By Francis Chan

LOCAL research and development firm CerealTech recently devised an improved bread formula for its clients; one which is so successful it is already being exported to about 20 countries.

The firm is just one of hundreds drawing on two government-led initiatives during the downturn to drive technology innovation and improve service quality.

CerealTech was able to tap R&D support through the Technology Innovation Programme (Tip) run by enterprise development agency Spring Singapore.

CerealTech, which specialises in developing micro-ingredients like enzymes to enhance the quality and shelf-life of cereal- based products, created a trans-fat free and low-carbohydrate bread using less flour.

'If it had not been for Spring, we would not have been able to raise the funding for the R&D needed,' said CerealTech founder and managing director Foo Ko Kin.

Spring said yesterday that hundreds of firms, mostly small- and medium-sized enterprises (SMEs), have gained from Tip and the multi-agency backed Customer-Centric Initiative (CCI).

Introduced in 2006, Tip offers SMEs resources in technology adoption. Spring helps firms identify the right technology platforms and links them to experts who will assist with R&D projects.

Firms can also tap the Centres of Innovation: one-stop centres that offer technology consultancy and advice to help companies identify practical technology platforms that can be quickly adopted.

To date, Tip has funded more than 500 applications, with over $100 million worth of grants, while 71 research scientists and engineers have been seconded to SMEs to help advise business owners. Altogether, 405 firms have been able to improve their technological capabilities.

The programme has seen a rise in support via the Business Upgrading Initiatives for Long-Term Development (Build) programme - a $200 million package introduced in February this year.

Spring chief executive Png Cheong Boon said that despite the downturn, many SMEs are taking the opportunity to review their business models, improve service quality and innovate with new products and services.

'We are seeing strong interest and good take-up rates in the various capabilities programmes under the Build package. This is encouraging as it shows that many SMEs want to emerge from this recession much stronger and more competitive,' he said.

Spring aims to support at least 2,000 firms through Build by offsetting up to 70 per cent of qualifying costs for all its existing capability development programmes.

The CCI, which is also part of the Go the Extra Mile for Service (Gems) campaign, was introduced to encourage companies to improve service quality.

The help package includes up to 70 per cent funding support for firms to develop service strategies and service blueprints, set service standards, reinforce service systems, conduct service audits and certification to Singapore Service Class standards.

The initiative - started in the retail sector in 2005 - was extended to the food and beverage sector two years ago, and then to health care and land transport last year.

About $100 million in funding was set aside for phase two of Gems in February. To date, 193 firms with more than 100,000 employees have benefited.

Zingrill Holdings, which runs restaurant chains like Seoul Garden and Breeks Cafe, signed up for CCI in February last year.

Since then, it has built a strong service culture while expanding aggressively, said Zingrill chief executive Andrew Lee.

He said customer compliments and loyalty were up substantially.

With the CCI funding, Zingrill - with its 330 staff - was able to develop a training programme that cut across all levels of its staff within a shorter period of time.

'Without the CCI, we would not have been able to execute the entire 12-month programme across all levels of our staff in such a short time,' said Mr Lee.

Despite the recession, he plans to add four more restaurants here this year and more franchise outlets in Vietnam, Malaysia, the Philippines and Indonesia in the years to come.

This article was first published in The Straits Times.