SOLIDARITY FOR A CHANGING WORLD ANNUAL REPORT 2020 SOLIDARITY FOR A CHANGING WORLD As the apex business chamber in Singapore, the Singapore Business Federation (SBF) champions the interests of the Singapore business community both locally and internationally. In partnership with the government and fellow trade associations and partners, we supported businesses and workers during the COVID-19 pandemic and will continue to do so through our three strategic pillars of internationalisation, digitalisation & transformation and jobs & skills. CONTENTS 2 Chairman’s Message 4 2020 Achievement Highlights 5 Membership Profile 6 EMERGING STRONGER 8 SBF’s COVID-19 Initiatives 10 INTERNATIONALISATION 12 Three Pillars under GlobalConnect@SBF 15 International Advocacy 16 DIGITALISATION AND THE SBF STORY TRANSFORMATION The evolving global economic and business 18 Future Economy Conference and Exhibition 2020 landscape of the late 1990s prompted the 19 Industry 4.0 Human Capital Initiative Government to establish an entity that would better organise and represent Singapore’s 20 JOBS AND SKILLS business community. 22 SGUnited 23 SBF Business Institute In July 2001, the Minister for Trade and 24 Sustainable Employment Industry introduced a Bill in Parliament 26 ADVOCACY AND ACTIONS to establish the SBF Act, which was 28 Business Sentiments passed by Parliament and became law on 29 Dialogues 5 October 2001. Under the SBF Act, all 30 SOCIAL IMPACT Singapore-registered companies with 32 SBF Foundation share capital of S$500,000 and above are 34 Global Compact Network Singapore members of SBF. 36 SBF LEADERSHIP 38 Board of Trustees The Federation was established on 39 2020/2022 Council 1 April 2002 and was officially launched by then Prime Minister Goh Chok Tong on 44 SBF Council Committees 11 April 2002. 45 SBF Digitalisation Committee 46 GlobalConnect@SBF Committee As of 31 December 2020, SBF represents over 47 SBF Infrastructure Committee 26,000 Singapore companies and key local 48 SBF SME Committee and foreign business chambers. 49 SBF YBLN Committee 50 SBF Secretariat VISION MISSION The apex platform We champion the interests of our promoting the growth and business community in Singapore vibrancy of the Singapore and internationally, and act as the business community. bridge between businesses and the Government. 2 SINGAPORE BUSINESS FEDERATION | Annual Report 2020 CHAIRMAN’S MESSAGE The world faced Looking ahead to 2021, we expect economic recovery an unprecedented to be uneven across sectors. Some will continue to face strong headwinds and uncertainty. Businesses that are challenge in 2020 as we affected must pivot to new models to survive and seek grappled with the COVID-19 out new opportunities. pandemic that severely Supporting businesses and workers through disrupted the global economy. COVID-19 Our Government took swift As the apex business chamber, SBF worked closely action to roll out five Budgets with the Government and other trade associations and chambers (TACs) to provide critical support to businesses amounting to nearly $100 and workers during the time of crisis. We set up the billion. This bold move enabled SBF COVIDBiz Helpline and attended to more than 1,400 enquiries, to help businesses navigate through the survival of many businesses Singapore’s circuit breaker and later phases of gradual and protected the livelihoods reopening. SBF also set up the $2.5 million Rising in Support of Enterprises (RISE) Fund in partnership with of Singaporeans. SINGAPORE BUSINESS FEDERATION | Annual Report 2020 3 Enterprise Singapore and partnered the SBF Foundation who stepped down in 2020. After 10 years of sterling in its $2 million industry-led Compassion Fund to help service, Mr Ho Meng Kit retired as SBF’s Chief Executive businesses and workers affected by COVID-19. Officer on 1 January 2021. I thank Meng Kit for his visionary leadership. Under his stewardship, SBF has We were appointed the central coordinator for the grown into a well-respected and recognised business SGUnited Jobs Initiative and helped match workers chamber, both locally and internationally. who lost their jobs due to the pandemic to available job opportunities. We also facilitated greater engagement The way forward between the Government and businesses through a series of dialogues, so that businesses could provide Looking ahead, SBF will continue to expand and direct feedback on the challenges that they were facing. strengthen our capabilities to better support our members. We will focus on three key areas – Despite the disruptions, SBF pressed on to deliver our internationalisation, digitalisation & transformation, and services to members. We converted our workshops, jobs & skills. I warmly welcome Mr Lam Yi Young as the seminars, and even overseas business missions to new Chief Executive Officer of SBF and look forward to virtual platforms. We increased the number of activities working closely with him to take SBF into the next phase organised for our members from 616 in 2019 to 730 in of growth. 2020. We also deepened our collaboration with TACs on projects and activities, from 59 TAC partners in 2019 to 71 Last but not least, I would like to thank you, our members in 2020. and partners, for your strong support. Let us continue to advance the interests of the Singapore business Through initiatives such as the Industry 4.0 Human community, help more SMEs transform, grow, and Capital Initiative, SBF worked with industry partners to make their mark on the international business scene. provide customised support to facilitate the digitalisation Collectively, we can emerge stronger from this crisis. and transformation efforts of our businesses. On the internationalisation front, our GlobalConnect@SBF programme assisted more than 2,500 businesses to expand globally and enabled 15 overseas ventures in Indonesia, Malaysia, Thailand, Vietnam, USA and Turkey. Lim Ming Yan Chairman Leadership renewal Singapore Business Federation Amid the challenges, SBF renewed its leadership this year with several new Council Members coming on board for the 2020-2022 term. I was privileged and honoured to succeed Mr Teo Siong Seng as Chairman of SBF in June 2020. Siong Seng served three terms as Chairman and was highly respected by many in the industry. I would like to thank him for his significant contributions and express my sincere appreciation to the other Council Members 4 SINGAPORE BUSINESS FEDERATION | Annual Report 2020 2020 ACHIEVEMENT HIGHLIGHTS INTERNATIONALISATION DIGITALISATION & JOBS & TRANSFORMATION SKILLS No. of advisories No. of companies on board No. of candidates on board issued on FTAs the Industry 4.0 Human the Professional Conversion Capital Initiative (IHCI) Programme – Southeast Asia- 167 Enabler Programme Ready Talents (PCP-SEA) 47 81 No. of advisories issued by GlobalConnect@SBF No. of companies on board 952 the PCP-SEA 62 No. of projects facilitated by GlobalConnect@SBF ADVOCACY & ACTIONS 15 No. of advocacy/ Percentage of members that feel that research/policy SBF has assisted them through its papers published advocacy and related activities Percentage of members that feel that 8 76% SBF champions the internationalisation Source: National Business Survey 2020/2021 interests of our business community MEMBERSHIP SERVICES & TAC ENGAGEMENT 89% Level of satisfaction with No. of TACs that No. of activities Source: National Business Survey SBF’s services and support collaborated on organised 2020/2021 SBF’s projects & 4.35* activities 730 *Based on an average score between 1 to 6 with 1 being “Highly Dissatisfied” and 6 being “Highly Satisfied” 71 Source: National Business Survey 2020/2021 SINGAPORE BUSINESS FEDERATION | Annual Report 2020 5 MEMBERSHIP PROFILE $10m & above 21.38% $0.5m to 5,608 less than $1m members 29.02% 7,612 Under the SBF Act, all members Singapore-registered SHARE companies with paid-up $5m to less than $10m CAPITAL OF capital or authorised share SBF 8.42% MEMBERS capital of $0.5million and 2,208 above are members of the members SBF. As of 31 December 2020, there $1m to less than $5m were 26,435 SBF members, 41.18% 10,800 comprising 26,228 Statutory members members and 207 Associate/ Constituent members. The profile of SBF Statutory members by share capital and industry are as follows. INDUSTRY PROFILE OF SBF MEMBERS BY SINGAPORE STANDARD INDUSTRIAL CLASSIFICATION (SSIC) Wholesale Trade 21.15% 5,547 members Other Financial and Insurance 3,819 Activities 14.56% e.g. Holding/Investment Companies members Manufacturing 12.15% 3,187 e.g. Food, Textiles, Paper Products, members Chemicals, Metals, etc Professional Services 9.92% 2,603 members Construction and Civil 7.91% 2,074 Engineering members IT & Related Services 6.15% 1,613 members Banking and Insurance 5.63% 1,477 members Logistics & Transportation 5.22% 1,368 members Administrative & Support 4.38% 1,148 Service Activities members Retail Trade 3.58% 938 members Real Estate Activities 2.69% 705 members Hotels, Restaurants & 1.69% 443 Accommodations members Other Service Activities 1.58% 414 members Others e.g. Agriculture and Fishing, Mining and Quarrying, 1.39% 365 Water Supply, Sewage and Waste Management, Public Administration and Defence, and Arts, Entertainment and members Recreation Education 1.03% 271 members Health & Social Services 0.98% 256 members EMERGING STRONGER The COVID-19 pandemic severely disrupted many lives and livelihoods. In 2020, SBF embarked on a range of initiatives to help businesses and workers cope with the challenges, transform, reskill, and seize new opportunities to emerge stronger from the pandemic. 8 SINGAPORE BUSINESS FEDERATION | Annual Report 2020 SBF’S COVID-19 INITIATIVES Rising in Support of Enterprises (RISE) Programme SBF established the RISE Programme in July 2020 to help businesses, particularly SMEs, build up capabilities, digitalise and grow. The Programme comprises a $2.5 million fund, set up with the support of the government’s SG Together Enhancing Enterprise Resilience (STEER) programme, through which Enterprise Singapore will match S$1 for every S$2 contributed by SBF. Eligible SBF members may apply for a one-time support of up to $500 to offset the costs of a wide range of qualifying activities.