Seriously, Myanmar is posing threat to Singapore's SMEs

Find out other challenges as Singapore aims to double local enterprises with over $100M by 2020.

Speaking at the 14th SME Conference held today (Aug 23) at Suntec City, Minister for Trade and Industry Teo Ser Luck said that the Economic Strategies Committee set an aspirational target to double the number of local enterprises with revenues of over $100 million to 1,000 by 2020. This, as the government recognizes the contribution of small-medium enterprises to the economy.

Here's what he said.

"What is certain, amidst all the volatility and caution, is that SMEs will continue to be critical to Singapore’s economic growth. SMEs are big contributors to our GDP and big creators of jobs – providing 50 per cent of Singapore’s GDP and 70 per cent of employment. In addition, SMEs are crucial to the Government’s aim of achieving sustainable, inclusive growth – providing jobs for all Singaporeans, from budding entrepreneurs to rank-and-file workers and managers.

We have seen many of our SMEs grow from small enterprises into large globally-competitive companies, and the ESC set an aspirational target to double the number of local enterprises with revenues of over $100 million to 1,000 by 2020. In the years ahead and many beyond, SMEs will continue to be the backbone and the lifeblood of our economy, and we expect their importance to grow."

The daunting task however comes with a challenge as the Minister cites particularly the intensifying regional competition as Myanmar market opens.

"However, our global environment is constantly evolving. Externally, regional competition is intensifying, as new markets such as Myanmar are opening. Internally, we are also facing constraints in our resources, particularly in how we can grow our land and labour. As our companies strive to meet these challenges and seize new opportunities, the Government will ensure that our support for our companies – especially our SMEs – continue to remain relevant. I assure all that we remain committed to supporting the growth of our local SMEs."

Minister Teo said that he asked Spring Singapore and IE Singapore to  initiate a holistic review of our SME strategies, taking into account the changes in the global and domestic environment since the Economic Strategies Committee (ESC) recommendations were put forth in 2010.

"The SME Review started in April and is still ongoing. The team has been meeting with members of the industry to obtain feedback and suggestions, as well as studying the SME development models in other economies."