LOANS UNDER SMALL INDUSTRIES FINANCE SCHEME

Mr Yeo Toon Chia asked the Minister for Trade and Industry (a) how many local entrepreneurs have been granted loan classified as "establishment of new viable business" by the Economic Development Board under the Small Industries Finance Scheme up to the latest convenient date; and (b) in order to encourage more local professionals to become industrial entrepreneurs, whether the EDB will release a list of "viable industries" from time to time so that local engineers, technicians and industrial managers will be able to work out their plans for the establishment of industries under that Scheme.

The Minister for Finance and Acting Minister for Trade and Industry (Mr Hon Sui Sen): Mr Speaker, Sir, as at 31st December 1978, 91 local companies were granted 110 loans amounting to $15.2 million under the Small Industries Finance Scheme (SIFS). Most of the loans were for expansion, upgrading of product and process and diversification of product lines. 14 loans were for the establishment of new enterprises or for the setting up of new product lines by existing companies.

It is not possible to provide a list of "viable industries" to enable local engineers, technicians and industrial managers to identify projects for establishment under the scheme as every industry has its successful and unsuccessful projects. Apart from factors such as cost and market conditions, the success of a project depends on the ability of the entrepreneur.

The Economic Development Board can provide some guidance to local industrialists regarding the general condition in an industry. It can also suggest ideas of potential projects or provide introductions to joint venture partners. But, ultimately, it is up to the individual investor to find his own business opportunities. That, after all, is the hallmark of a successful entrepreneur.

There are plenty of opportunities for local entrepreneurs. Many of the investment teams that EDB receives from abroad each month have shown interest in ordering components or even entire products from Singapore manufacturers. Those planning to establish plants in Singapore have frequently indicated their intention to enter into subcontracting relationship with local supporting industries. EDB will continue to introduce these foreign industrialists to local manufacturers.