SMEs Venturing to Overseas Markets

Er Dr Lee Bee Wah asked the Minister for Trade and Industry (Industry) as part of the Ministry's efforts to bring SMEs to expand and venture overseas (a) how many SMEs have gone on Ministry-organised business trips over the past three years; (b) how many SMEs have succeeded in developing new markets and expanding their businesses over this period; and (c) what support does the Ministry continue to provide to these companies to help them grow in the new markets.

The Senior Minister of State for Trade and Industry (Ms Sim Ann) (for the Minister for Trade and Industry (Industry)): Madam, internationalisation is a key engine of growth for Singapore companies. To support companies in their internationalisation efforts, IE Singapore provides assistance through the Market Readiness Assistance (MRA), and the Global Company Partnership (GCP) schemes. The MRA provides broad-based assistance to companies that are starting to internationalise, while the GCP provides targeted assistance to companies with more established overseas presence, in capability and manpower development, market access, and financing. Through the MRA and GCP schemes, IE Singapore supported over 3,500 internationalisation projects for SMEs since 2014, 30% of which were to help companies penetrate new overseas markets and grow their businesses.

IE Singapore also partners Trade Associations and Chambers through the International Marketing Activities Programme (iMAP) to support overseas business missions. Since 2014, iMAP supported a total of 80 business missions that benefited 1,190 companies, majority of which were SMEs. IE Singapore also supports business missions as part of strategic projects under the Local Enterprise and Association Development (LEAD) Programme.

Finally, IE Singapore's network of 37 Overseas Centres provides companies with in-market assistance. These centres help companies generate new business leads in neighbouring ASEAN markets, gain entry as first movers in markets such as Latin America, and identify opportunities to enhance technology capabilities in developed markets.

Through its efforts to help companies internationalise, IE Singapore has assisted companies in about 99,000 cases since 2014, with SMEs accounting for about 80% of them. IE Singapore will continue to build on its existing initiatives and networks to further identify and create opportunities for SMEs to internationalise.

Er Dr Lee Bee Wah (Nee Soon): Mdm Speaker, I have two supplementary questions. There is a wide range of help schemes available. I would like to ask whether there is any further effort to publicise these schemes so that more SMEs are aware that such help is available. The second question is, is there any plan to bring these SMEs who have ventured overseas to be onboard on government-to-government projects? I have received several feedback which is quite often, to say that for Singapore Government projects, we normally call for tender and we do not bring our SMEs along.

Ms Sim Ann: Madam, we are constantly looking for ways to broaden our outreach to SMEs so that they are aware of the range of assistance that is available. In fact, internationalisation is a very key strategy that has also been elaborated upon in the Committee on the Future Economy. We are doing so, first, directly, through IE Singapore's own publicity efforts. We also do a lot of this publicity through Trade Associations and Chambers (TACs) because they also help spread the word. We do so also for informal groupings. For instance, the one that comes to mind is "The Bosses Network". They hold an annual learning cruise. I will be attending this event in order to help SMEs understand the full range of assistance and support, schemes that are available, not limited to internationalisation, but that is obviously going to be a key one.

As for helping our SMEs take part in G-to-G projects, I suppose Er Dr Lee Bee Wah is thinking perhaps of, for instance, a G-to-G project between Singapore and China. The entire purpose of setting up G-to-G projects really is to help expand the scope of economic and trade collaboration. We hope very much that our SMEs, too, benefit. For instance, some of it may be in terms of creating a space where business can flourish. The first G-to-G project between Singapore and China, the Suzhou Industrial Park, is of this nature. Likewise, the Tianjin Eco-city. For the third G-to-G project, the Chongqing Connectivity Initiative, the scope has broadened because it is not just about township development or industrial park development. It is also about, for instance, logistics development, ICT and financing exchanges. This opens up the scope for even more companies, large and small, in different sectors to participate.

IE Singapore has been facilitating the participation of SMEs in the G-to-G projects. We welcome more SMEs to take part. The challenge, very often, I think, is in reaching out to SMEs and encouraging them, for instance, to attend talks and forums organised by IE Singapore or in coming along on business missions.