Future Proof, Future Ready By Michael Tan Overview of Singapore 1 - PowerPoint PPT Presentation

Transformation of SMEs to be Future Proof, Future Ready By Michael Tan

Overview of Singapore 1 Productivity Development Driving Productivity Plan 2 Agenda Industry Transformation Map 3

Ab Abou out Si Sing ngapor ore Pro roduc uctiv ivit ity y Cent ntre re ❖ A National Productivity Competency Centre for the services sectors ❖ Endorsed by National Productivity Council (NPC) Introduction and supported by SPRING Singapore, WSG, SSG and Singapore Tourism Board ❖ Focus on Services Sectors mainly in Lifestyle, Retail, Food and Hospitality

Singapore Ec Econ onomic omic is Singapore’s key relevance in the international space Why? • One of the smallest country in the world Co Cont ntin inuous ous Economic onomic Grow rowth th Ensuring Singapore’s relevance What is Economic Growth? • Gross Domestic Product = Value Added = EBITA + Wages How to achieve? • Productivity Growth

Singapore More Pro More roduc uctive Eco cono nomy How? • Optimising our resources of land, capital and labour towards higher valued added activities. Appr proach ach by the Singapore Government Regul egulat ator ory y Lever ever Gr Grant ant Assi sistan stance Reduce businesses overreliance on Generous with “flow back” to labour by enhancing levies and encourage productivity changing employment policies on improvements FW

Economic Restructuring Inc ncre rease se ✓ Value Added  Profits and Pro roduc uctiv ivit ity Wages ✓ Activities at Firm Level  Efficient Processes, Productive use of inputs Boo oost st Inn nnovation on ✓ Value Creation ✓ Ideas, Knowledge, New Invention, New Productivity

Economic Restructuring Through… Real Bette ter r Inc ncom ome Job obs Eco cono nomic Gro rowth th Rest stru ructu cturi ring ng

Overview of Singapore Productivity Development Pro roduc uctiv ivity ity Mo Movement nt WHY? • Tight labour market • Need of higher wages • Competition from neighboring developing countries • Need to restructure the economy towards higher value added activities

Overview of Singapore Productivity Development Pro roduc uctiv ivity ity Mo Movement nt Se Setti ting ng up up of of 3 P Pro roduc ucti tivi vity y Cent ntre res Services Manufacturing Construction

Driving Productivity Plan Form rmatio ation n of N f Natio ional nal Pro roduc uctiv tivit ity and Contin inuin ing g Educatio ation n Council cil in 2010 To boost national efforts to step-up enterprise productivity and skills • The council comprises members from the business community , • unions and government, chaired by Deputy Prime Minster. ( Deputy Prime Minister Teo Chee Hean, Tharman) Developed the first productivity roadmap for priority sectors in 2011, • which includes the Retail and Food Services. Set-up Singapore Productivity Centre as part of the Productivity • roadmap developed in 2011.

Driving Productivity Plan Transf nsform rm of f Natio ional nal Pro roductiv uctivity ity and Contin inui uing ng Educatio ation n Council cil to C Council cil fo for S r Skills, ls, Innov ovatio ation, n, and Pro roduct uctivi ivity in 2016 Continued to be chaired by Deputy Prime Minister • Developed the 2 nd Productivity Roadmap for the priority sectors • Re Re-nam named to Fu Future ure Economy Counci ncil l in 2017 Executing the Committee for the Future Economy (CFE) proposals, • like the Industry Transformation Maps Chaired by Finance Minister Heng Swee Keat •

Industry Transformation Map INNOV OVATION TION Good Progress ss Sin ince 2010 Higher skills in our workforce PRODUCTI ODUCTIVI • VITY TY Growing innovative economy • Building a distinctive global city • Overall real productivity grew by 2.5% p.a. between • JOBS BS & SKILL ILLS 2009 and 2016 Singapore resident unemployment rate remained low: • around 3% Real median wage has grown by 2.6% p.a. over the • INTE TERNA RNATI TIONA NALIS LISATION TION same period

Industry Transformation Map INNOV OVATION TION But… PRODUCTI ODUCTIVI VITY TY JOBS BS & SKILL ILLS INTE TERNA RNATI TIONA NALIS LISATION TION

Industry Transformation Map INNOV OVATION TION External nal Challen llenge ges Evolving global: • PRODUCTI ODUCTIVI VITY TY ▪ Unexpected changes ▪ Global growth has been soft ▪ Global productivity growth has been slow JOBS BS & SKILL ILLS ▪ Global value chains are changing Rapid technological revolution: • ▪ Shortened innovation cycles Anti- globalisation trend: • INTE TERNA RNATI TIONA NALIS LISATION TION ▪ Undermine international trade

Industry Transformation Map INNOV OVATION TION Dome mestic stic Challen llenges Progress has been slow in the domestic market- oriented sector • PRODUCTI ODUCTIVI VITY TY such as Food Services Land and manpower constraints • JOBS The Need for Transforma BS & SKILL ILLS ormation tion Increase complexity of challenges, the need for cross- cutting • solutions Strategies that can move the productivity and innovation needle • INTE TERNA RNATI TIONA NALIS LISATION TION Everyone to take ownership of the transformation effort and ensure • sustainability

Industry Transformation Map INNOV OVATION TION Total of 23 industries will have ITM developed • S$4.5 billion were allocated to address issues faced • PRODUCTI ODUCTIVI VITY TY by the 23 industries Foster stronger partnership between Government, • firms, industries, trade associations and chambers JOBS BS & SKILL ILLS INTE TERNA RNATI TIONA NALIS LISATION TION

Industry Transformation Map

Industry Transformation Map PRODUCTI DUCTIVI VITY TY JOBS BS & SKILL ILLS Investing in our Strategies to support people, equipping companies, especially them with deep skills SMEs to move to to support the shift to higher value-added greater value creation activities and raise and emerging skills operational efficiency SMEs Supporting companies Strategies to leverage to expand to overseas R&D to develop new markets products and services INNOVATION TION INTERNATION IONALIS LISATION ION

Industry Transformation Map PRODUCTI DUCTIVI VITY TY JOBS BS & SKILL ILLS Investing in our people, Strategies to support equipping them with companies, especially deep skills to support the SMEs to move to higher shift to greater value value-added activities creation and emerging and raise operational Technolo chnology gy as as th the Enabler abler skills efficiency Strategies to leverage Supporting companies to R&D to develop new expand to overseas products and services markets INNOVATION TION INTERNATION IONALIS LISATION ION

Support by the Singapore Government INNOV OVATION TION PRODUCTI ODUCTIVI VITY TY Capa pability bility Devel velopment ment Grant by SPRING -Up to 70% support for SMEs to build business capabilities in 10 areas JOBS BS & SKILL ILLS Product uctivity ivity & I Inno novat ation ion Credit it by IRAS -400% Tax deductions up to $400,000 or 60% cash pay out up to $100,000 for investment in Innovation and Productivity INTE TERNA RNATI TIONA NALIS LISATION TION Market t Readin iness s Assis istance ance by IE Singapore -Up to 70% support for overseas expansion activities.

Support by the Singapore Government INNOV OVATION TION Capability ility Develo velopme ment nt Grant by SPRING -Up to 70% support for SMEs to build business capabilities in 10 areas PRODUCTI ODUCTIVI VITY TY Ob Object ctives es JOBS BS & SKILL ILLS To support SMEs in capability upgrading • to compete and grow locally and 10 Supportable portable globally Areas reas Defray up to 70% of qualifying project • costs* in upgrading capabilities in 10 INTE TERNA RNATI TIONA NALIS LISATION TION development areas

Embracing new realities and new opportunities Thank you Building innovative and nimble business