SMEs should embrace risk-taking, innovation: MPs
SINGAPORE — With efforts under way to transform the economy, several Members of Parliament (MPs) yesterday stressed the need for businesses and the population at large to embrace innovation and risk-taking in order to overcome land and manpower constraints, among other limitations.
Addressing feedback from small and medium enterprises (SMEs), Minister of State (Trade and Industry) Koh Poh Koon noted the firms’ challenges of manpower crunch and rising rentals. While there are cyclical factors affecting both issues, they “stem from the fact that Singapore is, ultimately, a small island nation with limited resources”, Dr Koh said. Adding that there are signs that the rental situation is stabilising, he reiterated the need for the economy to move towards “growth that is driven by productivity improvement”.
“The Government is committed to helping SMEs transform, but businesses have to recognise the need for innovation and transformation, in order for Government support to be effective,” Dr Koh said.
Pioneer MP Cedric Foo noted the rapidly changing business landscape: Disruptive technologies are exacerbating competition faced by companies, while automation and robotics, among other factors, are changing the face of manufacturing. Services such as accounting and legal services are also becoming increasingly tradable. “Such developments could be viewed as threats, but if we are nimble, they also present Singapore with many new opportunities,” he said.
Dr Koh said businesses need to develop capabilities in niche areas “through continuous innovation”, in order to succeed in the competitive landscape and overcome the various challenges. Beyond helping established SMEs to transform, the Government must continue its efforts to support entrepreneurs and build a vibrant start-up ecosystem, he said.
Citing Singapore’s improved showing in international studies, he added that efforts over the past years have helped the start-up scene here gain momentum.
Minister of State (Communications and Information and Health) Chee Hong Tat also dismissed the notion that the country lacks innovation and an entrepreneurial spirit. “If we had not been innovative, could we have survived after 1965 and become one of the most admired and prosperous cities in the world?” he said.
However, he warned against a situation where Singaporeans might be “trapped in the comfort zones” of its success, and “end up playing it too safe”. There should be more room for risk-taking and experimentation, said Mr Chee. He cited the example of family-owned homegrown SME Tan Seng Kee Foods (TSK). The company manufactures preservative-free, fresh noodles that can be kept for a month without refrigeration. With SPRING’s support, TSK found that pasteurisation could extend the noodles’ shelf-life without affecting the taste and quality. “This makes it more convenient for their customers and allows TSK to export its noodles to overseas markets, opening the door to more business opportunities,” Mr Chee said.
He added: “As a society, we must not be intolerant of genuine mistakes and come down too hard on people who try and fail. We should encourage new ideas and accept that some of these ideas will fail.”
Mr Chee also stressed the need for Singapore to remain open to international talent — a stance that does not entail diluting “the focus on developing Singaporean talent”, he said.
“We have to manage our population growth carefully. At the same time, we must not over-tighten the inflow of immigrants and foreign workers, and send the wrong signal that Singapore no longer welcomes talent. That will hurt us as it will lead to slower economic growth, fewer jobs and a less vibrant society,” he added.
