00 Cover MrNgaiFong WF.indd - SBF Download Area - Singapore ...

29private developers. Officerents rose as these playerssought to maximise returns.● Transport costsMany SMEs have longraised the issue of highownership and operatingcosts of commercialvehicles. Such costs haverisen substantially inrecent years. The SMECnoted that this has beenmainly due to high COEsand ERP charges, coupledwith rising petrol prices.Manpower andproductivity● Foreign labourSMEs are concerned aboutthe recent revisions on theDependency Ratio Ceiling(DRC) of foreign workers,levies and requirements forminimum salaries that willimpact their businesses.The DRC and levymechanisms could beadjusted so firms that needadditional foreign workersto sustain their businessescould be allowed to doso for a fixed period bypaying a higher levy, whilethose which do not use uptheir full quota allocationcould be incentivised forthe reduced dependenceon foreign labour.● Local workforceThe SMEC noted theneed to ensure correct jobfit to optimise manpowerutilisation of the localworkforce. For example,more able-bodied driversare required in industrieswhich utilise heavytrucks and as bus drivers.Housewives and retireescould also be encouragedto return to the workforce.● Productivity, trainingand innovationSMEs need sufficientknowledge on how toimprove their productivitylevels in the workplace.The SMEC noted currentcollaborations betweenthe Government andindustry groups to equipSMEs with productivityexpertise and tools.But, fundamentally, ashift in mindset bybusiness owners andworkers is needed.● Encourage R&DThe SMEC noted thatsome companies recognisethe importance of researchand development, but lackthe resources to embark onit. To exacerbate matters,research institutions tendto partner multinationalcorporations (MNCs) todevelop R&D projects.Financing● Defining SME profileLocal and foreign bankseach use a differentdefinition of SMEs whenassessing a company’srisk profile. This makescomparison of loanapplications across thebanking industry difficult.● Availability, awarenessand accessibility of loansStart-ups and microSMEs face the greatestchallenge in gaining accessto financing due to theirhigher risk profiles andlack of track records.Most loan proceduresare also lengthy andtechnical. Many SMEsare still not aware ofthe advisory servicesand resources providedby the EnterpriseDevelopment Centres.● EducationFor long-term growthand sustainability, shorttermfinancial assistancethrough incentives andgrants is not enough. SMEsneed to be equippedwith adequate financialmanagement systems andknowledge for sustainablefinancial capability.Internationalisation andmarket access● Building a track recordMany SMEs feel theyare not given enoughopportunities to provethemselves in largegovernment projects,in which MNCs andgovernment-linkedcompanies dominate.While schemes likeiPartnership and iPlatformhelp form consortiumsoverseas, very few extendthe collaboration to SMEsin overseas projects.● Tapping into overseasnetworksOverseas Singaporeanbusiness networks providegood links to contactsand valuable knowledgeof the markets theyreside in, but lack theresources to conductmore activities whichSMEs can benefit from.● Global CompanyPartnership schemeCurrently, the schemecovers only Singaporeanor permanent residentemployees sent to manageoverseas marketing offices.The present one-yearperiod of support is notsufficient and the schemecovers limited markets. •SBF names newchairman of theBoard of TrusteesMs Fang Ai Lian, Chairmanof Great Eastern HoldingsGroup, has been appointedas the chairman of theSingapore BusinessFederation’s (SBF) Boardof Trustees (BOT). Shehas been a member ofthe BOT since 2005.Ms Fang succeedsMr Sat Pal Khattar, whohas been chairman ofthe BOT since 2005. MrKhattar, Chairman ofKhattar Holdings Group,has served on the BOTsince SBF’s formation.In addition, Mr LucienWong, Managing Partnerof Allen & Gledhill LLP,was appointed to theBOT. Ms Theresa Foo-YoMie Yoen, Chairpersonof The Esplanade CoLtd, retains her place onthe board, which shehas held since 2002.Mr Tony Chew,Chairman of the SBFCouncil, paid tributeto Mr Khattar’s 10years of service tothe apex chamber.He said: “On behalfof the council, membersand secretariat of SBF,I extend my sincereappreciation and gratitudeto Mr Khattar for hisleadership, invaluableguidance as well as greatcommitment to thefederation and the businesscommunity throughouthis years of service.”SPH Library