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SPEECH BY MS , MINISTER OF STATE, MINISTRY OF TRADE AND INDUSTRY & MINISTRY OF CULTURE, COMMUNITY AND YOUTH, DURING MINISTRY OF TRADE AND INDUSTRY (MTI)’S COMMITTEE OF SUPPLY DEBATE, ON TUESDAY, 2 MARCH 2021

“Partnering the Industry for Local Enterprises to Emerge Stronger from COVID-19”

Introduction

1. Mr Chairman, as settles into Phase 3 and vaccinations are underway, we seek to sustain the momentum for recovery and emerge stronger post-COVID-19.

2. Minister Chan, 2M Tan and MOS Tan spoke about our forward-looking agenda and reiterated the Ministry’s commitment to help our enterprises emerge stronger from this crisis. Let me elaborate on our near-term priorities ahead.

3. SMEs will continue to play a pivotal role in the recovery of our economy. They make up 99% of our companies and contribute 72% of employment.

4. To support the SMEs’ recovery and growth, we will strengthen our business eco-system in partnership with companies and trade associations and chambers, or TACs.

5. Let me share how the government will co-create the future roadmap with SMEs and boost our support for digitalisation, as urged by Mr Shawn Huang and Ms .

Helping heartland enterprises go digital

6. In my recent visits to the heartlands, several shopkeepers indicated their interest to go digital, and those who were online, were keen to do more. They asked for more resources and support to innovate.

7. This positive attitude and readiness to transform is laudable and we will pull out all stops to rally behind our SMEs. The flagship Heartlands Go Digital Programme provides specific support to help heartland shops adopt e-payment solutions and get started on digital commerce.

8. To rev up the speed of adoption, close to 200 digital ambassadors and business advisors have been on the ground, reaching out to some 20,000 heartland enterprises. They tell shopkeepers about the benefits of digitalisation and provide step-by-step guidance on how to go digital. As of February 2021, we have engaged more than 85% of these heartland shops and are on track to meet our target this month. EMBARGOED UNTIL AFTER DELIVERY PLEASE CHECK AGAINST DELIVERY

9. This programme is led by the Heartland Digitalisation and Revitalisation Committee (HDRC) co-chaired by me and SMS . Reflecting a collaborative approach, the Committee comprises the Federation of Merchants’ Associations Singapore (FMAS), Heartland Enterprise Centre Singapore, and government agencies like ESG, STB, GovTech, HDB and IMDA. The Committee aims to revitalise heartland shops with solutions ranging from visual merchandising in stores, to local placemaking activities and digital marketing.

10. Interestingly, we are seeing more second and third generation family heartland businesses leveraging on available government programmes to transform their business by going digital.

11. Petite Blooms, a florist business in Teck Whye, run by a mother and son pair, recently made the leap to e-payments by leveraging the Heartlands Go Digital programme. They wanted to capture the growing number of e-savvy customers. Today, up to 25% of their sales use e-payments, and revenue has gone up 10% in the first 3 months of adopting e-payment. Petite Blooms is also now on Shopee. Thanks to the Heartlands Go Digital Programme, the shop has started to diversify its revenue streams and enhance its online visibility.

Precinct Schemes

12. In addition, the Government is also encouraging shops in precincts like Little India to get onboard the digital marketplace. We are seeing early fruits of this effort.

13. For example, the Little India Digitalisation Project has helped Jothi’s Traditional Charm, a beauty and wellness salon, expand its customer reach by at least 10%. With a loyalty programme and e-payment options in place, Jothi’s is now able to better engage younger clients.

14. The salon also received help from SME Centre@Little India to adopt a solution that provides real-time sales data, saving it much time and manpower. This allowed them to focus on product development, and Jothi’s will launch its first skin care products next month.

15. At this point, I wish to assure Mr that the Government has been taking pains to ensure our micro and small businesses are not left behind in the digital push. We have rolled out targeted schemes for this group. Let me share two examples.

16. The Food Delivery Booster Package has supported more than 10,000 F&B outlets to diversify their operations by pivoting online and offering food delivery, especially during the circuit breaker.

17. The E-Commerce Booster Package has helped more than 3,500 brick-and- mortar retailers, including heartland shops, go online. They can reach both the domestic and overseas markets, and are able to run digital campaigns to improve sales and awareness of their brands.

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18. While we reposition our SMEs for growth through digitalisation and innovation, it is equally important to extend our support for capability building and cashflow management. Mr and Mr can be assured that we have many schemes and programmes that boost the productivity of SMEs and make them more competitive and attractive to Singaporeans.

19. In particular, the Productivity Solutions Grant (PSG) that was introduced in 2018, continues to assist businesses in their transformation journey and provide them with support for IT solutions and equipment, as well as consultancy services.

20. Since then, more than 19,000 SMEs have adopted IT solutions and equipment to get ahead. The top sectors for PSG adoption include Retail, Building and Construction, Wholesale Trade, Food Services, and Services.

21. One of the SMEs I wish to highlight is Bee Sim Foods, 美心, an established company making pau and dim sum for nearly 50 years. Bee Sim Foods had sought advice from SME Centre@Little India to grow its market.

22. As a result, it expanded to cater to individual consumers, which was a blessing when its B2B sales were affected by Covid-19. To handle the surge of B2C sales, Bee Sim adopted the use of an automated tray sealer and vacuum packaging. The premium spill-proof take-out food packaging assured customers of the food quality and freshness, leading to twice the monthly B2C sales.

23. To help more enterprises like Bee Sim and Petite Blooms transform, we are extending PSG’s enhanced maximum support level of up to 80% till 31 March 2022. We hope this will encourage more SMEs to transform and gear up for economic recovery.

Assistance Through Enhanced SME Centres

24. The journey to transformation though exciting, can be tough too. This is why we have 11 dedicated SME Centres providing assistance for SMEs islandwide. The centres’ onsite business advisors partner SMEs to guide their capability development and growth.

25. Companies that have benefitted from the SME Centres include MHI Training Master, a first aid course provider. During Covid-19, the SME Centre@SMCCI advised MHI to go digital and also linked it to solution providers. The firm now deploys IT solutions and a customised Enterprise Resource Planning system.

26. With that, data entry is automated. So instead of spending 5 minutes to extract just one trainee’s data, the information of an entire class can be retrieved in the same amount of time. Digitalisation has also enabled MHI to pivot to blended learning during the pandemic. So far, MHI has seen a 150% increase in sign-ups.

27. Mr Shawn Huang, Mr Derrick Goh and Mr Desmond Choo will be delighted to know that SME Centres will begin piloting specialised advisory services to support enterprises in specific areas such as digitalisation and financing.

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a) For example, when an SME wishes to expand but lacks the funds, the SME Centre’s Specialist Advisor will help to assess the company’s financial health, and recommend the appropriate financing model and available financing instruments. The Advisor then guides the business owner on how to strengthen his or her loan applications and links the SME up with relevant banks for the application.

28. Last year, our SME Centres assisted over 32,000 SMEs, and more are expected to benefit from the new services.

29. We urge SMEs to tap the advice and resources available at the SME Centres. We want to help them build up their capabilities and workforce, so they can raise their productivity and scale up their business.

30. I would like to assure Mr Gerald Giam that the Government is constantly looking at how we can assist SMEs to attract more local talents. The Global Ready Talent Programme (GRT) helps enterprises build their talent pipeline by exposing more Singaporeans to internships and overseas work opportunities. This lets SMEs discover potential employees, and also provide students with a better appreciation of our SMEs.

31. In addition, we have the P-Max, a Place-and-Train programme that matches PMETs to suitable SMEs, and also assist local companies in adopting progressive HR practices. Minister for Manpower will elaborate more about this in her speech.

Improvements to GoBusiness Platform

32. We share Ms Jessica Tan’s view that Government schemes should be streamlined and made more accessible to businesses. With easier and smoother government transactions, we hope business costs will be reduced. This is why we have rolled out GoBusiness Gov Assist, a portal that consolidates all available government assistance onto one platform. Since its launch last August, it has received over 230,000 unique visits.

33. This year, we will be introducing an online guided journey on the GoBusiness platform to help businesses start faster and start right. It will provide a step-by-step guide on how to set up a business, as well as recommend the suitable business structure, and suggest relevant resources.

34. In addition, the GoBusiness platform will have a function to assist businesses to make checks or changes regarding premise use. This will allow them to quickly identify the right governing authority and provide information on the approved uses of rental or purchased commercial premises.

35. While we gear up for an economic recovery, we are also mindful of the ongoing challenges in our economy. To navigate the uncertainties, we need all hands on deck.

TACs leading their industry EMBARGOED UNTIL AFTER DELIVERY PLEASE CHECK AGAINST DELIVERY

36. This is the time when TACS are most needed to help their members overcome difficulties and capture new opportunities. In my recent engagements with the TACs, I saw how they led their members to build core capabilities and pivot to other business models.

a) For example, the Singapore Furniture Industries Council’s (SFIC) 5th Membership Assistance Scheme (MAS) benefited over 70 companies with training, opportunities in design innovation and digital capability development. It also introduced Creativ-Space, a new B2B e-sourcing and marketing platform that is first-of-its-kind in Asia. I graced its launch in October 2020 and saw how Creativ-Space helped 20 local brands, including Commune Lifestyle Pte Ltd, to break new ground and expand their reach to areas like Europe. I am delighted to hear that with other digitalisation efforts, Commune Lifestyle’s e-commerce sales has more than doubled in the last 10 months.

Fostering greater collaboration

37. TACs also play an important role in facilitating more greater collaborations between enterprises. We are aligned with Mr 's views on supporting more business collaborations. 2M Tan had shared about how the Government will continue to support collaborative projects through schemes such as PACT.

38. An example of how collaboration between TACs can uplift the industry is the Beauty Services Alliances (BSA), which brings together five trade associations in the beauty and wellness sector. Last year, I had the privilege of launching BSA’s competency framework for workers in this sector to upskill, re-skill and stay relevant. This has enabled companies to identify suitable training programmes to upskill their workers, leading to better service and higher customer retention.

TAC Competency Framework

39. Mr Edward Chia and Mr Derrick Goh will be pleased to know that the Government will work more closely with industry partners such as the TACs to upgrade their core capabilities. For TACs to support industry transformation and business growth well, they will also have to attract, retain and develop the best talents. To meet this need, a TAC Competency Framework will be developed by Singapore Chinese Chamber of Commerce & Industry (SCCCI), with support from Singapore Business Federation (SBF), ESG and SkillsFuture Singapore (SSG).

40. This is the first time a competency framework is being created for TACs. Developed in consultation with the TACs, the framework will identify existing gaps and relevant skills required by TAC secretariats and their leaders. Suitable programmes will then be developed to upgrade and build the skills-sets of the TAC sector.

41. This competency framework is expected to be ready in Q3 this year, and I strongly encourage our TACs to adopt it to upskill their staff.

Mr Chairman, allow me to say a few words in Mandarin.

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42. 主席先生，中小企业是我国经济的中流砥柱。中小企业占企业总数的百分之九 十九并雇佣我国百分之七十二的劳动力。为更好地扶持中小、微型企业和促进经济的 持续复苏，政府将推出以下三项新措施：

a) 首先，中小企业中心将扩展现有的服务范围，为企业提供融资和推进数 码化的专项咨询服务；具体的来说，那些在融资方面有疑问的企业，现在可以咨询中 小企业中心的专业融资顾问。他们可以为企业评估财务状况和推荐合适的贷款方案以 及融资渠道。同样的，企业也可在数码化方面获得咨询顾问的专业意见。

b) 第二，我们将在 GoBusiness 平台推出两个新的功能。第一个功能是线 上创业指南，指导创业者如何设立公司。从注册公司到获取相关营业执照等流程，一 应俱全。第二个功能是线上查询商业场所许可用途。想要更改场地用途的业者可以通 过 GoBusiness 平台提交申请。这将简化和政府部门的对接。

c) 第三，政府将支持由商会商团所主导的商团技能框架，协助商会和商团 在吸引、保留以及培养人才方面事半功倍。这个框架有助于提升商会商团领导层和秘 书处的核心能力，确保它们能更有效地支持企业的转型和发展。框架预计在今年第三 季推出。

43. 政府为支持中小微型企业的持续发展，投入了许多的资源。我希望企业能善加 利用这些资源，积极转型、提高生产力，为自身未来的发展打下厚实的基础。

Translation

42. Mr Chairman, SMEs are a mainstay of our economy. They make up 99% of our companies and contribute 72% of employment. To better support small, medium and micro enterprises and promote sustained economic recovery, the government will introduce the following three measures:

a) Firstly, SME Centres will expand their offerings and begin piloting specialised advisory services to support enterprises in areas such as digitalisation and financing. For example, employers who wish to expand their business but face funding constraints can approach the SME Centres for assistance. The SME Centre’s Specialist Advisor will help to assess the financial health of the company, recommend the appropriate financing mode and available financing instruments. The Advisor will also guide employers on digitalising their businesses.

b) Secondly, we will be introducing two new functions on the GoBusiness platform. The first function will be a step-by-step guide on how to set up a business, as well as recommendations on the suitable business structure, and suggestions on relevant resources. The GoBusiness platform will also have another function to assist businesses to make checks or changes regarding premise use. This will allow them to quickly identify the right governing authority and provide information on the approved uses of rental or purchased commercial premises.

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c) Thirdly, an industry-led TAC Competency Framework will be developed with the government’s support. As TACs continue to play their role of supporting industry transformation and business growth, such a competency framework will help to attract, retain and develop the right talent, while identifying existing gaps and relevant skills required by TAC secretariats and their leaders. This also ensures that our TACs can continue to support the transformation and development of our enterprises. The competency framework is expected to be ready in Q3 this year

43. The government has invested significant resources to create a pro-business environment and to support the growth of our SMEs. I hope businesses can better utilise these resources to seize growth opportunities, transform their business model, raise productivity and emerge stronger.

44. In closing, there will be no return to a pre-COVID world and our enterprises must seize the initiative to transform their business models to secure the future. Rest assured that the Government will work hand-in-hand with our enterprises, TACs and industries to co-create, innovate and unlock new opportunities for growth.

45. Together, we can overcome – as partners in solidarity forging a new tomorrow, where businesses, SMEs and heartland shops thrive and flourish.