TO WEATHER the economic storm, small and medium-sized enterprises (SMEs) should invest in capabilities such as branding and technology innovation, while seeking opportunities in emerging markets.
Also, staff training and development should not be neglected, said Defence Minister Teo Chee Hean yesterday.
Speaking at the Entrepreneur of the Year awards ceremony, Mr Teo explained that SMEs need to further develop their core capabilities and implement sound financial and budget systems to ensure adequate operating cashflow.
In addition, new business models could also be adopted to streamline their operations.
In this connection, the minister pointed out that there are already various government schemes that can help SMEs with their business management strategies, IT systems and branding.
Secondly, Singapore firms should look beyond traditional markets such as the US and Europe to seek opportunities in Latin America, the Middle East, Russia and Vietnam, as the economic outlook in these markets remain rosy.
'For example, the International Monetary Fund is optimistic that Russia's GDP will grow by around 5.5 per cent in 2009. In the Middle East, ongoing projects backed by high oil revenues have ensured continued demand for products and services.'
Also, he urged Singapore firms to continue investing in staff training and development. These are essential ingredients in raising long-term productivity and competitiveness.
'During the last three years of strong growth, many companies could not afford the employee time required to send their staff for training and upgrading. This period provides an opportunity to send your workers back for training, so that they can contribute more positively when growth picks up again.'
To minimise the training costs borne by companies, the government now subsidises such courses through the Workforce Development Agency's Skills Development Fund. In addition, Spring Singapore also targets management-level leadership through its Business Leaders Initiative that sends entrepreneurs for executive masters in business administration programmes.
According to the government, SMEs contributed $100 billion or 46 per cent of total value-add here, and employ six out of every 10 workers here.
At yesterday's award ceremony, participants also witnessed the crowning of Charles & Keith managing director Charles Wong as the Entrepreneur of the Year for 2008.
In addition, four sub-category awards, which recognise qualities such as enterprise and innovation, were given out at last night's ceremony.
The award is in its 20th year and is jointly organised by the Association of Small and Medium Enterprises and the Rotary Club of Singapore.
This article was first published in The Business Times on October 23, 2008.
