SMALL AND MEDIUM-SIZED ENTERPRISES (Participation in trade missions)

The following Question stood in the name of Dr Wang Kai Yuen -

Dr Wang Kai Yuen: To ask the Minister for Trade and Industry, to explore additional non-traditional export markets for local Small and Medium-Sized Enterprises (SMEs), whether the Trade Development Board will consider organising more trade missions and providing more generous support to encourage these SMEs to participate in these trade missions.

Encik Ibrahim bin Othman (Bishan-Toa Payoh): Question No. 5, Sir.

Mr Lee Yock Suan: Mr Speaker, Sir, the Trade Development Board (TDB) has promoted trade with non-traditional markets since the 1980s. The Board has accelerated its efforts this year. For FY98, TDB plans to mount 22 trade missions to non-traditional markets. Some of the missions already undertaken this year were to Mexico, Finland, the Baltics, Kazakhstan, Azerbaijan and East Africa. To date, 45 companies have participated in these missions. In the coming months, TDB plans to organise missions to Eastern European, African and Latin American countries. Some 120 to 150 companies are expected to be involved.

In addition, the Productivity and Standards Board (PSB) has programmes to help SMEs seek out business opportunities and establish strategic partnerships with companies in non-traditional markets. Under its Business Connect Programme, PSB has facilitated business matching between our local SMEs and companies in Chile and Australia, for example. Currently, 2600 companies have registered under the programme. 650 companies have benefited from such business matching activities. There are plans to work with TDB to organise business matching missions to newer markets in Latin America and South Africa.

TDB has allocated additional funds to support companies in their promotional activities this year. It is estimated that an additional $10 million will go towards assisting and supporting companies in their overseas market and business development activities. Activities that are eligible for support include participation in missions and fairs, brand development, establishment of overseas marketing offices, overseas franchise development and direct marketing.