6 February 2015
Media Release: NR/04/2015
SPRING SINGAPORE SUPPORTS SMES TO RESTRUCTURE
AND GROW
In 2014, we helped 9,000 SMEs build capabilities and improve productivity
2. SPRING has also intensified its outreach efforts and simplified its programmes to make it easier for SMEs to get assistance through an expanded network of 12 SME Centres. Together with its partners, SPRING reached out to some 160,000 SMEs[1]in 2014.
Building capabilities to be competitive and productive
3. More SMEs focused on developing their human capital last year. The SME Talent Programme (STP), which was launched in 2013 to help SMEs build a talent pipeline for long-term business sustainability, matched more than 600 applicants and interns with SMEs in 2014. One of these SMEs, Keystone Cable, attracted four polytechnic graduates to join them. The company is remaking itself from a cables-manufacturer to a technical solutions provider, and sees people as core to its business transformation. It will place the young talent on a tailored career path so they can grow with the company and contribute in key roles in the future.
4. Even relatively simple technology adoption can reap rewards. The Innovation and Capability Voucher (ICV) scheme, which defrays the cost of small projects, was enhanced last year to include purchasing of simple solutions. Nature Vegetarian Restaurant used the ICV to implement an integrated solution to install a wireless paging system, which dramatically cut down their customers’ waiting time for service – a major complaint from customers. With this system, Nature Vegetarian now needs just three instead of five wait-staff during peak hours and expects a five per cent increase in sales. Besides Nature Vegetarian, more than 7,000 other SMEs used the ICV to improve their business last year.
5. Besides assisting individual companies, SPRING also collaborates with industry associations to help drive industry productivity and growth. For instance, SPRING worked with the Restaurant Association of Singapore to implement shared services for food companies – outsourcing and centralising selected operations such as dishwashing and preparation of ingredients for greater efficiency. With the support of other partners such as the Singapore Food Manufacturers’ Association, the Food Innovation Resource Centre and the Singapore Productivity Centre, more than 1,000 food companies embarked on productivity projects last year.
Capturing opportunities for growth
6. SMEs have been adapting to changes in local and global trends, and have come up with innovative products and services for existing and new markets. An example of such innovative thinking is 1RWave, a company which breathed new life into an existing technology by adapting RFID for the real-time monitoring of patients. Developed with the expertise of the Centre of Innovation for Electronics at Nanyang Polytechnic, the monitoring system is now being test-bedded at Tan Tock Seng Hospital’s Geriatric Clinic to track the location of elderly patients. In total, the seven Centres of Innovation, which were funded by SPRING to help SMEs develop and implement technology solutions, assisted 360 SMEs.
7. The adoption of international industry standards also give companies a competitive edge when venturing overseas. For example, Seng Heng Engineering is one of ten companies in the world which has met the exacting demands of the subsea industry for quality and safety to attain the API Q1 certification. The local SME, which counts Shell and ExxonMobil among its customers, hopes to increase its market share by 20 per cent when it enters the emerging markets of Russia, Brazil, and India. Last year, almost 400 companies adopted standards through SPRING’s support.
8. The number of partnerships between large organisations and SMEs continues to grow. Last year, more than 400 SMEs collaborated with large public and private organisations to upgrade their capabilities or develop new products. Through such partnerships, the SMEs also get the chance to build their track records and expand their businesses. Intel, which is leading a project with 40 SMEs to develop wireless communication technologies, has also linked the SMEs up with potential customers. Some of these leads have translated into business opportunities. One of these SMEs, Gridcomm,is currently developing a new system to control street lighting for a customer introduced by Intel.
Intensifying outreach and access to assistance
9. SPRING supported its increased outreach efforts by adding two more SME Centres in 2014, making up a total of 12 SME Centres across the island. Bok Sing Hardware Paints is one company which approached an SME Centre for its business advisory services. With the help of the SME Centre’s Business Advisor, Bok Sing implemented a new inventory management system and participated in an overseas trade show. These helped Bok Sing achieve a 20 per cent increase in revenue last year.
10. As part of its continuous drive to improve its processes, SPRING launched an online portal last year for the application of grants and submission of claims. SPRING also enhanced the Micro Loan Programme, where risk-sharing for the government was raised from 50 to 70 per cent for young companies[2]. In response to feedback from the SME community, SPRING has also provided 20 per cent cash advance on approved grants to ease the cash-flow for SMEs undertaking these projects.
Growth opportunities for start-ups
11. To build a pipeline of strong, competitive enterprises, SPRING works with various partners such as the Action Community for Entrepreneurship (ACE Ltd) to nurture start-ups and help them grow. Last year, SPRING appointed two accelerators to identify and co-invest in promising medical technology ventures. In total, more than 160 start-ups were supported by SPRING and its partners in 2014.
SPRING’s focus in 2015
12. Mr Tan Kai Hoe, SPRING’s Chief Executive, said, “2014 has not been easy for SMEs, but many have risen to the challenge. These SMEs have taken the initiative to develop new capabilities, improve productivity, and found new avenues of growth. This restructuring journey will continue in 2015 and SPRING is committed to supporting SMEs on this path. The global economic outlook for 2015 is still uncertain, which makes it even more important for SMEs to look for ways to innovate and hone their competitive edge, to be in a stronger position to capture future growth opportunities.”
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[1] Non-unique enterprises
[2] Companies less than three years old
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