SMALL ENTERPRISE BUREAU (Status report)

Mr Chew Heng Ching asked the Minister for Trade and Industry if he will give a status report on the work carried out by the Small Enterprise Bureau under the Economic Development Board.

The Minister for Trade and Industry (BG Lee Hsien Loong): Mr Speaker, Sir, since its establishment in January 1986, the Small Enterprise Bureau (SEB) has assisted more than 1,800 small and medium-sized enterprises (SMEs). The SEB has helped them to improve their management, to upgrade their technology and to widen their access to capital.

On management improvement, the SEB works with the Chambers of Commerce and Industry and trade groups to organize programmes for their members. So far, it has held eight business planning workshops and deployed 37 private sector management consultants to assist 135 companies. The SEB is also publishing the Small Business Guide regularly, both in English and in Chinese, to help local enterprises to acquire modern management methods.

The Small Enterprise Computerization Programme was launched in December 1986. This is a joint project with NCB and the Institute of Systems Science. Private sector computer consultants help in the implementation of specific cases. So far, ie, since December, 67 applications have been approved.

On technology upgrading, the SEB recently introduced a Joint Venture Matching Service to bring together interested local companies and compatible foreign firms. By tapping EDB's extensive international network, SEB can arrange for small and medium enterprises to meet suitable counterparts in other countries. SEB also makes grants to SMEs who are mounting overseas missions in search of potential joint venture partners and new technologies.

Under the Multi-National Companies-Local Industries Upgrading Programme, multi-nationals provide management consultancy to local suppliers, to help them improve their operations and acquire relevant technology and skills. 80 local suppliers and five multi-nationals - Philips, Hewlett-Packard, A T & T, Maxtor and Matsushita Electronics - are now on the scheme. Discussions with six more MNCs are in progress.

At the same time, through the Small Industries Technical Assistance Scheme, SMEs receive grants to help pay for short-term consultants.

As for access to capital, the main scheme is the Small Industries Finance Scheme (SIFS) which provides low-cost financing to SMEs, both in manufacturing and also in services. It is not a new scheme but it is a scheme which has been newly expanded. In 1986, the SEB extended $250 million worth of loans to 512 companies, a four-fold increase from the $65 million extended to 153 companies in 1985 which was the year before the SEB was formed. And to make the scheme more attractive, the SEB recently lowered interest rates for short- and medium-term loans under the SIFS.