies, but we need to also focus on wage costs so that they do not run ahead of productivity remain high, whether continued improvements.” pursuit of restructuring is going Mr Ho echoed the findings of to deliver a breakthrough, and the the SBF annual National Business need to develop a steady supply of Survey, conducted in the final necessary skills to fuel Singapore’s quarter of 2014, which showed that economic engine. many businesses identified high Mr Kurt Wee, President of the labour costs as the top challenge Association of Small and Medium that they currently face; higher Enterprises, said: “Generally, I levies and curbs on numerical think the budget continues to growth of foreign workers are point to a potentially higher cost contributing to a tight labour environment.” market and resulting in upward At the recent PwC Singapore pressure on cost. widely recognised and made more Budget Seminar 2015, UOB He added that in the Federation’s accessible to small and medium economist Mr Jimmy Koh delivered annual survey, 92% of respondents enterprises (SMEs). This will a similar message, stating that one stated that rising wages affect position Singapore companies well trend that has become “absolutely business competitiveness. Extension for regional opportunities and clear” is that Singapore is an of transitional support schemes like competition, with the advent of expensive nation for businesses to the Wage Credit Scheme and the the ASEAN Economic Community operate from. corporate income tax rebate would (AEC) later this year.” “We either increase scale, or help mitigate cost pressures. increase productivity,” he observed. One suggestion floated Higher business costs Similarly, Citibank Singapore’s during the post-budget debate in remain an issue Mr Patrick Yau commented: “Our Parliament is the setting up of a While these are overarching forays base case remains that larger firms Cost Competitiveness Committee. that will enable Singapore to remain cope better during this phase of Member of Parliament Inderjit competitive in the long term, the change and are more likely to Singh said that such a task group spotlight remains on three core reengineer themselves for higher could help “identify and resolve

issues – that operating business costs levels of productivity, as SMEs p.20 SPH – The Business Times

018-021 BizFeature.ab.indd 19 16/04/2015 11:29 Apr•May•Jun 2015 20 BiZ Feature foreign labour headcounts will give in restructuring approach as businesses space to adjust to the productivity growth has continued some of the deeper structural factors foreign labour tightening measures, to languish. in the economy which have led to said the Finance Minister. “Measures have become more high business costs in Singapore”. Alongside the deferment in targeted and less painful,” he He explained: “We have nothing levies was support for companies said. “Emphasis is now on helping to lose by forming such a high to innovate and internationalise. companies improve their top- level committee: At worst, we will Specifically, the Government is line growth so as to bring about confirm that our cost structures are making it easier for SMEs who are improvements on productivity.” not wrong; At best, we will be able engaging in innovation to apply to He observed: “Instead of taking to solves some of these problems.” SPRING Singapore for Capability the carrot-and-stick approach of Development Grants. starving companies of foreign Pursuit of national In addition, Singapore will also workers and subsidising the costs productivity promote industry collaborations of technological investment, While high operating costs by expanding SPRING Singapore’s the focus is now on promoting continue to plague businesses here, Collaborative Industry Projects, innovation and helping local the pursuit of high productivity a programme that incentivises companies improve their revenues in Singapore’s macroeconomic industry players and partners via internationalisation.” policy has not been lost – yet – on such as trade associations to work While Government-linked companies. with SMEs to develop productive companies (GLCs) and larger What came as a welcome relief in and innovative solutions that are Singaporean companies have the latest Budget was the move to scalable across the industry. succeeded in regional markets, defer higher foreign worker levies The Partnerships for Capability SMEs have found the going tough. for S-Pass (those earning at least Transformation scheme will also It is true that many SMEs are S$2,200 a month) and Work Permit be extended and enhanced to more concerned about survival holders (lower-skilled foreign foster collaboration between large in the domestic market than workers), which were due to take companies and SMEs in their about expanding overseas. And effect from July 2015. These will be supply chains. the pressure on wage costs from frozen at July 2014 levels up to 2016. restructuring has further clipped Foreign worker levies for Work Shift in restructuring their wings. Some help with top- Permit holders in the manufacturing approach? line growth might be in order. sector will also be kept unchanged DBS economist Mr Irvin Seah, In addition, regional expansion at July 2014 levels in 2015 and in his analysis of Budget 2015, may be the best way for SMEs to 2016. The much slower growth in said that there has been a shift escape their current predicament. More innovative and efficient companies stand a fair chance of success in the region. The existing ASEAN Free Trade Agreement and the upcoming formation of the AEC could provide platforms for SMEs to expand regionally. More policy measures to incentivise the partnering of SMEs with GLCs or foreign SMEs for regional expansion could benefit Singapore significantly, Mr Seah added. Long-term skill supply On a slightly positive note, many businesses welcomed Singapore’s multi-ministry approach to ensuring that the republic builds and enhances a steady stream of skilled manpower to meet its future needs. The SkillsFuture initiative basically allows SMEs to tap an

123RF enlarged pool of talent – including

018-021 BizFeature.ab.indd 20 16/04/2015 11:29 21 The SkillsFuture Programme – Framework benefits and uncompetitive remuneration are reasons why SkillsFuture Earn-and-Learn Programme offers: employees have traditionally preferred large corporations, said STRUCTURED Mr Loh. LEARNING: FULL-TIME But SMEs and startups in fact Participants will CAREER EMPLOYMENT: benefit from structured make attractive employers, as PROGRESSION Participants will be workplace learning, in- they offer multi-disciplinary jobs, PATHWAYS full-time employees house mentorship, job of participating unlimited learning and growth rotation and companies talent develop- opportunities, a dynamic working ment plans environment and a helicopter view to the entire business. “Employees Source: SkillsFuture Council in SMEs and startups are more equipped and likely to become entrepreneurs themselves, too.” fresh Institute of Technical As long as companies are willing Education (ITE) and polytechnic SBF Welcomes a to rethink their work processes and graduates – via placements and on- Progressive Budget invest in productivity improvement, the-job training. there is no lack of grant options, Reflecting on its past experience, that Invests in Mr Loh added. the Singapore-German Chamber the Future of Industry and Commerce (SGC) Sectoral Manpower Plan said close collaboration between The Singapore Business Federation Beyond this, one of the key benefits industry and education has proven (SBF) supports the Government’s of the SkillsFuture Council is to be successful. well-thought and comprehensive the Sectoral Manpower Plan, a The Chamber said that investors Budget for 2015 which also key initiative that brings together looking into manufacturing in recognises that businesses are businesses, unions, education Singapore, or who need skilled challenged by rising costs. and training providers, trade employees in specific areas, should SBF supports the following associations and the Government, be pleased that a workforce that initiatives: to project future skills needs and has acquired relevant practical ● Deferring of levies for S Pass and set out a systematic plan to develop experience is available. Work Permit holders those skills in the local workforce. Dr Tim Philippi, Executive ● Helping businesses innovate, It takes a sectoral and forward- Director of SGC, said that the internationalise and scale up looking approach to developing the Chamber is interested in several ● Deepening manpower capabilities skills that Singapore’s economic new initiatives taking place under through the SkillsFuture initiative and social sectors need – a move the umbrella of the SkillsFuture ● Setting clear focus on the five that will benefit businesses. initiative. growth clusters for Singapore One of the key objectives of “The German chamber network businesses the sectoral plan is to take into is looking back on a centuries-old ● Helping to manage rising business account the outlook of each of the tradition of practical training that cost through extension of the targeted sectors, gauge how that is driven by various industries, Transition Support Package and sector will develop in the future, and which has proven resilient to enhancement of the Temporary and determine the manpower and recent ups and downs in the labour Employment Credit skills needed, including new skills markets in Europe,” he added. needs that may arise as a result of technology advancements and Tapping a larger talent pool other macro driving forces. Mr Leslie Loh, founder of Course Fee Funding and Absentee Another objective is to attract, professional training academy Payroll Funding. retain and develop a deep pool of LithanHall, said that the Employee training drives talent in each targeted sector. SkillsFuture initiative basically business performance, and the From the perspective of allows SMEs to tap a larger pool of fact that SMEs and startups Singaporeans, this will ensure talent via placements and on-the- can now provide more training that the workforce, at different job training. opportunities allows them stages of their careers, can pick up “Training is almost free (now),” he to compete better with large relevant skills that will allow them added, citing the SkillsFuture Earn corporations in talent recruitment to advance to the next milestone and Learn Programme and various and retention, said Mr Loh, who of their careers; employers will be other employer grants, such as the spoke at a recent post-Budget forum. able to benefit from a more highly Workforce Development Agency’s A perceived lack of training skilled workforce. •

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our company and clients’ needs. Our staff are sent to courses on Business productivity to further enhance their understanding in the operational aspects of the business,” he added. Turning to competition, he said Flexibility that Shipping World Logistics is not Driving success into homegrown logistics companies. too concerned about competitors’ productivity push as the company focuses on doing its best for its clients. Both companies are relatively new our company and at the same time, “Our direction on productivity players in the age-old transportation, make good of all our employees. is based on a two-way approach. logistics and distribution business. We encourage all employees to Management encourages employees Dominated by global names, these make full use of their time in the to share their feedback on the homegrown players are starting to company and think of ways to requirements of clients, and make their mark by their fl exibility solve our clients’ problems,”. management will look into ways to and emphasis on productivity. In “New company policies are facilitate the work by smoothening this feature, we focus on Shipping (being) formulated to focus on rough edges that may hinder business World Logistics and Absotech. “doing more with less effort”, either relationships and affect our clients’ with the assistance of technology impression of the company,” he said. Entrepreneurial Aspirations or through employees’ suggestions. Looking ahead, the company’s Singapore-based Shipping World Furthermore, we hold weekly direction is always one focused Logistics Pte Ltd started out from meetings to exchange views and on the willingness to try out new a small offi ce-cum-warehouse in suggestions, and iron out issues ventures and projects. “By constantly 1990. Driven by the entrepreneurial faced, to better meet our clients’ venturing into new territories, we aspirations of founder Ms Angie requirements,” he added. are able to learn and adapt, and Hong and the company tagline Mr Lee also highlighted that hence able to serve our clients’ “We Connect You Worldwide”, the talent attraction and retention efforts evolving needs,” he quipped. freight forwarding and logistics will also help boost productivity. group has grown to a team of over “With productivity in mind, the 30 operational staff in Singapore and company is constantly looking for Mr Lee Tian Beng, General Manager, over 50 agents worldwide presently. good candidates and placing the Shipping World Logistics Pte Ltd The founding and the pursuit suitable people in the right positions. “New company policies are (being) of growth might all seem like a “We conduct feedback and review formulated to focus on “doing lifetime ago, but General Manager sessions with our staff and will not more with less effort”, either with Lee Tian Beng told BiZQ that hesitate to change their job scope the assistance of technology or business fl exibility has been one of every now-and-then to better serve through employees’ suggestions.” its driving forces since inception. “Shipping World Logistics is also well-known in the industry for being fl exible and able to meet clients’ needs. The company always seeks to understand client requirements in terms of their logistics needs before proposing a solution that suits them,” he said. Mr Lee also elaborates, “The current government manpower policies have an overwhelming effect on all businesses (requiring them to) tighten foreign (cheaper) labour supply. Inevitably, this spurred us

to increase productivity within 123RF

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Absotech’s Holistic Approach new generation team to complement is critical of any business today, Equally focused in boosting the existing team and steer the especially to ensure that processes effi ciency and productivity is company towards further growth.” are continually reviewed and chemical distributor Absotech He added that the cumulative improved upon to boost effi ciency Pte Ltd. Established in 2002, experiences of the management and productivity,” said Mr Sim. Absotech’s services range from team and staff have created the Just as important is the chemicals sourcing and blending, to foundations of great customer service, automation of work processes. “We logistics and distribution support. enabling the company to become a have been aggressively looking into Its customer network extends preferred chemical distributor known further automating our existing beyond the chemical industry to for providing value-add to customers operations through the purchase include the electronics, metal in Singapore and the region. and lease of equipment and working, mining, aerospace and Another important focus area software. Absotech has only just pharmaceutical industries. to improve productivity is the begun its journey of innovation To boost productivity, Absotech emphasis on work processes. “This and productivity improvements. executes a multi-pronged strategy We are currently exploring all that includes developing human avenues, be it software, hardware Mr Kelvin Sim, Managing Director, capital, as well as improving and Absotech Pte Ltd or ‘heartware’, so that we can automating of work processes. “We are currently exploring all better position ourselves to be a Managing Director Kelvin Sim avenues, be it software, hardware market leader in the local chemical told BiZQ that the company has or ‘heartware’, so that we can distribution sector,” he added. been “investing in human capital better position ourselves to be a over the past few years and we have market leader in the local chemical This article is brought to you by been selectively putting in place a distribution sector.” Mapletree Investments Pte Ltd.

As an Asia-focused real We appreciate the support of Value through estate investment and capital all our business communities management company, we and are proud to be an active believe in the value of building member of every one of them. partnerships strong relationships with our You cannot put a price on customers, business partners partnerships but at Mapletree, and investors. Through these, we appreciate the value that we are able to grow together and they create. create business communities that share in the rewards of our collective success. www.mapletree.com.sg

Upon approval 022-023 Mapletree Advertorial.indd 23Please sign: 17/04/2015 15:58 Name and Date: Apr•May•Jun 2015 24 BiZ Voice INNOVATION ● Broad-based schemes such as the Innovation & Capability Voucher (ICV) and Productivity and Grants Portal, Innovation Credit (PIC) are being expanded to encourage innovation among SMEs. ● The application process for the Trade Association Capability Development Grant (CDG) will be simplified for projects below S$30,000, and the enhanced support level for the CDG – up to Hub to Help SMEs 70% of costs – will be extended until March 2018. Existing business grants focused on capability COLLABORATION development, internationalisation and training. ● A common platform to facilitate e-commerce activities across various online marketplaces is business grants portal and the Maritime and Port Authority being developed by SPRING a trade association hub are and the Media Development Singapore, IDA and other agencies. A among several initiatives Authority. In addition, JTC ● Also being developed is a shared aimed to help small and medium Corporation will set up a new Trade human resources platform – a enterprises (SMEs). These initiatives Association Hub (TA Hub) at iHub, common pool of human resource were announced recently through the old Jurong Town Hall, by early (HR) solution providers which Budget 2015. 2017 to house trade associations micro enterprises and SMEs can tap Minister of State for Trade and chambers (TACs). on for HR systems and services. and Industry Teo Ser Luck said Located at the iHub, the TA Hub ● To help smaller TACs, JTC is that the Singapore Government will cluster TACs under one roof so setting up a TA Hub to cluster will roll out the first phase of the that they can tap on shared facilities, different TACs at JTC’s iHub. Business Grants Portal in 2016. The collaborate on training programmes ● More LaunchPads are in the portal aims to streamline about 20 for their industries, companies and pipeline. These clusters, such as existing business grants into three employees, and work more closely JTC LaunchPad@one-north, are key areas: capability development, with one another. incubators that provide low cost internationalisation and training. By co-locating at the TA Hub, space, supporting programmes and The project involves 10 TACs can also encourage greater services for start-ups. Government agencies including the collaboration and partnerships Infocomm Development Authority among their members across PRO-BUSINESS (IDA), SPRING Singapore, the different industries. Tapping shared ENVIRONMENT Workforce Development Agency, facilities like meeting rooms and ● A review of the costs arising from International Enterprise Singapore, training facilities will also help business regulatory compliance will be conducted this year. ● The Start-up Enterprise Development Scheme (SEEDS) and Business Angel Scheme (BAS) will be enhanced, with the co-investment cap increased to S$2 million per company.

TACs reduce their rental and operating costs. JTC recently signed a Memorandum of Understanding with the Singapore Chinese Chamber of Commerce and Industry (SCCCI) that will see the SCCCI coming on board the TA 123RF Hub as the anchor chamber. •

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include e-commerce, marketing Government Grants to and trade show participation. The funding covers areas such as promotional activities, online and Help Singapore Companies digital marketing, and rental and construction costs for companies Increased grants for firms venturing overseas to defray participating in trade shows. This is an expansion from previously- online business costs. included areas such as design, branding, intellectual property, ingapore companies Readiness Assistance scheme, up and mergers and acquisitions. expanding overseas will from the current 50%. Trade officials said they want Sbe able to tap Government The scheme provides grants firms looking abroad to consider funding to do business online. that help firms set up operations having a digital presence to gain According to International overseas and identify business advantage. Enterprise (IE) Singapore, the partners. The announcement IE Singapore’s Chief Executive, scheme is for companies to use comes under recent enhancements Mr Teo Eng Cheong, said: “The the digital space to help overcome in Budget 2015 to help small and Internet and e-commerce are very the daunting task of entering a medium enterprises internationalise. much an important part of most foreign market. Companies have until March businesses today. Many of our Up to 70% of costs incurred by 2018 to apply for grants for companies go overseas to the region companies in implementing an qualifying activities. Some of the as well as China and India because online strategy for their business new areas under the scheme for of the growing middle class and will be funded under the Market which companies can tap funding the rising Asian consumer.” •

Netherlands. Investing in Holland Dutch embassies all Foreign investments clock record high in 2014. over the world are therefore supporting these oreign investments in attention on large efforts to attract Holland topped S$4.8 billion investors from the US international F last year, a record according and Japan, the NFIA companies to to the Netherlands Foreign will aim to capitalise the Netherlands.” Investment Agency (NFIA). on its investment “We want to The agency, an operational unit partners in China convince more of the ministries of Economic and India. international start-ups Affairs and Foreign Affairs, “Investors that the Netherlands is recently reported a total of 187 are rightly the right place to innovate new investment projects which seeing many in,” she added. included the setting up of opportunities to Most of these foreign headquarters, manufacturing invest in the Netherlands,” said investments are from the US. facilities, and data centers. These Minister of Economic Affairs American investors fuelled investments are expected to Henk Kamp. “Our well-educated growth with 65 projects, generate more than 6,300 jobs. labour force, world-class digital generating more than 2,300 jobs. The NFIA and its regional infrastructure, and the recovering China is in second place with 28 partners will jointly increase their economy work like a magnet for projects which created more than focus on acquisition of foreign investors. The rest of the world is 500 jobs. South Korean companies investment into Holland’s key not standing still, however. It is invested in 15 projects, creating sectors such as chemicals, agri-food, important to continue to aim high 165 job openings. India had a high-tech systems, life sciences and in order to ensure our country substantial share as well, with 10 health, and information technology remains attractive for new business.” new projects that created 225 jobs. under the label “Invest in Holland”. Foreign Trade and Development In 2013, the total foreign This is part of NFIA’s five-year Cooperation Minister Lilianne investment amount recorded by plan (2015-2020). Ploumen observed: “Trade and the NFIA was S$2.5 billion, which In addition to its continued investment provide jobs in the created 8,500 jobs. • 123RF

p.20 024-026 BizVoice v2.ab.cp.indd 25 16/04/2015 11:40 Apr•May•Jun 2015 26 BiZ Voice Singapore Companies Invest in Vietnam Republic is among top three foreign investors.

ingapore is one of the top in 18 out of 21 economic three foreign investors in sectors in Vietnam, mainly SVietnam, with investment in the processing and capital totaling S$45.2 billion at manufacturing industries. the end of February. Singapore’s next big According to the Vietnam investment target is the real-estate Ministry of Planning and sector, with a total registered capital Investment’s Foreign Investment of S$13.6 billion channeled into 74 Agency (FIA), Singapore companies projects, accounting for 30.1% of capitals of S$2.5 billion, S$2.5 billion have invested in 1,379 projects Singapore’s total registered capital and S$2.4 billion, respectively. in the country, which makes it in the country. Singaporean projects are mainly Vietam’s third largest investor Other key investment sectors located in Hanoi (226 projects among 101 foreign investors, after include accommodation and worth S$5.7 billion) and Ho Chi South Korea and Japan. catering services, construction, and Minh City (686 projects worth Singapore investors have invested entertainment, with total registered $12.3 billion). •

a modern infrastructure and an Singapore, Dubai Champion attractive lifestyle. This makes it an ideal hub for the international business community. Stronger Ties Mr Ahmad Al Mulla, DAFZA’s Senior Sales Manager said: “The Dubai Airport Freezone offers global transport links. seminar in Singapore revealed how Dubai has become a hub for regional and international business and how DAFZA can help Singaporean companies and businessmen leverage the various growth opportunities offered by the emirate. “As the crossroads to three ingapore Business Federation Singapore, and supported by SBF, continents, Dubai offers everything (SBF) and the Dubai Airport International Enterprise Singapore, that a business needs to grow SFreezone (DAFZA) recently the Japan External Trade and thrive, including advanced organised the “Dubai: Where Global Organisation and the Singapore infrastructure, a stable economy, Businesses Meet” seminar, enabling International Chamber of strong ties with the international attendees interested in exploring Commerce. trading community, business- various business and investment Today, Dubai plays a pivotal role friendly policies, and excellent opportunities in Dubai to engage in mediating historic levels of trade infrastructure. Dubai is the place with DAFZA representatives. between emerging markets. Located to be for Singaporean companies The seminar, part of a global at the crossroads of three continents, and businessmen seeking a regional marketing campaign by DAFZA, Dubai offers market access to a platform to achieve exponential highlighted the business and population of 1.8 billion consumers. growth,” he added. The UAE is investment benefits of setting up This is made accessible with its currently one of Singapore’s largest operations in Dubai. It was officially robust infrastructure and global trade partners. Bilateral trade inaugurated by H.E. Mohamed transport links, as it offers easy between the two countries 123RF Al Qubaisi, UAE Ambassador to access to the large growth markets, reached S$21.7 billion in 2013. •

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THE NETHERLANDS AND SINGAPORE - BEYOND 50

The Netherlands was culture of some of the world’s most one of the rst countries industrious and entrepreneurial people,” says Suzanne Sweerman, Executive to recognise Singapore’s Director – S.E.Asia of the Netherlands (L) Suzanne Sweerman, independence in 1965 Foreign Investment Agency (NFIA). Executive Director – S.E.Asia ‚e NFIA, a unit of the Dutch (R) Adeline Tan, and establish diplomatic Senior Project Manager Ministry of Economic A™airs, provides relations. complimentary advice and consultation, on a condential basis, to foreign companies planning to establish, expand ‚e country’s excellent educational or diversify their business operations in system (ranking third) and e¤cient As Singapore celebrates its golden the Netherlands and Europe. factor markets are highly supportive of jubilee, the country can take great pride business activity. Dutch businesses are in its spectacular transformation from a ‚is solid foundation, Ms Sweerman highly sophisticated (ranking fth) and former colonial trading port to a major says, has propelled both countries to the technological readiness of the Dutch business and nancial centre in Asia. become global hubs in their respective stands out as well. Singapore’s achievements would not regions, o™ering advantages such as top Europe’s largest Startup have been possible without its openness air and maritime ports, land transport, Ecosystem and connections to the broader world strong infrastructure and R&D, and a beyond the region. Part of this lies in highly developed digital highway. Startup Delta, launched by the Dutch Ministry of Economic A™airs is a Singapore’s friendship with Dutch Today, Singapore is home to more than collaboration amongst government economist, Dr Albert Winsemius, who 1,000 Dutch companies and close to 100 bodies, knowledge institutes, startups, served as Singapore’s Chief Economic Singapore companies including Keppel nanciers and businesses. ‚e initiative Advisor from 1961 to 1984, and set Verolme, Duvalco Valves & Fittings aims to strengthen the international Singapore on its path to economic Pte Ltd, eG Innovations and TEHO position of startups in the Netherlands prosperity. Group operate their European business and persuade innovative foreign startups operations out of the Netherlands. ‚e Netherlands and Singapore to establish their businesses there. share a trading history that dates back As a global player, the Netherlands “‚rough the Startup Delta, to the 19th century, with the arrival of continues to make signicant established businesses can team up the rst Dutch traders to Singapore. In contributions to high-growth economies and collaborate with existing startup fact, since the days of the Dutch East with its innovative and sustainable hubs such as the High Tech Campus India Company (Verenigde Oost- solutions. in Eindhoven and Kennispark Twente Indische Compagnie) founded in 1602, State-of-the-Art Infrastructure in the Netherlands, as well as leading the Dutch economy has relied on the international hubs around the world,” overseas activities of its rms, not just ‚e World Economic Forum (WEF), Ms Sweerman says. for trade but increasingly through in its 2014-2015 Global Competitiveness foreign direct investment by pioneering Report, ranks the Netherlands as number Dutch companies such as Phillips, Royal eight in the Global Competitiveness Dutch Shell, Unilever and ABN Amro Index, compared to 144 countries Bank setting up a base in Singapore. around the globe. ‚e Netherlands was recognised for its excellent infrastructure, “Both the Netherlands and with the best possible quality of port For more information on investment Singapore rely on a strong tradition infrastructure (where it ranks rst) and opportunities in the Netherlands, founded on international trade nance excellent transportation links by air, road visit www.n a-singapore.com and investment principles, and a rich and railroads. Apr•May•Jun 2015 28 Innovations nterior furnishing and fabrics company Romanez Pte Ltd I purchases and loans large volumes of costly fabric samples Helping SMEs and inventory to architects and interior designers so that they can decide on the colours and textures most suitable for their projects. Tap into Integrated As the business grew, however, Managing Director Jennifer Hu found it increasingly difficult to Solutions keep track of the fabric samples which were on loan. Hence, the company applied for the Government provides more support for SMEs via Innovation & Capability Voucher Innovation and Productivity Initiatives. (ICV) so that it could implement an Integrated Solution – a tool that small and medium enterprises (SMEs) can use to overcome common efficiency challenges – to manage its sample stocks and inventory. With the ICV, Ms Hu purchased a point-of-sales system with a barcode scanner and related software to help the company manage its productivity. Instead of spending hours to manually track the movement of its fabric samples, Romanez’s employees are now able to easily identify the location of its stock using an automated software system. This has resulted in 50%

5 Myths about Invoice Factoring Factoring is a financial transaction ApexPeak Pte Ltd, a capital FACT: Most alternative financiers whereby a business sells its invoices provider, said many SMEs are not can offer an advance only on to a third party (called a factor) at a aware of the facts concerning domestic trade. If in doubt, consult discount. factoring and invoice discounting. a solicitor. For many small companies, 4. I can get an advance on a having to wait 45 to 60 days to get Here are five common myths: future invoice. paid may not be feasible. Hence, 1. Factoring is a debt collection FACT: The invoice must have invoice factoring is one way to help service. been drafted and issued. Raising them meet payroll issues or pay FACT: Factoring is a legitimate way debt on a future invoice is termed other necessary expenses. for a company to help it manage purchase-order financing. In invoice factoring, the factor cash flow. 5. A paper invoice is okay for provides financing to the seller of 2. Factoring and invoice invoice discounting. the accounts in the form of a cash discounting are identical. FACT: An e-invoice allows the “advance,” often 70-80% of the face FACT: In Singapore, the main invoice to be tagged with important value of the invoice, with the difference between factoring and information, such as debtor balance of the purchase price invoice discounting relates to approval and tax registration. being paid, net of the factor’s confidentiality and debt collection. discount fee (commission) and 3. I can get an advance on any For more information,

123RF other charges, upon collection. invoice. refer to www.apexpeak.com.

028-029 Innovations.ab.indd 28 16/4/15 11:14 AM

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savings in time spent on inventory By June this year, these availability, ease of implementation, management and close to 100% companies will be able to tap on as well as expected cost to and reduction in loss of sample books. a total of 30 Integrated Solutions impact on companies and industries. Ms Hu said: “We spend a lot of through (using an ICV) to help There are currently 12 Integrated money buying samples and there is them improve their business Solutions available and this list will a never-ending stream of designers operations and achieve sustainable be expanded to 30 by June. and architects who want to borrow growth. SPRING Singapore will Mr Teo explained: “We are our stock. During busy months, we also start pre-qualifying solution going a step further to provide have over S$7,000 worth of fabric providers for the Integrated SMEs, especially micro and small sample books on loan to numerous Solutions initiative, to provide a enterprises, with an option of designers and architects. pool of reliable and credible vendors not just consultancy but also “The Integrated Solution, while for SMEs, Minister of State for implementation. With these new simple, not only helps us save money Trade and Industry Teo Ser Luck measures in place, SMEs will be able but also saves invaluable time. We said recently. to engage a pre-qualified pool of no longer have to worry about credible and reliable vendors to help losing costly sample books and can Automated tools & processes them implement tried and tested focus our resources on higher value Introduced in 2014, Integrated solutions to raise their productivity.” activities that contribute to long- Solutions consist of pre-scoped SMEs can apply for up to two term business growth.” out tools that help SMEs automate vouchers, valued at S$5,000 each, and streamline various business to implement solutions under More help through ICV processes, ranging from inventory these categories: Equipment and scheme management to accounting and Hardware, Technical Solutions The Singapore government has procurement. and Training, and Design and recently stepped in to provide These solutions, developed Renovation. • more support for SMEs through in consultation with SMEs and its enhanced innovation and industry partners, were identified More information on the ICV can be productivity initiatives. based on SMEs’ needs, solution found at www.spring.gov.sg/icv. 2593 11 2014 a5 CO.ai 1 17/3/15 5:31 pm

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Apr•May•Jun 2015 30 Inside SBF

traction internationally and is now an important Leaders in Sustainability business imperative. In order to preserve our global competitiveness, Practices Singapore businesses must ensure that business A record number of companies is driven in a manner participated in the recent where social, economic and environmental Singapore Sustainability Awards. considerations are foremost in mind.” There were 24 judges Business success is Presentation from 11 organisations, increasingly associated of the comprising eight SBF Singapore with sustainability practices Sustainability Strategic Partners, two that work in tandem with Awards Case SBF Knowledge Partners corporate strategies, and Study Handbook and the Green Technology to Guest-of-Honour companies today are Mr Lee Yi Shyan. Awards Category sponsor. more committed toward The SBF Strategic building a cleaner and Partners were the inclusive community. Economic Development The fifth Singapore received the Top Honours Awards was that Nanyang Board, International Sustainability Awards Award in the Large Technological University Enterprise Singapore, the honoured 15 organisations Organisation category. came on board as a Institute of Technical for their innovation, Sindicatum Sustainable new strategic partner. Education, the National leadership and excellence Resources received Top The strong showing of Environment Agency, in sustainability. Held at Honours in the Small sustainable development Nanyang Business the Grand Copthorne and Medium Enterprise capabilities from so many School-Nanyang Waterfront in October (SME) category for the participating companies Technological University, 2014, the event was Sustainable Business Award. reflects the increasing SIMTech, Singapore graced by Mr Lee Yi Shyan, Top Honours for importance companies are Compact for CSR, and Senior Minister of State, the Green Technology placing on sustainability. SPRING Singapore. Ministry of Trade and Award were accorded Singapore Business The SBF Knowledge Industry and Ministry of to Sky Urban Solutions Federation (SBF) Chairman Partners were KPMG National Development. Holdings, Singapore’s first Teo Siong Seng said: and Frost & Sullivan, and The Awards saw commercial vertical farm. “Our companies need to the Green Technology a record number of A significant new recognise that sustainability Award Category sponsor participants – 44 public and development at the is gaining increasing was Autodesk. • commercial organisations – from a diverse range of industries, from urban agriculture and information and communications technology to real estate and supply chain management. Among the winners this round were Ricoh Asia Pacific, a two-time winner of the Green Technology Award (2013 and 2014), and City Developments, a two-time winner of the The Singapore Sustainability Awards 2014 winners with guest of honour Mr Lee Yi Shyan, Senior Minister Sustainable Business Award of State, Ministry of Trade and Industry and Ministry of National Development, and Mr Teo Siong Seng,

Looking Glass/BlendLooking Images/Corbis (2010 and 2014) which also Chairman, Singapore Business Federation.

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National SUSTAINABLE BUSINESS AWARDS Environment Agency The agency is the leading public organisation in Sindicatum protecting the Infineon Technologies promoting sustainable Sustainable Resources environment Asia Pacific practices. Top Honour – (GoGreen), delivering Infineon Technologies It has a sustainability Small and Medium disaster/recovery aims to enhance people's framework guided by Enterprises assistance (GoHelp), and lives while protecting four principles, known Sustainability is at the championing education the environment, by as WISE: Walk the heart of Sindicatum’s (GoTeach). In addition, focusing on innovative talk, Innovate for business. Since 2005, it the company supports semiconductor solutions sustainability, Share with has raised a pioneering its employees’ volunteer such as energy efficiency, the community and US$230 million (S$320 activities, such as mobility and security. Embed for sustainability. million) fund with which 32 Global Volunteer Day. Its corporate talent green projects have since development programs also Olam International been built; the majority of DSM Singapore help employees become At Olam, growing these projects are in Asia. Industrial healthier and better responsibly is about A commitment to engaged at the workplace. doing business in a City Developments help create a more sustainable way to Top Honour – eco-friendly world is Keppel Corporation manage the environmental, Large Enterprises at the heart of DSM. Keppel embraces health and safety, and City Developments By connecting its sustainability not only as community responsibilities. is one of Singapore’s unique competences in a guiding principle, but The company was foremost practitioners in life sciences and materials also on strategic and a signatory of the sustainable development. sciences, the company operational levels. United Nations CEO It has over 70 Building drives sustainable value Its Group Sustainability Water Mandate, and and Construction in terms of economic Steering Committee, the Public Statement Authority (BCA) Green prosperity, environmental chaired by CEO Loh Chin on Land Governance Mark properties, with 32 progress and social Hua, leads the company’s which was tabled at the accorded Green Mark advances for communities. sustainability strategy. 2013 G8 meeting. • Platinum status – the highest amongst private developers.

Building and Construction Authority SUSTAINABILITY EXCELLENCE: The BCA champions LIST OF WINNERS excellence in quality, environmental Sustainable Business Awards Green Technology Awards sustainability and user- friendliness to “future- proof” Singapore’s built Small and Medium Enterprises Small and Medium Enterprises environment. ● Sindicatum Sustainable Resources ● Sky Urban Solutions Holding Its Construction and ● Alternative Energy Corporation Real Estate NETwork Large Enterprises ● Clean Energy Holdings (CORENET) e-submission ● Building and Construction Authority ● Ecospec Global Technology system allows this sector ● City Developments ● Uniseal Singapore to save more than S$30 ● DHL million in terms of printing/ ● DSM Singapore Industrial Large Enterprises dispatch costs to-date. ● Infineon Technologies Asia Pacific ● Ricoh Asia Pacific DHL ● Keppel Corporation DHL’s Living Responsibility ● National Environment Agency is a holistic sustainability ● Olam International programme focused on

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Apr•May•Jun 2015 32 Inside SBF • GREEN Selangor Woos TECHNOLOGY S’pore Businesses at AWARDS Investment Seminar Ricoh Asia Pacific of heat or electricity. State promotes new Selangor Science Park 2. Top Honours – By removing hazards Large Enterprises at water treatment areas, Ricoh invests substantial the greenhouse gases in Singapore businesses amounts in research and biogas are destroyed. were encouraged to development in order to invest in Selangor, come up with the latest Clean Energy Holdings Malaysia during a technologies, to impact Clean Energy Holdings recent seminar society positively in is focused on providing on trade and terms of energy savings. sustainable solutions in investment It also has tools to the disposal of municipal opportunities. track the impact of solid waste through its Supported by the their products on the breakthrough patented Singapore Business environment, giving invention – the “Cyclonic Federation, the event customers clear ideas Combustion” technology. was hosted by Mr Teng of the energy savings This technology Chang Khim, Executive they can achieve by combusts high moisture Councillor, Selangor using Ricoh products. waste with a near-zero State Government of need for auxiliary fuel. Malaysia, who oversees district of Sepang, is Sky Urban Solutions investment, industry and expected to complement Holding Ecospec Global commerce in the state. the existing assets of Top Honours – Technology The seminar promoted Putrajaya, the Multimedia Small and Medium Ecospec’s approach the upcoming Selangor Super Corridor, and Kuala Enterprises to green solutions is Science Park 2 (SSP2) as Lumpur International Growing food for a distinctively different the preferred investment Airport, and is set to be the burgeoning urban from many companies’. destination in Malaysia. first solar valley in Malaysia. population while The company has Mr Teng reaffirmed Existing industries at the coping with increasingly patented many green that Selangor is home park include Q Cells, a scarce resources are technologies, including to Malaysia’s largest manufacturer of solar complex challenges. corrosion control, bio- seaport, Port Klang, cells, solar panels and solar Sky Urban Solutions fouling control and and international modules, and incoming Holding is literally fuel oil combustion airport, Kuala Lumpur developments include scaling urban walls to improvement technologies. International Airport, and the Korean School of offer a viable solution to that the state also has Malaysia and Rumah traditional farming, with Uniseal Singapore an excellent Infocomm Idaman PKNS, which will a 3.65ha farm in Lim Chu Urban greenery solutions technology ecosystem build 2,400 affordable Kang that it claims is the company Uniseal has and communications homes to house workers. world’s first hydraulics- developed innovative infrastructure. He added The state government driven vertical farm. green technology that Selangor was well aims to help investors by solutions that are being positioned to supply providing “better services, Alternative Energy used in the building and 10,000 highly skilled such as fast-tracking Corporation construction sector. workers annually from of applications and Alternative Energy treats This has led the company more than 100 institutions resolution of issues, such waste water at agricultural to integrate elements of higher learning. as those associated with processing facilities. By such as building envelopes, SSP2, which is building plans, through collecting the resulting waterproofing, horticulture being developed on an monthly meetings with biogas, it helps its partners and green materials into its approximately 1,300- foreign and domestic SPH – LianHe ZaoBao LianHe – SPH utilise biogas in the creation eco-friendly solutions. • acre piece of land in the investors,” said Mr Teng. •

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Mr Ali Ijaz Ahmand, CEO, Makara Capital Gearing Up for “Armed with defensible and proven Opportunities Overseas technology, Singapore companies to explore trade with Spain and Germany. our targeted investment Singapore companies can Minister Lee Hsien Loong’s Singapore’s 13th largest tap into the know-how, official visit to both trading partner worldwide. of US$50-80 expertise and experience countries in February. Home-grown Makara million aims of Spanish companies to Mr Lee was accompanied Capital, a global financial gain access to the growing by Mr S Iswaran, Second services and fund to anchor this Latin American market, Minister for Trade and management firm whose global player in said Singapore Business Industry, and Dr Mohamad investment strategy is Federation (SBF) CEO Maliki Osman, Minister focused on innovation and Singapore and Ho Meng Kit. In addition, of State for Defence and ownership of intellectual emerging Asia.” the business community National Development. property, is currently should take advantage of The mission aimed to working with a German the 50 years of diplomatic enable participants to gain firm in the alternative ties and partnership that first-hand understanding energy industry. 45th largest trading exist between Germany of the overall market “Armed with defensible partner globally and its and Singapore to develop dynamics and and proven technology, ninth within the EU. business ties further. opportunities in Germany our targeted investment In Spain, Mr S Iswaran “Germany and Spain and Spain against the of US$50-80 million aims met up with Mr Jaime promote innovation backdrop of the European to anchor this global Garcia Legaz, Spain’s and productivity as Union (EU)-Singapore player in Singapore and Secretary of State for strategies for sustainable Free Trade Agreement. emerging Asia including Trade, at a business growth, and such an ASEAN, India and China,” dialogue session environment is conducive Germany, Spain: said Mr Ali Ijaz Ahmand, organised by SBF in to fostering meaningful Vital opportunities CEO of Makara Capital. Madrid. Meanwhile, partnerships,” said Mr Ho. Germany is Singapore’s According to figures the delegates got to He was speaking to most important trading from International attend various seminars business leaders from Spain, partner in the EU. Total Enterprise Singapore, organised by relevant Germany and Singapore bilateral trade between bilateral trade between ministries and government while leading a 26-member Germany and Singapore Spain and Singapore agencies, industrial business delegation in registered S$20.9 billion registered S$1.78 billion in visits, and business- conjunction with Prime in 2013, making Germany 2013. Spain is Singapore’s matching sessions. • RF123

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Apr•May•Jun 2015 34 Inside SBF Stronger Ties with the Philippines SBF to increase outreach activities this year.

Singapore and the ties and promote Philippines are bilateral cooperation strengthening bilateral between both countries’ relationships which will business communities. build closer economic integration in ASEAN, Stronger bilateral Minister for Trade relationship and Industry Mr Lim Investment linkages Hng Kiang said. between both countries Speaking at the remain strong. According the Philippines’ fourth SINGAPORE Philippines-Singapore to figures from IE largest global trading Business Council (PSBC) Singapore, bilateral trade partner and its top trading COMPANIES IN Forum recently, Mr Lim reached S$15 billion in partner in ASEAN. PHILIPPINES noted that bilateral trade 2014, making Singapore Singapore companies BREADTALK between the two countries such as Keppel CHARLES & KEITH started firming up when Corporation have a investment opportunities longstanding presence in KEPPEL OFFSHORE Mr S.S. Teo, SBF Chairman in the Philippines began the Philippines, operating AND MARINE increasing in recent years. “The Philippines’ in Subic and Batangas. SEMBCORP “Singapore and the As Singapore secretariat SINGTEL Philippines are also infrastructure for PSBC, SBF aims to working closely on budget has raise awareness among THE ASCOTT GROUP advancing regional Singapore companies on economic integration increased by the Philippine market through initiatives such more than through outreach efforts most popular destination as the ASEAN Economic such as missions and when looking to venture Community, the 200% from industry roundtables. overseas, as companies Regional Comprehensive This year, SBF will be look for new opportunities Economic Partnership 2010 to 2015, organising more activities for business growth. and the Asia-Pacific presenting beyond Manila, aimed “The Philippines’ Economic Cooperation,” at increasing Singapore’s infrastructure budget Mr Lim added. Singapore trade and investment has also increased by The forum was co- companies engagement in the more than 200% from organised by the Singapore Philippines. These will 2010 to 2015, presenting Business Federation (SBF) with an include business missions, Singapore companies with and Makati Business Club opportunity seminars and roundtable an opportunity to lend (MBC), supported by dialogues with senior their expertise in urban International Enterprise to lend their government officials planning and infrastructure (IE) Singapore and the expertise from the Philippines. development. As Philippine Department SBF Chairman S.S. Teo Singapore’s apex business of Trade and Industry, in urban said: “According to the chamber, SBF will and sponsored by 2014-2015 SBF National continue to acquaint Keppel Corporation. planning and Business Survey, conducted Singapore companies The forum was part of infrastructure on our member companies, with the growing SBF’s partnership with the Philippines has moved business opportunities MBC, to forge stronger development.” up a notch to be the eighth in the Philippines.” •

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SBF-led SME Committee reveals Fair Tenancy Framework for Business Premises Engaging January 2015

Issues associated with Singapore’s rental market the Business include unfamiliarity, lack of knowledge and unfair practices. Launched by the Singapore Business Federation (SBF)-led SME Committee, the Fair Tenancy Framework (FTF) aims to benefit landlords Community and tenants by advocating transparency in rental costs and practices, promoting education and SBF endeavours to enable its members awareness, and employing mediation as the preferred dispute resolution channel. It was developed and the wider Singapore business from feedback about and studies on the impact community to keep up with the latest of rental overheads on business operating costs. industry news and trade opportunities in the country and around the world.

Seminar on Budget 2015 March 2015

Budget 2015 invests in Singapore’s future by nurturing deep skills in every job, promoting innovation and internationalisation, investing in economic and social infrastructure, and strengthening social support. SBF's Budget 2015 Seminar for members drew over SBF business mission to Germany and Spain 900 participants. Members were given an February 2015 opportunity to share their views and post SBF led a business mission to questions to a panel comprising representatives Germany and Spain from 1 to from various government agencies. 7 February 2015, in conjunction with Prime Minister Lee Hsien Loong’s official visit to both countries. The mission enabled participants to gain first-hand understanding of the overall market dynamics and opportunities in Germany and Spain against the backdrop of the European Union-Singapore Free Trade Agreement that is expected to come into force soon.

Philippines-Singapore Business Council Forum February 2015

At the Philippines-Singapore Business Council Forum attended by some 120 participants, discussions were held on new business and investment opportunities for Singapore businesses in the Philippines, particularly in the infrastructure sector. Graced by Mr Lim Hng Kiang, Singapore's Minister for Trade and Industry, the Forum was held against the backdrop of the Philippines’ recent stellar economic growth.

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Apr•May•Jun 2015 36 International Markets

Investment Coordination Board) Deputy Chairman Closer Collaboration Azhar Lubis, Jakarta Governor Basuki Tjahaja Purnama, and Central Java Governor Ganjar Pranowo. with Indonesia They welcomed SBF and KADIN to enhance strategic cooperation in urban industries. Singapore investments and partnerships with Indonesia, and highlighted potential for Singapore’s expertise to contribute to Indonesia’s development in the areas of water, waste management, power, transport and urban development. Discussions touched on establishing a bilateral business platform, led by SBF and KADIN, for companies on both sides to interact regularly and build familiarity with each other. Bullish look at economy reater domestic, Survey echoed a similar and medium enterprises In its latest yearly overview political and outcome. In the SBF survey (SMEs). It saw fruitful on Indonesia’s economic Geconomic conducted in 4Q 2014, 31% discussions with top outlook, Phillip Futures stability, the emergence of the 950 respondents Indonesian officials, analyst Howie Lee said: of the integrated ASEAN indicated a strong interest including newly-appointed “There is plenty to be Economic Community, in venturing into Indonesia, Foreign Minister Retno hopeful about, given and the pursuit of making the country the Marsudi, Trade Minister the early reforms by the greater transparency and second most preferred Rachmat Gobel, KADIN Jokowi administration. governance within the destination after China. (Indonesian Chamber of Other policies have also archipelago have pushed A similar survey done Commerce & Industry) been proposed, such as Indonesia to the top a year ago saw only Chairman Suryo Bambang spending on port and of the list of preferred 20% of respondents Sulisto, BKPM2 (Indonesian airport infrastructure as investment destinations indicating an interest in for Singapore businesses. investing in Indonesia. This was clearly evident Countries with the Best Business as 118 businesses who Urban development participated in the latest Prospects in the next 12 months potential (by percentage of respondents) Business Times-UniSIM Reflecting this growing Business Climate Survey interest in Indonesia, SBF, RANK MOST CITED indicated that Indonesia is International Enterprise All Companies Indonesia (20%) the country offering the Singapore and Singapore Size of companies best business prospects Minister of State for in 2015 (refer to table: Trade and Industry Teo Small Indonesia (22%) Countries with the Best Ser Luck, undertook Large Indonesia (19%) Business Prospects in a high-level business Sector of companies the next 12 months). mission last November. Commerce Indonesia (24%) Respondents to the The mission to Jakarta Transport & Communications Indonesia (33%) Singapore Business and Semarang involved Federation’s (SBF) 25 Singapore companies, Financial & Business services Indonesia (29%)

RF123 recent National Business most of which were small Source: BT-UniSIM Business Climate Survey Q3 2014

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INDONESIA’S GDP GROWTH (%) efficient cogeneration and heat recovery products, and Optimistic Source: Bloomberg/Phillip Futures 7 packaged genset solutions. Outlook for 6.5 The Singapore company is Maritime 6 also a provider for waste heat recovery solutions, Projects 5.5 and energy efficiency 5 and renewable energy The Indonesian 4.5 implementations. It also government’s target of packages solutions that introducing about US$450 4 convert waste heat into billion worth of projects other resources, such as locally within the next five Jul 09 Jul 10 Jul 11 Jul 12 Jul 13 Jul 14 Mar 09 Nov 09Mar 10 Nov 10Mar 11 Nov 11Mar 12 Nov 12Mar 13 Nov 13Mar 14 cooling, heating, distilled years has injected much water and electricity. optimism. These products and Because of this, the well as laws regarding land do so is home-grown solutions, together with a country is the best pick acquisition to reduce the Cyclect Energy, which collaborative servicing and for this year, said DBS redundancy of idle land.” signed a Memorandum maintenance support economist and Indonesian Taking a financial market of Understanding with structure from both expert Gundy Cahyadi. perspective, he added PT Berkat Manunggal Jaya companies, will help “Maritime-related project that “overall, we are bullish (BMJ), one of Indonesia’s both companies to spending will be the on Indonesia equities”. top power equipment expand globally. biggest, making up some He explained: “With manufacturing companies. BMJ is one of Indonesia’s 15% of the total amount. further reforms from Mr Cyclect Energy, a leading power generation For the Indonesian Jokowi and the possibility specialist developer of companies. Established in archipelago, enhancing of a rate cut on stabilising cogeneration and tri- 1987, it is a major player in inter-island connectivity consumer prices, there generation plants, is Indonesia’s independent and upgrading port is a possibility that the collaborating with its power plant and power infrastructure is important Jakarta Composite Index partner to develop more generation market. • for Indonesia to prove its may outperform regional trade and commerce.” equity peers next year. The Indonesian Southeast Asia’s sleeping government has made giant gradually awakens.” TOP 3 GOALS IN INFRASTRUCTURE it clear that foreign SPENDING (2015-2019) investors are welcome, SMEs exploring Of the total infrastructure spending in Indonesia between calming concerns of rising Indonesia 2015 and 2017, the National Development Planning Board economic nationalism. Given the close physical (BAPPENAS) expects 16% of total projects to comprise DBS Bank also expects proximity of Singapore and maritime-related work, another 15% to comprise roadworks, the government to re-look and a further 27% to comprise energy projects. Indonesia, many Singapore the possibility of allowing businesses have invested 1600 foreign operators in ferry heavily in Indonesia. 27% terminals and airports, Mr Singapore’s homegrown 1400 Cahyadi said. According corporations, including to him, DBS’ re-rating of 1200 16% of furniture manufacturer and total the Indonesian economy retailer Cellini which runs 1000 projects 15% should come from imanufacturing operations Jokowi’s reforms, which in Indonesia, have long 800 he has demonstrated great invested in the country’s 600 commitment to since financial and business taking office. The fuel services, maritime industries, 400 subsidy cut and the oil and and other sectors. 200 gas sector reforms should One growing trend is the help rationalise subsidies

emergence of Singapore Indonesian rupiah in trillions 0 and reduce leakages, and SMEs keen on seeding Maritime Roadworks Energy eventually improve the interests in Indonesia. Government State-Owned Enterprises Private country’s gross domestic The latest company to Source: BAPPENAS product. • SPH – The Business Times

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offer members access to a variety of interactive e-learning modules, Online Learning centred on two guiding Technology developments enable employees learn better. principles: The learning goal (to determine the learning outcome of the programme) and the learner environment (interactive and engagement platforms). SBI has already launched the following e-learning programme: ● Incoterms 2010/Trade Finance/International Trade for Exporters and Importers

These new programmes will be added in mid-2015: ● Management and Leadership ● Interpersonal Excellence ● Sales, Service and Account Management ● Marketing ● Negotiation ● Finance ● Human Resources

Today, technology people to upgrade their The Singapore Business To register, visit developments such as skill sets through various Federation Business bit.ly/sbiincoterms. mobile devices, laptops e-learning platforms. Institute (SBI) is For more details, contact Ms and desktops are changing Technology-enabled partnering various Joanne Wong via 6701-1136 the way learners in learning is a clear winner e-learning vendors to or [email protected]. many organisations when compared to access knowledge traditional classroom and information. training across the According to a recent Asia-Pacific, and this is SBF RESOURCES survey by Cegos Asia fuelled by three drivers: SBF Business Matching Services Pacific, there is an uptrend ● Increased accessibility in Asia for technology- to electronic devices and Singapore Business products or services. enabled learning in more learners learning Federation’s (SBF) SBF can also help its organisations. Findings in their workplaces via Business Matching members engage joint revealed that there laptops/desktops; Services provide members development partners for continues to be an ● Strong will to learn with opportunities to innovative solutions to increase in the use of among a more motivated connect with potential technological problems, laptops/netbooks/ and collaborative learning partners, sellers and identify partners for desktop computers organisation; and buyers. It can help its research and development and tablets as part of ● Strong uptake of both members reach out to projects, and search for the learning tools. standalone e-learning local and regional partners, mergers and acquisition In other words, there (individuals learning on match members with joint partners. is significant potential their own) and blended venture partners, and help in using electronic learning (organisational- companies find relevant For enquiries, e-mail

123RF technology to enable led) programmes. distributors for their [email protected].

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SME Workshops HR practices within the regulated Malaysia workspace. It will provide 4th International Business participants with an Fellowship (iBF) Executive understanding of the Programme On Indonesia concepts and tips for June 8-12 practical application. Jakarta The iBF Executive For more information, Programme, jointly e-mail SBF at organised by IE Singapore [email protected]. and SBF, trains executives in acquiring business knowledge and building networks in markets SME Missions like Indonesia. The programme covers topics including Indonesia’s political dynamics, its legal system, organisational market and consumer behaviours, For participation companies; market entry strategies, enquiries, e-mail Ms Min ● Unione Industriale and how to manage Qian at [email protected]. Torino which represents workers in the country. sg or Mr Teo Chi Howe at over 6,000 manufacturing The programme also [email protected]. and service companies includes site visits to BuildTechYangon 2015 in Piemonte. selected Indonesian May 27-29 Milan and Turin companies and networking Myanmar June 7-13 For more details, e-mail opportunities with Myanmar’s construction Italy Ms Samantha Mark at speakers, industry industry is currently This SBF business mission [email protected] practitioners and trade valued at close to US$3.2 to Italy will focus on or Ms Renee Koh at associations in Indonesia. billion and is expected to business matching [email protected]. achieve an 8% compound sessions in Milan and To register, contact Ms Candy annual growth rate and Turin to assist Singapore Chio at 6827-6876 or candy. a total of 24% growth to companies in meeting [email protected] by May 15. US$4.2 billion in 2016. potential business partners. LETTERS FROM The industry is driven Delegates will get a better OUR READERS largely by the residential understanding of market Malaysia Employment Act and infrastructure sectors, conditions, gain valuable If you have any views, July 6 which make up almost insights on doing business comments or suggestions Singapore Business Federation 80% of the total there, and benefit from about BiZQ or other SBF The latest amendment to industry value. networking opportunities events, we want to hear the Malaysia Employment In view of these with reputable members from you. Please send Act (EA), which came into opportunities, SBF is of key Italian trade your contributions to: effect on April 1, 2012, leading the Singapore associations including: alters and supplements Pavilion exhibition at ● Assolombarda, which The Editor, existing employer the BuildTech Yangon represents about 5,000 BiZQ Magazine, obligations prescribed by trade show in Yangon, firms located in Milan, Singapore Business the 1995 EA. Employers Myanmar. It promises to Lodi, and Monza; Federation, are required to revise their be a useful platform for ● Confindustria, a trade 10 Hoe Chiang Road, HR policies, practices and companies seeking joint association representing #22-01 Keppel Towers, handbooks for consistency venture partners, agents manufacturing and Singapore 089315. and compliance. and distributors, as well service companies with This workshop outlines as new developments in a voluntary membership Or e-mail us at

various steps to improving the construction sector. of more than 147,000 [email protected]. 123RF

Upon approval 038-039 SME Resources.ab.ed.sbf.ed.ab.inddPlease sign: 39 16/04/2015 10:54 Name and Date: Apr•May•Jun 2015 40 In Style

The 1975 Collection by Tumi includes an International Carry-On, Slim Brief, Rucksack Backpack and Square Duffel – all in natural full-grain cowhide leather. Each style is embossed with a special limited-edition number.

The man who works in a more creative job can choose something more casual and rugged – perhaps a stylish rucksack or square duffel in soft leather. When selecting a piece of elegant luggage, make sure that high-quality leather and craftsmanship are your top criteria. Some of the world’s most prestigious fashion companies – including Lanvin, Saint Laurent Paris and Louis Vuitton – have produced backpacks for men. Crafted from luxurious leathers and high-tech synthetics, many of these bags retail for thousands of dollars. Backpacks and duffels are ideal for commuting and frequent travel; Travel in Style make sure yours has large Inject a little elegance into your interior zip pockets and travels with some luxurious leather luggage. numerous exterior pockets for storing accessories or electronics, and comes with adjustable and removable shoulder straps. man’s luggage it. Everyone knows that toiletries, small possessions, From Balenciaga to should reflect while a family vacation trip necessities, and on the Kenzo, luxurious backpacks A a practical yet suitcase is going to be all return-trip, souvenirs. For and duffels range from stylish glamour – it should about volume, a business some, luxurious leather full leather, leather-and- be convenient to haul trip suitcase should ideally luggage is a definitive style. suede to seasonal fabrics. all over the world and be slim, easily slung over The man who works in Stylistically, there is a mix still make a good first one shoulder, and broad a traditional, conservative of sports-luxe-influenced impression when meeting enough to lay a suit coat in workplace may want a pieces, such as Tim people at the airport without too much folding. dressier leather briefcase Coppens’ mountaineering- with one’s bags in tow. A modern business that pairs well with a suit – inspired collections, and For a start, bigger isn’t traveller can be expected it will help him look more clean, classic bags from always better – especially to have packages professional when walking Saint Laurent Paris when you have to carry containing clothing, into a business meeting. and Tom Ford. •

Upon approval 040 Instyle.ab.indd 40 Please sign: 16/04/2015 10:49 Name and Date: Link Up with BiZQ! BiZQ is the official publication of the Singapore Business Federation, the nation’s apex business chamber with 21,500 members. Distributed to some 23,000 readers – many of whom are decision-makers such as CEOs, managing directors and entrepreneurs – BiZQ keeps them informed and updated of the latest economic trends,

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