Developing Global Singapore Enterprises

2011 / 2012

Annual Report

CONTENTS

Board of Directors 2

Organisation Structure 4

Enterprise Development 5

Quality & Standards 9

Organisation Excellence 10

Outlook for the Next Fiscal Year 11

Mission: To help Singapore enterprises grow and To build trust in Singapore products and services

of DirectorsBoard

2

Mr PhiliP Yeo Chairman SPRING Singapore

Ms chong siak ching Deputy Chairman SPRING Singapore President & Chief Executive Officer Ascendas Pte Ltd

Ms kathY lai sou tien Assistant Chief Executive Officer International Enterprise Singapore

raDM lai chung han

Deputy Secretary (Policy) Ministry of Defence

Mr leslie loh

Chairman & Chief Executive Officer Lithan Hall Academy Pte Ltd

Mr roger chia Founder, Chairman & Managing Director Rotary Engineering Limited

Mr Mike Booker PartnerBain & Company SE Asia, Inc.

Mr thoMas chua kee seng Chairman & Managing Director Teckwah Industrial Corporation Ltd

Ms Janet Young

Managing Director Global Corporate & Investment Banking Regional Head MNC, AsiaBank of America Merrill Lynch (Singapore)

Mr saktianDi Bin suPaat

Head, FX Research (Global Markets)Maybank

Mr Viswa saDasiVan

Chief Executive OfficerStrategic Moves Pte Ltd

Mr wong toon king

Chairman & FounderZ Group

Bg (ns) tan Yih san

Chief Executive Intellectual Property Office of Singapore

Mr Mak keat Meng

Partner, Head of Assurance Ernst & Young Limited Liability Partnership

Mr Png cheong Boon

Chief Executive SPRING Singapore

(As of September 2012)

Professor charles f. Zukoski, iV

Senior FellowA*STAR Provost & Executive Vice President for Academic AffairsUniversity at Buffalo, The State University of New York

Mr tan choon shian

Deputy Managing Director Economic Development Board

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4

4

StructureOrganisation

Deputy Chief Executiveted tan

(Industry Development and International Partnership

Office)

Deputy Chief Executivetan kai hoe

(Industry Development and Quality & Standards)

Assistant Chief Executivechoy sauw kook

(Resources, Capabilities & Planning)

Assistant Chief Executivechew Mok lee

(Entrepreneurship & Innovation)

INTERNATIONAL PARTNERSHIP OFFICE

QUALITY & STANDARDS

RESOURCES, CAPABILITIES &

HUMAN CAPITAL

ENTREPRENEURSHIP & INNOVATION

INDUSTRY DEVELOPMENT 1

INDUSTRY DEVELOPMENT 2

Group Directorkee ai nah

LIFESTYLEDirector loh soi Min

Deputy DirectorYeo Meow ling

FOODDirector loh soi Min

Deputy DirectorJoanne tan

SERVICES & BIOMEDICALDirectorsamantha su

Group Directorsimon lim

MANUFACTURING & ENGINEERINGDeputy DirectorJohn lu

Group Directorsteven tan

POLICY & PROMOTIONDirector ho chi Bao

ACCREDITATIONDirector chang kwei fern

CONSUMER PRODUCT SAFETY, wEIGHTS & MEASURES OFFICEDirectorsteven tan

STANDARDSDeputy Directorcheong tak leong

Group Directorleung wai ling

HUMAN CAPITALDirectorDarshan singh

FINANCING & INCENTIVES MANAGEMENTDirectorMelvin lee

CAPABILITIES DEVELOPMENTDirector Ma Ping nee

BUSINESS & SERVICE EXCELLENCEDirector tong shuh lan

PLANNINGDirector edwin chow

ENTREPRENEURSHIP DEVELOPMENTDirectorsim choon siong

ENTERPRISE SERVICESDirector chung lai thoe

TECHNOLOGY INNOVATIONDirectorfung Mok wing

AMERICASDirectortong shuh lan

ASIA PACIFICDirector Melvin lee

EUROPE/ MIDDLE EASTDeputy DirectorJohn lu

Chief ExecutivePng cheong Boon

HUMAN RESOURCES

& ORGANISATION DEVELOPMENT

CORPORATE SERVICES

Directorchristophane foo

CORPORATE

COMMUNICATIONS

Directorchin sau ho

Executive Director woon kin chung

FINANCE & ADMINISTRATIONDirector woon kin chung

INFORMATION TECHNOLOGYDirector Yeap thiam Meng

SPRING SEEDS CAPITAL PTE LTD

GROwTH ENTERPRISE FUND PTE LTD

PRODUCTIVITY PROGRAMME OFFICE

INTERNAL AUDIT

ORGANISATION EXCELLENCE

Chief Executive Officerchew Mok lee

General Manager edwin chow

Executive Director woon kin chung

Deputy Director goh thong

Group Director simon lim

subsidiary companies (100% shareholdings): • SPRING Equity Investments, • SPRING SEEDS Capital Pte Ltd and • SPIB Holdings Pte Ltd

(As of September 2012)

Small and medium enterprises (SMEs) remain focused on productivity

improvements, capabilities upgrading and growth, despite the challenge of rising business costs and tight labour situation domestically in 2011. This continual deepening of their capabilities would prepare them well to meet the increased competition and seize new opportunities in the global market.

S P R I NG S ingapore , the en terpr i se development agency, supported 3,900 SMEs in 3,800 upgrading projects in 2011. These upgrading projects covered a wide range of areas such as productivity improvement, technology innovation, service excellence, human capital development and various other business capabilities development. when these upgrading projects are fully completed within the next three years, they will create more than 15,000 new jobs and generate an additional $4.4 billion in value-added (VA) for the economy.

More than 12,000 SMEs were assisted by business advisers in the five Enterprise

Development Centres (EDCs) at ASME, SCCCI, SICCI, SMCCI and SMa. In total, SPRING and its EDC partners reached out to over 112,400 SMEs in 2011.

with the global economy on firmer footing, SMEs’ healthier financial positions and improved commercial lending climate locally, SMEs took up fewer government loans last year than in 2010. Some 5,100 loans amounting to $1.4 billion were made to SMEs under the various programmes administered by SPRING and its financial institution partners.

On the SMEs development front, SPRING’s efforts were focused on the following eight areas in 2011:

1. raising Productivity To help enterprises increase their VA per worker in today’s competitive market, SPRING launched the productivity plans for the retail, food services, food Manufacturing and furniture industries in 2011. These productivity plans addressed the challenges faced

KPIs2010

Achievements2011

Achievements

Number of SMEs Upgraded 3,491(3,318 projects)

3,926(3,768 projects)

Value-added Committed $4.8 billion $4.42 billion

New Jobs Committed 15,895 15,250

Number of SMEs Assisted/Reached 133,842 112,403

Number of SME Loans Committed

9,748 ($2.68 billion)

5,181 ($1.43 billion)

SPRING’s Key Achievements in 2011

DevelopmentEnterprise

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by each industry and highlighted the key strategies adopted to boost productivity. These include:

• $223 million was set aside to fund these four plans over the next five years.

• 86 companies in the Retail, Food Services, Food Manufacturing and Furniture industries were supported for their productivity upgrading efforts.

• over 4,100 sMes have been assisted under the Productivity Management Programme (PMP). Productivity advisors at the five EDCs provided customised advice to SMEs, through one-to-one consultations and business diagnosis.

• More than 210,000 unique visitors have used the interactive IMPACT Assessment Tool under the Productivity@work Portal. This was launched in 2010 to help SMEs diagnose their productivity performance online.

2. supporting technology innovation

Technology remains a critical driver in business growth for SMEs to remain competitive. To help different SMEs leverage on technology to enhance their businesses, SPRING continued to offer a variety of programmes, incentives and schemes based on their needs. These include:

technology innovation Programme (tiP) The programme encourages companies to leverage on technology to innovate, transform and grow their businesses. In 2011, SPRING’s TIP was enhanced with an additional $320 million. with the extension for a further five years to 2015, it will allow more SMEs to tap into TIP, in addition to the 169 companies in 2011. These SMEs also leveraged the resources and expertise in the five Centres of Innovation set up in the polytechnics and research institutes through TIP. In addition, 53 experts were seconded

to 43 companies, under the A*STAR GET-Up Programme in 2011.

innovation Voucher scheme (iVs)SPRING disbursed vouchers worth $5,000 each to 350 SMEs for technology-related services and consultancy in 2011. Since its inception in March 2009, vouchers have been awarded to 969 SMEs.

technology enterprise commercialisation scheme (tecs)SPRING supported 27 companies for their Proof-of-Concept and Proof-of- Value projects.

Under the iSPRINT programme, a joint initiative between the Infocomm Development Authority (IDA) and SPRING, SPRING supported 1,000 companies for the adoption of infocomm technologies (ICT).

3. Developing human capital Competent business leaders and talent help enterprises navigate uncertain business environment and drive growth. Given the tight labour situation, it is critical for companies to better develop and manage their human capital. This is even more so for SMEs given their limited resources and small employment size.

SPRING has helped SMEs developed this capability through the following initiatives:

Business leadership initiative (Bli)Under BLI, SPRING has trained more than 1,000 SME leaders and managers in various advanced management and executive development programmes, since its launch in 2008. SMEs also took up the HR Capability Programme (HRCP) to strengthen their HR systems and processes for better recruitment and retention of talents. In 2011, 302 companies groomed their future talents, 40 companies strengthened their HR systems and 326 business leaders were developed.

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To help SMEs attract and develop talent, SPRING has rolled out the programmes in the diagram below to develop human capital and groom business leaders:

4. raising service excellence To achieve better business results, service excellence is a key differentiator and competitive edge. The Customer-Centric

BaP: 9 projectscumulative: 155 projects

aMP: 309 leaderscumulative: 716 leaders trained

MDs: 38 scholarshipscumulative: 78 scholarships awarded

MaP: 64 placementscumulative: 64 placements

eDs: 33 scholarshipscumulative: 126 scholarships awarded

eiP: 73 placementscumulative: 101 placements

Business Advisors Programme

Advanced Management Programme

Management Development Scholarship

Management Associate Partnership

Executive Development Scholarship

Enterprise Internship Programme

upgrade existing sMe leaders

strengthen Management

Build future talent

Part-time Pool Programme (PtP)SPRING introduced the PTP to address manpower hiring and retention challenges in the Retail and F&B sectors, by providing a ready pool of trained part-timers to be deployed to companies through appointed manpower service providers. A total of 72 food services and retail companies1 tapped the PTP in 2011.

1 72 food services and retail companies utilised 61,455 deployment slots in the Part-time Pool Programme (1 deployment slot = a block of 4 hours that the part-timer is deployed)

2011201020092008

Retail F&B Transport

sectors

Hospitality Travel Services58

62

66

70

74

60

64

68

72

76

cu

sto

me

r s

erv

ice

ind

ex

71.5

74.5

70

67.5

70.6

Raising Service Excellence

Initiative (CCI), a multi-agency effort by SPRING, NTUC, wDA, STB and ISES, offers local SMEs an assistance package to upgrade their service standards, with 63 CCI projects supported in 2011.

overall increase in customer service index levels There was an increase in the Customer Service Index across all sectors, with

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the travel services sector registering the highest increase. This can be attributed to the commitment given by companies across the respective sectors to embark on customer-centric initiatives and increase their customer service levels. An additional $84 million was committed to support service excellence efforts under the CCI over the next five years.

5. upgrading Business capabilities In 2011, 220 companies were supported by SPRING through BrandPact, Customer Service Toolkit, Design Engage, Intellectual Property Management, SME Management Action for Results (SMART) and SME Marketing Toolkit. These helped SMEs develop and upgrade their key business capabilities in areas such as branding, customer service, design, intellectual property management and marketing to compete and grow in the global marketplace.

6. nurturing growth-oriented enterprises (goes)

SPRING has worked closely with some 500 promising GOEs in key industries and supported their growth journeys through the years. This is in line with the Economic Strategies Committee’s priorities to deepen capabilities among Singapore companies to seize opportunities. These partnerships allowed SPRING to better understand the enterprises’ needs and direct our facilitation and assistance more effectively. SPRING would continue to help them in their upgrading, business transformation and growth, so that they can achieve the $100 million annual revenue in the next few years.

7. nurturing innovative start-ups In 2011, SPRING continued to actively promote entrepreneurship and build a pro-enterprise environment, as well as worked with partners to encourage more innovative start-ups. This was done through the seeding and nurturing of innovative start-ups to generate a pipeline of high-growth enterprises. The suite of funding programmes that

helped to meet the varying needs of start-ups was as follows:

Young entrepreneurs scheme (Yes!)

incubators Development Programme

• Supported 11 incubators

• Incubated more than 350 start-ups since 2008

• Supported 85 schools (YES! Schools)• 66 YES! Start-ups

technology enterprise commercialisation scheme

• 27 projects • Cumulative: 80 projects (since 2009)

sPring seeDs capital

• $3.3m investment Cumulative: $68m

• 6 new companies Cumulative: 191 companies (since 2001)

8. Driving industry growthTo extend the reach to our SMEs, SPRING has worked closely with trade associations and chambers (TACs) to drive industry upgrading and growth. Together with International Enterprise Singapore, SPRING has been providing funding support through the Local Enterprise and Association Development (LEAD) programme to 30 TACs since 2005, so that the TACs can undertake projects and deliver programmes to upgrade their industries and enterprises, and help grow new markets.

In 2011, seven tacs secured LEAD funding for new industry projects. These include new associations like Singapore Chinese Chambers of Commerce and Industry (SCCCI), waste Management and Recycling Association of Singapore (wMRAS) and Singapore Green Building Council (SGBC).

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For our local enterprises to compete in the global market, they have to offer

trusted products and services of the highest standards. SPRING works in partnership with the industry to develop and promote internationally-recognised standards, quality assurance, and at the same time, encourages local enterprises and industries to adopt these standards, building high levels of quality in products and services that the global marketplace can trust.

national standards Body As the national standards body, SPRING actively encourages enterprises to use Singapore standards and international standards. Industry participation is facilitated in developing new standards and aligning Singapore standards with international standards. In addition, the QUality for Enterprises through STandards (QUEST) programme helps companies adopt relevant standards to develop capabilities and improve processes. This has resulted in 137 new/revised Standards launched and four QUEST projects completed in 2011.

new standards committees and standards Development organisations (sDos) To keep pace with changing trends and industry needs, especially to support the growth of new sectors, there is a need to build up capabilities and look into standards for emerging areas. Three new standards committees in the areas of Energy, Environment, and the Silver Industry for the elderly were formed in 2011. In addition, two new SDOs – Singapore Manufacturers’ Federation (SMa) and Singapore Chemical Industry Council (SCIC) were appointed, to step up on the promotion and awareness of standards.

national accreditation Body As the national accreditation body, SPRING manages the Singapore Accreditation Council (SAC), which accredits conformity assessment services such as testing, calibration, inspection and certification. In 2011, 58 new Accreditations were done.

Quality & Standards

safety authority SPRING also reaches out to consumers by regulating the use of weighing and measuring instruments. It is also the safety authority for the Consumer Protection (Safety Requirements) Registration Scheme (CPS Scheme) to ensure the safety of 45 categories of household electrical, electronic and gas products.

In 2011, SPRING was appointed as the regulator of the new Consumer Goods Safety Requirements (CGSR)

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regulations, to enhance the safety of general consumer goods, which include toys, children’s products, apparels, sports and recreation products, furniture, mattresses, bedding and DIY tools. As of December 2011, SPRING has issued 69 CGSR stop sale notices and handled 318 CGSR enquiries.

In June 2011, the Quality & Standards for Productivity Conference reached out to 600 enterprise leaders and partners.

Business excellenceThrough the Business Excellence (BE) initiative, SPRING helps organisations to strengthen their management systems and processes, and to achieve certified milestones against the internationally benchmarked Business Excellence framework.

In 2011, 80 new organisations received Business Excellence certifications, including the Singapore Quality Class (SQC), People Developer (PD), Service (S-Class) and Innovation (I-Class), while nine Business Excellence Awards were conferred upon leading organisations.

For organisational excellence, SPRING has rolled out key initiatives which included the

balanced scorecard, knowledge management and a customer satisfaction survey.

The balanced scorecard has enabled each staff member to better relate their individual efforts to the strategic outcomes, initiatives and KPIs of SPRING leading to better alignment of objectives and personal satisfaction.

enhanced staff collaboration To improve information sharing among staff, the Intranet was enhanced to provide collaboration facilities such as Chat Rooms, Blogs and Forums. Infopedia, an information gateway was launched to provide staff quick access to the wealth of information in the Intranet and document repository system.

ExcellenceOrganisation

improved customer satisfaction SPRING continued to enhance its performance in customer satisfaction and loyalty. In the Customer Satisfaction Survey 2011, 78% of customers rated SPRING’s services as Excellent/Good, a 6% increase since 2009.

78% of customers rated SPRING’s services as Excellent/Good

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for the Next Fiscal YearOutlook

Moving forward, Singapore SMEs would face a challenging environment with

slower growth and tighter resource constraints. However, new opportunities exist in regional and emerging markets. Hence, SMEs need to maintain their upgrading and productivity efforts in order to stay competitive, overcome these challenges and grow.

In 2012, SPRING will step up our efforts to encourage more SMEs to improve productivity, pursue innovation, upgrade capabilities, and attract and develop their human capital. SPRING will continue to work

closely with partners – EDCs, TACs, financial institutions, institutes of higher learnings and research institutions – to deliver relevant programmes to support SME upgrading. In particular, SPRING wants to partner with the TACs to drive industry upgrading and restructuring, as well as reach out to support small and micro enterprises. Through these efforts, SPRING hopes to see more SMEs undertake upgrading and innovation to improve their productivity and competitiveness, transform their businesses and seek further growth in the global marketplace.

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useful contacts

enterpriseoneTel: (65) 6898 1800Email: enterpriseone@spring.gov.sgwebsite: www.enterpriseone.gov.sg

standards Development organisations

singapore Manufacturing federationstandards Development organisation

2985 Jalan Bukit MerahSingapore 159457Tel: (65) 6826 3000Fax: (65) 6826 3113web: www.smfederation.org.sg

singapore chemical industry councilstandards Development organisation

8 Jurong Town Hall Road#25-04, The JTC SummitSingapore 609434Tel: (65) 6267 8930Fax: (65) 6267 8893Email: terencekoh@scic.sgwebsite: www.scic.sg

singapore accreditation council

1 Fusionopolis walk, #01-02South Tower, SolarisSingapore 138628Tel: (65) 6279 1855Fax: (65) 6659 0640Email: sac@spring.gov.sgwebsite: www.sac-accreditation.gov.sg

sales of standardsToppan Leefung Pte. Ltd.

1 Kim Seng Promenade, #18-01Great world City East TowerSingapore 237994Tel: (65) 6826 9691Fax: (65) 6820 3341Email: singaporestandardseshop@toppanleefung.comwebsite: www.singaporestandardseshop.sg

standards collectionNational Library Board

100 Victoria StreetLee Kong Chian Reference Library Level 7Singapore 188064Hotline: (65) 6332 3255Email: ref@nlb.gov.sgwebsite: libguides.nl.sg/standards

enterprise Development centres (eDcs)

eDc@asMe Association of Small and Medium Enterprises (ASME)

167 Jalan Bukit MerahTower 4, #03-13Singapore 150167Tel: (65) 6513 0388Email: enquiries@edc-asme.sgwebsite: www.edc-asme.sg

eDc@northeast (Managed by EDC@ASME)

Tampines Ave 5, #06-01NTUC Income Tampines Junction Singapore 529653Tel: (65) 6424 4000Email: northeast@edc-asme.sg

eDc@sccciSingapore Chinese Chamber of Commerce and Industry (SCCCI)

47 Hill Street, #09-00Singapore 179365Tel: (65) 6337 8381Fax: (65) 6339 0605Email: edc@edc-sccci.sgwebsite: www.edc-sccci.sg

eDc@sicciSingapore Indian Chamber of Commerce and Industry (SICCI)

SICCI Building31 Stanley StreetSingapore 068740Tel: (65) 6508 0147Email: edc@edc-sicci.sgwebsite: www.edc-sicci.sg

eDc@sMf Singapore Manufacturing Federation (SMF)

SPRING Singapore Building2 Bukit Merah Central, #08-00Singapore 159835 (until mid-Nov 2012)

2985 Jalan Bukit Merah Singapore 159457 (from mid-Nov 2012)Tel: (65) 6826 3020Fax: (65) 6826 3021Email: edc@edc-smf.sgwebsite: www.edc-smf.sg

eDc@sMcci Singapore Malay Chamber of Commerce and Industry (SMCCI)

15 Jalan PinangSingapore 199147Tel: (65) 6293 3822Fax: (65) 6293 3905Email: gadvisory@edc-smcci.sgwebsite: www.edc-smcci.sg

sPring singapore1 Fusionopolis walk, #01-02 South Tower, Solaris, Singapore 138628Main: (65) 6278 6666 • Fax: (65) 6278 6667www.spring.gov.sg