New network to pair SMEs with bigger companies

DPM Teo unveils plans at Business Excellence Awards 2013 dinner

By Rachel Scully, The Straits Times, 1 Nov 2013

UNDER a new government initiative, about 100 small and medium-sized enterprises (SMEs) are set to benefit from partnering larger firms next year.

The new network is an addition to the Partnerships for Capability Transformation (PACT), launched in 2010 and widened in April to include more sectors.

The idea is to foster mutually beneficial collaborations between large organisations and SMEs.

These firms can learn from one another and work together to produce innovations.

At the Business Excellence Awards 2013 last night, Deputy Prime Minister Teo Chee Hean said: "Larger organisations can share their expertise and help build up the capabilities of SMEs.

"Small and nimble SMEs can help test-bed new solutions and be good innovation partners (for larger partners)."

Under the new network, PACT Circle, 20 business excellence-certified firms have committed themselves to projects to help 100 smaller firms.

At last night's dinner at Marina Bay Sands, six organisations received the Business Excellence award. The programme is managed by Spring Singapore.

One stood out from the rest. Nanyang Girls' High School bagged the Singapore Quality Award and is the first all-girls school to do so.

While many may not regard a school as a business, Nanyang Girls' principal, Madam Heng Boey Hong, told The Straits Times that her team is in the business of educating women.

"Similar to banks and hotels which benchmark themselves against international standards, we did the same thing to get a sense of how useful our programmes were in preparing our students for their future," she said.

For instance, Nanyang Girls initiated the Strategic Alliance of Global Educators last year with nine other top schools from China, Britain, the United States and Singapore, to share best practices in education. It is also the only secondary school here which puts up its in-house teaching resources on an Apple mobile platform, iTunes U.

The big award last night went to Systems on Silicon Manufacturing Co (SSMC), which makes specialty semi-conductors. The firm received the Singapore Quality Award with Special Commendation.

"Having the Business Excellence framework has enabled the firm to come up with a clear direction and vision for our senior management and staff," chief executive Jagadish C.V. told The Straits Times.

SSMC's business involves the production of wafers found in the chips of devices such as credit cards, mobile phones and tablets.

It is also the world's producer of the chip in biometric or e-passports.

As part of its business excellence journey, SSMC had embarked on productivity and innovation projects which have saved the company an average of US$130 million (S$161 million) a year since 2010.

The awards were also given out to firms which have done well in areas such as innovation or implementing programmes for their people and staff.

This year, Qian Hu Corporation and Biosensors Interventional Technologies bagged the Innovation Excellence Award.

Ornamental fish seller Qian Hu was rewarded for its research and development efforts in coming up with new breeding technologies as well as a patented filtration system.

Biosensors, which makes heart stents, is the first company to come up with a commercial product that enables more targeted drug release through new technologies.

It is also looking to develop cardiac imaging as a less harmful and radioactive form of scanning for patients.

'Big clients can help SMEs secure loans'

Tharman: Banks more open to firms in supply chain financing

By Yasmine Yahya, The Straits Times, 1 Nov 2013

MOVES are under way to help small and medium-sized enterprises (SMEs) piggyback on the financial reputation of their big clients so they can get loans more easily.

The initiative was mentioned by Deputy Prime Minister Tharman Shanmugaratnam, who told an awards ceremony last night that such programmes are already in place among some multinational companies (MNCs) to help SMEs in their supply chain.

He added: "We are seeing a move towards multi-party supply chain finance programmes, where banks are more willing to lend to SMEs that belong to a larger supply chain involving an MNC. Such programmes strengthen the creditworthiness of SMEs as banks consider them less risky when they have financially stable MNCs on their client books."

And unlike traditional SME lending, which is based on the firm's credit, such programmes consider the fact that the company enjoys regular revenues from a client with a strong credit standing, said Mr Tharman, who was speaking at the World Entrepreneurship Forum.

"This allows for better rates and possibly additional loan facilities compared to what the SME would obtain on a stand-alone basis. Our agencies are exploring how to raise awareness of supply chain financing and encourage MNCs in Singapore to adopt more multi-party supply chain financing programmes, given the win-win for MNCs and SMEs."

Mr Tharman added there is scope for increased partnerships between SMEs and large companies in overseas ventures. Multinationals often require highly specialised and customised services to improve their products and operations in other countries, he noted, and local SMEs are well positioned to fill these needs.

He cited Savant Degrees, a local start-up specialising in digital services. It was selected by personal care products giant P&G to develop a digital application that would boost productivity in its stores, starting in the Philippines.

Six people were awarded accolades later in the evening. Among them was Ugandan Ashish Thakkar, 31, who won the Young Entrepreneur award.

Mr Thakkar is the founder of the conglomerate Mara Group, which has many holding companies and employs more than 7,000 people in 26 countries.

He started his first company, selling computers to family and friends, at the age of 15.

Unreasonable Group chief executive Daniel Epstein, from the US, was given the Educator award. His firm provides entrepreneurs from around the world with mentorship and access to seed capital and skills training.

Mr Richard Branson, the British founder of the Virgin Group, won the Serial Entrepreneur award. He did not attend the ceremony but gave a thank-you speech via video.

Liberian President Ellen Johnson Sirleaf, who also did not attend the event, was given the Policy Maker award.

Frenchman Jean-Baptiste Richardier, who co-founded Handicap International, was given the Social Entrepreneur award, while Jordanian Fadi Ghandour was the Business Entrepreneur winner.

The World Entrepreneurship Forum is held in a different country each year. This is the second time Singapore has hosted the forum. It was last held here in 2011.