New agency Enterprise Singapore will not neglect smaller businesses: Iswaran

SINGAPORE – Several Members of Parliament (MPs) raised concerns on Monday (Feb 5) that smaller firms, especially micro small-and-medium enterprises (SMEs), could be neglected with the merger of two government agencies, International Enterprise (IE) Singapore and Spring Singapore, into the single entity Enterprise Singapore (ESG).

Minister for Trade and Industry (Industry) S. Iswaran, who spoke as the Bill was read in Parliament for the second time, stressed that smaller SMEs will not be neglected, and that they are an important segment in the Singapore economy.

Last year, the Government announced that the merger of IE and Spring to form ESG will help local firms grow their businesses and expand overseas. The new agency will be formed in the second quarter of this year. It will be helmed by Chairman-designate, Mr Peter Ong, former Head of Civil Service, and CEO-designate, Mr Png Cheong Boon, who is 2nd Permanent Secretary at the MTI.

Four MPs, Mr Liang Eng Hwa (Holland-Bukit Timah GRC), Mr Louis Ng (Nee Soon GRC), Mr Saktiandi Supaat (Bishan-Toa Payoh GRC), and Mr Desmond Choo (Tampines GRC), as well as Workers Party Non-Constituency MP Leon Perera and Nominated MP Thomas Chua, raised questions in Parliament on how ESG will support enterprises of different sizes in different industries.

Mr Ng cited Mr Iswaran’s comments in September about the challenges of combining the missions of two organisations, and the concern that one may prevail over the other. “With this focus on overseas expansion, small firms may have concerns of being neglected,” said Mr Ng. He also pointed to a concern raised by Singapore Business Federation chairman Teo Siong Seng, who had asked if micro-enterprises such as mom-and-pop shops in HDB estates will be ignored in the process.

Responding, Mr Iswaran said small enterprises, including micro-SMEs, have much potential, and they are an important segment of Singapore’s economy.

He noted that Spring was already working closely with the Federation of Merchants’ Associations, Singapore (FMAS), to drive the transformation and growth of heartland enterprises. Similarly, the ESG will continue to support micro-SMEs through trade associations and chambers, and SME Centres, he added. Initiatives from the private sector, such as the 99 per cent SME campaign jointly organised by Singtel and DBS, will also be a form of support.

While Mr Iswaran reiterated that the ESG’s mission is to build a thriving community of Singapore-based enterprises, he acknowledged that SMEs’ needs are varied based on their stage of growth, the sector they operate in, and their overseas market of interest. This variation is accentuated by external growth opportunities, digitalisation and rapid technological changes, which have a differential impact across sectors.

He said: “Hence, our businesses have to adapt, innovate and build new capabilities according to their circumstances…ESG’s programmes will take into account these diverse needs, while rendering support to enterprises in all sectors, regardless of whether they are covered by Industry Transformation Maps.”

ESG will also build on IE’s extensive network of over 35 overseas centres covering regional, developed and emerging markets, and continue to organise trade missions for SMEs to explore opportunities in new markets, he added.

In Parliament, Mr Ng pointed to the recent QBE Insurance survey, which showed that 45 per cent of SMEs have no plans to internationalise soon due to reasons such as insufficient fundings and unfamiliarity with foreign markets. However, Mr Iswaran contradicted the findings with surveys by the Singapore Chinese Chamber of Commerce and Industry, and DP Information Group SME Development, which found that a significant proportion of local enterprises have imminent plans for overseas expansion, or have made it a priority.

Several MPs, including Mr Liang, Mr Tay and Mr Choo, also raised concerns regarding the staff in IE and Spring – both organisations employ approximately 960 people. They wanted to know if any support will be provided to them during the transition period, and if there will be any redundancies.

Mr Iswaran said that care will be taken to preserve the competencies, networks and culture that Spring and IE have built over the years. All officers can look forward to augmented roles and opportunities and, in some cases, new assignments, added the minister.

He said: “The requisite training and mentorship will be provided. ESG will also continue to recruit officers from both the public and private sectors, with relevant industry and international business experiences to support its work. This would include tapping on industry experts to better support enterprises.”