Speech at Entrepreneur of the Year Award 2010 Presentation Ceremony

Mr Gan Kim Yong, Minister for Manpower, Ritz-Carlton, Millenia Singapore

Mr Lawrence Leow, President, Association of Small and Medium Enterprises

Mr P. Balachandran, President, Rotary Club of Singapore,

Mr Samuel Tsien, Senior Executive Vice President, OCBC Bank

Mr Kurt Wee and Suresh Keerthi, Co-Chairmen EYA2010 Organising Committee

Ladies and Gentlemen

Riding Singapore's Recovery

1. It is my pleasure to be here at the 2010 Rotary-ASME Entrepreneur of the Year Award.
2. This year has indeed been an exceptional one for the Singapore economy. We have rebounded strongly from the global recession in 2009. Our tripartite response helped Singapore mitigate the full impact of a very tough recession. We were able to help companies cut costs and save jobs, while providing assistance for workers to upskill and enhance their capabilities to prepare them for the eventual upturn. Because of our concerted effort, Singapore emerged from the financial crisis quicker and stronger than most other countries.
   
   Investing in Productivity
3. However, we need to remain focused on raising productivity even with the upswing in the economy. This is especially important, given that the labour market has tightened this year with the recovery. We should not become complacent because of the strong productivity growth of more than 14% this year, as the strong number reflects largely the rebound in GDP. We need to focus on sustaining productivity growth of 2 to 3% on average each year, and higher when the economy is doing well.
4. SMEs will play an important part in raising productivity growth of our economy. Your companies account for half of the nation's GDP, and employ 60% of our workforce . Singapore's productivity cannot improve unless the productivity of SMEs improves.
5. And it can be done. One example is the local F&B outlet Han's. As recently as 2006, about half of Han's outlets were in the red. This, despite strong economic growth. Han's then tapped on the Customer Centric Initiative (CCI) for the F&B industry. The CCI helped Han's improve basic customer service, grooming, hygiene and communication with internal and external customers. Han's also invested in an Enterprise Resource Planning (ERP) system to centralise their procurement, inventory and sales management processes. Han's tapped on the Singapore Workforce Skills Qualification (WSQ) programmes and was certified by the Singapore Workforce Development Agency (WDA). As a result, labour productivity rose by 40% by 2009. Almost all of Han's outlets become profitable, and remained so throughout the recession in late 2008 and 2009.
   
   Productivity Management Programme
6. Han's success story shows that there is always room for productivity improvement if we apply our minds to it. To help more companies achieve higher productivity, SPRING Singapore has worked with the Enterprise Development Centres (EDCs) to launch a new programme called the Productivity Management Programme (PMP).
7. The PMP provides three new services: Productivity Workshops, Productivity Assessment and Productivity Advisory. Through the workshops, SMEs will learn about productivity concepts, tools and methodology. SMEs can then engage productivity advisors at the EDCs for one-to-one consultation, using SPRING Singapore's IMPACT tool. "IMPACT" stands for Integrated Management of Productivity Activities. It helps a company assess its strengths and weaknesses, and develop a customised roadmap to help them improve productivity. SMEs can also get advice to tap on current schemes and initiatives to support their productivity efforts, as well as engage consultants to perform in-depth analysis or implement specific productivity initiatives according to the roadmap. I strongly urge SMEs to make use of PMP to bring your company to the next stage of growth through productivity improvement.
   
   Entrepreneurial Spirit is Vital
8. I commend ASME and the Rotary Club of Singapore for organising this Award, now into its 22nd year, and is today the oldest and most established accolade for entrepreneurship in Singapore.
9. I also congratulate tonight's winners of the Entrepreneur of the Year Award. You are recognised for your commitment to excellence in your field of business and your success in integrating social responsibility into your business philosophy.
10. Entrepreneurs like you play a vital role in our transformation to a productivity-driven economy. As practitioners, you know that entrepreneurship is more than coming up with a Big Idea, or dreaming up the next Facebook. True entrepreneurs seek to realise greater value in everything they do, whether in making things more efficient, or, as in the case of Han’s, transforming the customer service proposition. True entrepreneurs recognise that productivity is an unceasing, and yet continually rewarding endeavour.
11. I wish all the entrepreneurs here every success as you lead your companies towards greater productivity and growth. And in so doing, benefit successive generations of Singaporeans.
12. Thank You.