SINGAPORE: Singapore’s Enterprise 2030 strategy will support the growth of high potential companies and strengthen core capabilities of local enterprises in industry transformation, said Second Minister for Trade and Industry Dr Tan See Leng on Friday (Mar 4).
Speaking in Parliament during the Committee of Supply debates for the Ministry of Trade and Industry, Dr Tan introduced the Enterprise 2030 strategy as Singapore’s response to build and sustain a “vibrant ecosystem” of enterprises that are future-ready and able to compete globally.
“We will achieve this in two ways. First, we must support the growth of high potential companies to become global champions,” said Dr Tan in his speech.
“Second, we will strengthen the core capabilities of the broader base of local enterprises in industry transformation.”
A “new generation of local champions” has emerged in the last few years, with 22 Singaporean startups reaching unicorn status, said Dr Tan, who is also Manpower Minister.
A unicorn is a privately-held startup that is valued at more than US$1 billion.
Companies like Secretlab, Hegen and Nanofilm have made a name for themselves internationally, he added.
“These are the bright spots in our enterprise landscape. We will intensify our efforts to identify, to nurture and to grow many more promising local enterprises,” said Dr Tan.
“To do so, we will launch an initiative to cultivate a new generation of Singapore global enterprises, which are locally grown and globally competitive.”
MTI will launch the Singapore Global Executive Programme to boost the human capital capabilities of high potential local enterprises and support them in talent attraction and retention, said the minister.
The Corporate Venture Launchpad, launched by the Economic Development Board (EDB) in 2021, will also be expanded to support a wider range of companies, said Dr Tan.
This is a pilot programme to support companies to incubate and launch new businesses in a six-month sprint.
EDB will also launch a Mergers & Acquisitions grant to co-fund the qualifying spend on Singapore-based professional and financial advisory services incurred on a merger and acquisition deal, said Dr Tan.
STRENGTHENING CORE CAPABILITIES
MTI will step up efforts to help small-to-medium enterprises in capabilities development, internationalisation, digitalisation and innovation, said the minister.
Responding to questions about how the Government will forge stronger partnerships between larger local enterprises and SMEs, Dr Tan said that MTI will work with SkillsFuture Singapore to bring larger companies, or “queen bees” on board to curate industry-relevant training courses in emerging areas such as robotics.
The Government will also extend the enhanced support levels for the Partnerships for Capability Transformation (PACT) scheme, an initiative launched in 2010.
Under the scheme, companies can qualify up to 70 per cent for manpower and consultancy costs and up to 50 per cent for hardware and equipment costs, he noted.
The scheme has supported co-innovation, internationalisation projects, as well as costs of supplier qualification processes, said Dr Tan.
Since the scheme was launched, the Government has set aside more than S$150 million to support these projects, and more than 2,000 Singapore-based companies have benefited, he added.
To help SMEs deepen their presence in key markets and pursue opportunities in new ones, MTI will intensify efforts through international partnerships and networks, said Dr Tan.
Despite the current travel restrictions, 1,600 local enterprises started internationalisation projects in 2021, he noted, adding that he was “encouraged” by this.
MTI has been working with many large local enterprises to lend their networks to create business opportunities for local enterprises, said Dr Tan.
“We have been working with many large local enterprises to do so, and we will adopt a more concerted Team Singapore approach in our internationalisation strategy and bring onboard SMEs to collectively access overseas markets,” he added.
HELPING FIRMS DIGITALISE AND INNOVATE
In his speech, Dr Tan also responded to questions about how MTI will help firms to digitalise and “capture new opportunities” in the digital economy.
More than 80,000 firms have benefited from the SMEs Go Digital initiative since it was launched in 2017, he noted.
The initiative supports SMEs in the adoption of digital solutions for basic business functions, online transactions and other more advanced solutions.
Firms can also tap on funding support from ESG’s Productivity Solutions Grant (PSG) and Enterprise Development Grant, Dr Tan added.
In his Budget 2022 speech, Minister for Finance Lawrence Wong had announced that the range of solutions under the PSG will be expanded to include new technologies and more sector-specific solutions.
These will help businesses to deepen capabilities in areas such as cybersecurity, digital marketing and data analytics, which will increasingly become essential skillsets, said Dr Tan.
In his speech, the minister also addressed questions about how the Government is supporting enterprises to innovate.
Dr Tan reiterated Singapore’s commitment to sustain investments in research, innovation and enterprise at 1 per cent of the country’s GDP, or S$25 billion, from 2021 to 2025 under the Research Innovation and Enterprise 2025 plan.
“Over the years, we have taken a more enterprise-centric approach to help SMEs build their innovation capabilities and translate their innovations into new products and services,” he added.
For example, under A*STAR’s Technology for Enterprise Capability Upgrading programme, more than 950 research scientists and engineers have been seconded to support more than 850 local SMEs in product development since 2003, said Dr Tan.
More recently in the fight against COVID-19, A*STAR’s Experimental Drug Development Centre collaborated with the Diagnostics Development Hub and Tan Tock Seng Hospital to develop the Fortitude COVID-19 test kit, he added.
This test kit was the first lab diagnostic kit to receive provisional authorisation from the Health Science Authority for clinical use, and was later deployed in Singapore and more than 40 other countries, said the minister.
“Apart from COVID-19 related innovations, we are also encouraged to see more local firms innovating and moving up the value chain,” he added.
“We have invested substantial resources and efforts in building innovation capabilities… I’m excited to see how our enterprises will push the boundaries to create solutions for the world.”