LOOKING INTO THE FUTURE - download.sbf.org.sgdownload.sbf.org.sg/bizq/jan_mar11.pdf · 01 chairman...

JAN/FEB/MAR 2011 [ B U S I N E S S P E O P L E O P P O RT U N I T I E S ]

UOTIENT

A publication of

TOP 10MEGA TRENDS

THE NEXT-GENERATION BUSINESS MODELS

BIOMEDICAL SCIENCES

TRANSFORMINGSINGAPORE INTO ASIA’S

INNOVATION CAPITAL

LOOKING INTO THE

FUTUREDEVELOPING A “RIGHT

BRAIN” ECONOMY

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Our End-to-End (E2E) SCM offerings

• Intribution™ (Manufacturing Logistics), Intrabution™ (Consumer Fulfillment, Last Mile Distribution), Retrogistics™ (Spares & Returns Mgt, Reverse Logistics)

• Freight Management, Warehousing, Transportation & Other Value-add / Customised Fulfillment Services

• Supply Chain Consulting & Optimisation

• SCM Technologies & Solutions

Our Industries of Specialization

• Electronics / Hi-Tech / IT / Automotives

• Chemicals / Pharmaceutical / Healthcare

• FMCG / Luxury / F&B / Cold Chain

We believe the best supplychain provider needs to have a deep-rooted understanding and well-established presence of the region it operates in.

As Asia’s leading supplychain partner to some of the world’s most reputable and favourite brands, we have developed a comprehensive regional footprint to achieve strong connectivity across the key hubs and cities of Asia – acting as the perfect conduit for our world-class clients and supporting their rapid growth and scalability in this growing region.

Corporate Headquarters: YCH Group | 30 Tuas Road, YCH DistriPark, Singapore 638492Tel: (65) 6767 7777 | Fax: (65) 6767 7778 | www.ych.com

BIZQ BIZQ JAN/FEB/MAR 2011 ] 01

WE ARE PLEASED TO BRING YOU THE FIRST ISSUE OF BUSINESS

QUOTIENT FOR 2011.

The Singapore economy has done well in 2010, exceeding most

expectations. Singapore has come out relatively unscathed from the

challenges and issues facing most developed economies of the west.

As we start the new year, it would also be a timely reminder to take a

longer-term view of the opportunities before us. From late 2009 to most of

2010, Singapore’s leadership together with the business community, charted

the next steps through the recommendations of the Economic Strategies

Committee (ESC).

As the apex business chamber and a member of the ESC main committee,

SBF is committed to working with the government and businesses to

facilitate Singapore’s continued sustainable growth and development. In this

regard, SBF recently inaugurated the SBF Mentorship Programme to help

groom the next wave of SME leaders. In collaboration with the Singapore

Workforce Development Authority, it also launched a million-dollar Innovation

Improvement Initiative (i3) programme to assist businesses in enhancing

innovation and raising productivity.

Even as Singapore continues to re-engineer itself and plant new seeds

for longer-term growth, there are still invaluable lessons to remember. These

include the need to continue innovating, adapting and building on productivity.

These are key traits that will put us in good stead for the future.

Looking into the year ahead, SBF will continue to deliver relevant

programmes to serve the needs of our members, facilitate better coordination

between public agencies and the business community, and help our companies

explore opportunities in new markets.

On this note, I wish all members a rewarding year ahead!

SBFSAYS]

Greetings and Happy New Year to all members!

TONY CHEW LEONG-CHEE CHAIRMAN

SINGAPORE BUSINESS FEDERATION

As the apex business chamber and a member of the ESC main committee, SBF is committed to working with the government and businesses to facilitate Singapore’s continued sustainable growth and development.

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02 [ JAN/FEB/MAR 2010 BIZQBIZQ

Coverstory 22] MOVING TO A

“FULL BRAIN” ECONOMYSingapore is moving to a “full brain” economy

by building a more diverse and richer industrial base. BiZQ takes a closer look at

how this is starting to bear fruit.

01] SBF SAYSMessage from the SBF Chairman.

04] SBF UPDATESBF sees a greater role for the integrated ASEAN community.

09] EYE ON SMES SBF unveils an online BCMresource library.

12] EYE ON ECONOMYEconomists predict that Singapore will achieve a sustainable single-digit growth rate for the long haul.

16] BIZ COMMUNITYSBF and WDA launch i3 initiative to promote innovation and productivity.

18] COUNTRY INSIGHTSBiZQ examines how South Koreahas reinvented itself to become a technology innovator.

20] GLOBAL BUSINESSBiZQ looks into how Singapore fi rms in the food industry are cashing in on India’s booming economy.

CONTENTS]

JAN/FEB/MAR 2011

UOTIENT


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38

28] INDUSTRY TRENDSSingapore’s biomedical sciences R&D effort receives a S$3.7 billion boost as part of its aim to become Asia’s innovation capital.

34] TECHNOLOGYFrost & Sullivan identifi es upcoming global trends for next-generation businesses.

36] MANAGEMENT GUIDE Protect businesses from potential risks through Business Continuity Planning.

38] IN BUSINESS WITHBiZQ interviews Aik Moh Paints & Chemicals’ Executive Manager Roy Tan Keng Hong.

40] BOARDROOM TALKSpotlight on Mr Chan Chong Beng,Co-founder and Chairman ofGoodrich Global Pte Ltd.

36

IN BUSINESS WITH

Aik Moh’s Mr Roy Tan Keng Hong incorporates

service into his business model.

PUBLISHERSINGAPORE BUSINESS FEDERATION

CHAIRMAN Tony Chew

CHIEF EXECUTIVE OFFICER Teng Theng Dar

CHIEF OPERATING OFFICER Victor Tay

ASSISTANT EXECUTIVE DIRECTOR (MEMBER RELATIONS) Cheryl Kong

DIRECTOR, CORPORATE COMMUNICATIONS Gerald De Cotta

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 AGENTSPH MAGAZINES PTE LTD

GROUP EDITOR Joanna Lee-Miller

SENIOR EDITOR Azreen Noor

CONTRIBUTING EDITOR Casuarina Peck

ASSOCIATE CREATIVE DIRECTOR Alex Goh

ART DIRECTOR Bernard Chia

SUB-EDITOR Winnie Fong

GROUP ACCOUNT MANAGER Kaz Lim

MANAGER, CLIENT MANAGEMENT Mavis Liang

EXECUTIVE, CLIENT MANAGEMENT Jessie Kek

MANAGER, PUBLISHING SERVICES Alice Chee

For advertising enquiries, please call6827-6828 or 6319-6326

This news magazine is published by SPH Magazines Pte Ltd (Registration No. 196900476 M) for Singapore Business Federation (Registration No. ROS138/2002TAP). Copyright of the materials contained in this magazine belongs to SPH Magazines Pte Ltd and Singapore Business Federation respectively. Nothing in here shall be reproduced in whole or in part without prior written consent of SPH Magazines Pte Ltd or Singapore 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, SPH Magazines Pte Ltd, Media Centre, 82 Genting Lane, Level 7, Singapore 349567. Tel: 65-6319-6319, Fax: 65-6319-6227, E-mail: [email protected]. Unsolicited material will not be returned unless accompanied by a self-addressed envelope and suffi cient return postage. While every reasonable care will be taken by the Editor, no responsibility is assumed for the return of unsolicited material. MICA (P) 094/06/2010. Printed in Singapore by Times Printers (Registration No. 196700328H).

COUNTRY INSIGHTSSouth Korea leads the way

in style and innovation.

18

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SBFUPDATE]

Greater role for integrated ASEAN communitySBF helps connect ASEAN business community as the region moves towards becoming an economic community by 2015.

W ith the emergence of the economic powerhouses of China

and India, ASEAN has to “get its act together” in order not to lose out in its competitiveness as a region, said ASEAN Business Advisory Council (ASEAN-BAC) member and SBF Council Member Dr Robert Yap.

Speaking at the annual seminar on ASEAN Economic Community (AEC) 2015 held in November, Dr Yap, who is also the Chairman and CEO of YCH Group, noted that “the business community of ASEAN hails the move to

implement the ASEAN Connectivity Masterplan as very timely as ASEAN approaches the target date of 2015 for the achievement of the AEC”.

The SBF-organised seminar featured discussion on the challenges in the logistics sector faced by businesses in Singapore and the region as ASEAN gears up towards the AEC 2015.

“Too often, the ASEAN plans and signed agreements have not been implemented according to the respective timelines,” said Dr Yap. “Consequently, business plans are diffi cult to follow through and are subject to various changes along the

way... it is therefore heartening to know that the ASEAN governments recognise that our region can no longer continue with business as usual.”

At the event, several industry experts in the logistics sector provided participants with insights on the supply chain integration, cross-border and multi-modal transport, behind-the-border market barriers, trades and customs facilitation.

Some 50 participants, representing businesses mainly from the logistics industry, were apprised on ASEAN competitiveness as well as the advantages and challenges to be derived from ASEAN logistics integration.

SEMINAR PANELLISTS DURING THE Q&A SESSION MODERATED BY SBF CEO TENG THENG DAR (IN THE MIDDLE OF PANEL).

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Other speakers at the event included Mr Dave Tan, Executive Director, Regional Offi ce, Conference of Asia Pacifi c Express Carriers (CAPEC), who briefed the participants on the logistics of doing business in ASEAN.

Paving the waySBF’s members in ASEAN-BAC serve to provide the connectivity between Singapore businesses and the ASEAN governments on issues pertaining to the goals of regional economic integration.

SBF member, Mr Kenneth Wong, Logistics Manager of Amos International Pte Ltd, said: “In a globalised economy like ours, our customers expect reliable services at competitive prices. Therefore, it is important as a business entity that we do not lose competitiveness in terms of cost, time and reliability, due to ineffi ciencies in cross-border documentary procedures or institutional rules and regulations.”

He added: “If the roadmap can iron out these issues, we will defi nitely see an improvement in our bottom line and most importantly,

raise our competitiveness and value-add to our clients.”

Refl ecting the same sentiments, Mr Stanley Lim, General Manager of Seagull Marine Services Pte Ltd, said: “As Singapore is a leader in logistics among ASEAN countries, the Logistics Roadmap will greatly facilitate Singapore in assisting the development of fellow ASEAN countries.”

During the recent ASEAN Summit held in Hanoi last October, ASEAN leaders approved the ASEAN Connectivity Masterplan which

entailed physical connectivity (hard infrastructure such as transportation, logistics facilities); people-to-people connectivity (tourism, education, culture); institutional connectivity (soft infrastructure such as trade and investment facilitation, ASEAN Single Window – ASW, services liberalisation, capacity-building programmes).

The overall aim of the masterplan is to improve the flow of goods, services, investments, labour and capital across ASEAN borders. +

DR ROBERT YAP EXPRESSING HIS VIEWS ON ASEAN CONNECTIVITY AND CHALLENGES FACED BY THE ASEAN BUSINESS COMMUNITY.

WINNERS AT THE ASEAN BUSINESS AWARDS 2010.

SINGAPORE PARTICIPANTS AT THE ASEAN BUSINESS AWARDS.



SBFUPDATE]

Eyeing resource-rich Southern Africa

SBF led a 26-strong delegation last September to explore business opportunities in

resource-rich Botswana and two of Africa’s “Big 5” economies – Angola and South Africa.

The mission, comprising delegates from 20 companies from the oil and gas, consumer goods, infrastructure, construction materials and services, ICT, agricultural and allied industries, was led by Mr

The Singapore Business Federation has launched the Singapore

Sustainability Awards 2011 to drive sustainable business practices among Singapore-based organisations. Mr Andrew Tan, Chief Executive Offi cer of the National Environment Agency, offi cially announced the SSA during the Global Entrepolis@Singapore held last October.

The SSA 2011 will consist of two types of awards: Sustainable Business Awards (previously

Sumit Aggarwal, Vice Chairman of the SBF Africa Business Group (AfBG), and Head of Transaction Banking at Standard Chartered Bank, and Ms Christina Tan, Vice Chairperson of AfBG and Managing Director of luxury fashion goods firm GMT Pte Ltd (South Africa).

Companies who were on this mission included Qian Hu Corp Ltd, Hock Seng Ltd, Shankar’s Emporium, JES International Ltd and Koon Holdings Ltd. +

SBF launches annual Singapore Sustainability Awards 2011

known as the Outstanding Sustainability Awards) and Green IT Awards. The deadline for registration is March 31, 2011. There are plans for the sustainable awards to go regional and international from 2011 onwards.

As part of the Green IT Awards, SBF is also working with IBM and Frost & Sullivan to roll out a nation-wide Green IT Adoption Index to assess the current state of green IT adoption by corporations, and in the process identify potential gaps and follow-up actions for companies to address these gaps.

MISSION LEADER MR SUMIT AGGARWAL PRESENTING A TOKEN OF APPRECIATION TO MR MIGUEL MIGUEL, CHIEF REPRESENTATIVE OFFICER, STANDARD CHARTERED BANK ANGOLA.

The Sustainable Business Awards is presented by SBF, with KPMG as the knowledge partner and IE Singapore, SPRING Singapore and Singapore Environment Council as the strategic partners.

In addition, SBF launched a series of certifi ed sustainable development professional courses with Temasek Polytechnic and Singapore Environmental Council.

For more information, refer to the new SSA 2011 awards website: www.sustainabilityawards.sg. +

SOUTH AFRICAN BUSINESSMEN BROWSING THROUGH A DISPLAY FOR CONSUMER PRODUCTS FROM SINGAPORE.

Exploring Gabon’s market opportunities

Gabonese Minister of Economy, Trade, Industry and Tourism,

Mr Magloire Ngambia, and his delegation recently met with 20 senior Singapore executives to provide insights into the investment opportunities in Gabon.

The roundtable session, organised by SBF and supported by IE Singapore, was held in conjunction with the offi cial state visit by H.E. Ali Ben Bongo Ondimba, President of Gabon, last November. Minister Ngambia spoke about the business opportunities available in Gabon as it is diversifying into other areas of growth and expanding its range of development partners.

He also invited the Singapore companies to submit bids for various tenders, especially in areas such as infrastructure, education and health. +



Singapore National Pavilion wins awards at China expo

T he Singapore National Pavilion, which was showcased at the recent

7th China-ASEAN Exposition held in Nanning, China, was accorded two awards at the exhibition.

The Singapore pavilion, which was focused on urbanisation and environmental solutions, was given the Best Brand Display Award and Best Exhibitors Organiser Award. This exhibition is aimed at

High-level Uzbekistan government offi cials and industry experts updated

Singapore’s business community on the latest economic and business developments in the country during the half-day 5th Uzbekistan-Singapore Business Forum.

Jointly organised by SBF, the Embassy of the Republic of Uzbekistan and Uzinfoinvest Agency, this forum was held in conjunction with the visit of H.E. Nasriddin Najimov, Uzbekistan’s First Deputy Minister of Ministry for Foreign Economic Relations, Investment and Trade (MFERIT) and his delegation to Singapore last November.

facilitating more China-ASEAN Free Trade Agreement (CAFTA) business opportunities for both ASEAN and China companies.

SBF had led Singapore’s delegation at the 7th CAEXPO to harness CAFTA business opportunities last October. Business mission leader, Mr Teo Tong Kooi, CEO of Hong Leong Asia, led 35 delegates from 16 companies. Some 20 Singapore brands were promoted at CAEXPO in four sectors: services, infrastructure/environment, food and beverage as well as lifestyle. +

Latest market outlook in Central Asia

Minister Najimov was accompanied by a 20-member delegation comprising key appointment holders of state-owned enterprises, deputy mayors of main cities and elite businessmen, primarily from the textile, automotive and aftermarket auto parts, electronics, chemical and pharmaceutical sectors. +

Increasing trade with the US

Singapore businesses stand to benefi t from international fi nancing facilities provided

by the Export-Import Bank of the United States (US Ex-Im Bank).

The Singapore Business Federation and the US Ex-Im Bank signed an MOU last September in New York during the US-ASEAN Summit. Witnessed by Singapore’s Ambassador to the US, Ms Chan Heng Chee, the MOU is a move to increase the trade of goods and services between the US and Singapore. The memorandum also complements the United States-Singapore Free Trade Agreement signed in 2003. The facilities provided by the US Ex-Im Bank can assist Singapore buyers in their purchases of US products and services. +

SBF signs MOU with Mexican council

T he Singapore Business Federation signed a Memorandum of

Understanding (MOU) with the Mexican Business Council for Foreign Trade, Investment and Technology (COMCE) during the 7th Latin Asia Business Forum.

The COMCE-SBF MOU, a fi rst for SBF with a Mexican counterpart, was established with the aim to promote and deepen the bilateral economic ties between Mexico and Singapore, and enhance the level of commercial activities and collaborations.

Mexico is the second largest economy in Latin America and is Singapore’s fourth biggest trading partner in the region. +

H.E. NASRIDDIN NAJIMOV EXCHANGES GIFTS WITH SBF CHAIRMAN TONY CHEW.

(FRONT ROW): BUSINESS MISSION LEADER, MR TEO TONG KOOI (FIRST FROM LEFT), MR SAM TAN, SENIOR PARLIAMENTARY SECRETARY OF MTI AND MICA (SECOND FROM RIGHT) AND OTHER VIPS TOUR THE SINGAPORE NATIONAL PAVILION AT THE CHINA-ASEAN EXPOSITION IN NANNING.



SBFUPDATE]

F or the fi rst three quarters of 2010, Singapore was the leading foreign investor in

Malaysia, contributing US$32.9 million (12.6%) to Malaysia’s total trade. Based on strong positive trade and investment fi gures, Singapore and Malaysia’s bilateral trade ties saw a signifi cant boost which looks set to further improve the economies of both countries with the announcement of recent developments.

Iskandar Malaysia missionThe Singapore Business Federation (SBF) led a 120-strong business mission to Iskandar Malaysia recently. The delegation was received by the CEO of Iskandar Regional Development Authority, Mr Ismail Ibrahim, as well as the Ministry of International Trade & Industry, Malaysian Investment Development Authority, MATRADE and Johor State Investment Corp.

Mission leader, Dr Gan See Khem, Executive Chairman & Managing Director of Health Management International Limited, recently opened a Regency Specialist Hospital in Iskandar Malaysia. Iskandar Malaysia has already attracted investments of RM62.32 billion up to June 2010, compared to RM55 billion for the year 2009.

As of May 2010, a total of 218 new manufacturing projects have been approved in Iskandar Malaysia since 2006. These projects, worth almost US$1 billion, will employ 24,000 Malaysian workers.

Building stronger ties with MalaysiaHigher potential for more business and investment opportunities for the business communities in Singapore and Malaysia.

The 5th MSBC Joint MeetingIn early December 2010, representatives of the Malaysia-Singapore Business Council (MSBC) met for their 5th Joint Meeting at the Kuala Lumpur Conference Centre (KLCC), hosted by the Federation of Malaysian Manufacturers (FMM). The latter, together with SBF, are the Malaysian and Singaporean Secretariats of MSBC. The discussion was on the Malaysia Singapore Third Country Business Development Fund (MSBF), the Iskandar Malaysia Development, the Green Lane Concept and a proposed joint collaboration on tourism between Singapore and Malaysia. The council members of MSBC also made the decision to hold the 6th Joint Meeting of MSBC at Iskandar Malaysia on May 16, 2011.

Update on Economic Transformation ProgrammeAt a recent forum jointly organised by SBF and Malaysian Industrial Development Authority (MIDA),

details of Malaysia’s Economic Transformation Programme (ETP) were unveiled by Malaysia’s Minister of International Trade and Industry, Dato’ Sri Mustapa Mohamed and Dato’ Sri Idris Jala, Minister, Prime Minister’s Offi ce, Malaysia.

The ETP, which will open more business and investment opportunities for Singapore’s business community, aims to attract investments worth a total of US$444 billion to transform Malaysia into a high-income country by 2020.

The panel also addressed questions from Singapore’s business community, which included the Iskandar Malaysia development and details of the recently announced Talent Corporation. It was noted that Iskandar Malaysia has received substantially more investment from Singapore, where investments committed from 2006 to August 2010 totalled US$19.3 billion, of which 42% are actual ongoing investments. +

SBF CHAIRMAN TONY CHEW (FAR LEFT) CHAIRING THE DIALOGUE SESSION OF THE ETP FORUM WITH DATO’ JALILAH BABA, DIRECTOR-GENERAL OF MIDA, MINISTER DATO’ SRI MUSTAPA MOHAMED, MINISTER DATO’ SRI IDRIS JALA AND MALAYSIA’S HIGH COMMISSIONER TO SINGAPORE HUSSIN NAYAN.



T he Singapore Business Federation (SBF) has launched an online

portal for business continuity management (BCM) aimed at helping local businesses access BCM resources. The information portal National BCM Online Resource Library consists of a self-assessment test tool based on the Singapore Standard 540 (SS540) certifi cation framework, BCM “self-help” templates for companies and a library of case studies.

This effort is part of the National BCM programme launched by SPRING Singapore which allocated $30 million to help small companies implement BCM over fi ve years.

SBF Chief Operating Offi cer Victor Tay said the portal was launched with the objective of getting more companies on board the BCM bandwagon. As the national BCM focal point for businesses, SBF has set a target of 300 new companies joining in the next fi ve years.

Mr Tay said companies that typically have BCM practices in place are larger multinationals, while this is less common among local fi rms. Following the recent fl oods in Orchard Road, SBF has received an increasing volume of calls from fi rms. The programme was driven

by inputs from various government agencies, including SPRING Singapore, the Ministry of Trade and Industry, the Economic Development Board, and the Ministry of Home Affairs. He added that business continuity is of importance to the country’s position as a “secure and trusted hub” and its ability to attract foreign investment. +

EYEONSMEs]

SME NEWS

BCM online portal for SMEsSBF unveils online resource library as part of

S$30 million funding allocation.

BCM Funding ProgrammeCompanies can apply for support through SBF to help defray costs involved in getting their organisation BCM-ready through BCM certification, especially the SS540 standard. SMEs can get a subsidy of up to 70% to be certified in the SS540 in Business Continuity Management. Larger businesses forming consortiums with at least two local SMEs critical to their businesses canalso get a subsidy of up to 70%to be certifi ed.

To qualify for BCM funding, corporate activities should include:a) Part of the salary/training of staff involved in the BCM project b) Support for engagement of a Third Party Consulting Service to support the BCM project c) Relevant certification cost

d) IT hardware/software needed to support the BCM implementation

Ideally, the BCM project should lead to the company getting a formal SS540 certification or its equivalent. For such applications, SBF will require companies to provide the company profile, three years of financial audited accounts, a hard copy of the signed application form, quotations and proposals of essential equipment and service, as well as a BCM project proposal. Additionally, businesses looking to achieve bizSAFE Level 3 can now enjoy up to 70% funding if they embark on the BCM programme concurrently.

For more information, contact SBF at 6827-6867 or e-mail [email protected].

THE CRITICAL SUCCESS FACTORS FOR BCM SEMINAR IS JOINTLY ORGANISED BY SBF AND DISASTER RECOVERY INSTITUTE INTERNATIONAL.

SBF COO VICTOR TAY ACKNOWLEDGING FLU PANDEMIC-VERIFIED COMPANIES FOR THEIR COMMITMENT TO BUSINESS CONTINUITY.

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10 [ JAN/FEB/MAR 2011

EYEONSMEs]

SPOTLIGHT

Singapore awards top 50 entrepreneurs

SME WORKPLACE

EVENTS

Fifty entrepreneurs were given accolades at the Enterprise 50 (E50) Awards held last November. The annual E50 Awards celebrates the achievements of the top 50 local companies which were picked through a rigorous evaluation process that combines quantitative and qualitative factors.

Dominating the 2010 list are companies in the infrastructure,

WORKPLACE HEALTH PROMOTION FUNDSSMEs may soon find themselves beneficiaries of increased funding for workplace health promotion (WHP) programmes.

A new set of workplace health recommendations by the National Tripartite Committee on Workplace Health, has been released to enhance the national ecosystem for workplace health, encourage employers to change their mindsets, engage employees in health management, and widen the accessibility of WHP programmes to SMEs.

Recommendations by the committee include boosting WHP funding for SMEs to encourage uptake of WHP, with WHP grants to fund up to 90% of WHP programmes at a $10,000 cap per application. The Ministry of Health and MOM will co-chair a committee to oversee the implementation of the recommendations. +

BIZSAFE CONVENTION 2011Jan 20Suntec Convention CentreLearn about how to make safety an integral part of the business at bizSAFE enterprises and drive up productivity with Workplace Safety and Health (WSH) innovations.

HEALTH ASIA 2011Feb 21-23Suntec Convention CentreBeef up your health knowledge at this exhibition featuring alternative

NEW EDITIONS

SECRETS OF THE LITTLE RED COWThis book highlights what local companies should know if they want their brands

to survive and thrive in today’s competitive marketplace. It includes real-life examples, challenges of SME growth and insights into how SMEs achieve success when turning their businesses into “cash cows”. The book by brand consultant A. S. Louken Group features case studies of brand names such as BreadTalk, Skin Inc, Neo Garden, Charles & Keith, Atlas Sound & Vision, Eu Yan Sang, Kimage, Jean Yip, The Soup Spoon and Action City. +

LETTERS FROM OUR READERSIf you have any views, comments or suggestions about BiZQ and other SBF events, we want to hear from you. Please send your contributions to:

The Editor, BiZQ MagazineSingapore Business Federation#22-01 Keppel Towers, 10 Hoe Chiang Road,Singapore 089315Or e-mail us at [email protected].

transport and marine businesses – a reflection of the growing construction industry and resilient offshore and marine sectors.

Civil engineering and building materials firm Samwoh Corp topped the list for the second time in a row, followed by six-time winner Kenyon Engineering and newcomer Woodlands Transport Service. Almost half of those who made the list were first-time applicants.

Co-organised by The Business Times and KPMG, the E50 Awards were sponsored by OCBC Bank and supported by the Infocomm Development Authority of Singapore, International Enterprise Singapore, SPRING Singapore and the Singapore Business Federation. +

medicine, biotechnology products,fitness equipment, health food and beverages, and many more.

MTA 2011March 23-26Singapore ExpoGet to know the technology and quality required for machine parts and components in metals and composites. Applications and solutions for key industries such as aerospace, automotive and electronics will be highlighted.

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EYEONECONOMY]

There is an idiom that goes like this: There’s no sin in being boring. The Singapore

economy is currently buzzing on all fronts with the republic achieving a record 14.7% growth last year. However, with 2010 pretty much behind us, predictions are that Singapore will achieve a more uninteresting but nevertheless a good, steady and sustainable mid-teen single-digit growth rate for the long haul.

While the jury is still out there for the 2011 growth rate, most economists are gravitating towards the 4% to 5% ballpark.

Speaking on the sidelines of the recently concluded APEC 2010 meeting in Yokohama, Prime Minister Lee Hsien Loong said

Singapore had to moderate its growth to lower levels. Mentioning that a 3% to 5% growth would be good, he told the Singapore media: “If we can do that, we would be doing well.”

The latest iteration comes after a mid-October announcement by

Slow & Steady for the Long Haul Looking ahead, economists predict that Singapore can expect a moderate and sustainable single-digit growth rate of about 4% to 5%. Growth will be propelled by the services sector.

the Ministry of Trade and Industry that the Singapore economy remains on track to achieve the overall growth forecast of 13% to 15% for the whole of 2010. In that announcement, the Ministry’s advanced estimates showed that the economy expanded by 10.3% in the third quarter of 2010 compared to the same period a year ago.

On a seasonally adjusted quarter-on-quarter annualised basis, the economy contracted by 19.8%, a reversal from the growth of 27.3% in the previous quarter.

PRIME MINISTER LEE HSIEN LOONG WITH JAPANESE PRIME MINISTER NAOTO KAN (RIGHT) AT THE APEC SUMMIT IN YOKOHAMA ON NOVEMBER 13, 2010.


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Most economists are now calibrating their 2011 GDP numbers lower, which is not a dire action as the slower growth will reduce infl ationary pressures and overheating in the economy.

Phillip Capital Strategist Joshua Tan says that while growth is moderating, it is still robust, with “downside risks leaning towards infl ation rather than growth”.

Similarly, CIMB Regional Economist Song Seng Wun says while “2010 (GDP) strength may not be repeated in 2011”, the outlook for Singapore continues to remain bright.

Taking a moderately more bullish view is Credit Suisse Economist Sean Quek. “The pace of expansion is expected to pick up again early next year after the slowdown in the second half of this year,” he says, adding that he expects Singapore’s real GDP to expand 4.2% in 2011.

“On a sequential basis, we expect real GDP growth to rebound modestly in the fourth quarter of 2010 and to gradually pick up speed in 2011, along with the recovery in global growth. In year-on-year terms, real GDP growth will most likely fall to low single digits in the fi rst half of 2011 on a less favourable base effect, before moving back to trend in the second half of 2010,” he adds.

Taking an even longer-term view, Credit Lyonnais Securities Asia’s Head of Singapore Research, Dhruv Vohra, says: “Growth opportunities abound for Singapore as it becomes the ‘passport of choice’ for companies and individuals. We forecast a 5.6% real-GDP compounded average growth through 2015, propelled by the services sector and buoyed by the improving mix of businesses and professionals. We also expect

more company relocations to infl ate the country’s market.”

Among the sectors that will contribute aggressively to this growth are the commodities,

tourism, private banking/fi nancial services, maritime and the biomedical sectors. A strong domestic economy,

together with rising export income, will shore up Singapore, says Mr Vohra.

Current 2011 GDP forecasts

vary between 4.5% (DBS) and 5.5% (Credit Lyonnais).

Looking for growthWhile the overall outlook for 2011 still remains upbeat, the prospects facing each of the various sectors may vary.

Having experienced a strong 2010 on the back of a robust construction sector over the year, prefabricated steel fi rm BRC Asia Limited believes the outlook for construction demand – and hence for reinforcing steel – still remains positive. However, caution will play a part in its outlook.

Managing Director Lim Siak Meng says while “the demand outlook for reinforcing steel may be positive going into 2011, it is unlikely the competitive environment of this industry will become any less intense, and as unlikely for there to be stability in international steel prices.”

“If the still-fragile recovery of the advanced economies fail to gather steam, or worse, if they were to succumb to recessionary pressures, it will likely dampen the positive growth forecasts of Asian economies including Singapore,” he says.

Another company which benefi ted from the rebound in consumer sentiment is home-grown food and beverage player Thai Village. In 2010, the company benefi ted from improved consumer spending and better economic conditions.

However, it has to contend with rising costs of business and intense competition in its sector in 2011. “With the opening of new shopping centres and the integrated resorts, the number of restaurants



EYEONECONOMY]

in Singapore has increased, but the food and beverage industry remains competitive and challenging. The group will continue to explore opportunities to expand its operations and keep up its efforts in managing operating costs into 2011,” says Managing Director Lee Tong Soon.

Facing a similar challenge is contract manufacturer PNE Industries. “Although the global economy has been recovering from the fi nancial crisis, the industries which the group operates in remain highly competitive. Continued volatility in customers’ orders and forecasts increases the uncertainty and diffi culties faced by the group,” says company spokesperson Tan Meng Siew.

Furthermore, the recovery of the economy has been accompanied by price increases, which have resulted in rising costs for the group. The US dollar has also weakened recently and as the group has sales denominated in the US dollar, the weakening of the currency will have an adverse impact on the group to the extent that its revenue would not be matched by costs denominated in the US dollar, she adds.

Then, there are also home-grown companies expecting to enjoy a more buoyant 2011 on the

account of tapping into overseas markets in still-burgeoning industries. One such player looking to expand its presence into overseas markets is oil and gas transhipment operator Marco Polo Marine.

Besides capitalising on the signifi cant increase in the long-term demand for tug boats and barges to ferry coal to the new coal-fi red power plants in Java and Sumatra, Indonesia, the group is also tapping into the potential of the offshore oil and gas sector in Australia.

“The economies of Southeast Asia are well-positioned to attain steady growth in 2011. Robust intra-regional business activities and

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high prices for commodities have generated strong demand for marine logistic and shipyard-related services,” says CEO Sean Lee Yun Feng.

He says Marco Polo made timely investments in prior years and in 2010, it benefi ted from higher chartering revenue from a growing fl eet of vessels, new revenue contribution from ship repair and the completion and deliveries of more sophisticated offshore support vessels. With an expanded fl eet of coastal-plying tugboats and barges, he expects the group to “recognise meaningful profi t contribution from its offshore marine division in 2011”. +

With the opening of new shopping centres and the integrated resorts, the number of restaurants in Singapore has increased, but the food and beverage industry remains competitive and challenging. – Mr Lee Tong Soon, Managing Director,

Thai Village Restaurant


HITACHI_JAN11_BIZQ.pdf Page 1 12/27/10, 12:30 PM


BIZCOMMUNITY]

SBF and WDA launch initiative to help businesses raise productivity New programme, Innovation Improvement Initiative (i3), aims to enhance innovation and raise productivity.

REPRESENTATIVES FROM SBF AND WDA, TOGETHER WITH MINISTER GAN KIM YONG (CENTRE), LAUNCH THE i3 PROGRAMME.

Several companies have recently signed up for a joint programme between

Singapore Business Federation and Workforce Development Agency (WDA), which will help train and mentor managers in ways to boost effi ciency in their businesses.

A key feature in this programme, the Innovation Improvement Initiative (i3), is the personal coaching such managers will receive from innovation and productivity experts who will help them identify trouble spots.

The i3 programme commenced with the Business Process Improvement (BPI) Advisory & Workshop by Motorola University, the corporate training arm of the US electronics giant. Under this series,

companies are entitled to individual consultancy by Motorola University “black belters” to improve the effi ciency and quality of selected work processes. On top of that, companies will receive knowledge transfer on the BPI methodology in workshop sessions to ensure the sustainable training of “productivity managers”. WDA has pledged to fund up to 70% of course fees for fi rms, with projected investment in the i3 programme likely to hit S$1 million over two years.

SBF will proactively outreach and urge its 15,000 members to sign up for the programme, which will cost around S$4,400 after WDA’s funding. Under the mentoring effort, consultants from SBF and Motorola will guide the trainees for three WELCOME REMARKS BY MR TONY CHEW.

months or until they see results, said SBF Chief Operating Offi cer Victor Tay.

Local company Heatec Jietong Pte Ltd, a maker of heat transfer and piping systems in the marine, oil and gas industry, has already signed up for the programme. Chairman Johnny Soon acknowledged the need for such training to strengthen its competitive edge.

He said: “To sustain our competitiveness, we never stop learning and improving our service offerings. We want to further strengthen our competitiveness and we fi nd this BPI Advisory & Workshop very relevant to us.”

Winson Press Pte Ltd is also another company who signed up for the pilot run of the BPI course. The

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MINISTER GAN KIM YONG AND SBF CHAIRMAN TONY CHEW (STANDING) WITNESSED THE MOU SIGNING BETWEEN SBF COO VICTOR TAY AND WDA SENIOR DIRECTOR ANIL DAS.

company is a full-service printer that provides one of the widest ranges of printing technology from offset, fl exo and letterpress to digital printing.

CEO Tan Jit Khoon commented: “I’ve heard so much about Business Process Improvement and Motorola University’s Six Sigma programme, but just did not know how to get it going in my company. The BPI Advisory & Workshop is simply great! The theory sessions along with the simulation games clearly illustrated the concepts to us. More importantly, it also provided us a structured methodology on how we can identify opportunities and develop solutions. We believe this is only the beginning of the series of continuous improvement projects that we have long wanted to do. All of us are excited about the outcome of these improvement projects.”

At the offi cial launch of the i3 programme in October, Singapore’s Manpower Minister Gan Kim Yong said training top and middle management is key in Singapore’s productivity drive.

“They are best placed to initiate change in their companies and to empower workers to play a role in improving productivity at the operations level,” he said.

About 130 representatives – from sectors such as retail, manufacturing and logistics – attended the launch to learn about the ways local companies can improve effi ciency and be more innovative.

He said the i3’s mentoring feature sets it apart from other WDA-backed schemes launched this year to produce more “productivity champions” in businesses, especially in small and medium enterprises (SMEs).

This programme is at the heart of Singapore’s efforts to boost yearly productivity growth from the current 1% to 2-3% over the next decade. +

ABOUT BPI ADVISORY & WORKSHOP PROGRAMME OUTLINE

HOW TO REGISTERAll Singapore-registered enterprises can sign up for the BPI Advisory & Workshop with subsidy support of 70% by WDA. For enquiries or registration, contact: Linda Christina/ David Setiawan from Singapore Business Federation (call 6827-6893 / 6827-6835 or e-mail: [email protected]).

Commencement of next BPI Advisory & Workshop: January 10, 2011**Subject to changes

SELECT THE PROCESS

• Select business improvement opportunity

• Develop project team charter• Defi ne customer requirements

• Achieve an in-depth understanding of the process using value stream mapping

• Understanding basic concepts

What is important?

1

IMPLEMENTATION• Mistake-proof the process to

eliminate defects from it• Complete all documentation

including SOPs, process control plans and training plans

• Develop a monitoring system and implement SPC and visual process controls to

provide feedback on the process

How do we guarantee p

erfo

rmance?

5

DETERMINE BASELINE

• Determine what to measure

• Develop effective data collection methods

• Evaluate measurement systems

• Determine process performance

How are we doing

?

2

IDENTIFY OPPORTUNITIES

• Identify potentialroot causes

• Evaluate the issues arising from the

root causes

What is wrong?3

PROCESS IMPROVEMENT• Develop potential

solutions• Evaluate and select solutions

• Develop “To Be” value stream map

• Develop and implement pilot run

What needs to be d

on

e?

4

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COUNTRYINSIGHTS]

AN INNOVATIVE TECHNOLOGY THAT FEATURES A CAR BEING CONTROLLED REMOTELY VIA A CELL PHONE.

South Korea is poised to become a market leader in style and innovation.

GOOD FOR THE SEOUL

Over the past decade, South Korea has reinvented itself to become a technology

innovator. There are many South Korean companies today which design and develop products, infusing them with the latest technologies, and then market their products worldwide with style and smarts.

In 4G phone technology, powerhouse Samsung is poised to become a leading market force, while Hyundai Motor is now a top-fi ve automaker in the world whose rising market share is fuelled by quality cars and nifty marketing.

Globalisation has always been the engine behind South Korea’s economic growth, even back in the ‘60s. Strategically poised between China and Japan, two of

the world’s largest markets, South Korea is currently ranked the fi fth most competitive city in Asia in the latest World Economic Forum’s 2010–2011 Global Competitiveness Report. Singapore is currently ranked fi rst in Asia and third in the global ranking.

The competitiveness of Korea-based fi rms on the global scene ranks high in terms of Korea’s attractiveness to international business. Korean companies have achieved the top global market share in shipbuilding, DRAM semiconductors and TFT-LCD displays, and count themselves among the top fi ve in automobiles, steel, petrochemicals, textiles and consumer electronics.

Growth areasThe South Korean government recently announced that it is focused on six growth areas: design, fashion, tourism, digital content, conventions, and business research and development. In addition, the government also invested in four development areas: Sangam Digital Media City, Magok, Yongsan International Business District and Yeouido International Finance Centre.

The Sangam Digital Media City, the world’s first digital content media complex, is

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SUPPLY CHAIN ACROSS KOREASupply chain leader YCH Group set up a South Korean offi ce in 2008. Now, the company is currently strengthening its team and setting up Korean desks in its offi ces across the region. BiZQ recently spoke to Mr Robert Yap, Chairman and CEO of YCH Group, about his views on the business opportunities in South Korea and his experience in an SBF-organised business mission.

What are some business opportunities or current business trends you experienced in the South Korean market?Given our Asia Pacifi c niche, YCH is currently working with the large Korean conglomerates such as Samsung and LG to service their supply chain management and distribution needs across other parts of Asia, such as Malaysia and Indonesia. As one of the main gateways, South Korea is strategically located as the fi nancial and logistical hub for Northeast Asia. By providing global forwarding and international freight management to these companies in South Korea, YCH is also supporting their regional expansion by aligning their footprint with our distribution hubs in emerging countries such as China, India and Vietnam.

At YCH, we embark on a two-pronged strategy in South Korea: First, we aim to facilitate Korean companies to compete more effectively in export markets with our comprehensive Asian network; and second, we facilitate better connections for our current MNC customers who are keen to explore growth within or via South Korea.

What positive outcome did you experience from your previous business mission to South Korea?It has given us the opportunity to better understand South Korea’s logistical and supply chain requirements better. This is so that we can leverage our Supply Chain Management (SCM) experience and expertise to tailor and customise more precise and relevant SCM solutions for Korean companies who were previously less likely to outsource their supply chains, but are now considering otherwise in line with global trends. How benefi cial has the business mission to South Korea been for you?Apart from having the chance to meet and network with top government leaders and eminent business owners in South Korea, the business mission was a wonderful opportunity to better understand the business landscape, trends and developments.

It also provided a platform for interested parties from both Singaporean and South Korean companies to exchange contacts for potential partnerships and alliances.

expected to be completed by 2015. The Magok district is an eco-friendly, high-tech industrial complex, while Yeouido is billed as the future financial district hub for Northeast Asia. The US$28 billion Yongsan International Business District development project is expected to be completed in 2017 or 2018.

Attracting foreign investorsShipbuilding and electronics have been the driving industries in South Korea for the past few decades, but many companies have shifted their focus from manufacturing to high-tech fields.

According to the Korea Trade-Investment Promotion Agency (KOTRA), the Korean government had recently unveiled a five-year plan to spend US$36 billion in developing renewable energy as its next economic growth engine. South Korea aims to be the “green hub” of the region and is looking to attract foreign investors in the renewable/green technology industry.

Cloud computing is another area where the Korea Communications Commission is planning to spend around US$521 million, with an aim to capture 10% of the global cloud services market by 2014.

KOTRA’s upcoming event in January, Buy Korea 2011, will focus on attracting buyers and investors from the cloud computing and renewable technology industries. The agency has said that Singapore and Korean companies who have attended past KOTRA events have gained fruitful outcomes.

Looking ahead, the Singapore Business Federation (SBF) continues to reach out to the

Singaporean business community by

collaborating with Korean

investment agencies like KOTRA and Korea International Trade Association which supports Free Trade Agreements between Korea and its trading partners around the world.

SBF Chairman Tony Chew said: “I believe South Korean and Singapore companies can form complementary partnerships for greater success in many sectors, particularly in logistics and clean energy.” +

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GLOBALBUSINESS]

H ome-grown leader in spring roll pastry manufacturing Tee Yih Jia

Food Manufacturing Pte Ltd fi nally qualifi ed for tax reduction in 2007 under the Harmonised System Code within the Singapore-India Comprehensive Economic Cooperation Agreement (CECA), after almost eight years of lobbying before the Indian government.

The company manufactures a wide range of ready-to-eat convenience foods such as roti prata, crepes, glutinous rice balls, spring rolls and samosas. It also produces other frozen convenience food products such as dim sum,

ramen, mantou and Asian pizzas with fl avours like Peking duck and satay chicken. The company’s Spring Home brand products are manufactured in Singapore as well as in several regional facilities.

With reduced import duties, CECA boosted Tee Yih Jia’s presence in the Indian market for its Spring Home products, hence enabling the Asian range of frozen products to be more accessible to Indian consumers.

Growing food exportsIndeed, consumers around the world, from Germany to Japan, and the Middle East to New York, are

increasingly drawn to Singapore fare, as evidenced by the growing quantity of food exports from Singapore, as well as the greater presence of Singapore food players in overseas markets.

The increasing popularity of Singapore fare is in no small part due to International Enterprise (IE) Singapore, Singapore Business Federation’s (SBF) South Asia Business Group and the Singapore Tourism Board’s (STB) promotional efforts for Singapore food and beverage players.

SBF’s South Asia Business Group is a high-level business networking platform that facilitates

SPRINGBOARD INTO INDIAAn increasing number of Singapore fi rms in the food industry are looking to cash in on India’s booming economy.

PROCESSING OF CONVENTIONAL AS WELL AS FAIRTRADE TRANSFAIR AND ORGANIC BASMATI RICE FROM THE PROJECT OF KHADDAR FARMERS NEAR DEHRADUN FOR EXPORT AT HARYANA SUNSTAR RICEMILL.

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value-added information exchanges and services. This group is open to all corporations, companies and individuals interested in the Indian and other South Asian markets.

Now, local players are beating a path to India’s door where bilateral trade between Singapore and India has passed $20 billion, up from $2.5 billion in 1994.

According to Singapore Indian Chamber of Commerce & Industry (SICCI) CEO Hernaikh Singh, the growth probably started about fi ve years ago, following the signing of CECA, a trade pact between Singapore and India.

He estimated that membership at the chamber has doubled in the last fi ve years to about 800 today. He also noted that the profi le of new members has shifted from the traditional trading fi rms to services companies, such as those involved in food and beverage, fi nancial services and consultancy work.

Since CECA was signed in 2005, bilateral trade has grown steadily between the two nations.

India’s High Commissioner to Singapore Dr T.C.A. Raghavan noted that the second review of CECA was initiated in May 2010.

“The conclusion of the Comprehensive Economic Cooperation Agreement and regular high-level political and ministerial contacts covering virtually all aspects of intergovernmental cooperation have been responsible for this steady expansion in our bilateral relationship,” he said. “Both sides are committed to a high-quality review and we expect good outcomes at the completion of the review.”

Singapore’s investment in India topped $5.6 billion in 2008, according to IE Singapore and the Singapore Department of Statistics, well up from the $2 billion in 1994.

And bilateral trade touched $22.69 billion between January and September 2010, compared to $21.59 billion in 2009.

In a comparatively short time, India has emerged as Singapore’s 11th largest trading partner. There are almost 4,000 Indian companies operating in Singapore and, although no offi cial fi gures are available on the precise number of Singapore fi rms operating in India, there are more than 50.

Local giants such as Ascendas, CapitaLand, Singapore Airlines, Development Bank of Singapore and Hyfl ux, plus smaller operators like Charles & Keith, Indian vegetarian restaurant Komalas and bakery chain BreadTalk, have set up shop in India.

Mr Sat Pal Khattar, Chairman of private investment fi rm Khattar Holdings, said: “If there are, at last count, 800 Indian restaurants in Singapore with a population of fi ve million, can you imagine the potential of places such as New Delhi with a population of 12 million, and Mumbai with a population of 18 million? What has changed in India is this: There is money to be spent and people have a different mindset. They are also willing to spend the money.”

India’s food industryIndia is one of the world’s largest producers, as well as consumers of food products, with spending on

food accounting for nearly 21% of India’s GDP, and with a market size of US$181 billion. Domestically, the spending on food and food products constitutes the largest portion of the Indian consumer’s spending – more than a 31% share of the wallet.

Thanks to rising disposable incomes, the Indian overall food consumption market is forecast to climb from US$155 billion in 2005 to US$344 billion in 2025 – with compound growth at 4.1%. Growing incomes, falling poverty, changing lifestyles and companies racing to capture India’s middle and upper-middle class consumers will cause the food market to evolve dramatically in the coming years.

The Indian food processing industry comprises fruits and vegetables, dairy products, fi sh and seafood, meat and poultry, edible oils, staples, alcoholic and non-alcoholic beverages, baked goods, confectionery and packaged foods, among others.

Spending on agri-products is expected to touch US$177 billion by 2015. Milk and milk products are expected to increase their overall share in spending to reach US$49 billion, and spending on meat and seafood products is expected to reach US$32 billion by 2015. India’s import market for snack food and snack food ingredients has trebled between 2002 and 2006, from US$10 million to US$30 million – with food items comprising almost 97%.

According to a recent KPMG report, the evolution of innovative food processing capacity, emergence of organised retail and change in consumption patterns, along with fast-changing demographics and habits, are fuelling the next growth trajectory for the food industry in India. +

MR SAT PAL KHATTAR, CHAIRMAN OF KHATTAR HOLDINGS PTE LTD.

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COVERSTORY]

SINGAPOREMOVES TO A“FULL BRAIN”ECONOMYShortly after independence, Singapore was convinced that its survival depended on upgrading basic services and creating jobs. Fast forward four decades and Singapore is moving towards a “full brain” economy by building a more diverse and richer industrial base. Evidence suggests this is starting to bear fruit. BiZQ takes a closer look.


T he Singapore economy is on a growth track and consumer sentiment is on an uptrend. It is hard to hire workers, not to

mention foreigners. Even getting the right kind of skilled local workers has become a challenge.

But establishments like the Tung Lok Group’s Ruyi Chinese restaurant still has to go on dishing out its delicious fried rice and noodles. The answer: Deploy a kitchen robot that can fry a pot of rice in four minutes, about half the amount of time a chef takes. There’s also the noodle boiler which can boil noodles in 40 seconds.

At the heart of this solution lies the key traits of innovation and adaptability in an economy that is

undergoing a transformation of sorts. Such innovations will help “maximise economic gain (and) minimise social cost”, labour chief Lim Swee Say commented during a recent visit to Ruyi Chinese restaurant.

“If we can combine the technology... this mechanisation and automation, as well as restructure our workfl ow, we believe the food service industry will not only catch up in terms of productivity, they have tremendous export potential as well,” he added.

This example in the food and beverage sector is no longer an isolated example of an underlying phenomenon taking place in the Singapore economy. From the days of independence when jobs were

scarce, as exacerbated by the withdrawal of British troops from Singapore, the island state has had to pursue a no-holds barred, systematic and methodical strategy of welcoming multinationals here to create jobs.

Part of that systematic approach involved nurturing Singapore’s young population with the appropriate literacy skills. In the close to four-and-a-half decades of independence, Singapore has achieved literacy levels much to the envy of most countries in Asia.

With such development having taken place, there is now a concerted move to develop a “full brain” economy. This would, in essence, involve spurring

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BIZQ Jan-Mar 2011 AX: 8699851

We do not accept responsibility for any error,defect or inaccuracy which is not noted onthe proof. Therefore customers are advisedto thoroughly check and examine the proofprior to authorising the digital files for printing.

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BIZQ BIZQ JAN/FEB/MAR 2011 ] 23 BIZQ BIZQ JAN/FEB/MAR 2011 ] 23

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COVERSTORY]

the “right brain” of Singapore’s scarce resources, encouraging intuitive, subjective and holistic thinking in education, business and the larger economy.

In short, creating a “full brain” country involves making and developing Singapore into more of a “whole” economy.

In a comprehensive report titled Passport of Choice Singapore – A New Brand Story, Credit Suisse’s Head of Singapore Research Dhruv Vohra says: “Singapore has an exceptional hand to play and should retain its attraction for investors. Growth opportunities abound for Singapore as it becomes the ‘passport of choice’ for companies and individuals.”

He adds: “The country may fi nd itself in the enviable position of a gatekeeper, able to handpick the businesses and industries it promotes. Strong economic growth and better corporate and population demographics bode well for equity markets, thanks to greater domestic demand, improved corporate earnings and additional listings. As a result, Singapore’s market capitalisation can comfortably rise by 50% in the next fi ve years.”

As he rightly points out, there have been skeptics who doubted the potential of gaming and the possibility that the island state could become a vibrant tourist destination. But the reality is that Singapore’s success has exceeded analysts’ expectations, turning them into converts.

But for Singapore, the march of progress continues.

Education – The PacesetterIn his 2010 National Day Rally, Prime Minister Lee Hsien Loong said: “We already have a very good system of education which gives our kids a strong foundation – especially in maths and science – and makes them effectively bilingual. When they leave school, poly or university, they are competent and employable. But we can do better.”

In his speech, he referenced this by adding: “Every child is different, every child has his own interests, his own academic inclinations and aptitudes, and our aim should be to provide him with a good education that suits him, one which enables him to achieve his potential and build on his strengths and talents. Talent exists in many dimensions, not just

academic talent, but in arts, in music, in sports, in creative activities, in physical activities.”

This continuous transformation being embarked upon is already being noticed by leading businesses. McKinsey & Company has just released a report on the Singapore education system, stating that it is one of the “world’s most improved school systems (that) keep(s) getting better”. It adds: “Singapore is currently on its ‘great to excellent’ journey which emphasises learning through peers and innovation.”

The Singapore government has started to set the pace by showing and venturing into new areas like setting up a liberal arts college. This move comes after Singapore has already developed

YALE UNIVERSITY PRESIDENT RICHARD LEVIN (LEFT) AND NATIONAL UNIVERSITY OF SINGAPORE PRESIDENT TAN CHORH CHUAN LOOKING AT A BOOK OF OLD ARCHITECTURAL PLANS FOR YALE DRAWN UP IN 1919.


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alliances with the Massachusetts Institute of Technology, Duke University and Imperial College London in an effort to boost new capabilities in the republic.

In a prospectus shared with BiZQ, Yale President Richard C. Levin says: “Creating an entirely new (liberal arts) college offers an exciting opportunity to develop a novel curriculum spanning western and Asian cultures, exploring their similarities and differences, and better preparing students for lifelong learning in an interconnected and interdependent global environment.”

To put this in context, setting up a new college bearing Yale’s name in Singapore is a big step, because it would be the fi rst foray for Singapore in adopting an educational system that engages students through a multidisciplinary approach in the study of humanities and social sciences.

This is clearly echoed by Singapore’s Minister for Education

Ng Eng Hen. A few weeks ago, he told the media at the end of a working trip to the US that setting up a liberal arts college will provide an educational framework that trains “the cut of mind” and “lends itself to the 21st century, because many of our problems and challenges are multidisciplinary in nature”.

He says a liberal arts college in Singapore would introduce “a more well-developed approach to the training of future leaders”.

The new college is expected to hire 100 new faculty members and be an autonomous school within NUS, with degrees awarded through the Singapore university. In addition, the new school aims to open by the end of 2013 and will take in about 1,000 undergraduate students initially.

Budding Tulips withinthe Singapore EconomyWhen one takes a closer look at Singapore’s macroeconomic composition, one would notice that

new sub-sectors are emerging. For a start, Singapore has already been recognised as a global energy and chemicals hub, generating $57 billion of the manufacturing output in 2009 (28% of Singapore’s total manufacturing output).

With the conscientious effort to broaden the base of the Singapore economy, the republic is now attracting new ventures from within this energy cluster. One prominent example is the venture into renewable energy.

Although the world has yet to strike any deals on climate change, Singapore has already embarked on a holistic approach in attracting work and investments in renewable energy.

As part of Singapore’s approach to develop a “full brain” economy, it has come up with a blueprint to grow the clean energy industry.This involves attracting high-value, capital-intensive investments in manufacturing, developing a strong base of equipment companies and other suppliers, as well as building up strong R&D and support – to the point that the various jigsaw pieces are falling into place.

Companies like Norway’s Renewable Energy Corporation (REC) and The China Guangdong Nuclear Power Holding Corporation (CGNPC) are helping Singapore to quickly achieve this.

For REC, it has just opened one of the world’s largest integrated wafer, cell and module manufacturing facilities in Tuas. It is a milestone because it is the largest single investment ever made by REC, and is the largest clean-tech investment ever made in Singapore. With a commitment of $2.5 billion, it also becomes the third largest foreign green fi eld investment ever made by a Norwegian company.

At REC’s recent opening ceremony, REC CEO Ole Enger

To put this in context, setting up a new college bearing Yale’s name in Singapore is a big step, because it would be the fi rst foray for Singapore in adopting an educational system that engages students through a multidisciplinary approach in the study of humanities and social sciences. – SENTIMENTS ECHOED BY SINGAPORE’S MINISTERFOR EDUCATION, NG ENG HEN

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says the company is confi dent that solar power will be an important energy source in the coming years. “REC’s high-performance solar technology and Singapore’s global competitiveness will create a centre of excellence that will make smart energy for a cleaner future more accessible,” he adds.

In this regard, REC has made Singapore a home for its solar activities by locating its best in class manufacturing and R&D operations here. In addition, the Singapore government is working with REC and other industry partners to strengthen the clean energy industry ecosystem through initiatives in research, innovation and development of specialised manpower and a supplier base.

The REC plant is the second world-class project the company has completed in 2010, following the opening of a new silicon production facility in the US. Already a leading producer of silicon and wafers, REC is expected to become a key player in modules,

aspiring to a top 10 position. Dispelling a common notion that

Singapore is an expensive place for manufacturing, the REC facility was completed based on only 80% of the actual budget. Initial volumes

of 740 MW for wafers, 550 MW for cells and 590 MW for

modules will be made here. The target is to meet the production capacity of 800 MW modules in 2012 – a 35% increase compared to the design capacity.

In a similar vein, in November 2010, Singapore also

achieved the distinction of becoming the fi rst

pilot site for the trial of an integrated solar-biomass power

generation plant. CGNPC has announced that it will invest $65 million into such a project for its solar operations in Singapore.

CGNPC Deputy General Manager Tan Jiansheng says CGNPC actively made the decision because it was looking to expand its reach in the global clean energy market.

“Singapore is strategically located in Southeast Asia where sunlight is plentiful, and has shown clear commitment towards the development of the solar industry,” he says.

By exploring technical and economic feasibilities of the comprehensive use of solar energy in Singapore and the region, this project can serve as a leading example of the good practice in utilising renewable energy.

Expanding Singapore’s Biomedical BaseIf renewable energy is gaining traction in Singapore, biomedical and pharmaceutical activity is

propelling the republic towards another growing and expanding base of economic activity. When one starts looking at the array of biomedical activity in Singapore, the new forays are startling.

For example, GlaxoSmithKline (GSK) R&D has just announced that it is starting four new academic collaborations with Singapore-based scientists and the company’s global drug discovery network as the fi rst step in a longer-term plan to seek alliances with scientifi c experts.

Bayer HealthCare Singapore, a subsidiary of German-based Bayer AG, is another player which says it will use its Singapore base to enhance its expertise in qualifying R&D activities, especially in the areas of early diagnosis and treatment outcomes of cancer patients.

In partnership with the National University of Singapore, National University Health System, SingHealth and A*STAR’s Singapore Bioimaging Consortium (SBIC), Bayer HealthCare says it will launch fi ve new projects to investigate novel approaches to diagnose and treat cancers, including those that are highly prevalent in the region.

The company says it plans to accelerate its drug discovery and development in Asia. The collaboration is also part of

A WORKER AT RENEWABLE ENERGY CORPORATION (REC) CHECKS MANUFACTURED SOLAR PANELS. REC’S INTEGRATED SOLAR PLANT, A 321,000 SQ M COMPLEX, PRODUCES SOLAR MODULES WHICH ARE EXPORTED TO THE EUROPEAN AND AMERICAN MARKETS.

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Bayer HealthCare’s S$20 million investment in joint research projects with Singapore-based universities, hospitals, research institutes and companies over six years.

Dr Axel Bouchon, Country Representative, Bayer HealthCare Singapore, says: “Singapore has made signifi cant progress in translational and clinical research by offering an experienced team of study coordinators and investigators in clinical research.

“Researchers are able to access laboratory facilities, scientifi c infrastructure and specialised services, allowing companies to signifi cantly accelerate development timelines. In Singapore, we can also gather clinical insights into the disease biology of key ethnic groups in Asia,” he adds.

One would assume that given Singapore’s strong industrial base and ability to grab the attention of MNCs, forays into the areas of renewable energy and biomedical sciences are to be expected.

But Singapore is expanding into areas which some of the republic’s neighbours would have to give a rethink, because these countries would be seen as having some competitive advantage.

A good case in point is the decision by Syngenta, a global agri-business, to plant the “seeds” for a global R&D centre in Singapore.

The company has just set up a new research facility in Singapore to house its molecular marker and formulation development laboratories. Called the Kendall laboratory, it will support the development of new technology for agriculture around the Asia Pacifi c that can help maintain food security in a sustainable way.

This facility will be an important addition to the agri-business sector in Singapore. For example, the seeds marker laboratory will feature the latest marker-assisted breeding techniques to aid plant breeders in

developing superior crop varieties in a shorter time, a capability that some would feel is best suited to countries with an agricultural sector. This and the other latest techniques in agronomic technology will enable Singapore and Syngenta to contribute towards addressing industry issues such as crop yield improvement, drought resistance and disease control.

“The Asia Pacifi c region is expected to have an additional billion mouths to feed by 2030, and with limited natural resources, new technology in agriculture is necessary to help farmers grow more with less,” says Mr Peter Pickering, the Region Head of Syngenta’s seeds business in the Asia Pacifi c.

“Syngenta’s Kendall R&D laboratories will support our research network around the region and allow us to bring better technology to Asian farmers as they work to provide greater food security across the region.”

Credit Suisse’s Mr Vohra sums up his view of Singapore’s longer-term potential: “What has often been overlooked is the dynamism with which policymakers in Singapore are constantly trying to re-engineer the economy’s growth drivers, and move up the value-added chain within different export sectors.”

The Red Dot gets bigger… +

Researchers are able to access laboratory facilities, scientifi c infrastructure and specialised services, allowing companies to signifi cantly accelerate development timelines. In Singapore, we can also gather clinical insights into the disease biology of key ethnic groups in Asia.– DR AXEL BOUCHON, COUNTRY REPRESENTATIVE,BAYER HEALTHCARE SINGAPORE

GLAXOSMITHKLINE (GSK) BIO’S TUAS FACILITY. GSK WILL USE ITS SINGAPORE BASE TO ENHANCE ITS EXPERTISE IN R&D ACTIVITIES IN THE AREAS OF EARLY DIAGNOSIS AND TREATMENT OUTCOMES OF CANCER PATIENTS. IL

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INDUSTRYTRENDS]

Singapore’s biomedical sciences research and development effort receives a S$3.7 billion boost as part of its aim to be Asia’s innovation capital.

BIOMED INDUSTRY GETS A SHOT

T he Singapore government recently announced that it will invest S$3.7 billion

for biomedical sciences (BMS) research and development over the next fi ve years. This is a strong signal that BMS R&D remains a priority in Singapore’s long-term strategy to boost its competitiveness, achieve sustained growth and establish the country as Asia’s innovation capital.

The BMS investment is part of the Research, Innovation and Enterprise (RIE) 2015 fund of $16.1 billion committed to R&D efforts from 2011 to 2015. The BMS funding will support better integration of research

A RESEARCHER WITH A MICROPIPETTOR PREPARING REACTION MIXTURES FOR A COMMON GENETIC EXPERIMENT.

performers, greater emphasis on translational and clinical research (TCR), and stronger focus on economic outcomes.

The fi rst two phases of Singapore’s BMS Initiative, launched in 2000 to establish BMS as a key pillar of the country’s economy, is in basic research and TCR.

Last October, Singapore’s BMS Executive Committee announced that it has established the BMS Industry Partnership Offi ce (BMS IPO) – under the directorship of Mr Beh Kian Teik, Economic Development Board’s Director of Biomedical Sciences – to facilitate

better integration within the research network and to continue attracting major R&D investments by global companies. The BMS Exco is a multi-agency offi ce made up of A*STAR, the National Medical Research Council (NMRC) and Economic Development Board (EDB).

“With the shift in demand from the Western to Asian markets, global industry players are now eager to tap the abundant opportunities in this region, especially in R&D activities,” said Mr Lim Chuan Poh, Chairman of A*STAR and Co-Chair of the BMS Exco. “With the steady and sustained investments in the BMS sector

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over the last 10 years, Singapore is now well-poised to partner with the industry to tap into this window of opportunities.”

According to Ms Yong Ying-I, Permanent Secretary of the Ministry of Health (MOH), and Co-Chair of BMS Exco, translational and clinical research is an important part of the initiative.

“We will continue to work closely among all our research performers from the health care clusters, academia and research institutes to strategise how our TCR efforts can bring about innovative health care solutions,” said Ms Yong. “Through the BMS IPO, we also look forward to greater industry participation, so such solutions can be brought to the market in a cost-effective manner to benefi t the general population in Singapore and the region.”

BMS manufacturing outputOn a macro level, Singapore’s BMS manufacturing output for 2009 was $21 billion, up by more than three times from $6.3 billion in 2000. BMS’ share of Singapore’s total manufacturing output was 10% in 2009 – an increase from 4% in 2000. The Compound Annual Growth Rate (CAGR) from 2000 to 2009 was 14%, which is a good indication of Singapore’s steady success in building up BMS capabilities.

Home-grown innovatorsHome-grown companies and a local research institute are garnering international recognition for their innovative research, said the Economic Development Board (EDB). They include MerLion Pharmaceuticals, S*Bio, Veredus Laboratories and the Institute of Bioengineering and Nanotechnology.

MerLion Pharmaceuticals made it to FierceBiotech’s 2007 industry listing of biotechnology companies to watch worldwide. It is the fi rst Asian company on this annual roll of top emerging fi rms since the inaugural awards in 2003. In December 2007, it received the Best Company in an Emerging Market award at the annual Scrip Awards in London. MerLion Pharmaceuticals is a drug discovery and development company with a novel antibiotic drug, Finafl oxacin, that is activated under acidic conditions and eradicates helicobacter pylori bacteria.

Another local player, S*Bio, is Singapore’s fi rst fully integrated drug discovery company and was established in 2000 as a joint venture between the EDB and Chiron Corp. In 2008, S*Bio received

orphan drug approval from the US Food and Drug Administration (FDA) to conduct clinical trials for a drug designed to treat myeloproliferative disorders (MPD), which if left untreated, can lead to cardiovascular diseases and leukaemia. In 2009, S*Bio entered into licensing agreements with Onyx Pharmaceuticals and Tragara Pharmaceuticals to develop and

commercialise its novel compounds. Under these agreements, S*Bio was eligible to receive more than US$650 million in payment.

Also on the fast track, Singapore’s Institute of Bioengineering and Nanotechnology (IBN) has succeeded in developing an all-in-one rapid gene diagnosis device that enables polymerase chain reaction (PCR) gene detection within 17 minutes, which is radically faster than conventional laboratory methods. In November 2008, MP Biomedicals signed an agreement with A*STAR to commercialise the device.

In addition, Veredus Laboratories collaborated with ST Microelectronics to commercialise a breakthrough molecular diagnostics lab-on-chip test kit – VereFluTM. This portable device, which is the size of a fi ngernail, allows for rapid detection of major infl uenza types within two hours, instead of the weeks required using more traditional methods.

MS YONG YING-I, PERMANENT SECRETARY OF THE MINISTRY OF HEALTH AND CO-CHAIR OF THE BMS EXCO.

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INDUSTRYTRENDS]

In 2009, BMS also accounted for about 21% of the total manufacturing value-added in Singapore or $9.1 billion. This was a signifi cant increase from the value-added of $3.8 billion in 2000.

In terms of employment, there were over 13,000 people employed for manufacturing in the BMS sector in 2009 – more than twice the number of 6,000 in 2000. There were also over 5,000 people employed for R&D jobs in the fi elds of biomedical and related sciences, as well as bioengineering. Of the 5,000 people, more than 40% had PhDs, suggesting high value-added jobs in this sector.

Cutting-edge researchAgainst this backdrop, over 100 global biomedical sciences companies have leveraged on Singapore’s world-class manufacturing capabilities, strong clinical and scientifi c infrastructure, connectivity to Asian markets and its pro-business environment.

These companies continue to carry out strategic business operations, such as cutting-edge research, manufacturing and regional headquarters in Singapore. They include Abbott, Agilent Technologies Inc, GlaxoSmithKline (GSK), Merck Sharp & Dohme, Pfi zer, Roche, Becton Dickinson, Medtronic, Siemens and Hill-Rom.

Agilent Technologies Inc’s new life sciences instruments manufacturing facility in Singapore produces liquid chromatography/mass spectrometry (LC/MS) instruments for the global market. This facility manages the supply-chain network – including

planning, procurement, value-added engineering and logistics.

Joining the bandwagon is pharmaceutical giant GSK’s R&D, with its four new academic collaborations with Singapore-based scientists. The four projects are on areas such as ophthalmology, regenerative medicine and neurodegeneration. They will include the identifi cation of new biomarkers and model systems, and elucidation of mechanisms of action around innovative medicines.

Emergent BioSolutions Inc recently announced that its joint venture with Temasek Life Sciences Ventures Pte Ltd – EPIC Bio – will begin clinical manufacturing of a broad spectrum infl uenza vaccine candidate in 2011 and initiate a clinical trial in 2012. The joint venture develops, manufactures and commercialises pandemic infl uenza vaccines and therapeutics.

Next-gen technologiesAs Singapore builds on its foundation in science and capabilities in TCR, the biomedical industry will be able to accelerate the drug discovery process with next-generation technologies, while focusing on key diseases such as metabolic, neurodegenerative, infectious and eye diseases, as well as cancer.

Singapore’s Investigational Medicine Units are dedicated for early-phase trials in public hospitals, while the Singapore Clinical Research Institute is focused on supporting later-stage trials. In 2008, Singapore announced the setting up of Cancer Research Centre of Excellence and the Centre for Translational Medicine, which houses the medical faculty, bio-imaging and bio-safety facilities. These facilities will in turn support the growing community of clinician scientists in Singapore.

Biomed manufacturingSingapore has established its position as a trusted and competitive site for biomedical manufacturing. Today, eight leading pharmaceutical and biotechnology companies, as well as 25 leading medical technology companies, have invested in more than 50 commercial-scale manufacturing facilities. Pharmaceutical manufacturing facilities that have commenced commercial operations have also received zero major observation from international regulators such as the US Food and Drug Administration (FDA) and the European Medicines Agency (EMEA).

Y E A R 2 0 0 9

BMS Manufacturing Output S$20.7 billion (US$14.3 billion) (10% of total manufacturing output)

BMS Manufacturing Value-Added S$9.1 billion (US$ 6.3 billion) (4% of GDP)

Manufacturing EmploymentTotal 13,174Pharmaceutical 4,880Medical Technology 8,295

Value-added Per Worker S$0.7 million

Source: Singapore Economic Development Board

MR LIM CHUAN POH, CHAIRMAN OF A*STAR AND CO-CHAIR OF THE BMS EXCO.



INDUSTRYTRENDS]

Many companies are indeed carrying out biomedical sciences R&D that includes drug discovery, translational and clinical research. These companies include Abbott, GlaxoSmithKline, Merck Sharp & Dohme, Novartis, Lilly, Takeda, FORMA Therapeutics, S*Bio, MerLion Pharmaceuticals and PharmaLogicals.

“Effi ciency in the drug discovery and development process is a major cost saver,” said A*STAR’s Mr Lim. “At the same time, it also enables the public-private partnership to focus on what is important, namely the research work and the smooth translation of that into novel and impactful health care solutions for Singapore and the wider Asian market and beyond.”

Training medical innovatorsThe Singapore government is committed to working with the industry to upgrade employees’ skills, train new workers and promote best practices. The launch of the National University of Singapore

(NUS) Academy of GxP Excellence (NUSAGE) – a collaboration between the government, NUS and industry partners – is one of the fi rst industry-wide training initiatives in the region and complements company-specifi c training centres in Singapore.

In addition, EDB launched the Medtech IDEAS programme in April 2010. Medtech IDEAS, which stands for Innovate, Design, Engineer for Asia in Singapore, aims to nurture talent that can develop innovative medical devices that will address unmet health care needs in Asia.

One of EDB’s partners, US-based Medtronic, will set up a training programme at its Singapore facility that will provide the skills needed to assess the unmet clinical needs of customers and patients in Asia and consider them in the design, development and manufacture of medical devices.

Biopolis of AsiaSingapore’s vision is to be the Biopolis of Asia, a leading international biomedical sciences

cluster advancing human health across the entire value chain.

Since 2000, when Singapore launched its BMS Initiative, the EDB has worked closely with other public-sector agencies, such as A*STAR, MOH and the universities, to build up scientifi c and clinical excellence, thus fuelling the growth of the biomedical sciences sector.

Economists say there is more upside to the biomedical sciences industry in view of the ageing population and higher demand for medical care.

Alvin Liew, an economist at Standard Chartered, said that Singapore “needs to move up the value chain and that requires things like research and development, and also to venture into different areas like medical technology... and ride on our expertise within the precision engineering sector, using that kind of skills and applying them to medical technology”.

Singapore has established a strong track record as a global manufacturing site in Asia. Many pharmaceutical, biotechnology and medical technology companies have invested in commercial-scale facilities, and they continue to partner Singapore in enhancing manufacturing capabilities.

The country presents key advantages for companies that seek to improve R&D productivity and develop innovative medical devices for Asia. Biomedical sciences companies can take advantage of the multidisciplinary capabilities offered by Singapore’s integrated research network in basic and translational research.

As companies seek to expand their footprint in Asia to tap into the region’s fast-growing health care markets, Singapore has emerged as a key beachhead site for both global companies and Asian enterprises. +

Clinical ResearchSingapore has also launched fi ve S$25 million Translational and Clinical Research (TCR) Flagship Programmes that will bring scientists and clinicians together to work on key diseases. The fi ve TCR Flagship Programmes were awarded from 2007 to 2008. They include:

Singapore Gastric Cancer Consortium (Cancer)Translational Research Innovations in Ocular Surgery (Eye Diseases)Vulnerability, Disease Progression and Treatment in Schizophrenia and Related Psychoses (Neuroscience)Developmental Pathways to Metabolic Diseases (Cardiovascular/Metabolic Diseases)Scientifi c Exploration, Translational Research, Operational Evaluation of Disease Prevention and Preventive Measures through New Treatment Strategies against Dengue – STOP Dengue (Infectious Diseases)

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TECHNOLOGY]

Frost & Sullivan spots key global trends that point to next-generation business models.

VISION OF OUR FUTURE

What has building a sustainable environment for future generations,

using green energy technologies within a connected ecosystem, have to do with how corporate decision-makers do business? Plenty, according to Mr Manoj Menon, Partner and Managing Director at Frost & Sullivan Asia Pacifi c.

If senior executives are determined to steer their companies on a successful path to next-generation business models, they need to keep an eye on upcoming global trends to take advantage of the opportunities that will become available in future.

The constant convergence of industry with technology has led to emerging trends such as smart cities, cloud computing, health care and clean technologies. In addition, increasing urbanisation has led to many cities becoming overcrowded

and polluted. This has resulted in governments and city planners now designing and developing sustainable and effi cient smart cities.

1. URBANISATION: Three major trends will emerge – the development of mega cities, mega regions and mega corridors. By 2020, there will be developments of mega-city corridors and networked, integrated and branded cities globally. 2. E-MOBILITY: Over 40 million electric two-wheelers and four-wheelers will be sold annually worldwide in 2020. Such vehicles will usher in new mobility business models.

3. SOCIAL TRENDS: Of the 2.56 billion Gen Y population worldwide in 2020, around 61% will be from Asia. Goods and services for this generation will be catered to their values, beliefs, interests and lifestyles.

4. INFORMATION TECHNOLOGY: Over 900 satellites will be launched globally by 2020. Multiple innovative applications will be created, including broadband Internet and wireless networks, medical monitoring and drug delivery systems, automated guidance of machines and real-time structure monitoring.

5. GREEN INNOVATIONS: Increased emphasis will be placed on developing energy-generating technologies that reduce CO2 emissions in 2020, such as travelling wave reactors, third-generation bio-fuels, solar PV cells, wind energy, geothermal energy and ocean energy.

6. INFRASTRUCTURE: Development and the integration of land and transport infrastructure will result in industrial and business hubs.

7. HEALTH CARE: In most countries, per capita health care spending is rising faster than per capita income. Health economics indicate a spending shift towards predicting, diagnosing and monitoring health-related issues.

8. NEW BUSINESS MODELS: The new age of innovation is moving towards co-created value, where enterprises look towards self-service, pay-per-use and cloud computing.

9. CONNECTED DEVICES: A projected 80 billion devices in the market by 2020 for the home, offi ce, mobile and Internet networks.

10. INCREASED INFLUENCE: The infl uence of new technologies is increasing rapidly. It took two years for an audience of 50 million to catch up with Facebook, compared with four years for the Internet and 13 years for the TV. +

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MANAGEMENTGUIDE]

PLANNING AHEADGaining insights on how to protect businesses from potential risks through Business Continuity Planning.

One of the biggest myths in Business Continuity Planning (BCP) is that

most businesses consider it the sole responsibility of their IT departments to manage business risks and disruptions during a crisis.

According to the NCS Business Continuity Planning Index 2010, this belief is widespread as IT downtime is still one of the main causes of business disruption.

The BCP index revealed that in a recent study done among 165 Singapore companies to assess the level of awareness and readiness in terms of business continuity, 55.2% of fi rms experienced disruption, citing network failure as a cause.

Only 59.4% had access to disaster recovery centres, and out of this, 42.9% catered to less than 5% of their local employees.

These fi ndings were recently shared by NCS Group’s BCP Leader Wong Tew Kiat at a Business Continuity Management (BCM) seminar jointly organised by the Singapore Business Federation, Disaster Recovery Institute International (DRII) and NCS Pte Ltd.

This event, attended by 80 executives, aimed to raise the awareness of adopting the national BCM certifi cation standard SS540:2008, which goes towards ensuring resilience in the local business environment. The participants heard from industry experts from SBF, DRII, NCS, OCBC

Bank and SP PowerGrid Ltd, who shed light on issues related to the theme of “Criticality of Organisational Resilience as one of the key success factors in business”.

The BCP practice is viewed as particularly relevant today, given the results of the BCP Index 2010. Commissioned by NCS, it found that most local fi rms scored an average of 2.69 – well below the “excellence” mark of 4.0.

The banking, fi nance, insurance and real estate sector emerged with the highest score of 3.41, which was attributed to the Monetary Authority of Singapore’s strict guidelines regarding BCM. Sectors that did not fare so well included manufacturing and infocomms, with scores of 2.18 and 2.08 respectively.

Only a third of the 165 fi rms surveyed had BCP-certifi ed personnel. Some 48.1% of those with existing BCP-certifi ed staff were likely to send their employees for future BCP certifi cation, against 35.1% of enterprises with no BCP certifi cation.

The index fl agged a worrying gap between the deployment of disaster recovery centres and ensuring such centres were up to coping with companies’ needs.

Among the index’s key recommendations are that

businesses implement BCM processes, be given more encouragement to become BCP-certifi ed, and expand BCP involvement across the company.

Some of the BCM aspects which businesses should look into include where BCM fi ts into the resiliency model; a comparison of risk management versus BCM; BCM drivers (customers and regulators); a look at regulations and standards with a discussion of corporate certifi cation; a look at supply chain management; and the use of insurance.

SBF Chief Operating Offi cer Victor Tay said: “Be they economic, natural disasters, civil unrest, epidemics or terrorism – threats are increasingly becoming a common and regular phenomenon in our cross-national business environment.”

He added that BCM is essential in safeguarding value-creating activities, the reputation of businesses as well as interests of stakeholders. +

For more information on BCM-related events, contact SBF’s Business Continuity Management Team at6827-6821 / 6827-6867 or [email protected].

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T rust is at the heart of everything that home-grown company Aik Moh Paints &

Chemicals does. This core value has enabled the fi rm to grow by leaps and bounds, since it started out as a small neighbourhood shop in Jalan Besar in 1980.

Over the years, Aik Moh has managed consistent growth, expanding to two factories in Singapore (Tuas), occupying a total area of 131,000 sq ft. Aik Moh has also set up two overseas sales offi ces in Batam, Indonesia and Manila, Philippines since it embarked on its expansion abroad. Now, the company employs about 84 staff in the Asia Pacifi c region. Recently, Aik Moh also won the Enterprise 50 Award for the third consecutive year. We caught up with Executive Manager Roy Tan Keng Hong, who

manages the family business started by his father. He runs this traditional SME business by establishing the good system and structure of an MNC, while maintaining the fl exibility of an SME.

Q What are some of the challenges you faced when you fi rst went into business? SMEs and MNCs have very different cultures and sets of people. Many SMEs have employees of an older generation, so it is normal to fi nd staff who have worked for us for more than 15 years. Getting them to understand the new generation’s way of thinking and working can be tough. That is one of the key challenges. Implementing changes is also not easy among older staff. Fortunately, the MNC I worked in previously gave me quite a bit of experience in

doing so. Older staff in general don’t really challenge authority, unlike in MNCs where people readily come up with ideas. Over here, they tend to be very receptive to following instructions rather than giving ideas. That takes time to change.

Q How do you differentiate your business from your competitors?The chemical distribution business is a stable industry. We were just a passive distributor, but after looking at our business model, we thought it was going to be tough being just a pure distributor in today’s competitive environment with rising operating costs. Hence, we try to incorporate service into our business model and we are probably one of the few companies in Singapore that offers complete services along with the products. Most of the distributors just sell, so that has been one area that we have been very different. As we expand our business, we are committed to a high level of service. To gain a competitive edge over other fi rms, Aik Moh has been certifi ed with the Singapore Standard for Business Continuity Management (SS540:2008).

Q When it comes to your business, what gives you the greatest satisfaction? For a lot of entrepreneurs, there is the satisfaction every time your company achieves a certain milestone, because you put your heart into doing it. You can attribute the success to yourself. This satisfaction of attributing the success to my team and I is driving me forward. +

GROWING BY LEAPS AND BOUNDS

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DEFINING BRAND AWARENESS

D esign is a dynamic, ever-changing element that helps in defi ning a company’s

corporate identity. With new markets come new competitors and challenges, and the foremost concern for business owners in any industry is to ensure corporate designs are a priority to cement brand awareness among their customers and suppliers.

This is an area that Mr Chan Chong Beng, co-founder and Chairman of Goodrich Global Pte Ltd, defi nitely knows something about. The Chairman of the Singapore Prestige Brand Award 2009 Committee and winner of the Entrepreneur of the Year 2007 has helped the company grow into a successful and profi table multimillion-dollar business.

He started the interior furnishings company in 1983, specialising in wallcoverings, carpets and fl oor laminates. The company employs 140 staff with 18 regional offi ces in seven locations, including Hong Kong and Dubai.

The company has won several accolades and prestigious awards, and has been recognised by the industry and its peers for consistency in delivering quality products and services, entrepreneurship, branding and market leadership.

In 2005, Mr Chan embarked on a rebranding exercise to strategically reposition the Goodrich brand among end-consumers. His foresight in branding and strong business acumen led to a signifi cant increase in Goodrich Gallery’s revenue in Singapore.

He has changed what was once called a “sunset industry” into a fast-growing business. In the 1970s, he quit architectural school as he was passionate about interior furnishing. In 1983, his interest in wallpaper, which was all the rage then, led

him to start Goodrich Global. The company is now a thriving enterprise spanning several Asian cities.

“In the ’80s, wallpaper was seen as cheap and sold by the roll. We decided to change that, and to educate consumers to see it as a lifestyle accessory that brings out their personality,” he said.

Goodrich’s strategy was to make wallpaper chic by bringing in premium European, American and Japanese designs, and to invest in branding. Besides wallcoverings, Goodrich also sells carpets and fabrics. One of its coups was furnishing the Shangri-La Hotels in China.

Mr Chan’s mantra for doing business: Take care of your staff, and

they will take care of your business. The company now employs more than 300 staff regionally.

“I grew up in a kampung and I feel strongly about the kampung spirit. My people are like an extended family,” he said.

In extending such family values, the company, with the support of the Singapore Kindness Movement, has been selling limited-edition Goodrich Singa Lion toys over the last few months.

The fi rm will match each sale dollar for dollar and donate all proceeds to the Straits Times School Pocket Money Fund (SPMF), which has since beaten its S$5 million fundraising target for 2010. +

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