January–March 2017 IN FOCUS CREATING VALUE INNOVATING IN A PUBLICATION OF SINGAPORE BUSINESS FEDERATION TOUGH TIMES MAKING TRENDSPOTTING BREAD ROTIMATIC’S RECIPE BREAKING FOR SUCCESS DOWN BARRIERS WHAT’S NEXT IF THE TPP FAILS? INSIGHT LET IT FLOW TIPS TO KEEP YOUR FINANCES HEALTHY ONE ON ONE ERIC LEW RE-INVENTING A TRADITIONAL BUSINESS C M Y CM MY CY CMY K Welcome January – March 2017 A new mindset for the future economy The new year is likely to see the The tough times also call for the same levels of uncertainty that we local business community to come experienced in 2016. The sluggish together in a spirit of co-operation. economy and a fast-changing business To that end, we organised a seminar landscape are posing multiple in partnership with Temasek challenges for our local business International to share insights into community. New digital technologies how SMEs can successfully work with have disrupted a range of industries, larger companies. and are poised to disrupt many more Last September, SBF initiated in the coming years. a closed door dialogue between The business community is looking financial institutions, government forward to the recommendations agencies and representatives from from the Committee on the Future the troubled offshore and marine Economy (CFE), which was formed sector. We are heartened that the to chart a new course for Singapore’s Ministry of Trade and Industry economy. In November, as a follow announced in late November 2016 up to the Position Paper presented two schemes offering funds and to Minister for Finance Heng Swee bridging loans to the sector. Keat in January 2016, SBF organised Looking ahead, we must be a dialogue hosted by Minister S prepared to expect more uncertainty. Iswaran, co-chair of the CFE, for In particular, the election of the the leaders from trade associations new U.S. President in November has and chambers, and the business already unsettled markets as fears community to engage and provide of increasingly protectionist policies inputs into the CFE process. emerge. Already, the multilateral US- These efforts aside, there are led Trans-Pacific Partnership (TPP), many shining examples of companies which Singapore is member, appears that have innovated to improve to be in difficulties. productivity and efficiency. The Despite these challenges, our Singapore Productivity Conference and businesses must continue to Exhibition (SPCE) held last November engage global markets as a means showcased technological solutions to grow. In recent months, SBF to help companies ramp up their has led business delegations to efficiency. Separately, 10 organisations China, India, Iran, Egypt, Norway, across six sectors, many of them SMEs, Myanmar and other South East were honoured at the Singapore Asian countries. Productivity Awards 2016 for their We are hopeful that efforts excellence in productivity and staying to restructure our economy and resilient in the face of a tepid economy. businesses, coupled with efforts Meanwhile, the pervasiveness to grow new markets, will help of technology in business requires Singapore companies successfully companies to be aware of increasing navigate the turbulent times ahead. cybersecurity risks. Themed “Fight We will be relocating to our new the Dark Side”, this year’s National office at The SBF Center on Robinson Security Conference 2016 encouraged Road in late February 2017. With more SMEs to address cybersecurity- more facilities, we look forward to S.S. TEO related risks pertaining to people, offering an even better standard of Chairman processes and technology. service to our members. Singapore Business Federation Contents January – March 2017 FEATURES INSIGHT IN FOCUS ONE ON ONE 10 LET IT FLOW 18 INNOVATING TO 22 SPEEDING AHEAD How to keep your cashflow CREATE VALUE Eric Lew is putting Wong healthy Companies need to innovate Fong Industries on the to survive global stage GETTY IMAGES PHOTO Contents January – March 2017 Business Quotient (BiZQ) is the official publication of the Singapore Business Federation, reaching out to over 22,500 of Singapore’s business elite, chief executives and entrepreneurs. This is 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 the people who lead them. PUBLISHER Singapore Business Federation 10 Hoe Chiang Road, #22-01 Keppel Towers, Singapore 089315 Tel: +65 6827 6828, Fax: +65 6827 6807 Email: [email protected] Website: sbf.org.sg CHAIRMAN Teo Siong Seng CHIEF EXECUTIVE OFFICER Ho Meng Kit ASSISTANT EXECUTIVE DIRECTOR 30 (MEMBER RELATIONS) Cheryl Kong CORPORATE COMMUNICATIONS SENIOR DIRECTOR Jinny Claire Sim DIRECTOR (SPECIAL PROJECTS) Gerald TRENDSPOTTING De Cotta 06 Singapore’s alternatives if SENIOR MANAGER Randall Tan TPP fails ASSISTANT MANAGER Laura Cheng BIZ TALK 14 Enterprise 50 winners and The Company of Good BiZQ is published exclusively for the Singapore INNOVATE Business Federation by Publicitas Content 26 Rotimatic serves up a success story REGIONAL MANAGING DIRECTOR Lee Walsh COMMERCIAL DIRECTOR Lexi Lazenby HAPPENINGS RELATIONSHIP MANAGER Serene Lee 30 SBF leads business missions to 39 Asia and Europe, champions EDITORIAL EXECUTIVE CONTENT DIRECTOR productivity Rod Mackenzie MANAGING EDITOR Ming Rodrigues BEYOND THE RED DOT PROJECT EDITOR Francis Kan Opportunities in India’s DESIGN DIRECTOR Fredrik Dittlau 36 WRITERS Amy Tan, Jo-Ann Huang, smart cities Tan Keng Yao RESOURCES ADVERTISING 38 Help for F&B start-ups; cloud MEDIA SALES MANAGER Mey Leong Tel: +65 6735 8681 E-mail: [email protected] services for SMEs BIZ FLAIR 40 Fun fitness classes to energise Winner your work day 15 Award of Excellence The views and opinions expressed or implied in BiZQ do not necessarily reflect those of the Singapore Business Federation (Registration No. ROS138/2002TAP) or Publicitas Content. GETTY IMAGES No responsibility is accepted for the claims made in advertisements, articles, photographs or illustrations contained in this publication. Unsolicited material will not be returned. No part of this magazine may be reproduced without the written permission of the Singapore Business Federation and Publicitas Content. All rights reserved. Copyright © 2016 Singapore Business Federation. All information correct at time of printing. MCI (P) 116/03/2015 PHOTO JANUARY-MARCH 2017 Trendspotting THE QUEST FOR FREE TRADE The likely failure to implement the Trans Pacific Partnership is a blow to Singapore, but there are alternative avenues WORDS FRANCIS KAN s an economy highly Even if TPP dies, A dependent on trade, Singapore has benefitted Singapore’s significantly from the removal of position isn’t entirely trade barriers around the world through bilateral and multilateral bad as it already free trade agreements (FTAs). has a bilateral trade As such, the Trans Pacific agreement with the Partnership (TPP), a proposed trade agreement between 12 Asia US. Companies in the Pacific nations, was viewed as a key region can explore to Singapore’s economic prospects. The member states have a collective opportunities in the US population of 800 million and account through Singapore” for 40 per cent of world trade. – SONG SENG WUN, ECONOMIST, CIMB However, with new American President Donald Trump announcing his intention to withdraw the United Shinzo Abe had said that the pact is States from the TPP, the prospects “meaningless without the U.S.”, while GETTY IMAGES; SHUTTERSTOCK GETTY IMAGES; of the pact becoming a reality has Prime Minister Lee Hsien Loong had dimmed considerably. noted that renegotiating the TPP Japan’s Prime Minister Mr would be difficult. PHOTOS 6 Business Quotient TPP countries’ contribution 40% to world GDP FALLING BACK ON BILATERAL DEALS Singapore’s raft of bilateral free trade agreements will soften the blow of TPP’s impending demise Even if TPP fails, Singapore has existing Free Trade Agreements (FTAs) with almost all countries involved in the TPP negotiations, which the Republic can fall back on, experts say. “Singapore already has FTAs signed with most TPP members, except Canada and Mexico. Canada has been very positive about trade, and the new President has strong popularity at home, so it won’t be too difficult to formulate a deal with Singapore. Mexico would be more challenging, but Singapore has other trade talks going on,” said Shivaji Das, partner and global head for public sector and government practice at Frost & Sullivan Asia-Pacific. CIMB economist Song Seng Wun noted that if Canada and Mexico remain committed to TPP, there would be opportunities for Singapore firms to tap these markets. “Even if TPP dies, Singapore already has a bilateral trade agreement with the US, so our position isn’t entirely bad. Those companies in the region that want to explore opportunities in the US can do so through Singapore,” Song added. JANUARY-MARCH 2017 7 Trendspotting The trade deal, which took five years of negotiations and entered into a two-year ratification period last February, needs approval from at least six countries that account for 85 per cent of the combined gross domestic product (GDP) of the 12 member nations to be implemented. As such, both the US and Japan would need to ratify the deal given the size of their economies. “The TPP offered significant benefits to Singapore because of the high-quality nature of the agreement and the access it offered to 40 per cent of world GDP, so we won’t have those upsides,” said Manu Bhaskaran, chief executive of Centennial Asia Adviser. However, as the TPP is not yet in force, he noted that there is no real impact on trade or the economy. “It is more a case of lost opportunities.” So with the plug on the TPP to be potentially pulled, Singapore that emerged following the collapse November that a new free trade and other nations are looking at of the Doha Round of the World agreement between Southeast Asia alternative multilateral trade deals Trade Organisation talks in 2006.