Committee of Supply 2013 The MTI Times - International Enterprise ...

FRESHENING INDUSTRIES
boosts productivity
PAGE 7
Nurturing
SME
talent
PAGE 4
MTI (P) 002/02/2013
THE MTI TIMES
COMMITTEE OF SUPPLY 2013
KEY HIGHLIGHTS
Greater competition in electricity
retail market PAGE 2
Preparing for our future
Transformation, New Opportunities, Quality Growth
Kickstart Fund to strengthen
tourism software PAGE 3
Enhanced support for SMEs
PAGE 4 - 5
Collaborative Industries Projects
(CIPs) PAGE 6
Leveraging technology to raise
productivity PAGE 6
Partnerships for Capability
Transformation (PACT) PAGE 7
Helping companies grow overseas
PAGE 8
Minister Lim Hng Kiang stressed the need to restructure the economy so that our companies and
workers can achieve higher productivity and sustainability.
New initiatives at a glance
PAGE 10
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IN THIS ISSUE:
Productivity,
SME, Energy,
Tourism,
Research and
Development
Graphics partially contributed by MTI FSD and IE Singapore
As the economy undergoes a more
intense phase of restructuring, the
Government is resolved to help our
companies ride through the transition
in order to achieve quality growth that
will benefit Singaporeans and Singapore.
At the Ministry of Trade and Industry’s
Committee of Supply Debate,
Minister Lim Hng Kiang reiterated the
need to press on with our economic
restructuring efforts as we move into
a low-growth climate, to create good
jobs and opportunities for Singaporeans.
He also stressed that this will be
done at a measured pace to minimise
sudden adverse impact on businesses.
Continued on P2 >>
“We are restructuring to
become more competitive,
not less. To do so successfully,
we must carefully
pace and calibrate the
changes. While we accept
a slower growth trajectory,
we aim to create quality
growth and higher-value
jobs for Singaporeans.”
Mr Lim Hng Kiang,
Minister for Trade and Industry

2 MTI TIMES - COS | 2013
Quality Growth
Continued from P1 >>
Recognising that the road ahead may entail painful adjustment for companies and workers alike, the Government
stands ready to support our companies to make the transformation. In particular, there will be a comprehensive suite of
measures to enhance support for SMEs so that they can be more productive and competitive. Existing schemes and initiatives
have been streamlined and simplified, to improve accessibility for SMEs. There are also several measures aimed
to help drive productivity and innovation through R&D adoption and tie-ups as well as capability upgrading. Others
will support the SMEs in seizing growth opportunities in Asia as well as other emerging markets.
Restructuring strategies will be tailored for each sector to strengthen and develop long term capability. In manufacturing
for instance, EDB will set aside S$500 million for the Future of Manufacturing (FOM) Plan to drive the development
and adoption of disruptive technologies such as 3D printing and robotics. For tourism, the Government will
continue to help the companies in this sector through developing innovative software content to maintain Singapore’s
proposition as a compelling tourist destination.
Remaining open and flexible to seize global and regional opportunities is also key to quality growth, said Mr Lim.
Singapore will continue to improve its trade linkages with the world, bring in new activities and bring companies out
into the region. Companies that set their sights on expanding abroad can also tap on new initiatives such as the Market
Readiness Assistance and the Global Company Partnership to venture beyond Singapore’s shores.
Increasing Competition in the
Electricity Retail Market
As a step towards full retail contestability, the Government will progressively increase competition in the electricity retail
market by lowering the contestability threshold in two phases (1 April 2014 and 1 October 2014). This will apply to
non-residential consumers such as commercial and industrial consumers. They will also be allowed to aggregate their
electricity demand at different locations in Singapore to meet the prevailing consumption threshold.
For more information on this initiative, please visit www.ema.gov.sg
Resources
Agency for Science, Technology and
Research (A*STAR)
www.a-star.edu.sg
contact@a-star.edu.sg
Economic Development Board Singapore
www.edb.gov.sg
clientservices@edb.gov.sg
Competition Commission Singapore
www.ccs.gov.sg
ccs_feedback@ccs.gov.sg
Energy Market Authority
www.ema.gov.sg
ema_enquiry@ema.gov.sg
Department of Statistics
www.singstat.gov.sg
info@singstat.gov.sg
International Enterprise Singapore
www.iesingapore.com
enquiry@iesingapore.gov.sg
JTC Corporation
www.jtc.gov.sg
askjtc@jtc.gov.sg
SPRING Singapore
www.spring.gov.sg
enterpriseone@spring.gov.sg
Sentosa
www.sentosa.com.sg
guest_services@sentosa.com.sg
Way To Go, Singapore! (National
Productivity Campaign)
www.waytogo.sg
enquiries@waytogo.sg
Singapore Tourism Board
www.stb.gov.sg
feedback@stb.gov.sg
Ministry of Trade and Industry
www.mti.gov.sg
mti_email@mti.gov.sg

MTI TIMES - COS | 2013 3
Quality Growth
Quality Yield-driven Growth for Tourism
With the essential building blocks in place to stay competitive, the Government will embark on the next phase to seeking
quality yield-driven growth for Singapore’s tourism sector. This means that growth would have to come from increasing
the yield in visitor spend, rather than just visitor numbers.
Elaborating on the plans for the tourism sector, Second Minister S Iswaran said the Government will support our companies
and workers move up the value chain and seize opportunities. Apart from larger-scale events, the Government will
also seek out higher value content in smaller-scale innovation and exchange of ideas.
KICKSTART FUND
With the tourism sector just beginning on its transformation journey, there are still bright
spots in content innovation which companies can leverage. Second Minister S Iswaran also
reassured that the Government will help companies and workers in the sector to move up the
value chain and benefit from potential growth opportunities.
The Government will set aside
an initial S$5 million Kickstart
Fund to support test-bedding
of lifestyle concepts with strong
tourism potential and scalability.
Apart from funding support,
it could provide entrepreneurs
access to business advice from experienced
mentors in the industry
on their projects. More details will
be announced by the Singapore
Tourism Board (STB) soon.
R&D: Key Enabler for Transformation
In our pursuit towards becoming an innovation-driven economy, R&D is an important enabler for companies to
transform, move up the value chain and seize growth opportunities. To support our companies, the Government has in
place a suite of initiatives and programmes which they can tap on to innovate.
Through A*STAR’s GET-Up programme, participating companies will receive technical advice, technology roadmapping
as well as have researchers seconded to their companies to assist them in their R&D efforts. Companies can
also look forward to technology enhancements which will be made more accessible to them through the facilitation
of experienced intermediaries under the newly launched Technology Adoption Programme. In particular, SMEs can
also tie up with MNCs through intra-industry collaborations where both parties can leverage and build on each other’s
capabilities. The Government is committed to enhance the transfer of technologies to SMEs and support the commercialisation
of their products and services.

4 MTI TIMES - COS | 2013
Transformation
Enhanced Support For SMEs to
Achieve Quality Growth
To help create a productive, competitive and vibrant SME sector that provides a source of meaningful jobs for Singaporeans,
the Government has reviewed the development strategies of SMEs to invigorate and support the sector.
SMEs can look forward to greater support in THREE focus areas
“SMEs are key to Singapore’s economy.
They contribute more than 50 per cent
of economic output and 70 per cent of
employment. The review of the development
strategies for our SME sector
aims to help our SMEs strengthen their
business competitiveness. I urge all
SMEs to invest in skills upgrading, new
technologies and processes to step
up productivity improvements, and
explore new growth opportunities by
expanding overseas. This will help
SMEs intensify their business restructuring
to achieve quality growth.”
Mr Teo Ser Luck
Minister of State for Trade and Industry
Minister of State Mr Teo Ser Luck said the Government remains fully committed to support
companies as we restructure towards productivity-driven growth.
FOCUS AREA I
Productivity, Innovation & Capability Upgrading
More support will be provided in the areas of productivity, innovation and capability upgrading.
1. Productivity and Innovation Credit
(PIC) Bonus
When SMEs invest a minimum of
S$5000 in productivity and innovation
activities in 1 year they will receive a
cash bonus equivalent to amount spent.
PIC bonus is paid over and above existing PIC
benefits and helps SMEs defray costs of implementing
productivity improvements.
PIC expanded to include Intellectual
Property (IP) in-Licensing
To help SMEs innovate & develop
new products, SMEs may
400% TAX REBATE
when they in-license the IP for application in
their business.
2. Collaborative Industry Projects
The Government will work with industry
players and trade associations to identify
industry-specific productivity challenges,
and issue calls-for-solutions that have the
potential for mass adoption within the
I
II
Formation of a consortium of
solution providers and users, with
at least three SMEs committed to
implementing the solution
Come up with bottom-up scalable
productivity solutions that can be
adopted to enhance productivity within
the sector
Government co-fund the development
and adoption costs of these
III
solutions
This will be launched in 7 priority sectors
namely, Food Manufacturing, Food Services,
Furniture, Printing & Packaging, Retail,
Textile & Fashion and Social Services.
3. SME TALENT Programme
for Polytechnic and ITE students
SMEs can expect a flow of talent from polytechnics
& ITEs. This will help SMEs groom
and nurture talent to propel SMEs towards
greater business growth.
Sponsoring SMEs provide
meaningful jobs for
graduates
Propel SMEs towards greater
business growth

FOCUS AREA II
Opportunities for Growth
Help SMEs seek business opportunities through internationalisation and collaboration.
MTI TIMES - COS | 2013 5
Transformation
1. Foster Collaboration with Large
Enterprises*
Partnerships for Capability Transformation
(PACT)
PACT is now expanded beyond the manufacturing
sector and enhanced to support collaboration
projects between SMEs and Large
Enterprises (LEs) in three types of
partnerships.
I
II
III
Knowledge Transfer between LEs and
SMEs in the area of best practices and
expertise.
Having an LE upgrade the capabilities
of its suppliers and qualify the suppliers
for its manufacturing processes.
LEs and SMEs come together to
develop and test innovative new
solutions.
Through partnerships and collaborations like
these, our SMEs can level up their capabilities
and grow.
* Large enterprises refer to large local
enterprises and MNCs.
2. Market Readiness Assistance Grant
New grant to help SMEs access overseas
markets.
Grant covers consultancy services on
activities related to :
Market Assessment
Market Entry
Business Restructuring
in terms of
Internationalisation
Simple and quick application process for
eligible SMEs, with a pre-approved panel of
partners to work with.
3. Support for In-market Business
Development
SMEs can look forward to additional
support for in-market business developments
through Trade Associations and
Chambers (TACs).
SME
Through TACs with
overseas connections
Additional funding support
for TACs to hire in-market
intermediaries via the Local
Enterprise and Association
Development (LEAD)
Programme
Seek out new business opportunities
FOCUS AREA III
A More Conducive Business Environment
Create a more conducive business environment by simplifying SPRING’s assistance schemes and enhancing the current
Enterprise Development Centres (EDCs) into one-stop, integrated SME Centres.
1. One-stop SME Centres
With the new SME Centres, it is easier for
SMEs to access help and support for their
needs.
2. SMEs can look forward to five easy-to-remember schemes:
Advisory on:
- Financing
- Productivity
- Human Resources
Workshops and Seminars on:
- Government Assistance Programmes
- Capability Development Areas
Business Matching between SMEs and
Vendors
SMEs can look forward to five easy-to-remember schemes, consolidated into 5 groups
Application and Grant Disbursement Process Simplified
SPRING has simplified its application forms and reduced the paperwork required to apply for
grants. SMEs only need to fill in a 2-page application form.
These centres will extend outreach to more
businesses, providing more concerted government
help and easier access to assistance
schemes.

6 MTI TIMES - COS | 2013
Transformation
Spur Productivity Through
Industry Collaboration
When it comes to productivity improvements,
SMEs often face similar
challenges such as lack of scale and
difficulty in sourcing for the right
solution. The new Collaborative Industry
Projects (CIPs) scheme announced
by Senior Minister of State
Lee Yi Shyan, aims to address this by
bringing companies together within
specific sectors to address common
productivity challenges and develop
effective solutions.
SPRING will launch the scheme in six
sectors – food manufacturing, F&B,
retail, printing & packaging, textile
& apparel, furniture manufacturing -
for a start. The scheme helps to boost
transformation at the sector level, by
introducing productivity solutions
that will impact a large group of companies.
For instance, bakeries and
confectioneries may potentially reduce
their manpower requirements
through the use of more efficient
machinery and equipment to make
breads, cakes and desserts. The
For more information on this programme, please contact enterpriseone@spring.gov.sg
Senior Minister of State Mr Lee Yi Shyan urged more companies to come forward to tap on
programs available to help them enhance and develop high-value capabilities.
Government will be investing
$90 million in such projects over the
next three years, and SPRING will roll
out the first call for projects in the second
half of 2013.
TAP on Innovation
Small-and-medium enterprises
(SMEs) can now look forward to a
more systematic way of adopting technology
innovations and solutions to
raise their productivity. MTI, along
with A*STAR, launched a $51million
Technology Adoption Programme
(TAP), to help drive better coordination
among both the private and public
sector productivity-related entities.
This Programme will be piloted in six
sectors – construction, food manufacturing,
precision engineering, marine
& aerospace as well as retail.
How will companies benefit
With the support from a team of experienced
intermediaries, SMEs will
receive advice on the areas or processes
where they could improve their
productivity.
The intermediaries will link SMEs
up with solution providers who are
able to develop and implement suitable
solutions or technology for them.
Where there are no suitable solutions
for the SMEs, there will be a group
of technology developers in A*STAR
Research Institutes and tertiary institutions
who will help to identify and
translate novel technologies which
SMEs can adopt.
For more information on the programme,
companies can write in to
A-STAR_Get_Up@a-star.edu.sg
TARGETS FOR THE TECHNOLOGY
ADOPTION PROGRAMME
20
NEW TECHNOLOGY PLATFORMS
1000
TECHNOLOGY
ADOPTIONS
9000
JOB OPPORTUNITIES
Over the next three years

MTI TIMES - COS | 2013 7
Transformation
CASE STUDY I: FRESHENING INDUSTRIES
Freshening Industries, a manufacturer of hygiene wipes, started from humble
beginnings in 1994. It grew rapidly through its pursuit of quality and
developing customised products. Freshening now exports to more than 33
countries. The company embarked on its productivity journey in 2010 and
received support from agencies such as SPRING and the Employment &
Employability Institute (e2i) to implement productivity improvements like
Business and Customer Relationship Management software. They have also
tapped on the Productivity and Innovation Credit (PIC) Scheme. Freshening
Industries achieved at least 10 per cent increase in productivity, helping it to
cope with the tight labour market and rising business costs.
CASE STUDY II: BREADTALK GROUP LTD
BreadTalk has tackled the productivity challenge from all angles. It has differentiated
itself through innovative products (pork-floss buns) and continually
revamped its business model with process improvements such as automated
central kitchen. Its new international headquarters houses high-value activities
which help to enhance the company’s capabilities, such as R&D which
has allowed BreadTalk to develop new brands and concepts in the food
and beverage industry. In just 12 years, BreadTalk has grown from a single
bakery, to more than 700 outlets under 8 brands in 15 countries with support
from IE Singapore.
Raise Productivity through PACT
The Partnerships for Capability Transformation (PACT) programme encourages
win-win partnerships between global companies and their suppliers by
upgrading the suppliers’ capabilities through the sourcing and qualification
processes. PACT will now be expanded to include additional sectors such as
Food Manufacturing and Printing, Retail and Food Services Sector, as well as
Infocomm technology (ICT) and Construction sectors.
The enhanced PACT scheme will also support initiatives that improve SMEs’
productivity and capabilities by facilitating and supporting SMEs to work with
Large Enterprises. SPRING, EDB, Building and Construction Authority (BCA)
and Infocomm Development Authority of Singapore (IDA) will lead PACT for
their respective sectors.
How will SMEs benefit
Approved PACT projects will be eligible for up to 70 per cent funding support
for qualifying costs such as manpower-related costs, professional services etc.
Projects must be carried out in Singapore. The enhanced PACT scheme will
take effect from 1 April 2013.

8 MTI TIMES - COS | 2013
Opportunities
Growing Beyond our Shores
Venturing overseas allows companies to overcome the constraints of our small domestic market, gain access to a wider
and more diversified consumer base and market, and seek new growth opportunities. To facilitate this, the Government
will continue to provide strong support for our companies’ internationalisation efforts.
IE Singapore has an array of assistance schemes and works closely with Singapore companies in their overseas expansion
plans. In recent years, IE Singapore has adopted a more in-depth and customised approach to engage companies.
The Global Company Partnership (GCP) launched in April 2012, provides customised solutions for companies’ international
growth through capability building, manpower development, facilitating market access and access to financing.
To help companies accelerate their pace of internationalisation, Senior Minister of State Mr Lee Yi Shyan announced
that under the GCP, IE Singapore will set aside S$20 million to help businesses address three critical manpower challenges,
attracting talent; developing talent; and establishing an international manpower strategy.
There is also a Market Readiness Assistance (MRA) program to support SMEs to internationalise by providing assistance
in three key areas, namely information, learning and financial assistance.
MARKET READINESS ASSISTANCE (MRA)
WHO IS IT FOR Companies, including SMEs looking to learn more about markets and be equipped with the basic
knowhow when going abroad.
HOW WILL COMPANIES BENEFIT Companies can benefit from different initiatives such as seminars, workshops
and financial assistance schemes. Added help comes in the form of i) a new MRA Grant, which provides co-funding
for specific consultancy services; ii) in-market business development support; and iii) targeted market information
relating to restructuring through seminars and clinics.
- MRA GRANT S$18 million set aside over the next 3 years, expected to benefit up to 1,000 companies. IE Singapore
will co-fund up to 50 per cent of qualifying third party costs, capped at S$20,000 per company per fiscal year. Companies
can apply via its website after 1 April 2013.
- DEAL-HUNTING PROJECTS IE Singapore works with trade associations and chambers (TACs) and supports
their cost of hiring in-market intermediaries to help companies seek business opportunities overseas. This will be
administered through LEAD.
- iADVISORY SEMINARS AND CLINICS More in-depth information and sharing on topics relevant for companies
looking to restructure their business through internationalisation. The series of seminars and clinics is expected to
benefit 4,500 companies over the next three years.
For more information on IE Singapore’s assistance, please refer to www.iesingapore.com

MTI TIMES - COS | 2013 9
Opportunities
TRANS-PACIFIC
PARTNERSHIP (TPP)
Singapore played host to Round 16 of
the TPP negotiations held in
March 2013.
EU-SINGAPORE FREE
TRADE AGREEMENT
(EUSFTA)
Negotiations were successfully
concluded in December 2012.
REGIONAL
COMPREHENSIVE
ECONOMIC
PARTNERSHIP (RCEP)
Undergoing negotiations which
are expected to be concluded by
end 2015.
Improving Singapore’s Trade
Linkages with the World
We will continue to improve our trade linkages with the world in order to help our companies leverage global
and regional opportunities. Through the Free Trade Agreements (FTAs), our local companies can benefit
from the improved market access to services sectors, easing investment rules, improving intellectual property
regulations, and opening government procurement opportunities. FTAs enhance the price competitiveness of
our exports with reduced or zero import duties in our FTA partner countries. Above is a snapshot of the more
recently concluded FTAs and those which we are currently pursuing.
Support to enhance companies’ access to financing
There is a wide range of initiatives to help our companies to internationalise. This year, in
collaboration with the Asian Development Bank, IE Singapore will expand the capacity of the
Trade Finance Programme (TFP) to provide credit guarantees that will facilitate greater trade
flows between Singapore and emerging markets. TFP provides credit guarantees that can shore
up Singapore-based banks’ appetite to support trade transactions that Singapore companies enter
into with counterparties from emerging markets. IE Singapore will release details later this year.
Seizing opportunities in high-growth regions or sectors
We will also continue to keep a close lookout for new high-growth sectors or regions where our companies can expand
their footprint to and work with them closely to achieve good results.
CASE STUDY: SILVER INDUSTRY
Local spin-off from the Institute of Materials Research and Engineering,
Sofshell pioneered a responsive soft-shell armour that hardens upon sudden
impact and dissipates force. With the support of A*STAR, SPRING and
IE Singapore, Sofshell was able to seed funding and develop prototypes for
elderly hip protectors and sportswear. The company is now looking into
establishing its manufacturing supply chain and developing its overseas distribution
plans.
For more information on Singapore’s FTAs, please refer to www.iesingapore.com/fta

10 MTI TIMES - COS | 2013
New Initiatives
PRODUCTIVITY
EXPANSION
OVERSEAS
TOURISM
Technology Adoption
Programme (TAP)
A*STAR will help to link companies’
technology needs to solution providers
to help companies across sectors increase
productivity through adopting
technology innovations and solutions.
Collaborative Industry
Projects (CIPs)
SPRING will bring industry players
and partners together across six sectors
to address cross-cutting productivity
gaps and develop effective solutions.
TRADE
FINANCING
Trade Finance Programme
(TFP) in collaboration with the
Asian Development Bank (ADB)
Proposal to enhance trade flows with
emerging markets for Singaporebased
companies. Companies will
benefit from enhanced access to financing
through credit guarantees
under the TFP.
ENERGY
Further Liberalisation Of
Retail Electricity Market
Progressively lower the contestability
threshold in phases to give more
commercial and industrial consumers
the option to become contestable,
and benefit from having the option of
selecting retail packages that suit their
profile and needs.
Market Readiness Assistance
IE Singapore will provide a suite of
tools to help SMEs learn more about
different markets. The Market Readiness
Assistance (MRA) covers 3 key
areas namely, Information, Learning
and Financial Assistance.
New items under the MRA include:
i) MRA Grant for SMEs and
ii) Helping SMEs seek project
overseas
MANUFACTURING
Future of Manufacturing
EDB will work with key industry
partners, universities, polytechnics
and research institutes to test-bed
new technologies and develop applications
that can be commercialised
and used by our companies, including
SMEs.
RESTRUCTURING
Land Productivity Grant
SPRING and EDB will provide support
for companies which intensify
their land use in Singapore, or choose
to relocate some operations offshore,
including to the immediate regions
while retaining core functions in
Singapore.
Kickstart Fund
STB will help to develop and support
test-bedding of new lifestyle concepts
that will enhance our tourism content.
PACT (Partnership for
Capability Transformations)
EDB will expand the PACT Programme
to include additional sectors
such as Food Manufacturing and
Printing, Retail and Food Services sectors,
as well as ICT and Construction
sectors. SMEs will be able to partner
large enterprises so as to upgrade their
capabilities and share best practices.
SME Talent Programme
Helps local SMEs attract local talent
from the Polytechnics and Institutes of
Technical Education (ITEs) by sponsoring
a study award and a job opportunity
upon graduation.
SME Centres
HELP FOR SMEs
Integrated one-stop shop for SMEs to
obtain information, advice and assistance
from relevant government agencies
and private sector organisations.
Streamlining of SME Schemes
Various grant programmes by SPRING
have been streamlined into one main
Capability Development Grant.
SPRING has also shortened its application
forms to two pages, and will be
introducing a new online grant portal
to reduce paperwork for businesses.