Eye On ASEAN. Hong Kong s trade honcho Fong Ngai wants closer ties with regional countries. Business Quotient / Business / People / Opportunities

Transcription

1 Jul Aug Sep 2012 FOCUS ON PRODUCTIVITY Sustainable growth for the future INSPIRING TEAMWORK Business Quotient / Business / People / Opportunities A PUBLICATION OF SINGAPORE BUSINESS FEDERATION Building synergy at work MANAGING BIZ ISSUES SME Committee to focus on trends and concerns Eye On ASEAN Hong Kong s trade honcho Fong Ngai wants closer ties with regional countries

2

3 Jul Aug Sep 2012 Chairman s Message 1 Leading to the Next Lap SBF started this year by leading the SME Committee (SMEC) in assembling a 17- item budget wish list. Out of these, eight were included in Budget The SMEC continues to represent the SME community in voicing its needs and concerns to the Government, through four sub-committees focusing on manpower and productivity, rising business costs, internationalisation and financing. Following the plight of low-wage workers, SBF pledged its support to the National Wages Council s Guidelines announced in May for sustainable and inclusive economic growth. However, considering the uncertain global economic outlook, as well as cost and other challenges faced by businesses, SBF will partner companies, trade associations and chambers, unions and government agencies to ensure that wage increases are in tandem with increases in productivity. In February, SBF led an inaugural mission to Myanmar to help members gauge the economic environment and prospects in this newly emerging market. This was followed by missions to the United Arab Emirates, Kuwait, Nigeria, Benin, Sri Lanka and Turkey in May, as well as a second Myanmar mission in June. Over the past months, the Federation hosted the Deputy Prime Minister of the Republic of Turkey at the Turkey- Singapore Business Forum, the Prime Minister of New Zealand at a business luncheon and the President of the Portuguese Republic at the Portugal- Singapore Business Forum. These events provided the Singapore business community with a first-hand update on trade and investment opportunities in these markets. In June, SBF and Temasek Holdings organised the SBF-Temasek Forum on the global economic environment, which focused on the eurozone crisis and its possible impact on Singapore businesses. The apex chamber extends a warm welcome to Ms Fang Ai Lian, who succeeds Mr Sat Pal Khattar as chairman of the SBF Board of Trustees (BOT). We would also like to welcome new BOT member Mr Lucien Wong, and thank Mr Khattar for his 10 years of service to SBF. We are expecting an equally busy six months ahead. SBF will be organising two major business forums the Russia-Singapore Business Forum from Sept 24 to 27 and the GES Business Leaders Summit from Oct 23 to 25. The Federation will also be celebrating its 10 th anniversary with a gala dinner in October. We invite you to share this special occasion with us. Tony Chew Leong-Chee Chairman Singapore Business Federation

4 2 06 Jul Aug Sep 2012 Contents Economy Watch Holding Steady in Uncertain Waters Singapore focuses on growth in sectors like electronics and precision engineering amid global uncertainty. 10 BiZ Voice ASEAN Region Spurs Investments Recent survey reveals that firms find the economic community favourable for foreign ventures. 14 Commentary Strategies for Retaining Talent Building intellectual capital is an integral part of business strategy, and it begins at the point of hiring In BiZ With Hong Kong Sets Its Sights on ASEAN Mr Fong Ngai from the Hong Kong Economic and Trade Office (ASEAN) warms ties with the region. Innovations Shooting for the Clouds Webvisions cloud computing services cater to companies changing needs. 16 BiZ Feature Shaping Singapore s Productivity Singapore steps up efforts to improve productive capacity with more government initiatives and training programmes. Getty Images ABOVE: Factors such as skilled labour and innovative solutions will help achieve sustainable growth in Singapore.

5

6 4 Jul Aug Sep 2012 Publisher Singapore Business Federation 10 Hoe Chiang Road, #22-01 Keppel Towers, Singapore , Tel: , Fax: , Website: chairman Tony Chew chief executive officer Ho Meng Kit chief operating officer Victor Tay assistant executive director (member relations) Cheryl Kong director, corporate communications Gerald De Cotta Publishing Agent SPH Magazines Pte Ltd group editor Joanna Lee-Miller senior editor Low Ching Ling contributing editor Casuarina Peck creative director Alex Goh art director Winnie Ong sub-editor Winnie Fong associate account director Kaz Lim account manager Jasper Lee executive, client management Lim Hui Wen manager, publishing services Alice Chee For advertising enquiries, please call or Business Quotient (BiZQ) is the official 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 profiles, stories about successful companies and the people who lead them Innovations Rohde & Schwarz Sets up Asian Hub German firm establishes global engineering and R&D centre in Singapore. Inside SBF SBF Leads SME Committee to the Next Lap SMEC gains traction as an advocacy on business issues amid the evolving local and global business climate. International Markets Sri Lanka Beckons Investors SBF and the Board of Investment of Sri Lanka aim to promote joint ventures and create a pro-business environment. This news magazine is published by SPH Magazines Pte Ltd (Registration No 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 Tel: , Fax: , bizq@sph.com.sg. Unsolicited material will not be returned unless accompanied by a self-addressed envelope and sufficient return postage. While every reasonable care will be taken by the editor, no responsibility is assumed for the return of unsolicited material. MICA (P) 080/06/2012. Printed in Singapore by timesprinters, Singapore (Registration No H). 40 SME Helpdesk Biomed SMEs Get a Lift Up Local firms are encouraged to upgrade their core capabilities by leveraging on government assistance programmes.

7

8 6 Jul Aug Sep 2012 Economy Watch Holding Steady in Uncertain Waters BiZQ looks at how Singapore stays focused on sectoral growth and productivity amid global uncertainty. In mid-may, it was sobering to hear from the Ministry of Trade and Industry (MTI) that it was maintaining a GDP growth rate forecast of between 1% and 3% for 2012 compared with 4.8% growth for last year. When put in the context of the current macroeconomic landscape, this is a silver lining. The US economy continues to demonstrate growth spurts, with no clear upward or sustainable growth trend. The crisis in Europe continues unabated as most analysts have raised the probability of an imminent Greek exit from the Eurozone. Regional powerhouse China continues to exhibit an economy that is slowing. The Chinese government has just lowered its growth target for 2012 to 7.5% to reflect a declining trend of potential growth, as well as to facilitate a shift of growth engine from investment to consumption. Mr Steve Brice, Chief Investment Strategist of Standard Chartered Private Bank, told BiZQ: 2012 promises to be another volatile year as we continue to work through the overhang of the global financial crisis and the continuing crisis in Europe. Still positive Back home, MTI maintained its forecast after it announced that the Singapore economy grew 1.6% on a year-on-year basis in the first quarter of this year, compared to 3.6% in the preceding quarter. On a quarter-on-quarter seasonally adjusted annualised basis, the economy expanded by 10% reversing the 2.5% contraction in the previous quarter. There are also other signs Productivity growth targets The National Productivity and Continuing Education Council s three main areas of focus include: Driving productivity initiatives Developing a comprehensive national Continuing Education & Training system Promoting a culture of productivity, innovation, learning and upgrading indicating a brighter outlook for Singapore. The manufacturing sector is starting to make a comeback, with leading indicators pointing to strong growth from the second quarter. Analysts say sparks are also starting to fly from the electronics and precision engineering sectors. Citigroup economist Kit Wei Zheng said that while there could be bumps caused by a slowdown in the GDP growth of China and the US, electronics are restocking. This is evident as production levels are still falling behind exports and this will help cushion Singapore s GDP growth. The construction sector also appears to be growing, largely a result of a ramp-up in residential construction activities. This has resulted in economists predicting stronger GDP growth performance in the second half of this year. Eye on productivity Upon taking a more in-depth view of the Singapore economy, it is clear the republic continues to be plagued by two key variables high inflationary pressures (see side story on MAS) and low productivity.

9 7 NWC WAGE-RELATED GUIDELINES 1 COMPANIES GRANT BUILT-IN WAGE INCREASES FOR MAS: To allow Singapore dollar nominal exchange rate to rise Singapore needs to rely on productivity improvements and innovation to drive sustainable growth. The latter is currently the hottest topic of discussion among policymakers, businesses as well as workers. As HSBC economist Frederic Neumann put it in an April 2012 report, productivity gains in Singapore is grounding to a halt, threatening the republic s longerterm sustainable growth. Amid the many dire indicators of declining productivity in Singapore, a major proposal emerged recently to suggest that those earning below $1,500 a month should have their salaries increased by 50% over three years, while the wages of those earning $15,000 or more should be frozen. This would enable those in the lower income group to raise their productivity levels and help the republic address a growing problem that of bridging the national income divide. In response to this proposal, the National Wages Council completed its deliberations on wage and wagerelated guidelines for 2012/2013 recently and recommended that: 1 Companies grant built-in wage increases for 2012/2013, taking into account the prevailing labour market conditions, as well as their respective business performance and prospects. 2 FIRMS REWARD EMPLOYEES THROUGH VARIABLE WAGE COMPONENTS. 2 Firms reward staff via variable wage components where appropriate, in line with the company s performance and workers contributions. Reflecting the broader voice of the business community, Mr Ho Meng Kit, CEO of Singapore Business Federation (SBF), who has been assisting the SBF-led SME Committee, noted: Businesses are not against lower-income workers having a wage increase, especially with the rising costs of living in Singapore. However, it is important how this wage increase is anchored. We believe we should press on with the current approach, where trade associations and chambers work closely with the unions and government agencies to spur groundlevel productivity improvements in companies. This requires more effort, but the result would be more sustainable. Broader initiatives At the 54th session of the Asian Productivity Organization Governing Body meeting in Singapore, Mr Lee Yi Shyan, Minister of State for Trade and Industry, said the republic is now redoubling efforts to raise productivity among its workforce. Going forward, Singapore will need to rely less on factor input such as labour supply; and more on productivity gain and innovation to drive sustainable growth, he said. In 2010, Singapore set a target of achieving productivity growth p.8 Given that inflationary pressures continue unabated in Singapore, the Monetary Authority of Singapore said in April that it will continue with the policy of a modest and gradual appreciation of the Singapore dollar nominal effective exchange rate. In sharing its latest policy stance since October last year, the de facto central bank said that it expects inflationary pressures to remain elevated over the next few months. This policy stance will help anchor inflation expectations, ensure medium-term price stability, and keep growth on a sustainable path, it added. DBS has maintained that inflation risks are still the concern for Singapore, with the republic having the worst inflation profile in the region. With this view, the bank is expecting the US dollar to trade at around S$1.26 at end Mr Ho Meng Kit, CEO, Singapore Business Federation We believe we should press on with the current approach, where trade associations and chambers work closely with the unions and government agencies to spur groundlevel productivity improvements in companies. SPH Library

10 Jul Aug Sep SPH Library Economy Watch Ms Chen Yew Nah, Managing Director of DP Information Group Without additional staff or better equipment, this high level of capacity utilisation is likely to continue for a few quarters. Without the stomach to invest in expansion, SMEs may well find their capacity outstripped by demand. of 2% to 3% per year over the next decade. To achieve this productivity growth target, Singapore set up the National Productivity & Continuing Education Council to spearhead the national productivity drive. The council guides its members from the workers unions, employer sector and the public sector to focus on three areas which include: Driving productivity initiatives holistically at the sectoral, enterprise and employee levels. Developing a comprehensive, first-class national Continuing Education and Training system. Promoting and entrenching a culture of productivity, innovation, continuous learning and upgrading among Singaporeans. Caution still prevails SBF said that while small and medium enterprises (SMEs) are operating at full capacity, many are still not ready to invest in expansion plans. The recent SBF-DP SME Index for April to September 2012 has risen by just one point to 52 indicating that business sentiment remains neutral. The subdued sentiment has resulted in lower expectations for new hires and new capital investment despite expected business growth. The survey, based on interviews with 3,000 business owners and management from the sectors of commerce/trading, construction/ engineering, manufacturing, business services and transport/ storage, revealed that SMEs across all industries have indicated that they will operate at 100% capacity for the next six months. However, these businesses may soon reach the point where they will have no choice but to invest in growth, or risk losing opportunities to their competitors. Capacity utilisation All five industry groups recorded an increase in capacity utilisation, with an average index score of 7.03 (a reading of 7.0 means a firm is operating at 100% capacity). Manufacturing recorded the highest jump of 0.22 index points to 7.0. However, hiring intentions across all industries fell from an index score of 5.43 to 5.23, with business services registering the largest drop of 0.27 points. In a similar trend, the index score for capital investment also decreased across all industries from 5.18 to Ms Chen Yew Nah, Managing Director of DP Information Group, said unpredictable future circumstances might have placed many SMEs on a cautionary stance. Expressing similar sentiments, SBF s Mr Ho said that while the global economic picture remains unclear, there will be no indications of a return to sustained growth any time soon. The Singapore business environment presents its own challenges, with rising costs and a shortage of qualified manpower in certain sectors, explained Mr Ho. While demand may be growing, SMEs are waiting for further signs of a broad-based recovery worldwide, before investing in the next stage of their growth. SBF-DP SME Index for April to September The recent index for the second to third quarter of 2012 has risen by just one point to 52 indicating that business sentiment remains neutral. The subdued sentiment has resulted in lower expectations for new hires and new capital investment despite expected business growth. Outlook for 2Q12-3Q12 F (April-September 2012) Overall index (out of 100) Commerce Construction/ Engineering Manufacturing Business Services Transport/ Storage 2Q11-3Q11 F 3Q11-4Q11 F 4Q11-1Q12 F 1Q12-2Q12 F 2Q12-3Q12 F Overall Stronger faith in regional economy Companies in Southeast Asia have expressed their confidence in the economic prospects in the region for the past 18 months, said researchers at Ernst & Young. According to the firm s Global Capital Confidence Barometer report, more than half (54%) of the respondents believe that their local economies are improving an 11% improvement from six months ago while 24% believe their local economies are stable. More than 1,500 senior executives in 57 countries took part in the survey conducted from February to March this year. The report said that confidence in the global economy has also improved 58% said they are still optimistic about the world economy. This is an improvement from six months ago, when only 35% of respondents saw the global economy to be stable or improving.

11

12 10 Jul Aug Sep 2012 BiZ Voice Getty Images ASEAN Region Spurs Investments New survey reveals region holds good prospects for attracting investments, says ASEAN Business Advisory Council. The ASEAN region holds good prospects for drawing investments and many businesses consider how attractive the region, as a whole, is for investment when planning their ventures in ASEAN countries. The recent findings from the ASEAN Business Advisory Council (ASEAN-BAC) Survey on ASEAN competitiveness also revealed that companies attach relatively high importance to the region s efforts to achieve an ASEAN Economic Community (AEC) by The survey, conducted by ASEAN-BAC in collaboration with Dr Wong Marn Heong, Assistant Professor at the Lee Kuan Yew School of Public Policy, collated 405 responses from all 10 ASEAN member economies. The Singapore segment of the survey was supported by the Singapore Business Federation (SBF). Increase in investment According to the survey, 88% of businesses planned to invest or increase investments in at least one ASEAN country over a three-year horizon ( ). The top investment destination was Indonesia, followed by Vietnam, Singapore, Thailand and Malaysia (see Figure 1). In addition, 36.5% of respondents indicated an ASEAN country as offering the best prospects worldwide for their organisations offshore direct investments over the next three years. ASEAN s attractiveness was also rated higher than China s both as a market for goods and services and as a production location. Two-fifths of businesses considered the investment attractiveness of ASEAN as a whole when planning their ventures in ASEAN countries over the next three years. The authors of the survey report noted that the finding might point to a rising consciousness among firms of ASEAN s initiatives to create an economic community, and of the opportunities that a more integrated ASEAN might bring, as the region s member governments implement more measures under the AEC Blueprint and step up their outreach efforts. It was noted that some twothirds of respondents, whose organisations considered the overall investment attractiveness of ASEAN, had at least general INDONESIA VIETNAM SINGAPORE THAILAND (Percentage of respondents) MALAYSIA Developing SMEs The survey also revealed the needs and concerns of small and medium enterprises on the importance and effectiveness of government initiatives to promote SME development. The findings revealed the following issues: Financing Promotion of SME innovations and creativity Networking among SMEs in ASEAN Business missions to other ASEAN countries Information on opportunities from ASEAN and ASEAN-plus FTAs and FTA-related documents Information on SME Service Centres knowledge of ASEAN policy initiatives related to trade and investment, compared with around half of the respondents whose organisations made their investment decisions based on the attractiveness of individual ASEAN countries. Dr Robert Yap, Singapore member of ASEAN-BAC, noted: It is important for policymakers in ASEAN to know what the business community thinks and to respond to their concerns. ASEAN countries firms plan to invest in from 2011 to PHILIPPINES LAOS CAMBODIA Findings from ASEAN-BAC Survey on ASEAN competitiveness MYANMAR BRUNEI

13 The Russian connection RSBF 2012 creates networking opportunities for the local business community. Gaining a foothold in Tianjin Eco-City 11 The theme for the upcoming Russia-Singapore Business Forum (RSBF) 2012 Connecting Markets reflects the business-to-business opportunities linking Russia to Asia, especially Singapore. To be held at the Marina Bay Sands Singapore from Sept 24 to 27 this year, the event is targeting nearly 1,000 participants, thus creating a platform to facilitate new business opportunities between these two markets. One of the objectives of this forum is to cultivate both Russian political and business communities that will recognise and network with Singapore companies. In facilitating such networking between local and Russian businesses, Singapore can be seen as a suitable destination among highnet-worth Russians for investment, wealth management and leisure. Raising market profile The 24th Asia Pacific Economic Cooperation (APEC) Summit will be held in Vladivostok in Russia, presenting the country with new opportunities in trade and investment, which will result in new policies and trends. Thus, at RSBF, speakers will help companies understand how to look at their world, tap on opportunities and cope with challenges to better conduct business. Russia-Singapore Business Forum 2012 Sept Marina Bay Sands RSBF is a business forum that has generated successful connections between Russia and Singapore. Singapore is a key connecting market for businesses. RSBF is Asia s only leading business and networking platform to bridge Russia and Singapore so as to reach out to top business elites from other key emerging economies. Visit for details. As drivers of economic growth increasingly centre on emerging and fast-developing markets, the forum will explore the Connecting Markets theme with a strong focus on Asia. The different sessions during the forum will explore business opportunities and challenges in Russia, especially as President Vladimir Putin takes up the mantle of leadership. In line with RSBF s mission to help build business relationships, the forum will also have focused sessions to engineer business encounters on a one-to-one level. For certain sessions, the topics will include real estate as investment vehicles, industrial parks as models of development and technology as ways of collaboration between both business communities. Singapore-based firms looking to enter the rapidly growing northern China market can tap on some S$9.5 million worth of assistance. IE Singapore announced recently that funding will be provided over a period of five years and will be administered through the Sino-Singapore Tianjin Eco-City Investment and Development Co Ltd the master developer of Tianjin Eco-City. Officials said this assistance aims to promote and encourage Singapore-based firms to establish and develop an overseas business foothold in the northern China market by leveraging on the Sino- Singapore Tianjin Eco-City. Ms Jamie Lim, Regional Marketing Director, Scanteak We believe Tianjin Eco-City is the right place to plant our base step in China, from which we will be conducting a thorough market research and determining our market strategies. Getty Images

14 Jul Aug Sep BiZ Voice Global Singapore 2012 Summit to capitalise on fast-changing markets. From Oct 23 to 25, Singapore will once again host the region s leading business summit Global Singapore (GES) now in its ninth edition. Presented by the Singapore Business Federation (SBF), GES 2012 will present its annual outlook on the global financial landscape in 2013 and provide an analysis of the impact of leadership transition in major economies on regional businesses. This summit brings the international business community together to discuss the latest outlook on global markets, business model trends, innovative ideas and new approaches to growth. Emerging trends International speakers will also discuss the global trends which could be game changers such as the issues of demographic and consumption pattern changes of rising Asian middle-class consumers, risks to global supply chains and emerging technologies which may disrupt current business models. In addition, the summit is an excellent networking (and businessmatching) platform for more than 600 influential senior business executives, entrepreneurs, highnet-worth individuals, founders and policymakers who attend GES each year. The summit will also explore prospects in the mega infrastructure build-up of Asia, present an update of the regional markets and look into the hot sectors and projects in nine emerging regional economies. Visit for more details. Global Singapore 2012 Oct Resorts World Sentosa Singapore will once again host the region s leading business forum, now in its ninth edition. Presented by SBF, this summit brings together the business community for a series of discussions on the latest outlook on global markets, business model trends, innovative ideas and new approaches to growth. GES Business Leaders Summit Oct 23 Global Financial and Economic Landscape Global Economic Outlook 2013 More of the Same? Impact of Leadership Transitions in Major Economies on the Regional Business Landscape Thriving in Emerging Markets: How to Spot the Winners Global Trends Rethinking Global Supply Chains Beyond Lean The Rise of Asia s Middle Class Consumers The Next Big Thing Growth of the Asian Brands How to Compete with the Global Icons? With more than 50 international speakers providing insights into global trends and regional markets, GES will help participants understand how they can capitalise on fast-changing markets in the ever-changing business landscape. Oct 24 Market Insights The Mega Asian Infrastructure Build-up Agent of Change or a Bubble in the Making? Can ASEAN Deliver on Its 2015 Promise? Europe Beyond the Headlines: Investment Opportunities for the Smart Money China The Politics of Business: New Directions in 2013 and Beyond India Can It Overcome Its Growing Pains? Countries: Hot Sectors and Opportunities ASEAN, Middle East and South Asia

15

16 14 Jul Aug Sep 2012 Commentary Strategies for Retaining Talent Essential pointers for building intellectual capital in a company. Getty Images In today s challenging business climate, attracting and retaining talent is increasingly difficult. And Mr Deepali Chaturvedi, Head of Southeast Asia at Reed Specialist Recruitment, couldn t agree more. He said that Singapore companies often find it easy to attract staff but harder to retain them. A growing number of companies are now recognising that their employees are far more than just an overhead they represent intellectual capital with a tangible value to the business. So, many companies today are looking to hire from a growing pool of talented Strategic business alignment FIVE DRIVERS OF TALENT MANAGEMENT: SEARCH Know who it is you want to look for. SIGNAL Communicate what the organisation stands for. SPACE Give staff space to think innovatively and creatively, and to speak up. SUPPORT Give employees the tools to do their work well. STRATEGIC ALIGNMENT Align the above to the organisation s strategy. Source: Ernst & Young, Singapore Human Capital Summit individuals who favour job satisfaction and recognition. Recognising talented staff However, this intellectual capital has to be aligned between corporate strategies and the goals of individuals within the organisation. This is where human capital management comes in. By recognising the value that human capital management brings to the business structure, companies can realise the following benefits: Lower staff turnover Better recruitment decisions Closer alignment of strategy with job development Tangible financial return on investment (ROI) By putting in place a practice that allows work flow, projects, documents and contact management to integrate, companies can utilise technology that defines human capital management practices. Companies need to look beyond human resources as an expenditure. Human capital is an entity of knowledge and assets that can be capitalised upon to create a strategic value partner within the organisation. Incorporating a new process methodology that increases productivity with expected ROIs contributes directly to a company s financial health. Managing talent According to recent studies conducted by Ernst & Young, there are five drivers of talent management that senior executives need to identify: Search Access suitability of new staff, and make an effort to know who it is you want and find the person you are looking for. Signal Define and communicate what the organisation stands for, so that you attract the people you are looking for. Show that the organisation cares for its employees. Space Give your staff the space to think innovatively and creatively, and to speak up. Do respect diverse people and views. Support Give employees the tools to do their work, as well as the emotional and moral support to do it well. Do give them the right information to perform the job with clarity. Strategic alignment Ensure that all the above are aligned with the organisation s strategy and business outcomes. By successfully implementing a company-wide human capital programme, companies can utilise the intellectual capital represented by their employees. At the same time, they can improve their work performance, embed human resources as an organisational value-add and, most importantly, recognise that people are a valuable asset that can drive profit.

17 19-20 SEPTEMBER 2012 RESORTS WORLD SENTOSA Prof Dave Ulrich Best-selling author and world-renowned thought leader Harish Manwani Unilever, Chief Operating Officer Lieutenant General David Huntoon Superintendent, United States Military Academy (West Point) Tracey Fellows Microsoft, President of Asia Pacific Chng Yi Ta?What If!, Chief Executive Officer Asia Gilbert Ghostine Diageo, President of Asia Pacific Gerardo Ablaza Manila Water, President & Chief Executive Officer Gill Rider CIPD (UK), President Ho Kwon Ping Banyan Tree, Executive Chairman and Founder Jonathan Spector The Conference Board, Chief Executive Officer Dr Robert Yap YCH Group, Chairman & CEO Vicky Bindra Mastercard, President of Asia Pacific, Middle East and Africa Zulkifli Zaini Bank Mandiri, President Director Aliza Knox Google Asia Pacific, Managing Director, Commerce Register now or find out more at our website: Organisers:

18 16 Jul Aug Sep 2012 BiZ Feature Economic gyrations have become more volatile and pronounced. Major economies are experiencing bouts of marginal economic growth and slowdowns. Uncertainty continues to rule the day, amid a continued slow bank run in some Eurozone economies. Given this landscape, just about every economy continues to wage the war for talent with the aim of attracting, retaining and nurturing this valuable resource. In Singapore, some quarters have urged the private sector and Government to use wage adjustments as an economic tool to achieve the desired goals in talent development and productivity growth. There is, however, a significantly greater consensus on the use of productivity development as a means to achieve the goal of continued economic growth. Focus on productivity Some of this debate occurred during recent discussions at the 54th session of the Asian Productivity Organisation (APO) Governing Body meeting in Singapore in April this year. In his opening address, Mr Somdy Inmyxai, the APO Chair, emphasised the importance of the region in making even greater efforts to improve productivity performance and accelerate socioeconomic progress in order to overcome the lingering global financial crisis. The push for productivity growth is certainly gaining strong traction in Singapore. As recent as 2010, the Government announced that it will redouble its efforts to raise productivity, making a focused attempt to drive labour and innovation as economic factors towards productivity gains and sustainable growth. The current plan is to achieve productivity growth of 2% to 3% a year over the next 10 years. Shaping Singapore s As Mr Lee Yi Shyan, Minister of State for Trade and Industry and National Development, said at the opening of the APO meeting: The need for productivity drive remains as relevant as before, if not more. Need to upgrade and improve Echoing the same chorus at the national level, Minister of State for Finance and Transport Josephine Teo said: The Government will not spare any effort in helping our companies, especially the small and medium enterprises, to upgrade and improve productivity. Ms Teo made this remark at the launch of a new multi-agency effort called PRIME to gear Singapore companies towards sustainable innovation-led and productivitydriven growth. To achieve the newly set productivity growth targets, Singapore has set up the National Productivity and Continuing Education Council to spearhead the national productivity drive. The focus will be on driving productivity initiatives at the sectoral, enterprise and worker levels; developing a comprehensive, first-class national Continuing Education and Training (CET) system; as well as promoting and entrenching a culture of productivity, innovation and Productivity Getty Images Concerted multi-party private sector initiatives, enlightened businesses and government programmes are changing the face of productivity in Singapore. BiZQ takes stock.

19 17 continuous learning and upgrading among Singaporeans. Reiterating the importance of productivity growth in the context of the recent national discussion, Mr Lawrence Leow, who heads the Singapore Business Federation-led SME Committee, said increasing the productivity of the workforce is essential to staying ahead. While the drive has been spurred at the national level, a key target segment will be home-grown small and medium enterprises (SMEs) a long-term growth driver of the Singapore economy. SMEs productivity initiatives Some firms acknowledge the constraints, such as labour shortage in the marketplace, and have leveraged on technology to overcome them. One such case is homegrown Swee Hong Engineering Construction Pte Ltd, which is using iphone and 3-D visualisation applications to boost growth. Then, there are many SMEs that require advisory services through the likes of national productivity programmes to spur them on and such organisations come from traditional industries in Singapore. One such programme helping these SMEs is led by the Mr Lawrence Leow, Chairman of SBF-led SME Committee An unmitigated wage increase without productivity improvements will stifle growth. Productivity gains should come through job redesign, automation and skills upgrading. PRIME strives to raise awareness on various productivity training programmes and grants to equip companies with productivity and organisational development skills. Enterprise Development Centres located at the Chinese, Indian and Malay Chambers of Commerce and Industry, the Association of Small and Medium Enterprises and the Singapore Manufacturers Federation. Through such collaborations, home-grown S&W Engineering was advised to automate manual processes such as cutting, lifting and welding. The company, a specialist in heat transfer equipment for the oil and gas industry, has also developed a specialised test machine for the sector. As a result, it was able to increase its production capacity by 10%. The introduction of new equipment has also reduced the company s need for labour. For example, water-jet cutting resulted in 24% less labour cost than the earlier grinding methods used by the company. Training and quality Another firm is Winson Press, a player who continues to grow in what many may consider a sunset industry in Singapore print and publishing. Mr Tan Jit Khoon, CEO of Winson Press, told BIZQ that his company had always wanted to make lean manufacturing a way of life. There is always a way to get things done better, faster and cheaper. We learn and upgrade ourselves continuously, reengineer our business processes and strive for excellence, said Mr Tan. p.18 Getty Images

20 Jul Aug Sep SPH Library BiZ Feature PRIME STANDS FOR PRODUCTIVITY, RESILIENCE AND INNOVATION FOR MANPOWER EXCELLENCE. It is a multi-agency effort to gear Singapore companies towards sustainable innovation-led and productivity-driven growth. THE AIM: To drive productivity initiatives at the sectoral, enterprise and worker levels. To develop a comprehensive, first-class national Continuing Education and Training system. To promote and entrench a culture of productivity, innovation and continuous learning and upgrading. Winson Press recently decided to participate in the initiative led by the Singapore Workforce Development Agency (WDA), in which participants from the manufacturing and service industries are supported with up to 70% funding on training fees. The aim is to improve organisational methodologies and productivity. During the three-month consultancy project implementation (phase), our people learnt and applied methodologies to improve quality and productivity in work processes. The projects have helped us to cut down significantly on manhours and wastage in operations, said Mr Tan. The improved processes enable us to serve our clients faster and better. Our employees have been trained as productivity managers and they are currently equipped with the skills to continuously improve productivity at work. The programme has definitely benefited us, added Mr Tan. SBF-led PRIME to boost productivity In a national coordinated effort to drive productivity in Singapore, the Government and industry leaders, including apex chamber Singapore Business Federation (SBF), have just launched the Productivity, Resilience and Innovation for Manpower Excellence (PRIME) programme. The initiative aims to gear Singapore companies towards sustainable innovation-led and productivity-driven growth amid a tight labour market and rising business costs. Aside from SBF, the initiative is supported by Human Capital Singapore, the Singapore Workforce Development Agency and the Employment and Employability Institute. PRIME comprises productivity and innovation conferences, master classes on productivity and leadership, productivity training, project consultancy, various HR Singapore Workforce Skills Qualifications modules as well as other components. About 10,000 companies are expected to benefit from this programme over the next two years. Mr Ong Hock Leong, Managing Director of Swee Hong Engineering Construction Pte Ltd The employment of technology and innovations in construction has greatly improved our productivity. We always encourage our team to build a work culture that places strong emphasis on productive work and creative thinking. ENHANCING TECHNOLOGY The use of technology is among some of the tools employed to raise productivity levels in many businesses. Swee Hong Engineering Construction Pte Ltd is one of many home-grown companies which are leveraging on a variety of tools and channels to boost productivity. Given the labour-intensive orientation of most construction companies in Singapore, one would imagine that deploying smart technology would be a stretch. The company has taken advantage of smartphone and visualisation technologies to up the ante in productivity it has created its own iphone application. The in-house iphone app was developed as a project management tool, which includes a human resource module for leave application and a vehicle-usagemonitoring and asset-tracking module which allows the company to track its vehicle movements, Managing Director Ong Hock Leong told BiZQ. By implementing these app modules to cover daily task applications that enable supervisors, project managers and the management in assigning tasks to employees, the company was able to track its business activities on a realtime basis and, thus, enjoy higher productivity levels. Concurrently, it also customised and implemented its own Building Information Modelling (BIM) tool to provide better visualisation of construction sites and surrounding structures and buildings. As a result, it was able to obtain a more reliable digital representation of the construction methods available for design decision-making, high-quality construction document production, construction planning and performance predictions. The employment of technology and innovations in construction has tremendously improved our productivity during the tender stage, said Mr Ong.

21 SBF Mentor Club reaches out Mentorship programme provides knowledge transfer to SME members. In his speech at the Ernst & Young Entrepreneur of the Year 2011 event, Mr Teo Chee Hean, Deputy Prime Minister of Singapore, encouraged the country s business leaders and successful entrepreneurs to contribute to the business community by participating in various mentorship platforms. He said he hoped to build up a robust mentoring ecosystem in Singapore and, as an example, highlighted the Singapore Business Federation s (SBF) Mentorship Programme, which links experienced business leaders with growth-oriented enterprises. This initiative aims to provide a sounding board on their growth strategies. Several successful business leaders who were interviewed during the event said they found mentoring to be a fulfilling and rewarding endeavour, as such enriching programmes allow them to share their business and life experiences with others. The SBF Mentorship Programme is a joint initiative between SBF and SPRING Singapore to help companies become globally competitive through coaching, accelerated learning and effective transfer of knowledge. As this programme is designed with a mentor-mentee matching capability, it offers a good platform for SMEs to receive professional guidance, exchange best business practices and adopt new business management skills from eminent business leaders in Singapore. Some of the benefits of the SBF Mentorship Programme include: Cultivating a conducive environment for innovative cross learning. Building stronger leadership and management skills in executive management. Facilitating the adoption of business best practices to accelerate business growth. Acquiring new business opportunities and market access. Mr Shabbir Hassanbhai, Director of Indo Straits Trading Co Pte Ltd, has been an active member of the SBF Mentor Club since the programme was launched in He is also an SBF council member and vice-chairman of SBF s Middle East Business Group. Mr Hassanbhai shared his rewarding experience in the SBF Mentorship Programme with BiZQ. Q When did you first join the SBF Mentor Club? I was invited to participate in the SBF Mentorship Programme on Aug 16, The programme in partnership with SPRING was launched in September that year. Q Why did you decide to become a mentor? I was a beneficiary of mentorship when I was studying to be an accountant and later in the family business in recycling metals. What has always motivated me and made me decide instantly to be a mentor is the desire to share the conviction that one cannot teach people to be creative and have ideas; that is innate. What can be done is to create an environment where that is encouraged. The other thing is when one has an idea, he can be taught how to evaluate it whether it is likely to succeed or not and come up with solutions or suggestions to help increase the likelihood of success. The SBF- SPRING partnership would an ideal platform to engage companies, especially family-owned businesses, in this process. Q In your opinion, what does it take to become a good mentor? Maturity and self-awareness are, in my experience, essential prerequisites for giving measured advice to others. In fact, a mentoring relationship is a two-way process, with the person giving the advice learning as much as, if not more than, the one seeking it. In fact, I find that the greatest learning point in a mentoring relationship is always about the people themselves. Based on their successes and failures in life, they can hopefully share lessons learnt about their strengths and weaknesses. Q How do you feel to know that you ve helped another member during the mentoring sessions? The three member companies that I am mentoring now have been greatly enriching experiences. As my passion is in the family-run businesses, to be able to discuss about what works and what doesn t in such a business has been most fulfilling, as the firms begin to evaluate Asian monolithic belief systems with a new perspective. 19 Getty Images

22 20 Jul Aug Sep 2012 In BiZ With Hong Kong Sets Its Sights on ASEAN The special administrative region is keen to join the ASEAN-China community. Charles Chua

23 Hong Kong is putting more focus on ties with ASEAN as the region has seen tremendous growth over the past few years. Today, ASEAN has become Hong Kong s second largest trading partner, surpassing the European Union. Hong Kong is also gearing up to join the ASEAN-China Free Trade Area (ACFTA) and formally proposed this to the Secretariat of the Association of South East Asian Nations (ASEAN) last November. ACFTA was realised on Jan 1, 2010 and, today, over 89% of total tariff lines of the ASEAN-6 (Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand) and China are now traded duty-free. Hong Kong s interest in joining ACFTA is driven by the fact that it is the world s largest free trade area by consumer TAKING CHARGE Mr Fong Ngai Director, Hong Kong Economic and Trade Office (ASEAN) Joined the Hong Kong government as administrative officer in 1995 and was appointed in 1998 as assistant director-general of the Hong Kong Economic and Trade Office in London. Joined the Home Affairs Bureau in late 2001 to take charge of the arts and cultural policies, including preparatory work for the development of the West Kowloon Cultural District. Served as assistant commissioner for labour. market size and the third largest in terms of combined GDP. In addition, joining ACFTA would not only enable Hong Kong to develop closer economic cooperation with its neighbours, but also contribute to trade creation, investment flow and further regional economic integration. This would be a win-win situation for all parties concerned. Developing economic and trade ties Mr Fong Ngai, Director of the Hong Kong Economic and Trade Office (ASEAN), or HKETO, said this is where the role of the office comes in. He joined HKETO last July and, before this appointment, served as the assistant commissioner for labour in the Government of the Hong Kong Special Administrative Region. The HKETO aims to further develop government-to-government relations and liaise with relevant government bodies, such as the Ministries of Foreign Affairs and Commerce. It also keeps track of major government policies, provides updates on the latest political development in the region and helps facilitate visits by Hong Kong s senior officials to the region. Mr Fong said HKETO aims to promote economic and trade cooperation and investment between business communities in the region which are looking to start or expand their businesses in Hong Kong or in mainland China via Hong Kong. It also fosters bilateral relations between Hong Kong and ASEAN, facilitating overseas investors to tap into the opportunities offered by the special administrative region s strategic position as an international financial centre and its development as China s renminbi offshore business centre. Hong Kong plays a strategic role as the trade and logistics network in the East Asia region, due to its role as an international financial centre, a free port and logistics hub, as well as a trade and business centre. Trading partners ASEAN IS HONG KONG S 2nd largest TRADING PARTNER AFTER CHINA. Singapore, Thailand, Malaysia, the Philippines, Vietnam and Indonesia are among the TOP 20 INTEREST IN JOINING ACFTA ACFTA is world s largest free trade area by market size and the third largest in terms of combined GDP. Becoming part of ACFTA would enable Hong Kong to develop closer economic cooperation with its neighbours, and contribute to trade creation, investment flow and further economic integration. ASEAN is Hong Kong s second largest trading partner after China. Singapore, Thailand, Malaysia, the Philippines, Vietnam and Indonesia are among Hong Kong s top 20 trading partners. Hong Kong has signed free trade agreements with other important trading partners, as well as 29 agreements on avoidance of double taxation with other countries, including Brunei, Indonesia, Thailand and Vietnam, to pave the way for further economic cooperation. In April, Malaysia and the Hong Kong signed a Double Taxation Avoidance agreement that would reduce taxes, avoid double taxing for residents in both places and allow authorities to exchange taxpayers information to prevent fiscal evasion. p.22 21

24 22 Jul Aug Sep 2012 In BiZ With In Thailand, the trade value between the two economies exceeded US$15 billion (S$19 billion), a 7% increase year on year. The country is also looking at positioning Hong Kong as a springboard to reach the market in the Chinese mainland. Last year, 16.7% of Thailand s trade with the mainland was routed through Hong Kong. The special administrative region is looking at closer ties with Brunei too. Last April, trade officials from both places said they hoped to facilitate opportunities to create trade awareness between the two business communities. Developing economies such as Vietnam, Cambodia and Indonesia are attractive destinations for Hong Kong entrepreneurs, especially in the retail, property and telecommunication sectors. There is good potential for a greater flow of investment between these emerging markets Hong Kong Festival Hong Kong is celebrating its 15 th anniversary of the setting up of the Hong Kong Special Administrative Region. To mark this special occasion, the Hong Kong Economic and Trade Office (ASEAN) and its partners are organising a series of and Hong Kong. In fact, the special administrative region is Cambodia s second largest trading partner. Vietnam-Hong Kong trade relations have seen strong growth as well. The two-way trade turnover reached US$8.4 billion last year and, in the first two months of this year, the figure was US$526.4 million an increase of 103.4% year on year. Vietnam s exports to Hong Kong consists mainly of electronic and spare parts, cables, rice as well as seafood products. Singapore and Hong Kong are each other s fifth largest trading partners. The average annual growth rate in bilateral trade between Hong Kong and Singapore was 6% from 2007 to 2011, with total trade value reaching US$39.9 billion in Hong Kong is also Singapore s second largest export market, while the republic is Hong Kong s largest supplier of petroleum oils and oil products. events in Singapore to showcase Hong Kong s business community and its arts and culture, with cultural performances, gastronomic experiences, a business forum, a gala dinner, dragon boat racing and other events to look forward to. PAVING THE WAY FOR BUSINESS Set up in 1995, the Hong Kong Economic and Trade Office (ASEAN), or HKETO, fosters bilateral relations between Hong Kong and all 10 ASEAN member countries. The office assists businesses looking to start or expand their operations in Hong Kong or in mainland China via Hong Kong. It also promotes arts, cultural and educational exchanges between Hong Kong and ASEAN. HKETO collaborates with two statutory boards the Hong Kong Trade Development Council and the Hong Kong Tourism Board to promote the special administrative region as a good business location and a must-go tourist destination. Hong Kong Economic and Trade Office (ASEAN) of the Government of the Hong Kong Special Administrative Region #34-01 Suntec Tower Two, 9 Temasek Boulevard, Singapore hketo_sin@hketosin.gov.hk Willie Tan, Deputy Head of Investment Promotion Contact: willie_tan@hketosin.gov.hk Winsston Chu ang EVENT DATE VENUE Hong Kong-inspired menu by Singapore s celebrity chef Willin Low Prelude to the Hong Kong Wine & Dine Month 2012 Spirits Play: A work by Asian theatre masters Danny Yung from Hong Kong and Makato Sato from Japan Presented by Singapore s Theatre Practice Gala dinner in celebration of the 15 th anniversary of the establishment of the Hong Kong Special Administrative Region Hong Kong-ASEAN Business Forum Oct Oct Oct Wild Rocket Restaurant The Joyden Hall, Bugis+ The Fullerton Hotel* Hong Kong Dragon Boat Race Nov 4 Singapore River * Subject to confirmation Invest Hong Kong (InvestHK) is a department of the Hong Kong Special Administrative Region Government established in July 2000 with private sector expertise. It provides complimentary advisory services to help foreign companies set up their businesses and expand their operations in Hong Kong. InvestHK 投资推广署 25/F Fairmont House, 8 Cotton Tree Drive, Central, Hong Kong Contact: enq@investhk.gov.hk

25 We can help you navigate international business payments. A simple payment platform for efficient payments to suppliers. $ Competitive exchange rates. A suite of currency risk management solutions. Our specialists will manage your transactions from start to finish. Contact us now. Discover how our payment specialists can help streamline your payment process. Phone: Read a related article on Foreign Exchange Risk Management at Western Union Holdings Inc. All rights reserved. Western Union Business Solutions is an operating division of The Western Union Company. Western Union acquired Travelex Singapore Pte Ltd and Travelex Global Financial Services (Singapore) Pte Limited in Services in Singapore are provided by Travelex Singapore Pte Ltd and Travelex Global Financial Services (Singapore) Pte Limited (collectively referred to as WUBS or Western Union Business Solutions ). Western Union Business Solutions is an operating division of The Western Union Company. Travelex is a registered trademark of Travellers Exchange Corporation Limited and is used by Travelex Global Business Payments Limited and its affiliates under license. This brochure has been prepared solely for informational purposes and does not in any way create any binding obligations on either party. Relations between you and WUBS shall be governed by the applicable terms and conditions provided to you before you trade. No representations, warranties or conditions of any kind, express or implied, are made in this brochure.

26 24 Jul Aug Sep 2012 Innovations Shooting for the Clouds SMEs have the most to gain from cloud computing, a virtual IT delivery service that allows firms to focus on what they do best, says Webvisions Group CEO Poh Mui Hoon. Francis Kan reports. When a local company selling media content online faced an unexpected spike in demand for its products, it easily ramped up its computing capacity to deal with the additional load using a virtual technology known as cloud computing. More importantly, it was able to scale down again when demand returned to normal, saving the need to invest in a costly physical server that would become redundant once the temporary surge in activity subsided, said Ms Poh Mui Hoon, Group CEO of Webvisions Pte Ltd, a Singaporebased company that provides cloud computing services. Cloud computing gives you the flexibility to stretch or contract your compute or storage services as demand for your business goes up or down, she said in an interview with BiZQ. If you have a big project and require an increase in compute power only for six months, with the cloud, you don t have to make a big capital investment to cater to that. In an increasingly erratic business environment where demand becomes harder to predict, having an information technology infrastructure that tracks the ebb and flow of your company s activity is critical. That explains the appeal of cloud computing, a highly scalable and cost-efficient service that delivers computing and storage capacity virtually to end users, and which has caught on like wildfire in the corporate world in recent years. Webvisions, a leader in providing web-hosting services Ms Poh Mui Hoon, Group CEO of Webvisions Cloud computing gives you the flexibility to stretch or contract your compute or storage services. If you have a big project and require an increase in compute power only for six months, with the cloud, you don t have to make a big capital investment to cater to that.

27 to companies in the region, is now taking the lead in offering cloud services to its base of customers throughout the Asia-Pacific. Focus on core business While many multinationals and large local companies have adopted the cloud concept, the challenge now is to convince smaller firms of the technology s benefits, said Ms Poh, who took over the reins of Webvisions in January after an eight-year stint as CEO of electronicpayment firm NETS. Small and medium enterprises (SMEs) would be better served outsourcing their IT functions through the cloud to a third party, freeing up valuable resources to concentrate on their core business activities. What can cloud computing do for your business? Cloud computing involves delivering computing and storage services virtually to businesses. The nature of the service means businesses can save on investing in costly physical IT infrastructure, while capacity is easily scalable according to a user s needs. For example, an e-commerce business which consists of two servers may require an additional two servers to handle the load of a new product launch in a particular month. Using the cloud, the company can purchase CPU, RAM and other resources equivalent to those additional two servers for the month of the product launch. Cloud computing offers SMEs the availability of enterprise-class infrastructure including servers, routers and firewalls without the need to fund the required capital expenditure. You pay only for the additional resources when you need it, thus reducing your total operational costs. Mid-tier companies can derive a lot of benefits from the cloud, because their finances don t allow them to make big capital expenditures on IT infrastructure or manpower. They also have a harder time attracting IT talent, said Ms Poh. Cloud computing allows them to focus on their core business, which is where their competitive advantage is. She related the story of a client who had decided to develop its own human resource (HR) system in-house, a decision which meant it was spending less time selling its own services. My question to the client was: What s so unique about your HR portal that you can t outsource to a partner? Doing so would make things easier for the firm, she said. Education is key Ms Poh s aim now is to spread the word to a larger segment of SMEs who have yet to experience the benefits of doing business through the cloud. The key is to change mindsets among less tech-savvy CEOs through more education something Webvisions is well placed to do. While the company s diverse client base includes multinationals like DHL, Microsoft and Johnson & Johnson, it has also been providing its web-hosting and related services to SMEs in the region since its inception two decades ago. Currently, it operates in seven markets in the Asia- Pacific: Singapore, India, Malaysia, Hong Kong, New Zealand, Australia and China. The challenge is to make (SMEs) understand what the technology can do for them. The concept of the cloud is not very clear to them. There is also the issue of overcoming concerns regarding security, she said. Ironically, the company s physical WEBVISIONS Leader in providing webhosting services to companies in the following markets: SINGAPORE INDIA CHINA HONG KONG AUSTRALIA NEW ZEALAND MALAYSIA Multinational clients include: MICROSOFT DHL JOHNSON & JOHNSON The company plans to boost its cloud offering by making more applications available to its customers through its virtual platform. presence in these markets gives it an edge over rivals in a business that thrives on being virtual. Webvisions proximity to its customers means being able to respond to their needs quickly as well as in a manner they are comfortable with. We are regional but we also understand the nuances of each country we operate in. You are talking to staff who are culturally diverse enough to be able to handle clients needs, she said. In the longer term, the company is looking to boost its cloud offering by making more applications available to its customers through this virtual platform. This involves bringing more partners on board to develop applications, such as HR systems and productivity suites that would continue to extend Webvisions value offerings. Cloud computing is an evolution from our hosting-services background. It gives us a new capability of helping and supporting our clients, said Ms Poh. 25

28 26 Jul Aug Sep 2012 Innovations Rohde & Schwarz sets up Asian hub Company to expand capabilities in knowledge transfer, supply chain management and engineering R&D. NEXT-GENERATION TECHNOLOGIES Near Field Communication (NFC) This is a new short-range, standardsbased wireless connectivity technology that is based on radio frequency identification. NFC uses magnetic field induction to enable communication between electronic devices in close proximity. It enables users to perform intuitive, safe and contactless transactions, access digital content and connect elec tronic devices simply by touching or bringing devices closer to one another. Rohde & Schwarz recently announced that it has invested S$58 million in its first global hub outside Germany at Changi Business Park. This is part of an S$85 million investment by the test system company in Singapore over the next three years. The 12,747 sq m facility will be Rohde & Schwarz s regional headquarters and will house Rohde & Schwarz Asia a global hub for R&D, engineering and production in the region. The seven-floor building is a state-of-the-art Green Mark Platinum building and is designed by local firm Forum Architects Pte Ltd. Construction is expected to be completed by the end of next year. The company is a global supplier of solutions in the fields of test and measurement, broadcasting, radio monitoring and radio location, as well as secure communications. With the worldwide boom in consumer electronics, demand for faster product development cycles and the adoption of new technology like Near Field Communication, Long Term Evolution and Digital Terrestrial Transmission, the firm s investment in Singapore marks a strategic milestone in strengthening its presence in Asia. The company is expanding its existing system engineering operations to include other key activities and functions that are normally conducted in Munich. These include product charter responsibility, full-scale R&D, production and supply chain. Since its start-up in Singapore in 1997, the company has grown exponentially from a staff strength of six to that of 350 today, with the ramp-up of vital system engineering operations. About 100 to 150 new jobs in these functions will be added with the completion of the new building. Closer cooperation between the Munich headquarters and Singapore would enhance product feedback between Asian customers and its R&D development in Singapore. The company s solutions address diverse market segments, such as wireless communications, the broadcasting and electronics industry, aerospace and defence, homeland security and critical infrastructures. Long Term Evolution (LTE) This is the technology for network operators to deliver mobile broadband data and high-speed Internet access. With the first LTE networks successfully starting commercial operations, further enhancements will become increasingly important in providing an evolutionary path towards a true 4G system, with LTE-Advanced. DVB-T2 This is a digital terrestrial transmission system developed by the DVB project. It introduces the latest modulation and coding techniques to enable the highly efficient use of the valuable terrestrial spectrum for the delivery of audio, video and data services to fixed, portable and mobile devices. The technology can be used to simultaneously deliver a wide range of services, from Mobile TV and IPTV to HDTV and 3DTV. Satellite navigation Global navigation satellite systems transmit satellite signals that can be used for location and navigation purposes around the world. The best-known system is the Global Positioning System (GPS) which is operated by many governments. Europe s own global navigation satellite system Galileo was set up last year and is currently in operation.

29

30 28 Jul Aug Sep 2012 Inside SBF SBF Leads SME Committee to the Next Lap COST OF DOING BUSINESS MANPOWER & PRODUCTIVITY SME COMMITTEE The committee is part of the apex chamber s efforts to become more issues-focused in its next phase. Alvinn Lim As Singapore Business Federation (SBF) takes stock of its 10th anniversary, it aims to become a more issuescentric organisation in the next phase of its development. The formation of the SME Committee (SMEC) is the start of this new direction. Since its inauguration in December 2011, SMEC has gained traction as an advocacy on business issues. The SMEC was established under the auspices of the SBF in response to the growing challenges SMEs face in the evolving local business environment and global economic climate. The committee also aims to look ahead of trends and developments that impact business sentiments and growth. It is able to do this by leveraging on SBF s role as Singapore s apex business chamber to facilitate its work as an issues-focused outreach and feedback channel. Business issues The SMEC has identified four key challenges that SMEs face today: 1 Cost of doing business 2 Productivity and manpower 3 Financing 4 Internationalisation and market access These challenges formed the basis for the establishment of four sub-committees under the auspices of SMEC to address various concerns and become a key platform for SME engagement on issues. The sub-committees also aim to help SMEs build capability and access international markets. SMEC sub-committee members Mr Lawrence Leow, immediate past president of the Association of Small and Medium Enterprises, was elected chairman of the SMEC in January The committee comprises 19 members, including representatives from trade associations and business chambers, and qualified individuals who provide feedback and views on a diverse range of SME issues. Managing key issues SMEs form a significant part of Singapore s business fabric and the current global economic and business landscape makes it difficult for them to keep pace. The following are some of the specific issues and challenges facing SMEs in Singapore today. Cost of doing business Price and availability of office space In recent years, SMEs seeking general-purpose industrial space have seen their choices drastically reduced as specialised industry clusters, such as those for aerospace and green-tech industries, are increasingly being built, usually by private sector developers who have bought industrial land through government divestment programmes. Many SMEs do not fall within the targeted clusters, and most have no alternative but to take up industrial spaces that are usually overbuilt for what they need and come at much higher prices. Office rentals have also increased substantially since 2008 as properties were gradually being divested to Real Estate Investment Trusts and INTER- NATIONALISATION & MARKET ACCESS FINANCE AT THE HELM OF SMEC Mr Chan Chong Beng Chairman of Cost of Doing Business Sub-committee, SMEC; and President of ASME Mr Lau Tai Sun Chairman of Productivity and Manpower Sub-committee, SMEC; and Chairman of Industry Committee, Singapore Chinese Chamber of Commerce and Industry Mr Edwin Khoo Chairman of Financing Subcommittee, SMEC; and Senior Advisor of the Association of Banks in Singapore Dr Ricky Souw Chairman of Internationalisation and Market Access Subcommittee, SMEC; and CEO of Sanwa Group

31 29 private developers. Office rents rose as these players sought to maximise returns. Transport costs Many SMEs have long raised the issue of high ownership and operating costs of commercial vehicles. Such costs have risen substantially in recent years. The SMEC noted that this has been mainly due to high COEs and ERP charges, coupled with rising petrol prices. Manpower and productivity Foreign labour SMEs are concerned about the recent revisions on the Dependency Ratio Ceiling (DRC) of foreign workers, levies and requirements for minimum salaries that will impact their businesses. The DRC and levy mechanisms could be adjusted so firms that need additional foreign workers to sustain their businesses could be allowed to do so for a fixed period by paying a higher levy, while those which do not use up their full quota allocation could be incentivised for the reduced dependence on foreign labour. Local workforce The SMEC noted the need to ensure correct job fit to optimise manpower utilisation of the local workforce. For example, more able-bodied drivers are required in industries which utilise heavy trucks and as bus drivers. Housewives and retirees could also be encouraged to return to the workforce. Productivity, training and innovation SMEs need sufficient knowledge on how to improve their productivity levels in the workplace. The SMEC noted current collaborations between the Government and industry groups to equip SMEs with productivity expertise and tools. But, fundamentally, a shift in mindset by business owners and workers is needed. Encourage R&D The SMEC noted that some companies recognise the importance of research and development, but lack the resources to embark on it. To exacerbate matters, research institutions tend to partner multinational corporations (MNCs) to develop R&D projects. Financing Defining SME profile Local and foreign banks each use a different definition of SMEs when assessing a company s risk profile. This makes comparison of loan applications across the banking industry difficult. Availability, awareness and accessibility of loans Start-ups and micro SMEs face the greatest challenge in gaining access to financing due to their higher risk profiles and lack of track records. Most loan procedures are also lengthy and technical. Many SMEs are still not aware of the advisory services and resources provided by the Enterprise Development Centres. Education For long-term growth and sustainability, shortterm financial assistance through incentives and grants is not enough. SMEs need to be equipped with adequate financial management systems and knowledge for sustainable financial capability. Internationalisation and market access Building a track record Many SMEs feel they are not given enough opportunities to prove themselves in large government projects, in which MNCs and government-linked companies dominate. While schemes like ipartnership and iplatform help form consortiums overseas, very few extend the collaboration to SMEs in overseas projects. Tapping into overseas networks Overseas Singaporean business networks provide good links to contacts and valuable knowledge of the markets they reside in, but lack the resources to conduct more activities which SMEs can benefit from. Global Company Partnership scheme Currently, the scheme covers only Singaporean or permanent resident employees sent to manage overseas marketing offices. The present one-year period of support is not sufficient and the scheme covers limited markets. SBF names new chairman of the Board of Trustees Ms Fang Ai Lian, Chairman of Great Eastern Holdings Group, has been appointed as the chairman of the Singapore Business Federation s (SBF) Board of Trustees (BOT). She has been a member of the BOT since Ms Fang succeeds Mr Sat Pal Khattar, who has been chairman of the BOT since Mr Khattar, Chairman of Khattar Holdings Group, has served on the BOT since SBF s formation. In addition, Mr Lucien Wong, Managing Partner of Allen & Gledhill LLP, was appointed to the BOT. Ms Theresa Foo-Yo Mie Yoen, Chairperson of The Esplanade Co Ltd, retains her place on the board, which she has held since Mr Tony Chew, Chairman of the SBF Council, paid tribute to Mr Khattar s 10 years of service to the apex chamber. He said: On behalf of the council, members and secretariat of SBF, I extend my sincere appreciation and gratitude to Mr Khattar for his leadership, invaluable guidance as well as great commitment to the federation and the business community throughout his years of service. SPH Library

32 30 Jul Aug Sep 2012 Inside SBF Business Opportunities Leveraging on Portugal s economy The AICEP Portugal Global- Trade and Investment Agency and SBF held the inaugural Portugal- Singapore Business Forum 2012 in May, in conjunction with the first state visit of HE Professor Anibal Cavaco Silva, President of the Republic of Portugal. In addition, a memorandum of understanding on maritime business studies between Universidade Nova de Lisboa and the National University of Singapore was signed at the forum. Participants witnessed, too, the signing of a master franchising contract between VivaFit Portugal and VivaFit Singapore for expansion into Malaysia. At the forum, President Silva gave an update on developments in Portugal and the EU, and touched on the strong bilateral relations and business ties between Singapore and Portugal. Almost 100 Singapore business representatives PORTUGAL IS CONNECTED TO EUROPE MEDITERRANEAN THE AMERICAs and serves as a gateway to 250 million Portuguese-speaking consumers. attended the forum. During the businessmatching segment of the forum, participants also met and networked with Portuguese delegates from a variety of sectors, including manufacturing, construction, energy, real estate and architecture, telecommunications and energy, among others. Portugal s influence extends to regions as diverse as India, Macau, Angola, Brazil, Malacca, East Timor and Cape Verde through its colonial heritage and history. With its strategic geographical location and established logistics and communications infrastructure, Portugal is connected to European, Mediterranean and American markets, and serves as a gateway to 250 million Portuguesespeaking consumers. Portugal s value proposition extends beyond its geography, with a highly skilled labour force, modern market conditions, sustained private sector innovations and global connectivity. These factors contribute to the country s traditional pro-trade and pro-business outlook, and serve to provide good conditions for Portugal s ongoing transition to a knowledgebased economy. Bilateral trade between Portugal and Singapore increased by 40.28% in 2011 to over S$298 million. Imports from Portugal grew by 45%, while exports increased by 35.2% in the same period. Exploring Turkey- Singapore business opportunities Members of SBF recently participated in the Turkey- Singapore Business Forum (TSBF) in conjunction with a visit to Turkey by Mr Tharman Shanmugaratnam, Deputy Prime Minister and Minister for Finance. He was accompanied by a 27-member business delegation led by SBF SINGAPORE-PORTUGAL BILATERAL TRADE EXCEEDED S$298 million IN % INCREASE Chairman Tony Chew and Mr Teo Eng Cheong, CEO of IE Singapore. Organised by SBF and Turkey s Foreign Economic Relations Board (DEIK), the second TSBF was organised in Istanbul under the auspices of the Turkey-Singapore Business Council (TSBC), which was set up by SBF and DEIK last year to explore business partnerships. Speaking at the forum, Mr Chew called for TSBC to be the focal point for all bilateral engagements between the business communities. He added that SBF would offer its services to Turkish companies as a valued partner for their ventures into Asia through Singapore. Over 80 Turkish company representatives from diverse sectors, such as transport and logistics, oil and gas, construction, commodities, trading, financial services and pharmaceutical and healthcare industries, attended the forum. Bilateral trade between Singapore and Turkey crossed the S$2 billion p.32

33 The 9th China- ASEAN Expo (CAEXPO) September 21 25, 2012 Nanning, Guangxi, China An annual high-level international exposition Co-sponsored by the governments of China and the 10 ASEAN member states 2012 Theme: Science and Technology Cooperation Promoted by Chinese and ASEAN leaders Supported by 40 major chambers of commerce/trade associations of China and ASEAN countries Rich business opportunities 4600 International Standard Booths Your Gateway to a Huge Market with 1.9 Billion Consumers Visit for more information. Register Now! Why exhibit at Singapore Commercial Pavilion? New business opportunities offered by the CAFTA CAFTA is the largest FTA formed by developing countries Economic growth rates of 10 ASEAN countries higher than the global average Lower costs Zero tariffs for trade in goods; lower import and export costs Easy access to global markets Why visit CAEXPO? Forums/Conferences with Heads of States and industry leaders One-stop purchase of China and ASEAN quality commodities Trade matching programmes Singapore Business Federation TEL: / FAX: angeline.huang@sbf.org.sg / delia.wu@sbf.org.sg China-ASEAN Expo Secretariat TEL: FAX: luming@caexpo.org China-ASEAN Expo Secretariat Liaison Office in Singapore Universal Reliance (Group) Pte Ltd TEL: FAX: caexpo@ureliance.com

34 Jul Aug Sep Inside SBF SPH Library SINGAPORE-TURKEY BILATERAL TRADE S$2.2 billion IN % INCREASE SINGAPORE IS TURKEY S 2nd largest EXPORT DESTINATION IN THE ASIA-PACIFIC. mark last year, representing a significant increase of 78.6% from More notably, Singapore is Turkey s second largest export destination in the Asia-Pacific region after China. TSBC has made good progress, and a similar Turkey-Singapore Business Forum held in Singapore in March drew an audience of 150 Singapore participants. SBF leads inaugural visit to Kuwait The apex chamber s Middle East Business Group (MEBG) led a 16-member delegation to Abu Dhabi, United Arab Emirates (UAE) and Kuwait in May in conjunction with the Abu Dhabi Singapore Joint Forum (ADSJF) held in Abu Dhabi this year. This visit also marked SBF s inaugural visit to Kuwait. The mission was led by Mr Zainul Abidin Rasheed, former Senior Minister of State for Foreign Affairs and Advisor to MEBG, and Mr Shabbir Hassanbhai, SBF Council Member and Vice-Chairman of MEBG. Working together with public and private sector partners such as the Kuwait Embassy in Singapore, Abu Dhabi Chamber of Commerce and Industry, Kuwait Chamber of Commerce and Industry as well as KPMG, the delegation participated in various business networking and briefing sessions to gain first-hand insights on Kuwait s market dynamics, economic landscape and business opportunities. SBF also supported and participated in the ADSJF. It was the first time the forum featured a business delegation comprising Singapore SMEs. This is in line with Abu Dhabi and Singapore s long-term vision to increase SME engagement and encourages SMEs to internationalise and expand overseas. Both the UAE and TOTAL TRADE BETWEEN SINGAPORE AND THE UAE INCREASED FROM S$13.87 billion IN 2010 TO S$20.37 billion IN 2011 Kuwait are Singapore s second and fourth largest trading partners in the region respectively. The UAE has traditionally been a popular market of choice for Singapore firms to start their businesses when venturing into the Middle East-North Africa region. This is due to its ease of doing business and pro-business policies. Singapore s total trade with the UAE increased from S$13.87 billion in 2010 to S$20.37 billion last year. Kuwait, like the UAE, possesses significant crude oil reserves and holds about 9% of the world s reserves. In 2010, the government announced a US$104 billion economic development plan to diversify its economy and attract more investment. The country registered a strong 8.2% growth last year and is forecasted to grow by 6.6% this year. Growth in bilateral trade exceeded 20% year on year to reach S$4.7 billion in Mr Larry Lam, Chairman of Portek International The Pointe-Noire and Brazzaville ports in Congo and the Matadi and Kinshasa ports in the DRC serve as gateways to the vast interior and riches of Central Africa, held back till now by a lack of viable transport and logistics systems. Republic of Congo and the Democratic Republic of Congo (DRC) earlier Congo port s this year, Mr Larry Lam, potential as Chairman of Portek logistics hub International, said the Port operator Portek company is interested International is keen to in the developments play a role in the further of Pointe-Noire and development of the ports Brazzaville ports in of Pointe-Noire, Brazzaville Congo, as well as and Kinshasa in Congo. Matadi and Kinshasa The company believes ports in the DRC. the port of Pointe-Noire He added: These ports has the potential to be serve as gateways to the a logistics hub for the vast interior and riches of regional oil and gas Central Africa, held back industry as it is the only till now by a lack of viable deep-sea port in the region. transport and logistics During an eight-day systems. While incumbent business mission to the p.34

35

36 34 Jul Aug Sep 2012 Inside SBF players exist in the sector, there are still huge markets to be serviced, which Singapore companies (in the marine and logistics sectors) are especially well placed to tap into. Offshore and marine services company Golden Anchor Shipping Agencies also has the same sentiments and has signed an MOU with Congolese logistics firm Samariti to supply vessels and shipping equipment to Pointe-Noire. SBF s Africa Business Group (AfBG) organised the business mission led by Mr Zainul Abidin Rasheed, former Senior Minister of State for Foreign Affairs, and Advisor to SBF s AfBG. The delegation, which comprised 27 participants from 23 companies, also held business networking sessions and meetings with the Pointe-Noire Chamber of Commerce, and visited the Port Authority of Pointe-Noire and Banque Commerciale Internationale (BCI Bank). SBF IS CONDUCTING ITS FIRST-EVER VISIT TO THE COUNTRIES OF Zambia & Zimbabwe TWO OF AFRICA S FASTEST-GROWING ECONOMIES WHICH REGISTERED 6.7% & 6% GDP GROWTH RESPECTIVELY IN WHAT S NEXT ZAMBIA ZIMBABWE Business mission to Zambia and Zimbabwe Late October SBF s first-ever visit to the two southern African countries of Zambia and Zimbabwe will be taking place in late October Zambia and Zimbabwe, with a combined population size of 25 million, are two of Africa s fastest-growing countries, registering an estimated 6.7% and 6% GDP growth respectively in Economic growth is expected to be further boosted by their richness in mineral wealth and a youthful consumer market. Both countries are members of the Southern Africa Development Community and Common Market for Eastern and Southern Africa, providing access to a potential market size of 400 million people. Opportunities for trade and investment are available in key areas such as minerals and mining, agriculture, infrastructure, transport, logistics as well as the fast-moving consumer goods sector. For more information, contact Alvyn Lim at alvyn.lim@sbf.org.sg. Business mission to Mongolia July 29 - Aug 4 SBF and the Mongolian National Chamber of Commerce and Industry are organising a business mission to Ulaanbaatar in Mongolia. The total trade turnover between the two countries has increased from US$10.7 million in 2000 to US$45.3 million in There will be site visits to the Foreign Investment and Foreign Trade Agency, APB-MCS- Tiger beer factory and Nomin Holdings (a top Mongolian retail outlet). In addition, participants will meet up with Mongolian mining companies and the Mongolia Trade and Development Bank. They will also visit prominent Singapore companies with a strong presence in Mongolia to learn about the local operations as well as abundant business opportunities that have unfolded in the country over the past few years. For enquiries, contact Delia Wu at or delia.wu@sbf.org.sg. Business mission to Ethiopia and Djibouti Sept 1-8 SBF s Africa Business Group is organising a business mission to Ethiopia and Djibouti in September this year. This is the apex chamber s first visit to the Horn of Africa and the mission will cover Ethiopian capital Addis Ababa and Djibouti City. As one of the world s fastest-growing economies, Ethiopia holds a population of close to 82 million, making it one of the largest markets in Africa. The country s economy is primarily based on agriculture, which accounts for 41% of GDP. With the government s approval of the five-year Growth and Transformation Plan in October 2010, Ethiopia is pressing ahead with development plans and vast prospects are presented in the agricultural, industrial and infrastructural sectors. Opportunities for trade and investment are present in key areas such as agriculture, transport, logistics, infrastructure and the fast-moving consumer goods sector. For more information, contact Sarah Wong at sarah.wong@sbf.org.sg.

37

38 Jul Aug Sep International Markets Sri Lanka Beckons Investors The country strengthens cooperation and trade relations with Singapore. SRI LANKA TRADING FIGURES SINGAPORE S TOTAL TRADE WITH SRI LANKA S$1.85 billion IN 2011 Getty Images Singapore companies can look forward to increasing business opportunities and partnerships in Sri Lanka as a result of a memorandum of understanding (MOU) inked during a recent business mission headed by Singapore Business Federation (SBF) in May. The MOU was signed between both countries apex business chambers SBF and the Sri Lanka- Singapore Business Council of the Ceylon Chamber of Commerce and witnessed by His Excellency Mr Rishad Bathiudeen, Sri Lankan Minister of Industry and Commerce, and Mr K. Shanmugam, Singapore Minister for Foreign Affairs and Law. Under the MOU, both organisations pledged to promote the development of closer trade and economic relations between the Sri Lanka and Singapore business communities. This follows the MOU signed in February between SBF and the Board of Investment of Sri Lanka. Local businesses headed to Sri Lanka are looking for opportunities in urban planning and solutions, infrastructure, real estate development, education, healthcare services, manufacturing and trading, as well as logistics. The Sri Lankan government has identified construction and industrial park development, as well as infocomm technology development, as priority sectors for investment. Trading partners Singapore s total trade with Sri Lanka in 2011 amounted to S$1.85 billion, which represents a 53.5% increase over the 2009 bilateral trade volume. Sri Lanka is Singapore s 37 th ranked trading partner globally and Singapore is one of Sri Lanka s top five trading partners. There are more than 300 Sri Lankan companies registered here and Singapore s investments in Sri Lanka which cumulatively amounted to S$500 million at the end of 2011 span a wide range of sectors, including property development, food and beverage processing, logistics, telecommunications and hospitality. Some of the Singapore companies in these sectors in Sri Lanka include Prima Group, Shing Kwan, Asia Pacific Breweries, Keppel Logistics, Ghim Li Group and Pico Global Services. Firms like Prima, Shing Kwan and Pico have long invested in Sri Lanka and they continue to step up their operations. Last year, Mustafa announced a S$144 million investment in a mixed development project at Srimath Ramanathan Mawatha, which is based in Colombo. This project incorporates a retail department store, SINGAPORE IS ONE OF SRI LANKA S TOP 5 TRADING PARTNERS. a 975-room hotel, 400 serviced apartments and a 1,000-vehicle car park, with a total floor area of 142,125 sq m. The construction for the mixed development project will be completed in two years. Resilient economy With Sri Lanka playing host to the 2013 Commonwealth Heads-of-Government Meeting, the country is perched on a new cusp of development and growth. Sri Lanka is situated at the crossroads of major shipping routes

39 37 The MOU signing ceremony between SBF Vice-Chairman Teo Siong Seng and Sri Lanka- Singapore Business Council President Shamil Mendis on May 30, 2012 was witnessed by Singapore s Foreign Affairs Minister K. Shanmugam and Sri Lankan Minister for Industry and Commerce Rishad Bathiudeen. STRATEGIES FOR SRI LANKA AIM TO TRANSFORM THE COUNTRY INTO A STRATEGICALLY IMPORTANT ECONOMIC CENTRE BY DEVELOPING 5 STRATEGIC HUBS: 1 KNOWLEDGE 2 COMMERCIAL 3 NAVAL & MARITIME 4 AVIATION 5 ENERGY connecting the rest of Asia and the Pacific with Europe and the Americas. Sri Lanka is strategically located next to the fast growing Indian subcontinent with close proximity to Southeast Asia and the Middle East. According to Sri Lanka s Board of Investment, the favourable government policies and improved investor confidence have facilitated the various key economic sectors to perform better in The services sector remains the largest contributor to the national economy, with a reported 59.3% contribution. Taking advantage of Sri Lanka s strategic location and resources, the government plans to transform the country into a strategically important economic centre by developing five strategic hubs knowledge, commercial, naval and maritime, aviation and energy hubs. Sri Lanka also has bilateral investment protection agreements with 27 countries and has signed double taxation avoidance agreements with 38 countries, including Singapore. It is also a founder member of the Multilateral Investment Guarantee Agency an investment guarantee agency of the World Bank which provides a safeguard against expropriation and non-commercial risks. Educated workforce In 2009, Sri Lanka had the most literate population in South Asia and one of the highest in the developing world with a literacy rate of 91.4%. English is widely spoken and is the main language used by the business community. Extensive investment in public education has produced a workforce that is competent in high-tech production and services. About 50% of the students who have completed higher education are trained in technical and business disciplines. With Sri Lanka continuing on the path of development, Singapore is in a unique position to harness the many opportunities for investment presented in the country. The two republics share many common platforms in a number of regional and international forums. Such interactions have paved the way for both economies to explore Supportive government policies The Sri Lankan government has recently embraced various strategies and policies that aim to foster foreign direct investment. Total foreign ownership is permitted across almost all areas of the economy and there are no restrictions on repatriation of earnings, fees, capital and forex transactions. In addition, there is a transparent and sophisticated legal and regulatory framework which covers many areas of prerequisite business new opportunities. law enactments. p.38 GROWTH ENGINE The principal engine of growth is the private sector. Foreign exchange liberalisation measures will continue to improve, and private foreign investment direct and portfolio are strongly encouraged through the provision of various trade incentives. Listed below are Singapore companies with significant investments in Sri Lanka in the form of joint ventures, direct investment or representative offices. Shing Kwan Group World Trade Centre Twin Towers Housing and commercial complex Prima Group Grains, flour and flour-based products South Asia Textile Knitted fabrics Prima Group Processing of chicken, manufacturing of noodles, bread and value-added products Ghim Li Group Apparel Aman Resorts Hotel Banyan Tree Resorts Hotel BP de Silva Holdings Gold jewellery SingTel Internet, web hosting and e-commerce Getty Images

40 Jul Aug Sep International Markets Getty Images Sri Lanka s infrastructure upgrading programmes The Sri Lankan government has launched an ambitious programme of development to upgrade the country s sea, air, road, power and telecommunications infrastructure. The main features of this programme are detailed below: Sea port and airport development The Sri Lankan government has declared its intention to develop the country as a leading regional aviation, navigation and trading hub in South Asia. Hence, the development of maritime and aviation transport is at the forefront of the government s infrastructure development agenda. 1 Colombo South Port The expansion project for Colombo South Port includes plans for three terminals, each having a capacity of 2.4 million TEUs per year, and will increase the capacity of the port by 160% upon completion. Over 50% of the breakwater s construction work has been completed. The first terminal, a joint venture between the Sri Lankan Aitken Spence Group and China Merchants Holdings Ltd, is expected to be ready for operation in Hambantota Port Phase 1 of the project, the Magampura Mahinda Rajapaksa Port, started in November The port is expected to function initially as a service and industrial port. Phase 2 of the port is under way at an estimated cost of US$800 million (S$1 billion). The port is ideally located to serve the main east-west shipping lane connecting Europe and the Middle East with Southeast Asia. 3 Bandaranaike International Airport A project is under way to expand the international airport in Katunayake. It includes the expansion of the transit area, construction of a new baggage-reclaim space and multi-storey car park, as well as widening of the existing runway. A feasibility study is being carried out for a second runway. 4 International airport in Mattala The construction of a new international airport in Mattala in the southern Hambantota district has been carried out in two phases. The first phase will be completed towards the end of 2012 and will include one runway, as well as a taxi way that will be expanded in the second stage to allow for larger planes, including the latest airbus A380, to land. Development of highmobility road network The country s road development has been given prominence the national road master plan has already been prepared and focuses on the construction and widening of highways, reduction of traffic congestion, road maintenance and bridge reconstruction. Further investment in the road network has become an urgent necessity, as its development has become a major determinant in attracting new investments to the country. 5 Colombo-Katunayake Expressway Connecting Colombo city and the international airport in Katunayake, this expressway is currently being constructed and is expected to be completed this year. The contract value of the project is US$292 million. 6 Southern Expressway This highway is the longest expressway built in Sri Lanka. The construction of its extension a four-lane highway from Colombo to Matara will be a catalyst for the economic and social development of the country s southern region. 7 Outer Circular Highway The 28km-long highway from Kottwawa to Kerawalapitiya will link seven trunk roads, as well as the Colombo- Katunayake and Southern Expressways. Power and energy Development of the power and energy sector is a key aspect of the government s infrastructure development agenda. Long-term strategies have been introduced with active participation from the private sector. Plans are under way to increase the national grid from 2,817MW to 4,732MW by 2016, and reduce the cost of generation by harnessing the latest clean coal technology. 8 Norochcholai coal power plant The construction of the first phase of the Norochcholai Coal Power Plant was completed by the end of 2010 and was added to the national grid by the end of March last year. The second phase will add another 600MW to the national grid by 2014.

41

42 Jul Aug Sep SME Helpdesk Biomed SMEs Get a Lift Up The Singapore Government is expanding the Growing Enterprises with Technology Upgrade (GET-Up) programme to support the biomedical sciences industry. More than 600 biomedical research scientists from A*STAR biomedical research institutes will be eligible for secondment to local small and medium enterprises (SMEs) under a scheme dubbed T-Up. They will bring with them valuable expertise in areas like drug discovery, bioengineering and bioinformatics, which will provide more holistic R&D support for local SMEs. GET-Up is a multiagency effort between A*STAR, the Economic Development Board, IE Singapore and SPRING Singapore. It aims to upgrade the technological capabilities of local technologyintensive companies, with a focus on local SMEs. Since 2003, the GET-Up scheme has helped more than 370 local firms leverage on a broad spectrum of science and engineering R&D capabilities. Under the programme s secondment scheme T-Up, public sector researchers are attached to SMEs for up to a year to provide expertise in areas such as precision engineering, material sciences and infocomm sciences. At least 10 biomedical SMEs have already expressed interest in participating in the T-Up programme. Among them is Curiox Biosystems, a bioinstrumentation firm which develops and commercialises bioassays. Singapore Human Capital Summit 2012 Sept Resorts World Sentosa The theme of this year s summit is People Strategies for Asia Harnessing Change, Managing Complexity. It is organised by the Ministry of Manpower, Singapore Workforce Development Agency and the Human Capital Leadership Institute. com Russia-Singapore Business Forum 2012 Sept Marina Bay Sands Into its seventh edition this year, the Russia- Singapore Business Forum has, over the years, grown in stature to become Asia s only leading business and networking platform linking Russia/ CIS political and business elites with Singapore and the rest of Asia. Asia Smart Grid 2012 Oct Marina Bay Sands This event serves as a platform for international smart-grid providers and suppliers to exchange and share knowledge. com.sg 9th China- ASEAN Expo Sept 21-25, 2012 Nanning International Convention & Exhibition Centre, Nanning, Guangxi Province This September, SBF is inviting its members to the China-ASEAN Expo (CAEXPO), co-sponsored by China s ministries, the 10 ASEAN countries and the ASEAN Secretariat. SBF has been appointed by the Ministry of Trade and Industry to set up the Singapore National Pavilion, which will profile the country s capabilities in the area of science and technology as well as other related fields. For more information, contact: Delia Wu at or delia.wu@sbf.org.sg Angeline Huang at or angeline. huang@sbf.org.sg LETTERS FROM OUR READERS If you have any views, comments or suggestions about BiZQ or other SBF events, we want to hear from you. Please send your contributions to: Getty Images Global Singapore 2012 Oct Resorts World Sentosa Singapore will once again host the region s leading business forum, now in its ninth edition. com The Editor, BiZQ Magazine Singapore Business Federation 10 Hoe Chiang Road, #22-01 Keppel Towers, Singapore Or us at corpcomm@sbf.org.sg.

43 TheInterlace InasociationwithOfficeforMetropolitanArchitecture 1 2 TheAtrium@Orchard InasociationwithBenoy NTUResidentialHal InasociationwithToyoIto&Asociates,Architects SentosaCableway GuangzhouKnowledgeCity ITEColegeCentral&Headquarters MarinaBayCruiseCentreSingapore InasociationwithBermeloAjamil&Partners 3 SingaporePolytechnic- SchoolofDesign&ADEClusterBuilding CapitaGreen InasociationwithToyoIto&Asociates,Architects RSPisoneofthelargestandmostestablishedarchitecturalandengineringprofesionalpracticesin Singapore.Togetherwithasociates,itprovidescomprehensiveprofesionalbuildingconsultancyservicesin architecture,planing,urbandesign,civil&structural,mechanicalandelectricalengineringandinteriordesign. WithofficesinMalaysia,India,China,Vietnam,theUAEandtheUK,RSPhasacombinedstaff strengthinexcesof1 0.RSPhasundertakenanextensiveportfolioofprojectsacrosmany developmenttypesrangingfromresidential,commecial,institutional,andofficedevelopmentstokey infrastructureprojects.rsp sexperiencehasbenindependentlyrecognisedinthemanyawardsgranted tobothourcompleteddevelopmentsandtothe rm foroutstandingprofesionalexcelence OxleyTower HilV2&TheHilier WestgateTower InasociationwithBenoy ImageCredits 1.AnkeritePteLtd2.CapitalandRetailProjectManagementPteLtd3.ToyoIto&Asociates,Architects4.CapitaCommercialTrust5.OxleyHoldingsLtd6.FarEastOrganization7.Capitaland,CapitaMalsAsiaandCapitaMalTrust

44