OCT/NOV/DEC 2010 [ BUSINESS PEOPLE OPPORTUNITIES ]

UOTIENT

A publication of

CLEAN-TECH INDUSTRY INVESTING IN GREEN, SUSTAINABLE TECHNOLOGIES

BUSINESS SUSTAINABILITY MANAGING THE RISKS IN BUSINESS CONTINUITY SINGAPORE ECONOMY BUSINESS OUTLOOK REMAINS POSITIVE

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SBFSAYS]

SBF to build on its accomplishments over the past two years

A NEW COUNCIL WAS INAUGURATED AT THE EIGHTH ANNUAL GENERAL MEETING OF THE SINGAPORE BUSINESS FEDERATION (SBF) THIS JUNE.

Twenty corporate leaders from business chambers, trade associations and businesses representing the Singapore economy were installed as SBF Council Members for the 2010-2012 term.

The past two years have been an exciting and fruitful period for SBF. The Federation witnessed a signifi cant increase in member participation, attesting to the value SBF brings to members with its programmes, services and business facilitation efforts. SBF is also gaining increasing recognition as Singapore’s apex chamber among its business partners, as well as local and foreign chambers and government agencies. Bridging On behalf of the Federation, I thank outgoing Council Members – Mr Chua Thian Poh (Vice-Chairman), Mr Barry Desker (Vice-Chairman), Mr Vijay Iyengar communities, (Vice-Chairman), Mr Cheng Wai Keung (Honorary Secretary), Ms Kristin Paulson exploring (Deputy Honorary Treasurer), Mr Renny Yeo (Council Member), Mr David Conner (Council Member), Mr Joachim Ihrcke (Council Member), Mr Simon Cheong (Council new markets Member) and Mr Yasuhiko Kitagawa (Council Member) for their unstinting support and and creating contribution to SBF and the local business community. business SBF is delighted to welcome eight new members to the SBF Council, and is opportunities confi dent they will provide fresh insights and impetus to the Federation’s role as the apex business chamber. The new members include Mr Teo Siong Seng, will continue Mr R. Narayanamohan, Mr Steven Royce Okun, Mr George Huang, Mr Seiji Kino, to be the Ms Chong Siak Ching, Mr Gautam Banerjee and Madam Kay Kuok. Federation’s SBF also launched the Africa Business Group this July to facilitate networking and raison d’etre. business opportunities between our members and African companies. The group led its inaugural mission to Angola, Botswana and South Africa in September.

This October, SBF and the Economic Development Board are jointly presenting the seventh edition of Global Entrepolis @ Singapore to spur business collaboration and internationalisation.

Bridging communities, exploring new markets and creating business opportunities will continue to be the Federation’s raison d’etre. We will engage local and foreign governments on business policy issues, help members network, organise exchanges with other countries and cultivate business contacts worldwide.

As 2010 comes to a close, there is reason to celebrate success.

I wish all our members the best for 2011.

TONY CHEW LEONG-CHEE CHAIRMAN SINGAPORE BUSINESS FEDERATION

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CONTENTS]

UOTIENT

OCT/NOV/DEC 2010 Coverstory 24] MANAGING THE RISKS IN BUSINESS CONTINUITY Experts share their insights with BiZQ on how risk management is critical to the sustainability of organisations and to a dynamic, business-oriented Singapore.

01] SBF SAYS Message from the SBF Chairman.

04] SBF UPDATE SBF unveils 2010-2012 Council at 8th AGM.

09] EYE ON SMES SBF-DP SME Index: SMEs positive about business performance.

12] EYE ON ECONOMY Business sentiments remain positive as Singapore’s economy registered a strong showing in the first half of 2010.

16] BIZ COMMUNITY Raising the quality of Singapore’s workforce involves training and upgrading staff to help companies improve productivity.

20] COUNTRY INSIGHTS BiZQ reports on how Israel is driving collaborative efforts in the search for new technology and renewable energy solutions.

22] GLOBAL BUSINESS Stronger trade and investment ties are expected between Africa and the Republic with the launch of SBF’s Africa Business Group.

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PUBLISHER SINGAPORE BUSINESS FEDERATION

CHAIRMAN Tony Chew 30 CHIEF EXECUTIVE OFFICER Teng Theng Dar INDUSTRY TRENDS Raising standards in 40 ASSISTANT EXECUTIVE DIRECTOR clean technology BOARDROOM (MEMBER RELATIONS) Cheryl Kong TALK Mr Rangarajan DIRECTOR, CORPORATE Narayanamohan is COMMUNICATIONS Gerald De Cotta building bridges between Singapore and India. 10 Hoe Chiang Road, #22-01, Keppel Towers, Singapore 089315 tel: 65-6827-6828, fax: 65-6827-6807 E-mail: [email protected] Website: www.sbf.org.sg

Business Quotient (BIZQ) is the offi cial publication of the Singapore Business Federation, reaching out to over 20,000 of Singapore’s business elite, chief executives and entrepreneurs. The quarterly, published in collaboration with SPH Magazines, is your eye on Asian and global business trends, bringing you up to date on industry developments, the economy, country profi les, stories about successful companies and the people who lead them.

PUBLISHING AGENT SPH MAGAZINES PTE LTD

30] INDUSTRY TRENDS GROUP EDITOR, Singapore companies are pumping CUSTOM PUBLISHING Joanna Lee-Miller resources into newer and cleaner SENIOR EDITOR Azreen Noor technologies, and this is helping their CONTRIBUTING EDITOR Casuarina Peck bottom line as well as the environment. ASSOCIATE CREATIVE DIRECTOR Alex Goh 34] TECHNOLOGY ART DIRECTOR Bernard Chia Emerging solutions to help SMEs SUB-EDITOR Winnie Fong tackle human resource screening when 34 GROUP ACCOUNT MANAGER Kaz Lim hiring staff. MANAGER, CLIENT MANAGEMENT Mavis Liang

EXECUTIVE, 36] MANAGEMENT GUIDE CLIENT MANAGEMENT Jessie Kek Social innovation initiatives aim MANAGER, to improve our quality of life with PUBLISHING SERVICES Alice Chee environmentally conscious products and services. For advertising enquiries, please call 6827-6828 or 6319-6326 38] IN BUSINESS WITH This news magazine is published by SPH Magazines BiZQ speaks to L&Rui Concept Pte Ltd (Registration No. 196900476 M) for Singapore Group’s Co-Founder and Managing Business Federation (Registration No. ROS138/ 2002TAP). Copyright of the materials contained in Director Mr Brian Xiao about interior this magazine belongs to SPH Magazines Pte Ltd and Singapore Business Federation respectively. Nothing in and architectural planning based on here shall be reproduced in whole or in part without prior written consent of SPH Magazines Pte Ltd or Singapore innovative, customised designs. 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, BOARDROOM TALK SPH Magazines Pte Ltd, Media Centre, 82 Genting 40] Lane, Level 7, Singapore 349567. Tel: 65-6319-6319, Spotlight on Mr Rangarajan Fax: 65-6319-6227, E-mail: [email protected]. Unsolicited material will not be returned unless accompanied by a self- Narayanamohan, Chief of the addressed envelope and suffi cient return postage. While every reasonable care will be taken by the Editor, no Singapore Indian Chamber of responsibility is assumed for the return of unsolicited material. MICA (P) 094/06/2010. Printed in Singapore Commerce and Industry. by Times Printers (Registration No. 196700328H).

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SBF unveils new 2010-2012 Council at 8th AGM SBF helped clinch $550 million in deals for members last year and played a pivotal role at the APEC CEO Summit, APEC Business Advisory Council Meetings and Economic Strategies Committee Forum.

uilding on its success last schemes to help its members increase activities that were attended by year, Singapore Business productivity and competitiveness 48,300 member representatives. B Federation (SBF) told its through skills upgrading and innovation, These included several initiatives members at its eighth Annual General seek growth in new and non-traditional to help members access credit from Meeting on June 25 that the apex markets, as well as seize business fi nancial institutions, as well as regular chamber will continue to broaden the opportunities in new growth areas such economic and business updates to reach of its members by intensifying as green technology and solutions. keep them posted on changes in the relevant programmes and services. SBF was also appointed as the national operating environment. With the re-election of Chairman Business Continuity Management focal Also, SBF mounted 16 business Mr Tony Chew for a second two- point for local businesses. missions to markets less impacted by year term, SBF is leveraging on its Mr Chew said: “The past two years the economic slowdown, and received working relationship with various have been an exciting and fruitful period over 50 overseas delegations for business chambers and government for SBF. We witnessed signifi cant growth networking and business matching with agencies to take advantage of in member participation, attesting to Singapore companies. These inbound initiatives and incentives arising from the value SBF brings to members and outbound marketing activities recommendations by the Economic through its programmes, services and enabled members to secure over $550 Strategies Committee (ESC). business facilitation efforts.” million worth of deals. As a member of the ESC, “SBF is gaining increasing SBF had initiated an important recognition as Singapore’s apex Advisory council forum between key business chamber among its members and As Secretariat for the meeting of APEC representatives and ESC members, business partners, as well as Business Advisory Council (ABAC) in chaired by Minister for Finance local and foreign chambers and Singapore, SBF successfully organised Mr Tharman Shanmugaratnam. SBF government agencies,” he added. the APEC CEO Summit and hosted the and its members, together with concluding meeting of ABAC. These two McKinsey & Company, produced SBF initiatives events were an important platform for a proposal for the ESC on ways Amid the global economic slowdown business leaders to provide feedback to help Singapore improve and and H1N1 outbreak last year, SBF to the 21 APEC nations’ leaders on maintain its competitive edge. helped members overcome their measures to facilitate business, as well In addition, SBF focused on challenges by organising 275 as the primacy of free and open trade.

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ELECTION OF OFFICE BEARERS

CHAIRMAN: Tony Chew (Chairman, Asia Resource Corp OTHER MEMBERS: Pte Ltd) Steven Royce Okun, Chairman, American Chamber of Commerce VICE-CHAIRMAN: Dato’ Mohd Zain Abdullah (Immediate Chong Siak Ching, CEO, Ascendas Pte Ltd Past President, Singapore Malay Chamber of Commerce Micheal Collins, President, European Chamber of Commerce & Industry / Executive Chairman, Prestige Marine Shabbir Hassanbhai, Director for Finance & Investment, Services Pte Ltd) Indo Straits Trading Co Pte Ltd VICE-CHAIRMAN: Teo Siong Seng (President, Singapore Edwin Khew, Director, IUT Singapore Pte Ltd Chinese Chamber Of Commerce & Industry / Managing Seiji Kino, President, Japanese Chamber of Commerce Director, Pacifi c International Lines Pte Ltd) & Industry VICE-CHAIRMAN: R. Narayanamohan (Chairman, Jung Young Soo, Chairman, Korean Chamber of Commerce Singapore Indian Chamber Of Commerce & Industry / & Industry Senior Partner, Natarajan & Swaminathan) Gautam Banerjee, Director, Pricewaterhousecoopers HONORARY SECRETARY: Philip Ng (CEO, Far East WMS Pte Ltd Organization Pte Ltd) Tang Kin Fei, Group President and CEO, Sembcorp HONORARY TREASURER: Bob Tan (Chairman, Jurong Industries Ltd Engineering Ltd) Hill Desmond Louis, Past President, Singapore Contractors DEPUTY HONORARY SECRETARY: Kay Kuok (President, Association Pte Ltd Singapore Hotel Association / Executive Chairman, George Huang, President, Singapore Manufacturers’ Federation Shangri-La Hotel Ltd) Wee Ee Cheong, Chairman, The Association of Banks DEPUTY HONORARY TREASURER: Lawrence Leow in Singapore (President, Association Of Small And Medium Alvin Yeo, Senior Partner, Wongpartnership LLP Enterprises / Chairman and CEO, Crescendas Group) Robert Yap, Chairman and CEO, YCH Group Pte Ltd

APPRECIATION LUNCH FOR OUTGOING SBF COUNCIL MEMBERS SBF organised an appreciation THE OUTGOING SBF COUNCIL MEMBERS ARE: lunch on August 3 for Chua Thian Poh (Vice-Chairman) 2006-2010 outgoing Council Members in Barry Desker (Vice-Chairman) 2002-2010 recognition of their invaluable Vijay Iyengar (Vice-Chairman) 2008-2010 service to the Federation. Cheng Wai Keung (Honorary Secretary) 2002-2010 The event was graced Kristin Paulson (Deputy Honorary Treasurer) 2003-2010 by Minister for Trade and Simon Cheong (Council Member) 2007-2010 Industry, Mr Lim Hng Kiang, who presented tokens of David Conner (Council Member) 2007-2009 appreciation to Council Members on SBF’s behalf. Joachim Ihrcke (Council Member) 2008-2009 SBF Chairman Mr Tony Chew expressed his heartfelt thanks Yasuhiko Kitagawa (Council Member) 2008-2010 to the outgoing Council Members for their unstinting support Renny Yeo (Council Member) 2008-2010 and contribution to SBF and the local business community.

Last year, SBF and the Singapore brought together 1,500 international Commerce & Industry have permanent Economic Development Board delegates from the Asia-Pacifi c region representation. Up to 25 per cent of the co-presented Global Entrepolis and beyond. Council members are representatives @ Singapore, a regional business Within the SBF Council, Singapore from foreign chambers of commerce networking platform to spur business Chinese Chamber of Commerce and industry, while the remaining collaboration and internationalisation. & Industry, Singapore Malay members are nominees of local Held to coincide with the APEC Chamber of Commerce & Industry chambers or elected representatives Week and APEC SME Summit 2009, it and Singapore Indian Chamber of from member companies. +

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SBFUPDATE]

China’s new frontier: Zhejiang province

ingapore Business Federation (SBF) and SSingapore Manufacturers’ Federation (SMa) led an 81- member delegation to Hangzhou, Ningbo, Zhoushan and the Shanghai World Expo 2010 in China this August. Some of the SMEs were visiting Zhejiang GROUP PHOTO AT HANGZHOU-SINGAPORE PRESENTATION OF GIFT TO HANGZHOU BUSINESS COOPERATION FORUM. MUNICIPAL GOVERNMENT. province for the fi rst time. The delegation comprised 60 The mission aimed to foster Park, Ningbo Economic & Technological companies across various industry closer Zhejiang-Singapore business Development Zone, Zhoushan clusters: electronics, food and relationships and develop new Manufacturing Industrial Park and beverage manufacturing, logistics, frontiers for potential collaborations Zhoushan Logistics Hub. trading, engineering, and building between the two SME communities. Known for its “Zhejiang model” and construction. The delegation explored and “Zhejiang spirit” of encouraging This mission was led by opportunities within the region’s entrepreneurship, privately owned Dr Robert Yap, SBF Council economic and technological enterprises have invested in other parts Member and Chairman of ASEAN development zones and industrial of China, and are behind famous Chinese Business Group, SBF, and Mr Poh parks, such as the Hangzhou Hi-Tech brands such as Geely automobiles, Choon Ann, Vice-President of Industry Development Zone, Hangzhou Wahaha beverages, Youngor apparel, SMa and Vice-Chairman of China Economic & Technological Development and Alibaba Internet marketplace by Business Group, SBF. Zone, Hangzhou Singapore Industry entrepreneur Jack Ma. +

South Korea-Singapore business dialogue

dropped by 9.6 per cent from $42.6 billion in 2008 to $38.6 billion in 2009. Singapore’s trade with South Korea during the fi rst quarter of 2010 increased signifi cantly by 41.4 per cent to $10.9 billion compared to the same period last year. Singapore is the second largest SBF CHAIRMAN MR TONY CHEW GROUP PHOTO OF PRESIDENT LEE AND THE INTRODUCING MR STEPHEN LEE (THIRD SINGAPORE BUSINESS COMMUNITY. Asian investor nation in South Korea FROM LEFT), CHAIRMAN OF SINGAPORE AIRLINES LIMITED, TO PRESIDENT LEE. after Japan. “Singapore’s cumulative investments in South Korea at the end outh Korean President Mr Tony Chew, reaffi rmed the need of 2009 totalled US$5.9 billion,” said Mr Lee Myung-bak recently to foster closer dialogue between the Mr Chew. Smet Singapore business business communities of both countries. “As Singapore and South Korea leaders in a dialogue session Singapore was South Korea’s move towards a knowledge economy, hosted by Singapore Business fi fth largest export partner and 12th there are many possible areas of Federation (SBF) to discuss ways largest import partner in 2009, while cooperation between our businesses, of enhancing trade and investment South Korea was Singapore’s seventh such as urban solutions, energy between Singapore and South Korea. largest trading partner. management, water and wastewater The session, which was Due to the economic slowdown, management, and sustainable moderated by SBF Chairman Singapore’s trade with South Korea transportation.” +

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CAEXPO ad.indd 7 Upon approval 9/29/10 6:39:53 PM Please sign: Name and Date: SBFUPDATE]

Developments in Malaysia Sustainable Singapore Business Federation led an 88- developments member business delegation to Iskandar with Germany Malaysia for an update on the latest The Singapore-Germany business opportunities and investment Business Seminar on possibilities in this development. Iskandar Environmental Investment Malaysia attracted investments of RM60 Opportunities and Technology billion from January to April this year, Collaboration highlighted the compared to RM55 billion for 2009. The challenges caused by climate Singapore delegates visited the Johor change and a burgeoning urban Technology Park (Senai), Educity, Nusa population globally. Singapore Cemerlang Industrial Park (Nusajaya), Business Federation also signed Southern Industrial and Logistics Cluster an MOU with three partners (Nusajaya), Setia Business Park and Setia – Singapore Water Association, Eco Gardens. Ngee Ann Polytechnic and On another front, Malaysia’s Minister Environmental Management of International Trade and Industry, Dato’ Sri Mustapa Mohamed, Association of Singapore – to told participants at the recent Business Opportunities in Malaysia facilitate green collaboration. + event that there are plans to revive the Malaysia-Singapore Business Council to spearhead closer business collaboration. The mission was jointly organised by the Malaysian Investment Development Authority, Malaysia External Trade Development Corporation, SBF and International Enterprise Singapore. The event was to encourage Singapore companies to invest and do business in Malaysia, as well as to enhance bilateral economic relations between both countries. +

European debt crisis Bahrain leaders woo and trends logistics companies Singapore Business Federation Some 50 participants attended the recently organised a seminar seminar by Singapore Business on the European debt crisis, Federation and the Bahrain supported by various European Economic Development Board to chambers and trade associations discuss business opportunities in Singapore. About 47 senior- in Bahrain’s logistics sector. The level representatives from country is emerging as the most Collaborative efforts diverse industries with presence cost-effective trans-shipment hub with Oman or interest in the European to serve the northern Gulf via the The Oman Chamber of Commerce market attended this event. US$360 million Khalifa Bin Salman and Industry and Singapore Business and thought leaders Port and the US$280 million Business Federation recently were also invited to network Bahrain Logistics Zone scheduled organised the Singapore-Oman with the participants. + to open in 2011. + Business Forum 2010 to explore collaborative opportunities between the business communities on both sides. Some 120 Singapore companies from various sectors like ICT, oil and gas, manufacturing, fi nance, hospitality and education attended the forum and business- matching sessions. +

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EYEONSMEs]

SME NEWS SMEs positive about business performance SBF-DP SME Index sees a rise in business sentiment in the second quarter of this year, despite reported signs of a slowing economy.

he SBF-DP SME Index SMEs’ business expectations in the between the fourth quarter of last – an initiative of Singapore next six months improved from the year and the fi rst quarter of this year. TBusiness Federation fi rst quarter of this year. Besides transport and storage, (SBF) and DP Information Group SMEs in the transport and storage other strong performers included – revealed that the owners of sector were the most bullish, fuelled commerce, up 7 points to 61, and Singapore’s vital SMEs are feeling by the strong manufacturing output services, up from 49 to 56, as more upbeat about their business in the preceding few quarters. More these businesses expect more prospects and, as a refl ection of SMEs in the commerce and services tourist arrivals. the positive sentiment, plan to hire sectors were also looking to expand More than 3,000 SMEs were more workers. in the next six months. interviewed for the study in June, The quarterly index measuring The number of SMEs in the which measured the outlook over SME sentiment for the second manufacturing sector seeking to the next six months. Employers in half of this year jumped fi ve expand in the second half of 2010 every sector expected to hire more points, rising to 56 from 51 in the increased too, albeit at a lower rate. workers in the following six months. fi rst quarter of the year, the two “The good news for job seekers is organisations said. A reading above Strong shift in sentiments that the improved outlook of SMEs has 50 indicates an improvement. Manufacturers were less bullish, as translated into the confi dence required Every sector, apart from the factory index dropped to 51 from to employ more people as businesses manufacturing, indicated a greater 55. This was not unexpected, even plan to expand,” said DP’s Managing optimism regarding turnover and with the strong shift in sentiment Director Ms Chen Yew Nah. + profi t over the next six months. While the fi rst quarter refl ected 2Q10 RESULTS the strong resurgence of the manufacturing sector, the second The SBF-DP SME Index took a 5-point jump to a reading of 56 in 2Q10. quarter’s results showed how The strong manufacturing numbers in 1Q10 pushed the transport and the boom in manufacturing has storage, commerce and services sector indexes to new highs. This impacted other areas of the positive trend over the last three quarters refl ected the interconnectivity economy, especially the transport of these four sectors. and storage sector. The sector However, the manufacturing sector’s index score decreased from recorded the greatest improvement 55 to 51. Sustenance over the next six months is indicated by the index, in in sentiment – a remarkable 18- line with the recovery in Asia. point jump from 50 in the fi rst At an index score of 56, the overall sentiment suggests a “positive” quarter of 2010 to 68 in the second outlook, where the SMEs’ level of sustainability is expected to be good in quarter of this year. the following six months. SBF CEO Mr Teng Theng Dar said: “Based on this index, we SBF-DP SME Index Business Expansion Expectations Over the Next Six Months expect to see our SME community Overall Index 4Q09 1Q10 2Q10 (out of 100) Survey Period 3Q09 4Q09 1Q10 2Q10 enjoying reasonable business Forecast Period Baseline 2Q10 3Q10 4Q10 activity for the second half of 2010.” Commerce 48 54 61 Manufacturing 47 55 51 Commerce 5.96 5.65 6.08 6.41 Manufacturing 4.89 5.26 5.88 5.98 Services 47 49 56 Business expectations Services 5.39 5.56 6.12 6.31 Transport/Storage 48 50 68 More SMEs were contemplating Transport/Storage 5.22 5.25 5.20 6.17 an expansion due to their more Overall 48 51 56 Overall 5.38 5.45 5.91 6.22 positive turnover and profi t outlook SOURCE: QUARTERLY SBF-DP SME INDEX for the next six months. Overall,

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EYEONSMEs] SPOTLIGHT BUSINESS MISSION 25TH INTERNATIONAL Singapore Pavilion in CAEXPO AUTUMN TRADE FAIR 2010 7th China-ASEAN Expo 2010 • Oct 20-24 • Nanning, China Dec 13-15 by 66 per cent compared with the Dubai, United Arab Emirates same period last year. Singapore Business Federation ASEAN countries like Vietnam, (SBF) is organising a Singapore Malaysia, Thailand, the Philippines Pavilion at the 25th International and Brunei have also seen a sharp Autumn Trade Fair in Dubai, and PHOTO: SPH LIBRARY increase in their exports to China. invites SBF member companies By the end of February, China’s to showcase their products and direct investments in ASEAN hit a services in one of the most The seventh China-ASEAN Expo new record of US$8.57 billion, more prominent events in the region. (CAEXPO) to be held in Nanning, than eight times the fi gure in 2004 The International Autumn Trade China is expected to bring more when the fi rst CAEXPO was held. Fair (IATF) is the only trade China-ASEAN Free Trade Area Singapore Business Federation exhibition in the Middle East and (CAFTA) business opportunities to (SBF) has supported CAEXPO North Africa regions which offers both ASEAN and China. for fi ve consecutive years. Since an ideal platform for the global The upcoming CAEXPO will 2006, it has been appointed by consumer goods industry. adopt new measures to improve its Singapore’s Ministry of Trade For more information, contact economic and trade outcomes, said and Industry to lead the country’s George Chan at 6827-6842, Mr Zheng Junjian, Secretary General participation and showcase its e-mail: [email protected] of the CAEXPO Secretariat. advances. Aside from developing or call Claire Lim at 6827-6898, CAFTA, which came into business contacts at CAEXPO, e-mail: [email protected]. effect on January 1, has begun the delegation comprising member to produce positive results. In representatives from SBF, SMa, January, ASEAN overtook Japan ASME and Singcham will jointly NEW EDITIONS to become China’s third largest lead a business mission to trading partner. In January and Guangxi, China from Oct 18-25 INCOTERMS February, China-ASEAN trade grew to facilitate collaborations. 2010 The International Chamber of Clean Energy Expo Asia 2010 Commerce (ICC) Nov 2-4 • Raffl es Convention Centre has just released Clean Energy Expo Asia is a Asia-Pacifi c region. In 2009, Incoterms 2010, knowledge-sharing platform that this event attracted over 3,500 featuring the latest developments in brings together leading players in clean energy professionals, commercial practice and updates. the technology, services, fi nance more than 70 international In addition to the 11 rules, the guide and government sectors to exhibitors and 80 speakers includes: address key issues in the areas of from over 40 countries • Extensive notes and illustrative renewable energy, energy effi ciency worldwide. Check out graphics to help users and sustainable development in the www.cleanenergyexpoasia.com. • A new classifi cation to help match suitable rules to transport mode • Advice for use of electronic LETTERS FROM OUR READERS procedures If you have any views, comments or suggestions about BiZQ and other • Information on security-related SBF events, we want to hear from you. Please send your contributions to: clearances for shipments • Advice for use in domestic trade The Editor, BiZQ Magazine For orders, contact Shiling at Singapore Business Federation 6827-6875/6827-6844 or e-mail #22-01 Keppel Towers, 10 Hoe Chiang Road [email protected]. Singapore 089315 For a list of ICC’s publications, Or e-mail us at [email protected]. refer to www.sbf.org.sg.

10 [ OCT/NOV/DEC 2010 BIZQ

09-10 EyeOnSME.indd 10 Upon approval 9/29/10 6:55:25 PM Please sign: Name and Date: Are you ready FOR the future?

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Brighter skies ahead with robust performance The Singapore economy registered a strong showing in the fi rst half of 2010. While a gradual easing of growth is expected going forward, business sentiment remains positive. BiZQ fi nds out more.

he blistering performance output rose twofold or more every “The strong manufacturing of Singapore’s economy month from March to May. growth would likely moderate T caused the Ministry of HSBC’s Regional Economist towards the end of the year as Trade and Industry to raise its GDP Mr Frederic Neumann said the bank policy tightening across Asia growth rate for 2010 twice this year. has been bullish on Singapore’s is expected to take its toll on As a consequence of its economic growth outlook for 2010, “but these consumer demand in the region. performance, Credit Suisse Group numbers (1Q GDP) are running well Weakness arising from AG and Oversea-Chinese Banking ahead of even our estimates”. the sovereign debt Corporation are also predicting As 2010 draws to a close, crisis in Europe could that Singapore may overtake China economists are convinced that the also start to weigh in on as Asia’s fastest-growing economy fi nal GDP data will refl ect a sterling export performance,” in 2010. performance for the economy this said DBS Economist Mr Irvin Seah. CIMB Research’s year. This forecast bears in mind a “The uncertainties revolving Regional Economist gradual slowdown in the second half around the sovereign debt problem Mr Song Seng-Wun told of 2010. in Europe require close attention BiZQ: “Singapore will What, then, does 2011 hold for as they could pose the biggest risk be among the fastest- Singapore’s economy? on export and production output growing countries this year – not just DBS believes that the slowdown, growth going forward,” he added. in Asia, but the world.” which is not necessarily bad from The possible demand weakness Following the release of the a standpoint of taming domestic from the second half of 2010 due fi rst-quarter GDP data in mid-July, infl ationary pressures, will continue to the austerity drive in parts of the Ministry said that it expects into 2011. The bank predicts that the Europe and policy tightening in Singapore’s economy to expand Singapore economy will grow 6 per the region could weigh in on the by 13 to 15 per cent in 2010 – an cent in the fourth quarter of 2010, performance of industries such upward revision from its earlier and that the GDP growth rate will as transportation and wholesale forecast of 7 to 9 per cent. In the ease to 5.8 per cent in the fi rst trade services. However, strong data, Singapore’s manufacturing quarter of 2011, and a tad further to mortgage loan growth on the back rose by an average of 45 per cent in 5.5 per cent in the second quarter. of a buoyant the fi rst fi ve months of 2010, after In line with this, Singapore’s property declining by 13 per cent in the same infl ation will ease from a 4 per cent period last year. Pharmaceutical rise in the fi nal quarter of this year to 3.7 and 2.7 per cent respectively in the fi rst and second quarters of 2011.

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sector and a continued increase in with 57 per cent SINGAPORE’S BUSINESS CONFIDENCE CONTINUES TO RISE tourism arrivals would sustain gains (up from 39 140 136 in the services sector in Singapore. per cent in 4Q 127 “As such, while the growth 2009) expecting 122 121 momentum could likely slow, we the pace of Positive 120 117 120 107 117 do not expect a major fallout in economic services growth,” he claimed. growth to Neutral 100 92 increase. About 101 37 per cent 93 Confi dence remains intact Negative 80 On a more qualitative note, HSBC (versus 50 undertook a business confi dence per cent in 4Q 72 60 survey among Singapore’s smaller 2009) expect 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10

enterprises in May/June 2010. it to maintain Singapore Region Ms Tan Siew Meng, its current Head of Commercial momentum in the SOURCE: HSBC SINGAPORE, JUNE 2010 Banking of HSBC next six months. Singapore, said the Only 6 per cent While the growth momentum could bank’s research (down from 11 per likely slow, we do not expect a major indicated that confi dence levels in cent in 4Q 2009) emerging markets are stabilising and expect growth to fallout in services growth. moving toward pre-crisis levels. slow down, the – Mr Irvin Seah, Economist, DBS HSBC’s survey also showed survey indicated. business confi dence among SMEs in Singapore on an upswing. They Feeling the momentum solutions to the construction recorded the biggest jump in Riverstone Holdings, a major industry, expects the current confi dence level among their Asian manufacturer of clean-room gloves, growth momentum to continue peers, climbing 19 points from 117 is an example of a home-grown into the next couple of quarters. to 136. company experiencing buoyant “The outlook for the construction In terms of economic growth, business in the semiconductor sector in Singapore continues to the HSBC survey showed that most industry. “The sector is witnessing be positive, with sustained demand Singapore SMEs its strongest recovery in growth in expected through 2012,” the are bullish on the 10 years. As an established maker company told BiZQ. local economy, of clean-room gloves, Viking Offshore and Marine, Riverstone is well an oil and gas industry player, positioned to benefi t continues to see business from this recovery,” CEO resilience and growth opportunities. Mr Wong Teek Son said. Executive Director Mr Andy Lim The company’s two dipping lines said that despite increasing price at its new plant in Perak in Malaysia and cost pressure from customers, will be operational shortly. “This will which will invariably lead to help us meet the strong backlog margin challenges, the “group of demand. And this should help remains cautiously optimistic of sustain our good performance in delivering profi tability with growth the coming quarters,” he added. prospects from geographical Natural Cool Holdings, a expansion of business... coupled provider of integrated climate with synergistic acquisitions of

management and switchgear complementary businesses.” + PHOTOS: SPH LIBRARY

BIZQ OCT/NOV/DEC 2010 ] 13

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EYEONECONOMY]

Dutch transport minister leads high-level delegation to Singapore

THE DUTCH DELEGATION INCLUDED 32 REPRESENTATIVES FROM THE MARITIME AND AVIATION INDUSTRIES.

THE RECENT DUTCH-SINGAPORE ROUNDTABLE FORUM FACILITATED THE EXCHANGE OF THE USE OF HIGH-TECH URBAN TRANSPORT IDEAS AND SOLUTIONS ON THE GLOBAL AIRPORT/SEAPORT HUBS. SYSTEMS WAS DISCUSSED AT THE FORUM.

Dutch trade delegation that is why it is important to learn effective way. Future collaborations led by the Netherlands from each other,” said Mr Eurlings. were also on the table. A Minister of Transport, He added that Singapore, The second session – ITS-Smart Public Works and Water for example, has vast data and and Sustainable Urban Transport Management, Mr Camiel Eurlings, information on traffi c fl ows, and the – organised by the Netherlands’ was in Singapore recently to Dutch can offer more extensive Ministry of Transport, ITS and learn first-hand about the ways to use the data. Connekt, refl ected on state-of-the- country’s success with traffic Global airport and seaport art developments in the fi eld of management, road safety and hubs face similar issues such as Intelligent Traffi c Systems (ITS) and urban traffi c solutions. sustainable requirements, upgrading Traffi c Management. The delegation included 32 of labour market systems, timely Discussions were focused representatives from the Port of data transfer and the development on smart and sustainable urban Amsterdam, Port of Rotterdam, of port community systems. transport, road pricing, public Schiphol Amsterdam Airport, This was the focus of a roundtable transport smart-card capabilities, as well as maritime and airport- forum – Holland, Connecting Global e-ticketing and multimodality. related companies. Airport/Seaport Hubs – that the Mr Eurlings concluded that “The Netherlands, like minister attended during his recent there is a need for both Singapore Singapore, is a relatively small visit here. Participants exchanged and the Netherlands to find country with a dense population ideas and discussed sustainable innovative ways to manage their and space constraints. We need solutions to ensure both countries national transport systems such as to make more effi cient use of our maintain their global competitive increasing logistics capacities of existing infrastructure network, and edge in the most effi cient and cost- ports, roads and public transport. +

14 [ OCT/NOV/DEC 2010 BIZQ

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BIZCOMMUNITY] ESC panel offers ideas on improving training for the workforce Raising the quality of Singapore’s workforce involves training and upgrading staff to help companies improve productivity levels.

ingapore’s prospects in the “What we really have to do when global marketplace over the we talk about raising productivity S next fi ve to 10 years will lie in is raise our game in every regard boosting productivity levels among – skills, standards and aspirations the workforce. To do so, companies – and transform our economy in every need to consider sharing profi ts with sector, so we can take advantage of their employees, relooking workfl ow these opportunities,” he explained. processes and outsourcing certain MR THARMAN SHANMUGARATNAM, Ministers on the panel emphasised MINISTER FOR FINANCE, HIGHLIGHTING job functions. THE IMPORTANCE OF HELPING LOCAL that improving productivity levels does COMPANIES TO COMPETE IN THE Local companies could start INTERNATIONAL MARKETPLACE. not necessarily mean downsizing the by taking more responsibility for workforce. Also, making workers work the quality and productivity of Mr Tharman Shanmugaratnam, longer hours does not automatically their staff, Manpower Minister Mr Minister for Finance and Chairman improve productivity. Gan Kim Yong said recently. “This of the ESC; Mr Lim Swee Say, “Productivity is a partnership,” includes sending your workforce for Secretary-General of NTUC and said Mr Gan. “It is not just about training and upgrading, as well as Minister in the Prime Minister’s a company making efforts. It also creating incentives such as profi t Offi ce; Mrs Lim Hwee Hua, Minister involves the workers, so workers sharing, so staff are motivated to in the Prime Minister’s Offi ce and must take responsibility for their own raise their productivity and help the Second Minister for Finance and skills upgrading.” company improve overall enterprise Transport; Mr Tony Chew, SBF productivity,” explained Mr Gan. Chairman; and Mr Gautam Banerjee, Urban opportunities In the wake of the SBF Council Member and Executive Mr Tharman urged companies to look to announcement of Budget 2010 and Chairman of Pricewaterhousecoopers emerging markets for opportunities that recommendations by the Economic LLP Singapore. The dialogue was play to Singapore’s strengths in urban Strategies Committee (ESC), moderated by Mr Jonathan Auerbach, management, sanitation, water solutions businesses can take advantage of Managing Partner of McKinsey & as well as services that cater to an pro-business initiatives and incentive Company Southeast Asia. increasingly affl uent population, such as schemes such as the Productivity During the panel discussion, healthcare, travel and fi nancial services. and Innovation Credit, Infocomm@ ESC members fi elded questions He said: “Everything to do with SME, Workfare Training Support on workforce productivity, training, urban management, water, sanitation, Scheme and Business Capabilities innovation, work-life balance clean air, traffi c management and for Internationalisation. and a possible redefi nition of the organising a city that is liveable Mr Gan was speaking at the classifi cation of SMEs. – these areas are the ones we have Singapore Business Federation experience in and have something to (SBF)-organised Ministerial Dialogue Limited manpower offer. A growing number of Singapore held in July, where the local business The challenge of achieving growth companies are becoming leading community was briefed on how to with a limited labour supply is specialists in these fi elds.” leverage the ESC recommendations daunting. One way to overcome He explained that Asia is a main and Budget 2010 measures to this is to adopt the 3R strategy driver of today’s surge in demand strengthen and grow business. The 600 – Repositioning businesses, for many urbanised services, such participants included SBF members as Restructuring processes and taking as health care, travel, education, well as 21 business chambers. Responsibility for the quality of entertainment and fi nancial services, The rest of the panel comprised workers, said Mr Tharman. and pointed out: “These are things

16 [ OCT/NOV/DEC 2010 BIZQ

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PARTICIPANTS GAINED INSIGHTS FROM SPEAKERS FROM INLAND REVENUE AUTHORITY OF SINGAPORE, SINGAPORE WORKFORCE DEVELOPMENT AGENCY, INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE, SPRING SINGAPORE AND IE SINGAPORE ON VARIOUS INITIATIVES AND INCENTIVE SCHEMES. SBF CHAIRMAN MR TONY CHEW, WHO REPRESENTS SBF AS A MEMBER OF THE ESC MAIN COMMITTEE, WAS PART OF THE PANEL OF MINISTERS AND BUSINESS LEADERS AT THE MINISTERIAL DIALOGUE.

that play to our strengths and Business Chambers (TACs) to Director of SME Infocomm Enabler, the experience we have. A whole serve as industry champions and IDA, gave a presentation on the slew of Singapore companies has market facilitators for companies Infocomm@SME programme, an introduced products in these areas to expand overseas, SBF will integrated approach to assisting to the market over the years.” work in partnership with TACs SMEs to adopt ICT to improve their and government agencies to help productivity and growth. IDA also SBF and its partners companies internationalise, as presented iSprint, a new initiative that SBF Chairman Mr Tony Chew, who well as facilitate the progress of aims to provide one-stop assistance represents SBF as a member of the its 15,000 members towards a and funding to SMEs with differing ESC Main Committee, said that SBF productivity-led and innovation- infocomm needs. will continue to serve and increase driven economy,” he affi rmed. Spring Singapore’s Mr Rajesphal its engagement of the wider During the morning session, Singh, Senior Offi cer of the Singapore business community, participants gained insights from Productivity Programme Offi ce, bringing best practice and providing speakers from Inland Revenue apprised participants of the SME clarity on policy issues, market Authority of Singapore (IRAS), Productivity Roadmap (SME-PRO) outlook and business updates. Singapore Workforce Development and touched on the Productivity@ “In response to the government’s Agency (WDA), Infocomm Work website as well as the key call to Trade Associations and Development Authority of Singapore incentive schemes to provide (IDA), Spring Singapore and assistance for SMEs. International Enterprise Singapore Ms Quek Ai Nah, Divisional Director (IE Singapore) on various initiatives of Capability Enabling Division, and incentive schemes to upgrade IE Singapore, provided details on and boost enterprise capabilities the SME Market Access Programme, and assist companies to leverage iFinance Programme and International emerging opportunities in the Partners programme which companies evolving Singapore and global can tap on in support of their MRS LIM HWEE HUA, MINISTER IN THE PRIME MINISTER’S OFFICE, SAID THAT A BROADER economic landscape. internationalisation efforts. DEFINITION OF SME WOULD ALLOW MORE ENTERPRISES TO BE ELIGIBLE FOR THE Tax specialist Ms Joan Fuan from Fielding questions on tax matters GOVERNMENT’S SUPPORT SCHEMES. IRAS briefed participants on the and government schemes during Productivity and Innovation Credit and the question-and-answer session outlined how they can derive signifi cant were SBF Chief Operating Offi cer, tax deductions for investments in a Mr Victor Tay, and other panellists, broad range of activities. including Mr Anil Das, Senior Ms Serene Ho, Manager of Director of Industry Skills & Planning Policy Division, WDA, covered Offi ce, WDA; Mr Lam Kong Hong, details on the Workfare Training Director of Enterprises Division, Support which would enable low- Spring Singapore; Mrs Wong-Tan MR DESMOND HILL, SBF COUNCIL MEMBER AND DEPUTY GENERAL MANAGER OF PENTA- wage workers to upgrade their skills Puay Luang, Principal Tax Specialist, OCEAN CONSTRUCTION CO LTD, RAISING through training. IRAS; IE Singapore’s Ms Quek; and HIS QUESTION DURING THE DIALOGUE SESSION WITH THE MINISTERS. Ms Catherine Chong, Assistant IDA’s Ms Chong. +

BIZQ OCT/NOV/DEC 2010 ] 17

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BIZCOMMUNITY]

Promising future for Macau’s MICE industry

Macau is gearing up for a share of and buildings, while welcoming new The Macau Business Tourism the international MICE (meetings, tourism developments. Centre (MBTC) was opened in incentives, conventions and April 2006 and operates under the exhibitions) market. Why is the MGTO keen on supervision of the MGTO. This According to a recent report by moving into the MICE sector and centre solicits the views of trade and the Macau Convention & Exhibition what does Macau have to offer in public bodies to achieve an alignment Association, projected income may this regard? in goals, conducts training courses, amount to almost US$188 million by implements studies, performs market 2015, while creating around 2,500 research, and manages events and permanent job opportunities by special projects. year-end. BiZQ recently spoke to Mr Charles Leong, the Singapore While China presents a larger Representative of the Macau opportunity for Macau, how is Government Tourist Offi ce (MGTO). Southeast Asia equally important?

How has the MGTO With Macau’s development into one China makes up more than 50 per successfully raised awareness of Asia’s top entertainment centres, cent of arrivals to Macau (53.5 per of Macau as a destination rich in it now features world-renowned cent from January to May 2010). culture and heritage? hotel brands, meeting facilities of However, Southeast Asia has been international standards and vastly a consistent performer. Singapore, In 2005, the Historic Centre of improved air and sea access, which Malaysia, Thailand and the Philippines Macau, located right at the heart of will be further enhanced when the have remained among the top 10 the city, was designated a UNESCO- Hong Kong-Guangzhou-Macau Bridge visitor-generating markets for the listed World Heritage Site. Working opens in fi ve to six years’ time. past fi ve years. closely with the Cultural Institute of Top-notch tourism developments Also, Southeast Asia is a Macau, MGTO successfully combined that started in Macau four years business hub with many MNCs Macau’s strong cultural elements into ago comprise integrated resorts, and regional headquarters based its destination-promotion activities. technically advanced facilities there. MGTO and MBTC therefore Consistent conservation work is for MICE groups of all sizes and view Southeast Asia as one of carried out, treating visitors to the international F&B outlets, including Macau’s key source regions for the sight of many heritage landmarks Michelin-starred restaurants. MICE business. +

Raising the stakes in Asean competitiveness The Southeast Asian region offers organised by SBF recently. The facilitation and cooperation to the best prospects for business briefi ng covered the results of promote investments; reform and expansion in the wake of the an SBF-supported survey in mid- enhancement of the Rules of Origin; global economic crisis, Singapore 2009 that aimed to determine and the pace of SME development. SMEs believe. In contrast, larger business perspectives on ASEAN The ease of doing business in companies fi nd China more competitiveness and ASEAN policy Southeast Asia is vital as economic attractive. initiatives amid the global crisis. giants China and India emerge. ASEAN policy initiatives such as Overall, enterprises in Singapore ASEAN’s current overall competitive the ASEAN Economic Community are of the view that important position is better than India’s but lower (AEC) Blueprint are also considered areas in the implementation of than China’s. ASEAN appears to be by SMEs to be vital in their decisions the AEC Blueprint that have to be weaker in the areas of innovation and to increase investment in the region. accelerated include, in order of technological environment compared These fi ndings were revealed priority, the elimination of tariffs with China and India, so such areas at the SBF Dialogue Session and non-tariff barriers; elimination should be enhanced to improve the on ASEAN Competitiveness of restrictions to trade in services; region’s future competitiveness. +

18 [ OCT/NOV/DEC 2010 BIZQ

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COUNTRYINSIGHTS]

PLASTIC WATER PIPES USED FOR WATERING THE PLANTS IN THE FIELD USING DRIP IRRIGATION IN THE SHARON VALLEY NEAR NETANYA. DRIVING COLLABORATION IN INNOVATION, CLEAN TECHNOLOGIES Israel shows the way in the search for new technology and renewable energy solutions. BiZQ takes stock.

n old adage states: arid land with a comfortable and 100 start-ups in Israel that are “From adversity springs sunny climate, solar energy was dedicated to developing alternative A opportunity.” In the biblical one of the fi rst alternatives Israeli energy technologies unlikely to be land of milk and honey, Israel researchers turned to. matched easily. – lacking in extensive resources of For a country with a relatively Relative to its small size, Israel fossil fuel – is ploughing suffi cient small population vis-a-vis its has devoted more resources to resources into the emerging neighbours, Israel has pioneered the development of waste water renewable energy industry to several fi rsts in recent times. The treatment and reclamation than any become a pioneer in researching country made a major breakthrough other country in the world. According alternative possibilities. by building the world’s largest to a recent United Nations study, Today, the search for renewable thermal solar plant in California’s 70 per cent of its waste water is energy solutions is being driven Mojave Desert and has pioneered recycled, three times the fi gure of by both the private and academic domestic solar water heating. second-placed Spain. Israel is the sectors throughout the country. An There are currently a total of birthplace and world leader in drip

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FUTURE TECHNOLOGICAL LEADERS Recognising the prowess of Israeli varsities, Singapore’s Nanyang Technological University (NTU) and Israel’s No. 1 university, Technion- Israel Institute of Technology (Technion), have just inked a deal to collaborate jointly on a Doctor of Philosophy (PhD) programme. As one of the world’s top science and technology research universities, Technion is famed for producing the majority of leaders in Israel’s high-tech companies. Known as “Israel’s MIT”, Technion WATER TREATMENT PLANT: THE MEKOROT CENTRAL FILTRATION PLANT IS THE FOURTH has earned a worldwide reputation for its pioneering work in areas LARGEST DRINKING WATER FILTRATION PLANT such as medicine, water management, nanotechnology, biotechnology, IN THE WORLD. materials engineering and aerospace. “The Technion is delighted to launch the joint PhD programme irrigation, which has literally turned with NTU, one of the leading technological universities in the world,” deserts into farmlands. Technion president Professor Peretz Lavie said recently. “Combining Israel’s clean-tech sector has a the knowledge and talents of our institutes will ensure the high quality number of leading-edge companies, and excellence of the scientifi c and technological leaders in Singapore especially in solar energy, water and Israel.” management, waste recycling The fi rst batch of students in the joint PhD programme is expected to and electric vehicles which have enrol in January 2011, with each university offering up to fi ve places penetrated the North American and a year. Candidates, who will be selected by NTU and Technion, have to European markets. Many of them, meet the prevailing admission criteria of both universities. however, lack suffi cient market presence in Asia Pacifi c, especially the Southeast Asian markets. This represents untapped opportunities for Singapore companies. Indeed, based on the strong LEVERAGING COMPLEMENTARY STRENGTHS: NTU PRESIDENT interests in business matching DR SU GUANING (LEFT) AND TECHNION PRESIDENT PROFESSOR PERETZ LAVIS between both Singapore and Israeli SIGNED AGREEMENTS TO KICK-START companies, there is very good A JOINT PHD PROGRAMME AND RAISE THE LEVEL OF EXCHANGE BETWEEN potential for Singapore companies NTU AND TECHNION. PHOTOS: PHOTOLIBRARY / TECHNION-ISRAEL INSTITUTE OF TECHNOLOGY with their successful track record across the region, strong business networks, and branding and technical Comprehensive collaboration In one particular instance, expertise to implement and integrate Given this abundant innovation and Singapore’s iWOW Communications the Israeli technologies and solutions opportunity, the Singapore-Israel is collaborating with Israel’s in the local and regional markets. Industrial R&D Foundation (SIIRD), CartaSense. formed in 1997, aims to create Both companies are working to matchmaking opportunities between design a comprehensive cold chain Singapore and Israeli companies in management solution, a system the fi eld of R&D. which maintains stable environmental SIIRD provides funding of up to conditions for the agriculture and US$750,000 for joint R&D projects pharmaceutical sectors. between companies based in Looking ahead, SIIRD continues Singapore and Israel. to examine new opportunities This year, SIIRD approved to support innovation between funding for four new ground-breaking Singapore and Israeli companies. projects amounting to $10.6 million. The next round for the evaluation This follows a commitment to fund of new proposals close in mid- $10 million for six earlier projects in November, with proposal approval MODERN APARTMENTS WITH SOLAR PANELS IN THE MODERN CITY OF OROT. the third quarter of 2009. slated for May 2011. +

BIZQ OCT/NOV/DEC 2010 ] 21

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GLOBALBUSINESS] PHOTO: PHOTOLIBRARY PHOTO:

COTTON WAREHOUSE IN NGAOUNDERE, NORTH CAMEROON. AFRICA BUSINESS GROUP OFF TO A ROARING START Supporting this strategic national initiative, SBF expects to facilitate stronger trade and investment ties between Africa and the Republic.

bout 20 years ago, Launched at the fi rst Africa- New frontier Singaporean entrepreneur Singapore Business Forum this Africa appears to be a fast-emerging A Ms Loi Eng Koon started July, the AfBG is the sixth business frontier and a promising one too. her consumer electronics trading group to be inaugurated by SBF The forum drew the interest of 400 business in Nigeria, a place where few since 2006. participants, with a third hailing from 17 dared to tread into. Today, G&W Speaking at its launch, AfBG of Africa’s 53 countries. Eight African International makes CDs and DVDs Chairman Mr Shabbir Hassanbhai ministers from Angola, Cameroon, the for Nigeria’s growing fi lm industry said: “The recognition of Africa’s Democratic Republic of the Congo, and has just introduced solar-powered emergence comes at an opportune Gabon, Mauritius, Nigeria and Togo street lights to parts of the country. moment for Singapore companies were present to give the event a lift. Now, her fi rm stands as a to explore new investment and Singapore is one of many beacon for other fi rms looking to business avenues. As a national countries around the world which move into Africa. business networking and resource have already established formal trade It is this spirit – also exemplifi ed platform in Singapore, AfBG can play and investment links with Africa. by other local organisations, including a role in bridging the information, Asia’s share of African trade has the Singapore Business Federation connection and perception gaps doubled to 28 per cent over the past (SBF) – that led to the birth of the between Singapore’s and Africa’s decade, with Singapore’s total trade Africa Business Group (AfBG). business communities.” with the latter standing at US$8.4

22 [ OCT/NOV/DEC 2010 BIZQ

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SBF LAUNCHES THE AFRICA BUSINESS HIGH COMMISSIONER OF UGANDA FOUR HUNDRED LOCAL AND FOREIGN GROUP AT THE AFRICA-SINGAPORE BUSINESS MS NIMISHA MADHVANI RAISING A QUESTION PARTICIPANTS ATTENDED THE INAUGURAL FORUM, AS A PLATFORM TO ENHANCE THE FOR OUR DISTINGUISHED PANELLISTS. AFRICA-SINGAPORE BUSINESS FORUM. INTERACTION BETWEEN THE BUSINESS COMMUNITIES IN AFRICA AND SINGAPORE.

billion in 2009. This is a result of Singapore’s Minister of State for Singapore as a gateway

PHOTO: PHOTOLIBRARY PHOTO: trade growing at an annualised rate of Trade and Industry Mr Lee Yi Shyan For African companies venturing out 11 per cent year-on-year since 2002. pointed out that Africa’s push for to Asia, Singapore’s strategic In terms of investment, the projects urbanisation would create location makes it a natural gateway. being executed by Singapore opportunities for Singapore. Boasting the world’s busiest trans- companies in the industrial, consumer “As Africa develops its shipment port, the world’s best and construction sectors in Africa are infrastructure and adds new public airport and the most competitive worth a total of $9.6 billion. amenities, schools and other economy, Singapore is home to To date, Singapore has inked a institutions to boost its 7,000 MNCs, including some Comprehensive Avoidance of Double developmental capacity, acquiring from Africa. Taxation Agreement with South Africa, the lessons of more advanced Today, there are about 80 which serves to prevent double countries will help shorten its African companies operating out of taxation of income earned in one learning curve. Singapore’s Singapore. The aim of SBF, together country by a resident of the other experience may be of some with the government agencies it country. It also makes clear the taxing relevance as a case study.” works with, is to double or even rights on different types of income “Our public and private sectors triple this number within the next arising from cross-border economic have accumulated experience in fi v e y e a r s . activities between the two countries. many areas of potential mutual One such company, Grindrod, a With Singapore and Kenya having interests, such as urban planning, South African shipping and transport signed an air services agreement in industry development, transport group, has been operating a regional January 2010 that allows for more and logistics, public housing, trading company for the Southeast fl ights between the two countries, environmental protection, water Asian market. As a commitment to direct air travel between Singapore preservation and regeneration, the Singapore marketplace, the and Africa is expected to increase health care and education,” he said. company, which seeks to identify further too. As part of the launch of AfBG, the opportunities in markets in the Far Singapore and African government Singapore government announced East, such as China and Hong Kong, agencies and organisations have also that the African Development Bank has based its trading division here. inked a number of Memorandums of and International Enterprise It is also looking for new markets Understanding to promote bilateral Singapore would explore cooperation to enter and for new commodities, collaboration. These include the 2008 in areas such as water and sanitation, it said. agreement between the Singapore urban development, airports and Similarly, Angliss Singapore, Cooperation Enterprise and Rwanda’s seaports, technical and vocational owned by the Bidvest Group of Human Resources and Institutional training, and e-government. South Africa, supplies a full range of Capacity Development Agency for In addition, Singapore and Togo quality food products to over 3,000 public sector collaboration between inked an MOU recently. Singapore customers in the Southeast Asia the two countries. Cooperation Enterprise and Togo’s region, while Sonasia, a subsidiary of Ministry for Planning, Development Sonangol, Angola’s national oil Case studies (Town and Country Planning) will company, is another African company At the opening of the inaugural make joint efforts to develop Togo’s that uses Singapore as a regional Africa-Singapore Business Forum, industrial and educational sectors. headquarters for marketing. +

BIZQ OCT/NOV/DEC 2010 ] 23

22-23 GlobalBiz-Africa.indd 23 Upon approval 9/29/10 7:05:57 PM Please sign: Name and Date: COVERSTORY] Managing the Risks in Business Continuity Risk management is critical to the sustainability of organisations, and to a dynamic, business-oriented Singapore. Experts share their insights with BiZQ.

ive years on, after six Security Dialogue titled Fortifying and the appointed BCM focal national dialogues, Singapore Your Business Networks, point for businesses in Singapore, Fcontinues to take sturdy steps Singapore Business Federation SBF is tasked with ensuring that towards creating an environment (SBF) Chairman Mr Tony Chew businesses are aware of the where business resilience said: “The key to prepare for various threats to their operations. continues to be bolstered. and manage a cyber attack, This focus on BCM is in line The reality is that Singapore supply chain disruption or with Singapore’s initiative to is a major global transport, other unforeseen business strengthen the national security fi nancial and commercial hub. disruptions is business continuity architecture and drive the Any disruption to the political, management (BCM).” adoption of BCM processes. In economic or social system will November 2008, Deputy Prime hurt the nation. Minister and Coordinating Minister Even when one factors out for National Security, Professor disruptions in Singapore like S. Jayakumar, announced that the crash of a major bank’s ATM the Singapore Government would network or the torrential rains be setting aside $30 million in which adversely affected local funding for business-continuity drainage systems, local businesses and disaster-recovery initiatives. are still vulnerable to the risks posed by global events, such as SBF CHAIRMAN MR TONY CHEW SAID THAT BCM PREPAREDNESS the volcanic eruption in Iceland BCM IS THE KEY TO MANAGE SUPPLY CHAIN IN SINGAPORE DISRUPTION OR OTHER UNFORESEEN and offshore terrorist schemes to DISRUPTIONS IN BUSINESSES. While BCM continues to be demolish landmarks in Singapore. “BCM is a holistic management discussed at national levels, how The harsh reality of being process that identifi es and prepared are Singapore’s fi rms? business-ready is summed up by assesses potential threats. It also Auditing fi rm KPMG recently Mr Hubert Edwards, an expert provides a framework for building shared with BiZQ its third annual who undertook a study on the resilience and the capability for an report on the state of enterprise lapses that contributed to the effective response that safeguards risk preparedness of fi rms here. collapse of Barings in Singapore. the interests, reputation, brand A telling point in the report “Within any organisation, and value-creating activities of key is that slightly above half (51 per especially a bank or fi nancial stakeholders,” said Mr Chew. cent) of all companies polled in institution, it is critical that all He added: “A BCM-ready Singapore have implemented an the signifi cant risks of a business private sector will enhance enterprise risk management (ERM) activity being undertaken are Singapore’s reputation as a programme. Only one in four identifi ed and assessed in a trusted hub for reliable and (26 per cent) understood its proactive and consistent manner.” quality service.” strategic importance. In addressing the 2010 National As the apex business chamber, The survey conducted

24 [ OCT/NOV/DEC 2010 BIZQ

24-28 CoverStory.indd 24 Upon approval 9/29/10 7:15:26 PM Please sign: Name and Date: BCM is a holistic management process that identifi es and assesses potential threats, It also provides a framework for building resilience and the capability for an effective response. – Mr Tony Chew, SBF Chairman

spite of the recent fi nancial crisis and series of corporate failures, ERM programmes exist in form rather than substance, which can lead to dire consequences, said Mr Irving Low, Executive Director and Head of Enterprise Risk Management THE SINGAPORE GOVERNMENT WOULD BE SETTING ASIDE $30 MILLION IN FUNDING Practice at KPMG Singapore. FOR BUSINESS-CONTINUITY AND DISASTER- RECOVERY INITIATIVES. In view of the recent fi nancial crisis, KPMG between October 2009 and zoomed in on enterprise risk early 2010 reached out to 203 preparedness and adoption organisations. Participating fi rms in the fi nancial sector, added included both small and medium Mr Low. Among the fi nancial enterprises, as well as major MNCs institutions surveyed, only 61 per operating in Singapore. cent implemented ERM. The As far as BCM was concerned, sample comprised > the report showed that ERM still played a more tactical role rather than a strategic one. When asked about the extent of their implementation efforts in risk management, most organisations said that they had not fully applied the key

elements of such a programme. PHOTO: GETTY IMAGES In particular, 29 per cent of companies with an ERM programme had not defi ned their organisation’s risk appetite; about 78 per cent had not integrated risk management objectives with performance or remuneration; while 72 per cent had not attempted to control risk- mitigation costs. These results suggest that, in

BIZQ OCT/NOV/DEC 2010 ] 25

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COVERSTORY]

insuffi cient organisations are concerned WHY AREN’T COMPANIES OPERATING IN SINGAPORE IMPLEMENTING AN ERM PROGRAMME? as the risk with the proper execution environment of risk management.”

Lack of board/ is constantly Experience shows that business 11% senior directives evolving, said leaders realise that it is diffi cult Mr Wong to relaunch risk management if Do not see the value of ERM 23% Chae Sing, they have not started on the right Senior Vice- footing. Without support and Perception that ERM adds on President and buy-ins, business risk management to costs and 26% administration Head of Asia may not be accepted by managers

Diffi culty in Business Risk and process owners. Thus, failure justifying a business case 34% Management to integrate risk management into for ERM at Marsh Risk daily operations results. Other Consulting. For effective risk management, management 42% priorities “New every business leader and process

Lack of internal categories have owner must know his roles and resources/ 46% manpower/budget materialised responsibilities in it. in the past It is also critical to balance Lack of in-house ERM knowledge 51% decade, many risk and controls for successful and expertise of them more risk management. Business diffi cult to leaders are concerned whether 0% 20% 40% 60% quantify than the implementation of risk

SOURCE: KPMG ENTERPRISE RISK MANAGEMENT SURVEY 2010 ‘traditional’ management could create an overly property and controlled business environment banks (25 per cent), insurance casualty risks in terms of their that would be disastrous to companies (25 per cent) and other frequency and severity,” he said. enterprise. Risk managers need fi nancial institutions (50 per cent). Risk management must not only to appreciate that their roles lie Besides, 29 per cent of the deal with the known risks, but also in helping business leaders make respondents in this sector said the unknown and the unknowable. decisions on risk-taking. they plan to implement ERM within (See side story Implementing Risk With the collapse of some well- the next one to three years. “This Management in a Holistic Way) known names in the recent crisis, result is quite disturbing in light of Mr Wong said that his dealings some managers are also concerned the recent fi nancial turmoil which with clients have led him to conclude that risk management could be affected the sector,” said Mr Low. that business risk management the cause for complacency and “The results seem to suggest involves cultural changes, and ignorance of potential black-swan that risk management is still requires the right governance events. The fall of companies > not broadly viewed as a better environment to be effective. management practice in the “It is critical to obtain fi nancial services sector. Many buy-ins from the top fi rms still view risk management management and as a necessary evil, or a knee-jerk business reaction. This casts doubts on the managers. extent to which risk management is Thus, internalised in these organisations,” many he added.

EVOLVING BUSINESS RISKS The reality is that businesses and organisations have experienced different kinds of risks and have taken some measures to counter them in the future. But this is

26 [ OCT/NOV/DEC 2010 BIZQ

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Implementing risk management in a holistic way

hile business risk management disclosure of risk management • The demands for business Whas been a topic that has activities, as well as the continuity planning, disaster been widely discussed for years, effectiveness of risk programmes. recovery, IT risk management and not many organisations have crisis response management have implemented risk management on • Rating agencies have included risen with a recent increase in the an integrated basis, said Mr Wong ERM analysis in corporate credit- frequency of risk events such as Chae Sing, Senior Vice-President rating processes, to provide 9/11, the Deepwater Horizon oil spill and Head of Asia Business Risk guidance via a structured by BP and volcanic eruptions in Management Consulting at Marsh framework that evaluates the Iceland, which have affected even Risk Consulting. company’s management as a globally established organisations. The recent global fi nancial crisis principal component. has demonstrated that risk is still • Liquidity risk management, being managed on a silo basis. largely ignored prior to the fi nancial Effective risk management must crisis, has been integrated into be carried out in an enterprise- business risk management, in what wide environment and integrated is known as a return to traditional with strategy planning, daily risk management, especially for business management and business the banking industry. The banking performance, he added. community has realised that “It is critical to link and manage liquidity risk is not considered in strategy, risk and performance on an the current Basel II framework. integrated basis. While enterprise But ongoing discussions aimed at risk management (ERM) has been including it in the drafting of the considered and implemented by framework have taken place. many organisations in the past few years, not many have linked • Compliance risk management is strategy with risk management • Risk appetite and limits have currently a hot topic, especially and performance management,” been set, with quantifi cations and with many new regulations he added. “ERM received a revived measurements for decision-making such as the US Foreign Corrupt boost from the recent fi nancial on risk-taking activities and the Practices Act. Compliance risk crisis when many organisations monitoring of risk. Together with management is seeing a revival, realised that risk could no longer be this, there are more demands where compliance is becoming managed in the old way. Companies for real-time risk monitoring and an important part of decision- turned to ERM to strengthen their reporting by automation. making and daily business governance and risk management,” management. Compliance he said. • There is an increased need to functioning should no longer be Here are some key trends and integrate risk and strategy planning, merely a checklist function, and new perspectives to business risk set key risk indicators, and link the is expected to play a bigger role management: effectiveness of managing risk with in business outcomes. It will be business performance measurement measured based on the ability • The recent fi nancial crisis and and management. The non-banking to balance between compliance corporate failures have increased sector is considering concepts such and performance. Governance is demands on risk transparency. as Risk-Adjusted Return On Capital about performing ethically – and Hence, more regulations have been for a better measurement of risk compliance plays a key role in issued on market supervision and and performance. this cultural transformation.

BIZQ OCT/NOV/DEC 2010 ] 27

24-28 CoverStory.indd 27 Upon approval 9/29/10 7:16:13 PM Please sign: Name and Date: COVERSTORY]

such as Lehman Brothers, Merrill Lynch and Bear Stearns was due Singapore breaks new ground to the lack of risk management – risks were ignored and stress in IT business continuity tests on the enterprise’s risk-taking capability were not performed information and communications regularly. And when the tests were technologies, we see more performed, the data used was not of an organisation’s business refl ective of current economic knowledge, rules and processes trends. The correlation-of-risk being embedded into IT portfolio was ignored too. systems.” However, many business leaders “Hence, it is of paramount now realise the importance of importance to have competent having proper and effective risk ingapore is fast becoming a professionals ensure business management in place. Sland of “fi rsts”. The launch of continuity through the resilience a certifi cation programme for IT of our IT systems. SCS, as the WHAT NEEDS TO BE DONE? business continuity managers by national body for IT professionals Experts believe embarking on the the Singapore Computer Society in Singapore, saw a critical road to BCM and enterprise risk is (SCS) adds to this growing list of need to certify professionals a methodical process. For a start, fi rsts for the Republic. in the fi eld and raise their level companies should clearly defi ne Managed by the SCS and of competency, as well as the the objectives of implementing supported by the Infocomm signifi cance of their role,” he said. such a programme, and Development Authority of Mr Andrew Khaw, IDA’s communicate them to the relevant Singapore (IDA), this Certifi cation Senior Director for the Industry stakeholders, said Mr Low. in IT Business Continuity Development Group, said: This should be followed by Management (CITBCM) ensures “Companies view Singapore establishing the appropriate risk- that professionals are equipped to as a critical hub in their global operating model – in terms of handle the various aspects of IT operations, and IT is a clear people, process and systems which business continuity management, enabler of the core functions of can facilitate the achievement of including disaster recovery business. These companies have these objectives, he added. planning. expressed a need to manage Marsh Risk Consulting’s At the recent launch of the business continuity for corporate Mr Wong believed that with the programme, SCS President resilience at a higher level, realisation of the importance of Mr Alphonsus Pang said: and we are glad that SCS has risk management, fi nance offi cers “With the pervasiveness of responded to this need.” today are broadening their awareness of risk and are looking for better ways to manage it not only about people and will help the organisation be better across the organisation. organisations. It is also about placed to maximise shareholder “Business risk business processes and information value,” he said. + management is systems that are needed for real-time reports to appraise the As the national Business Continuity senior management of primary Management focal point, the risks and opportunities. Singapore Business Federation Leveraging ERM to organises various outreach activities implement a more to engage the local business comprehensive and community on BCM awareness and integrated approach encourage the adoption of Singapore to the control BCM Standard SS540. For details, environment, visit www.bcm.org.sg.

28 [ OCT/NOV/DEC 2010 BIZQ

24-28 CoverStory.indd 28 9/29/10 11:58:0

Earthquakes, product recalls, supply chain disruptions, civil protests…

From natural disasters to man-made crises, surprises can occur anytime and anywhere. What would happen to your organisation if it had to close unexpectedly? Business Continuity Management (BCM) planning is critical for organizations of all sizes and can mean the difference between success and failure when a crisis strikes.

Marsh, the world’s leading insurance broker and risk advisor, works with clients to understand their risks and establish a customized BCM plan. Our unique approach delivers plans that are practical, scalable and easy to follow.

For more information, please email us at [email protected] or visit our website www.marsh-asia.com | www.marsh.com

Marsh is a world leader in delivering risk and insurance services and solutions to its clients. From its founding in 1871 to the present day, Marsh has provided thought leadership and innovation for clients and the insurance industry — introducing and promoting the concept and practice of client representation through brokerage, the discipline of risk management, the globalization of insurance and risk management services and many other innovative tools and service platforms. INDUSTRYTRENDS]

OPTING FOR CLEANER TECHNOLOGIES Many companies in Singapore are pumping resources into emerging newer and cleaner technologies, and this is helping their bottom line as well as the environment. BiZQ takes stock of this development.

SAMWOH CORPORATION’S ECO-BUILDING IS THE FIRST PROPERTY IN SOUTHEAST ASIA TO BOAST AN ENTIRE LEVEL BUILT WITH CONCRETE CONTAINING 100 PER CENT RECYCLED AGGREGATE (LOOSE GRANITE). THE BUILDING LOCATED IN THE INDUSTRIAL ESTATE OF KRANJI CRESCENT IS COVERED IN A STEEL MESH TO PROTECT IT FROM THE SUN AND DUST.

ome-grown Samwoh encompassing the concepts of “Using recycled materials is not Corporation put a green reduce, reuse and recycle,” said just about cost. More importantly, Hspin on concrete when it Mr Elvin Koh, Managing Director. we use them to ensure sustainable constructed a building with a 100 For this, the company was development,” Mr Koh said. per cent recyclable aggregate made honoured recently at the Singapore Siloso Beach Resort, a family- by breaking, removing and crushing Environmental Achievement Awards. owned hotel with more than 60 used concrete – the fi rst company It was also a winner in the Enterprise employees and 200 rooms in the region to do so. “Recycling is Green Technology/Service Enabler including 12 villas, is another the key to sustainable development. category at the Singapore Business example and a standard-bearer for We constantly seek innovative Federation (SBF)’s Outstanding the hospitality industry. From the and creative green business Sustainability Awards. design right till the construction

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Making turbine waves Many may think Singapore is a newcomer to green technologies, but Atlantis Resources Corp, a Singapore-based clean technology fi rm, is making waves after recently unveiling the world's largest tidal turbine. This turbine is capable of delivering consistent electricity to 1,000 homes. Working with the highly skilled Singapore workforce and collaborating with the likes of Nanyang Technological University enabled the company AN AERIAL VIEW OF THE SILOSO BEACH RESORT IN SENTOSA. to create its AK1000 turbine, which was designed and tested in Singapore waters during key periods of its 10-year research history. Specifi cally, it was tested in the southern waters of Singapore near stage, the property was built with the Raffl es Lighthouse in 2008 to collect key data. Dwindling fossil fuel environment in mind. resources and growing concern of its negative impact on global climate Executive Director Mr Kelvin Ng have resulted in a global race for clean energy in recent years. Tidal said: “Preservation of the energy has the potential to be a key energy source for a world grappling environment is at the heart of the with rapid urbanisation, the company said. resort. The built-up environment CEO Mr Timothy Cornelius added: “The unveiling takes up only 30 per cent of the land, and installation of the AK1000 is an important with the other 70 per cent preserved milestone, not only for Atlantis, but for the marine in its natural state. Even the 90m-long power industry as it is capable of unlocking the swimming pool was designed around economic potential of the industry. It demonstrates the natural terrain, so its construction the emergence of tidal power as a viable asset required minimal digging.” class that will require the development of local Also, the resort uses technology supply chains employing local people to deliver that improves its effi ciency and sustainable energy to the local grid. The reduces waste. For example, AK1000 takes the industry one step closer air-conditioning is run on a third- to commercial-scale tidal power projects,” generation system that has energy- he said. effi cient chillers with heat exchangers Commenting on the breakthrough, that provide heat for hot showers. A Mr Goh Chee Kiong, Clean Technology garbage converter turns food waste Director of the Economic Development into liquid waste for more effi cient Board, said that Atlantis’ presence in Singapore processing and treats water that can will “increase the vibrancy of the fast-growing clean be discharged into the drains. These technology industry” in the Republic. efforts have led to savings of up to “This project affi rms Singapore’s attractiveness as a 25 per cent in energy costs. global home for clean technology businesses,” he added, Samwoh and Siloso Beach highlighting that Atlantis benefi ted from Resort are among a growing list Singapore’s strengths in existing industry of fi rms using cleaner and greener clusters such as precision engineering, technologies to make a difference offshore and marine. to the environment as well as their business. Companies deploying such technologies are springing up in key factor in reforming Singapore’s are becoming increasingly every sector in Singapore. economy so businesses remain “green” is another factor driving Singapore competitive in the global arena. businesses to go this new route. Environment Environmental management has “More consumers are making Council’s Executive to be nurtured so it becomes an eco-conscious decisions. Director Mr Howard integral part of business, he added. This is presenting manufacturers Shaw said that with the opportunity to use driving sustainability Consumers are going green sustainability as a competitive within industry is a The fact that consumers themselves advantage to grow market >

BIZQ OCT/NOV/DEC 2010 ] 31

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INDUSTRYTRENDS]

applications, said Mr Philip Wong, Using recycled materials is not just about RTE’s Director. cost. More importantly, we use them to ensure sustainable development. Materials testing Companies also pointed out that the – Mr Elvin Koh, Managing Director, Samwoh Corporation emergence of the clean technology industry will give rise to supporting services, with one eco-friendly plastic with superior area being the properties over prime polymer which materials testing possesses the look and feel of wood. sub-sector. Exova Joining the bandwagon Singapore Pte Ltd, a materials Other organisations pushing testing player, believes that materials similar initiatives include SBF. testing is a vital part of ensuring As part of a joint effort with that clean technology meets the Temasek Polytechnic and desired standards. supported by the Economic General Manager Mr Larry Development Board and Drake said that companies from International Enterprise Singapore, the automotive, transportation and EXOVA SINGAPORE DEVELOPED NEW METHODS IN CALIBRATION, CERTIFICATION the Clean Energy Testbedding aerospace industries increasingly AND TESTING TO MEET MARKET DEMAND FOR Community project was set up. require innovative and higher levels MATERIALS TESTING SERVICES. Its principal objectives are to of materials laboratory testing and drive the adoption of fuel cell and assurance services. Such services share,” said Singapore other clean energy technologies as will ensure that companies in the Manufacturers’ Federation’s well as actively promote, engage clean technology sector meet the (SMa) Mr Gwee Seng Kwong. and support SBF members in stringent requirements for quality, He added: “SMa is committed identifying, piloting and testing safety and performance. to assisting manufacturers to ideas and prototypes. To meet rising demand, Exova develop their green capabilities and One benefi ciary of this initiative will bring its ISO 17025 certification fostering industry collaboration. We was Real Time Engineering (RTE). expertise to Singapore when it + facilitated a pilot project to develop The local fi rm worked with Temasek opens a new lab here in 2011. PHOTOS: SPH LIBRARY / ATLANTIS RESOURCES CORP / WONG WEI LIANG by-products by Winrigo, using Polytechnic to develop unique fuel homegrown brand Prima’s bran cells – electrochemical devices that waste. We are looking to develop combine hydrogen and oxygen to such success cases and provide produce electricity, with water and the momentum to bring in more heat as their by-products. eco-conscious manufacturers.” This effort is already Winrigo is a biodegradable- changing the lives of the plastics company that produces a masses. The Clean composite material called 3Rplas, Energy Testbedding which is made of polypropylene and Community has rice husk fi bre. This composite is enabled RTE to made from recycled plastics waste provide fuel and reduces the dependence on cell technology plastics based on fossil fuels. for lifts in HDB To address its weak performance estates as well properties, rice husk fi bre is added as develop to reinforce its strength. The it for other final product is a re-engineered possible

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C MYK BIZQ Mag_Hitachi-205x275mm O9_7444 ND4581 08.09.10 D66/A1 150 none none 45˚ 45˚ 45˚ 45˚ 45˚ TECHNOLOGY] HIRING TALENT Emerging solutions to help SMEs tackle human resource screening.

The biggest benefi ts to businesses using such background screening and verifi cation solutions include: • REMOVAL OF THE BURDEN of supplying verifi cations, especially with repeated requests from third parties. • INSTANT REDUCTION of cost and workload for the staff. ecent challenges in the • REAL-TIME AVAILABILITY as these recruitment and retention of solutions generally perform secure Rtalent have prompted many processing 24 hours a day, 365 days organisations to seek and adopt a year. creative hiring and talent management • GREATER ACCURACY AND FASTER strategies. With the increase in local TURNAROUND time of reports and global competition for high-calibre According to HR experts, robust compared with traditional channels. professionals, companies need to systems and procedures at the start look beyond the standard cookie- of the hiring process, especially One of the pioneers in this area is cutter method of assessing the involving background screening First Advantage, which now provides qualities of their prospective staff. and verifi cation, will sharpen the an online screening service called According to the Singapore competitiveness of SMEs over the VerifyDirect. This web-based online Infocomm Technology Federation’s duration of an employee’s stay with verifi cation service enables SMEs to survey on the ICT industry’s 2010 a company. mitigate risks associated with hiring business outlook, the majority of Such background screening work talent and human resources. MNCs and local IT enterprises in has traditionally been undertaken “The Asia-Pacifi c marketplace Singapore expect their businesses by the personnel within companies, is experiencing strong underlying to grow in the next 12 months, and but successful fi rms are increasingly economic growth. However, this recruiting and retaining talent is a top focusing time and energy on their growth has not been matched business concern this year. core business, outsourcing duties with the availability of innovative Human resource management like HR screening and verification digitised platforms that provide or HRM is a constantly evolving to experts. verifi cation and background discipline, adapting to the dynamic The changing landscape has led screening services that function in and changing business landscape to the development of a new set an effi cient manner. VerifyDirect is that present key executives in of tools that enables companies to the solution that plugs this market organisations, especially SMEs, with outsource non-core functions like need,” says Mr Wayne Tollemache, special challenges. background screening. The value Executive Managing Director of First One of these challenges lies proposition for SMEs seeking these Advantage Asia Pacifi c. in having to constantly identify online verifi cation services, especially The company developed this HR tools, special approaches to in background screening, lies in the solution so organisations can focus management, access to professional fact that they will now be able to on their core business challenges HR associations, and the like. These get the required information in an and opportunities, while ensuring identifi ed systems and processes easy, cost-effective manner, unlike verifi cation requests are produced have to address issues in the HR in the past, when such outsourcing quickly and accurately and only sent cycle, from the acquisition to the was available largely as a dedicated when the prospective employee gives retention and nurturing of talent. service to global corporations. written consent. +

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34 Technology.indd 34 9/28/10 9:30:50 PM

MANAGEMENTGUIDE]

SOCIAL INNOVATION IN ASIA Hitachi seeks to improve quality of life with environmentally conscious initiatives.

Hitachi’s new business plan also highlights business opportunities and growth outside Japan, particularly in Asian countries such as China, India and Singapore. Emphasis will be placed on urban planning and development, and its energy-saving, ocial innovation is the practice smart-grid-solutions business. of identifying concepts that In April, the company signed a Simprove the quality of life of Memorandum of Understanding with individuals and communities. This the Economic Development Board often results in the implementation to establish a Centre of Excellence of new processes and services, at Hitachi Asia Ltd’s Singapore as well as organisational changes headquarters. This institute will within corporate structures. develop technological and solutions- One company which has become based offerings such as smart grids, more community-conscious is water treatment, security and urban Hitachi, which embarked on its This includes a next-generation transportation, participating in pilot Social Innovation Business (SIB) smart-grid system for more efficient projects in the region. initiative about a year ago. The distribution of electricity. The company also signed an company’s SIB strategy focuses It also plans to strengthen its MOU recently with Sino-Singapore on three key areas: fusing its consulting business in foreign Tianjin Eco-City Investment & information and telecommunication markets, especially in Asia. Development Company to provide systems as well as its power and Plus, Hitachi aims to step up the environmental solutions to Tianjin industrial systems, evolving into a development of its environmental Eco-City, a project to develop an truly global company and expanding and energy-saving solutions. The eco-friendly city in Tianjin, China. + its environmental businesses. group will focus on “green mobility” Hitachi will invest 1 trillion yen – railway and automotive systems between this year and 2012 in – logistics solutions and other RESPONSIBLE GROWTH the social innovation business initiatives that lower environmental Singapore’s Economic Development (which includes information and impact. Additional R&D efforts will Board (EDB) aims for its Urban telecommunication systems, social concentrate on nuclear power and Solutions initiative to address and urban systems, as well as the coal-fi red thermal power generation, issues stemming from urbanisation. sophisticated materials and key smart grids, renewable energy, as These include air pollution and devices that support them), out of well as eco-conscious data centres. traffi c congestion. which 600 billion yen will be spent These systems are underpinned EDB develops solutions through on R&D. by high-performance motors a co-innovation process involving and inverters, reliable industrial- private corporations, leading to Next generation and automotive-use lithium-ion demand for generators in clean The company intends to tap into rechargeable batteries, and other energy, water and the environment, its project management and key devices. These efforts will as well as aims to build a green system integration expertise help the company achieve its environment by incorporating to manage large-scale social Environmental Vision 2025 goal of infocommunications technologies, infrastructure projects, including reducing carbon emissions by 100 urban mobility and security. power generation and railways. million tons.

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36 MG.indd 36 9/28/10 8:28:47 PM

JAN/FEB/MAR 09 [ BUSINESS PEOPLE OPPORTUNITIES ] APR/MAY/JUN 09 [ BUSINESS PEOPLE OPPORTUNITIES ] JUL/AUG/SEP 09 [ BUSINESS PEOPLE OPPORTUNITIES ]

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BiZQ Jan-Mar09 cover final.indd 1 12/29/08 10:04:04 AM Cover BiZQ Apr.indd 1 4/14/09 2:58:51 PM BiZQ Jul-Sep09 cvroptions.indd 1 6/19/09 9:29:50 AM

advertise in UOTIENT ! Business Quotient, (BiZQ) is an offi cial publication of the Singapore Business Federation, the country’s apex business chamber. The quarterly, published in collaboration with SPH Magazines, is your eye on Asian and global business trends. BiZQ is circulated to the federation’s members, professional associations and overseas business chambers and aims to keep companies and businesses up- to-date with the latest economic trends, industry news and trade and investment opportunities in Singapore and around the world. With a circulation of 20,000 copies, BiZQ reaches out to decision-makers including CEOs, MDs, Chief Financial Offi cers, businessmen and entrepreneurs. To fi nd out more about advertising in BiZQ, please fi ll in this form with your contact details Full Colour and fax this page to the Singapore Business Federation at 6827-6807 or SPH Magazines R.O.B. Full Page $3,500 Custom Publishing at 6319-3095.

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ad bizq rates.indd 1 9/29/09 6:49:33 PM INBUSINESSWITH] DESIGNING THE FUTURE

them the independence to explore better ways of delivery. Always remember to reward those who show initiative and adopt best practices. That way, you groom leaders who can think strategically and have a positive infl uence on the team. With better talent retention, increased ownership and motivation, productivity becomes a natural by-product, of second nature to the organisation. We also adopt a people-centric approach, and where required, the use of environmentally-friendly materials and effi cient natural light to create a more sustainable work environment for our clients. This is eading design-oriented the small stuff, innovate, improve and a result of keeping up with industry companies are a rarity in deliver quality work to clients. changes and being innovative. L Singapore. A company that The partnership with Samsung has taken design seriously and started with a very small project Q What contributions can a transformed a home-grown business for their roadshow. I took that company like L&Rui Concept into one of the most prominent opportunity as a test bed for my Group make to Singapore? brands is L&Rui Concept Group business principles. With hard The heart of the company’s core Pte Ltd. Co-Founder and work, we delivered beyond business today lies in providing Managing Director the client’s expectations, interior and architectural planning Mr Brian Xiao has and the small job became a based on innovative customised established a relationship regular account. designs. Over the years, we with one of its key partners Over the years, I imparted these have developed strong in-house Samsung, and grown the principles to all my staff and have capabilities in design and project business to where it is today. invested heavily in grooming the right management, and our own dedicated BiZQ caught up with Mr Xiao recently. talents within the company. I believe production facilities. These are core the success of my business is a competencies that allow us to stay Q The L&Rui Concept Group result of everyone giving their best. It competitive, fl exible and ultimately appears to have grown over a is the sum of the parts that has made maintain control over quality which short time. How did it get to the difference. our customers demand. where it is today? As we look ahead, we want to Diligence, hard work, quality, and Q What lessons can you offer to contribute to the design industry most importantly, understanding the budding SMEs? in Singapore and continue to key drivers of our clients’ needs are Invest in the right people, constantly raise the profi le of Singapore’s our guiding principles. From the day motivate them and challenge design houses. We are starting the business was started in March them. Productivity is a result of to diversify and are looking 2000, I wanted it to be different. everyone knowing what they at setting up operations I constantly reviewed my internal have to do – the process and overseas, in key markets process, studied the best practices documentation, as well as a like Australia and China. We from other established design houses, constant challenge to always will continue to do what we and then looked for solutions to refi ne do better. Build ownership do best and contribute to the way we do things. I know from into the mindset of every the overall success of the PHOTO: WONG WEI LIANGPHOTO: experience that you have to sweat employee and give each of Singapore brand. +

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BOARDROOMTALK] PHOTO: CALVIN TAN CALVIN PHOTO:

REACHING OUT TO SOCIETY r Rangarajan Narayanamohan is a social India to establish their global operations in Singapore. He entrepreneur at heart. “As a social also sees “SICCI members and Singapore companies M entrepreneur for the past 15 to 20 years, I leveraging on this and working with Indian companies on have managed to maintain a good work-life balance and a joint-venture basis to achieve the benefi ts”. hope to continue to do so,” he told BiZQ with conviction. Describing his management style as “very The statement from the new Chief of the Singapore professional”, he said he leaves the board directors and Indian Chamber of Commerce and Industry (SICCI) might CEOs to do their best and does not interfere when they be puzzling at fi rst, as the term “social entrepreneur” carry out their work. “I guide them with my experience might be interpreted in different ways. A little research as and when it is needed,” he added. defi nes a social entrepreneur as someone who Mr Narayanamohan hopes to grow the size of SICCI recognises a social problem and uses entrepreneurial threefold to fourfold, to between 2,000 and 3,000 principles to organise, create and manage a venture to members, while ensuring the chamber stays “relevant bring about social change. to the needs of members”. At the same time, he wants In this context, Mr Narayanamohan, Senior Partner at SICCI to be “very active and vibrant”. accounting fi rm Natarajan & Swaminathan, is trying to do In a similar vein, he is committed to furthering the exactly that. In taking on leadership at SICCI, which is a chamber’s philanthropic and social objectives – by constituent member of the Singapore Business Federation, working with key Indian organisations like the Singapore he wants to strengthen the women’s business network Indian Development Association, Singapore Indian within his organisation, promote entrepreneurship among Education Trust and Narpani Pearavai. In particular, Singaporean Indians and develop new programmes that he will investigate initiatives that help Indian youths in the SICCI Youth Committee can undertake. Singapore and enhance their entrepreneurial skills. He predicts opportunities as companies come from Looks like the SICCI Chief has his hands full. +

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40 BT.indd 40 Upon approval 9/28/10 5:49:04 PM Please sign: Name and Date: BusinessMatching 275x205 FA_pathed.pdf 1 8/23/10 6:35 PM

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