Distinguished Guests

Ladies and Gentlemen

My wife and I are very happy to be with you this evening to celebrate SESDAQ�s 15^th anniversary.

SESDAQ, set up in 1987, has become a vital institution in Singapore�s financial market.

SESDAQ helped to spur economic growth in Singapore after the 1985 recession.

Entrepreneurship development in Singapore has its roots in the Technopreneurship 21 programme, launched in 1999 to foster innovation-driven enterprises with global ambitions.

Technopreneurship 21 was a multi-agency effort spearheaded by the then National Science and Technology Board (NSTB).

In March 2000, Singapore�s T21 drive reached Silicon Valley at the Singapore Techventure conference, which many overseas participants commented was a kind of "coming-out party" for Singapore's entrepreneurial remaking.

In January 2001, T21 was transferred to the Economic Development Board (EDB).

This was consistent with EDB�s new mission in developing a self-sustaining enterprise ecosystem where large and small companies co-exist, compete and collaborate, stimulating new investments and company formation to inject vigour constantly into the economy.

Much progress has been made since 1999.

There are many indications that entrepreneurship has become very much part of Singaporeans� thinking.

In a recent Straits Times survey this year of Singaporeans aged 15 to 35, 42% indicated an interest in running their own business.

Clearly, this is a very good yardstick of young people�s aspirations, giving a very different picture from the Global Entrepreneurship Monitor (GEM) report of 2001, which found only 5.2% of Singaporeans involved in a business startup in the last 18 months.

We may not have a wide base yet, but we certainly have a widespread drive to succeed.

This trend is backed by the rising rate of new companies being formed.

Data from the Department of Statistics (DOS) shows that the number of new high-tech establishments reached a peak in monthly average of 555 in March 2000.

Although the trend slowed in 2001, it has remained above pre-1999 levels.

For the first 8 months of this year, some 2,423 new technology startups were registered.

At this rate, the number this year is expected to be higher than the 3,448 enterprises formed last year.

As at end-2001, there are 635 VC backed companies in Singapore, compared to 800 in Israel.

Global rankings have also noted the change.

The Economist Intelligence Unit (EIU) recently ranked Singapore top in Asia and 12^th globally in its Entrepreneurial Framework Index 2002.

Good marks were given to countries low on red tape, friendly to private enterprise, with an equitable tax regime, open and well-developed financing system, flexible labour markets and a modern, networked infrastructure.

Singapore is recognised today as one of the fastest-growing countries in promoting R&D and innovation outside the US, according to the Council of Competitiveness Report 2001.

This evening, I want to comment briefly on the four Cs required for enterprise development: culture, conditions, connections and capital.

First, culture.

To make the shift to a more entrepreneurial society, we need to have a mindset geared towards enterprise and risk tolerance.

This has been initiated in our education system at all levels.

The Ministry of Education�s "Thinking Schools, Learning Nation" programme is developing creativity and critical thinking skills in our young.

Many schools have set up programmes to introduce their students to the world of business and entrepreneurship.

For example, the BizWorld programme, launched in March this year to introduce school students aged 10 to 14 to the basics of business and entrepreneurship, has reached 4,000 students by October 2002.

BizWorld has plans to reach an estimated 10,000 students by next year.

Our tertiary institutions have also done a lot in this area.

Nanyang Technological University established the Nanyang Technopreneurship Centre (NTC) in January 2001 as a multi-disciplinary university-level centre hosted by Nanyang Business School to strengthen the university�s Innovation and Technology Transfer Office (ITTO).

In June 2002, NTU and the University of Washington (UW) jointly conducted a programme to take students through the entire stage of the venture creation process.

NTU has spun off 20 companies which have attracted a total of S$80 million of investments.

The National University of Singapore has established the NUS Silicon Valley College which enables 50 students each year to undertake a one-year internship in Silicon Valley and attend courses run simultaneously by the Stanford Technology Venture Program (STVP) and NUS.

In October 2001, NUS established the NUS Enterprise to encourage innovation and entrepreneurship among faculty, staff, alumni and students.

In March 2002, NUS� Centre for Entrepreneurship entered into an MOU to collaborate with Singapore Technologies� Incubators@Work to develop spin-offs to commercialise technologies developed at NUS.

NUS has spun off 27 companies and licensed more than 30 technologies.

Business plan competitions have taken root in Singapore.

Following the establishment of a regular series of startup@Singapore business plan competitions in NUS, the Stanford Global Entrepreneurs Challenge, hosted by NUS and supported by EDB, brought in teams from 15 leading universities worldwide to Singapore to compete in this competition.

The Singapore Management University�s Lee Kuan Yew Global Business Plan Competition attracted some 203 entries from 74 universities, colleges and polytechnics from 19 countries.

With all these efforts to nurture invention and enterprise, results are showing in trends of patent filing.

Between 1999 and 2000, patents applied for Singapore-based inventions rose by 34% and patents awarded increased by 77%.

The private sector in Singapore has always been forthcoming in backing worthy causes like our enterprise efforts.

The Tan Kah Kee Young Inventors� Award Competition, launched in 1986, has been supported by then NSTB as a national event since 1995 to stimulate the inventive spirit of students from Primary 1 to Junior College.

In 2001, the competition drew an impressive 538 entries with 54 awards given.

The Tan Kah Kee Foundation now intends to expand this competition to the region.

The Young Entrepreneurs� Organisation (YEO) is working with polytechnics to introduce entrepreneurship development programmes.

In June, alumni of HP company formed the Society of Hewlett-Packard Associates (SHPA) to back initiatives to support business-minded students and promising entrepreneurs.

Second, conditions.

For a more enterprising culture to flourish, the task of changing rules and regulations to be pro-enterprise, first undertaken by T21 has been perpetuated by the formation of a Pro-Enterprise Panel, chaired by the Head of the Civil Service, to actively solicit feedback on rules and regulations that may stifle business.

As at Oct 2002, more than 440 suggestions have been received, with 220 implemented.

To encourage foreign technopreneurs to start their businesses in Singapore, immigration rules were relaxed with a Technopreneur Pass scheme introduced and the Long Term Social Visit Pass schemes modified.

In terms of infrastructure, the Technopreneur Home Office (THO) Scheme was introduced in 1999 to allow technopreneurs to use HDB flats as home offices.

As at August, 530 cases have been approved, with 176 applicants still operating.

More broadly, One North at Buona Vista is being developed for a thriving community of technopreneurs, innovators, scientists and venture capitalists to live, work and interact together.

Phase Z.Ro, a low-cost plug-and-play "technopreneur park" launched in Feb 2001, has seen overwhelming demand, with 90% of the units occupied.

Among the tenants are the India Centre and New Zealand Technology Centre to facilitate technology enterprises from the two countries to globalize from Singapore.

Third, connections.

Increasingly in Singapore, our decisive asset will be not so much hardware but software in terms of people networks.

Singapore is fast becoming a hub for global enterprise incubators that help develop technology enterprises and startups to grow and showcase their capabilities to potential international partners.

Today, there are 51 incubators in Singapore, of which 10 are foreign incubators, from India, Korea, Japan, Israel, New Zealand, Germany, Japan, the Nordic countries and Australia.

China will set up its first overseas centre in Singapore to globalize their high-tech enterprises.

Singapore is also playing host to more informal groupings such as the IndUS Entrepreneur Network linking India and the US, the Monte Jade Singapore chapter of Taiwan and the Chinese Technopreneurs Network from China.

In addition to all the other attractions, the new inflow of communities of startups is drawn to Singapore because of the extensive, globally-networked community of 6,000 multinational companies and thousands of other enterprises that are estimated here.

Start-ups can showcase their capabilities to leading manufacturing companies and network to seek new collaborations and business.

They can also be close to the cutting edge of new testbedding technologies and product development for the global market.

All this is possible because of Singapore�s strong manufacturing base, which has been built over the last 40 years, and will continue to see new high-value investments in leading areas of technology development and market access.

In May, EDB, together with Singapore�s four biggest property companies (Ascendas, CapitaLand, JTC Corporation and Suntec City Development) launched HOTSpots or the Hub of Technopreneurs.

This is Singapore�s first-ever island-wide technopreneurship belt linking seven centres with a special network programme tailored to link technopreneurs and technology-related companies.

The partnership connects over 400 technology enterprises employing 4,000 people of 15 nationalities in Singapore�s cosmopolitan high-tech community.

Fourth, capital.

For our initiatives to take off, funding must not only be on free flow, it must be freely flowing.

And here, enterprises have ample resources to tap.

The US$1.3 b Technopreneurship Investment Fund (TIF) has boosted the growth momentum for the venture capital (VC) industry in Singapore.

VC funds managed out of Singapore reached S$13.7 bil as at end-2001.

The number of VC firms exceeded 130 by the middle of this year.

According to the Guide to Venture Capital in Asia 2002, Singapore ranks 3^rd after China/Hong Kong and Japan, in terms of VC funds under management.

VCs raised over S$900 million in Singapore in the first half of this year, the highest amount among Asia-Pacific countries.

To help startups get off the ground, EDB�s S$50 mil Startup Enterprise Development Scheme (SEEDS) was launched in Oct 2001 to give matching equity financing to seed stage enterprises with third-party investors.

50 SEEDS enterprises have been formed, in businesses ranging from IT to educational services.

EDB estimates that the enterprises have the potential to contribute some S$390 mil of value-added by 2003, generating about 840 jobs.

About one-fifth of the entrepreneurs and one quarter of investors are from overseas, including Ireland, UK, US, Australia, China, India, Taiwan, Hong Kong and Japan.

Some two-thirds of the SEEDS companies have already launched products and services.

To match make VCs and startups, "Elevator Pitch" events have taken off in Singapore.

The event held in May, organized by EDB and the Singapore Venture Capital Association (SVCA), drew 250 participants from 60 startup companies and 100 investors and partners.

SVCA has since expanded its scope to become the Singapore Venture Capital and Private Equity Association to include the private equity industry.

SVCA is collaborating with SMU and the international business school in Singapore, INSEAD, to establish an Asia-Pacific Venture Capital and Private Equity Institute in Singapore.

This institute will help to build up professional investment capabilities for VCs as well as private equity and corporate venture players.

To the four Cs let me add a fifth: Courage.

The public sector will do what it can to sustain conducive conditions and culture to facilitate the smooth interactivity of capital and connections.

To create business success, however, entrepreneurs must take the final step to turn courage into conviction and commitment, to realize their business aims.

Many entrepreneurs have led their companies to greater heights since listing on SESDAQ.

I look forward to the continued support and collaboration of players like SESDAQ, as we continue to nurture a total environment for entrepreneurship to flourish in Singapore.

I congratulate SESDAQ on its 15^th Anniversary and I wish you many more productive years ahead.

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