The Business Times, Thursday, February 12, 2009 SINGAPORE NEWS 9

YESTERDAY IN PARLIAMENT

Spring stepping up efforts Adequate resources set

to help viable SMEs
However, businesses
must realise that
govt support is not
an entitlement
By CHEN HUIFEN
AS government-backed
loans provided to SMEs
jumped 38 per cent to $990
million last year, Spring Sin-
gapore will continue to step
up efforts to support viable
SMEs through the down-
turn.
But Spring chairman
Philip Yeo says businesses
must realise that govern-
ment support is not an enti-
tlement – and that they too
must help themselves.
“Banks don’t get money
from heaven”, so the usual
due diligence to evaluate ap-
plications and non-perfor-
ming loan risks will still ap-
ply, he says.
And SMEs should consi-
der consolidation because
“good companies should
grow and bad companies
should exit”. Bigger entities
also have better chances of
obtaining equity finance,
an alternative funding op-
tion to bank loans
“The trouble is that
many of the companies are
very small,” Mr Yeo said.
“They don’t want to come
together – they all want to
be towkays. But they are
not of critical size.”
A m o n g t h e
162,000-plus enterprises
here, about 128,000 are in
the micro-enterprise catego-
ry, with less than $1 million
in annual revenue. About
33,000 enterprises gene-
rate revenue between $1
million and $50 million a
year, and the remaining
1,000 are classified as large
companies.
“It’s a reality there’s too
much fragmentation,” said
Mr Yeo. “They should come
together. If you don’t have
a big enough company,
how do you attract talent?
How do you get customers?
It’s all economics.”
For SMEs that continue
to have a competitive ad-
vantage, Spring will help to
widen their lead through
the $200 million business
upgrading initiatives for
long term development
scheme, or Build.
The programme pro-
vides 70-90 per cent of
grant support in areas such
as technology innovation,
branding, IP management,
HR and design.
Later this year, Build
will launch attachment pro-
grammes at SMEs for fresh
graduates, and innovation
vouchers that companies
can use to buy technology
from approved research in-
stitutes. There will also be a
pilot mentoring scheme to
match experienced consul-
tants with SMEs.
In an update on the SME
financing schemes offered
by the government, Spring
said 3,073 loans were ap-
proved last year, down
from 3,572 in 2007. This
was because the number of
‘The trouble is
that many of
the companies
are very small.
They don’t
want to come
together.’
– Spring chairman
Philip Yeo
asset-based loans fell
51 per cent to 719, as com-
panies cut back on capital
expenditure. The bulk of
the $990 million loan sup-
port went to the loan insu-
rance scheme (LIS), with
1,452 applications suppor-
ting $800 million of loans
approved. Micro loans num-
bered 902, amounting to
$34 million.
In the first five weeks of
this year, 551 govern-
ment-backed loans amoun-
ting to $185 million were
approved. Spring expects
the take-up rate for LIS, mi-
cro loans and bridging
loans to go up, and that for
asset-based loans to fall.
In a review of Spring’s
achievements last year, the
agency said it supported
2,585 enterprises in 1,540
projects, up from 1,482 en-
terprises in 1,260 projects
in 2007. The 2008 projects
are expected to create
9,700 new jobs, up from
5,300 in 2007.
Upon completion of the
projects, the 2,585 compa-
nies are expected to create
value-add of $2.9 billion,
fixed assets investments
(FAI) of $465 million and to-
tal business spending of
$499 million.
On targets this year,
Mr Yeo said that while the
number of companies re-
ceiving support is expected
to increase, value add, FAI
and jobs created are likely
to be affected. But Spring is
aiming for results “as good
as 2008”.
“The (Trade and Indus-
try) Minister has already
set a target of 2,000 compa-
nies for the Build pro-
gramme over the next two
years,” said Spring chief ex-
ecutive Png Cheong Boon.
“So I think at least we must
hit 1,000 of them.”
aside to help the needy
MCYS will be
spending $1.9b this
year to assist them
By LEE U-WEN
THE government has ac-
knowledged that the mid-
dle class or “sandwich”
group may need more help
during the economic down-
turn, especially if they are
retrenched. But it says their
priority should be to get a
job – not ask for welfare.
Community Develop-
ment, Youth and Sports
Minister Vivian
Balakrishnan told Parlia-
ment yesterday it is not pos-
sible to give the middle
class more handouts than
those given to people who
can barely make ends
meet.
“The needy are the peo-
ple my ministry must pay
the most attention to,” he
said. “I cannot commit to
giving additional support to
enable the middle class to
maintain a standard of liv-
ing that they perhaps have
become accustomed to.
There are limits to how
much we can do.”
Speaking during a de-
bate on the Ministry of Com-
munity Development,
Youth and Sports (MCYS)
budget for the new finan-
cial year, Dr Balakrishnan
them with an available job,
he said. And should they
need new skills, schemes
are in place to subsidise the
training cost and provide
an allowance.
Outlining his ministry’s
priorities as it looks to
spend some $1.9 billion
this year, or 33 per cent
more than in FY2008,
Dr Balakrishnan assured
Parliament that sufficient
resources have been set
aside to help the needy.
This year MCYS expects
to spend about $77 million
on ComCare programmes,
54 per cent more than the
$50 million set aside in
FY2008. At the top of the
list is an increase in the Pub-
lic Assistance scheme of be-
tween $30 and $120 a
month, depending on the
type of home a recipient
stays in, from April 1.
A person living alone,
for instance, will get $360 a
month – $30 more than
now. A family of four adults
will get $120 more, up from
$830 a month now, to
$950.
Minister of State Yu-Foo
Yee Shoon said the changes
are expected to benefit
2,900 households. She also
said the children of these
families will get extra assist-
ance, up to a maximum of
$130 per child per month
that can be used for school
need a longer period of
help while they upgrade
their skills and look for new
work.
Among other initiatives,
Family Service Centres will
get a total of $16 million to
hire more staff and build ca-
pabilities, while $25 mil-
lion will be spent to help
dysfunctional families.
Some members of parlia-
ment, such as Sin Boon
Ann (Tampines), expressed
concern that charities and
social enterprises will suf-
fer a sizeable drop in dona-
tions due to the economic
downturn, making it hard
for them to maintain their
services.
In response,
Dr Balakrishnan said Singa-
pore’s social service sector
will receive a “significant
sum” of $460 million this
year, $38 million more
than last year. MCYS will
fund just over half of this
sum, with the rest coming
from donations.
However, the minister
said that as the debate over
dollars and schemes contin-
ues, his main concern is
whether Singaporeans live
by two key values – to work
hard and be responsible to
themselves and their fami-
lies, and to build strong and
stable families where every-
one carries out their role
willingly.

STB pulling out all the stops to woo visitors
By NISHA RAMCHANDANI
THE Singapore Tourism
Board (STB) aims to steer
the industry through the
downturn by selling Singa-
pore not just to the region
and the world, but to Singa-
poreans as well.
Free tickets, numbering
2,009, to visitor attractions
such as Jurong Bird Park
and Sentosa will be up for
grabs on each of the next
three weekends.
And selected retailers
such as Topshop, Robin-
sons, OG and Metro will of-
fer GST savings on purchas-
es.
To attract business from
farther afield, the new $90
million Building On Oppor-
tunities to Strengthen Tour-
ism (Boost) scheme – un-
veiled in greater detail yes-
terday – includes market-
ing campaigns aimed at lei-
sure and business and Mice
visitors.
Under a “2009 reasons
to enjoy Singapore” cam-
paign, STB will work with
airlines, travel agents and
retailers to roll out promo-
tions from Feb 19 as part of
a global campaign.
This will include online
media channels such as Fa-
cebook, through which
500,000 free air tickets to
Singapore will be available
as part of a promotion
called Fly on US.
Regional countries such
as China, India, Indonesia,
Malaysia and Vietnam have
been identified as key visi-
Must-see: Earlier this week, STB said visitor arrivals this year will come in at 9-9.5m, a number still significantly
higher than the 6.1m arrivals in 2003 due to Sars
tor markets. And the key
customer segments are free
and independent travellers,
group travellers and Mice
visitors.
Speaking at the STB
Tourism Industry Confer-
ence yesterday, Senior Min-
ister of State for Trade and
Industry S Iswaran said Sin-
gapore is working closely
with its neighbours to pro-
mote intra-regional travel.
“We have been explor-
ing ways to partner private
sector players to develop
cost-competitive tour pack-
ages aimed at intra-Asean
travellers,” he said.
STB has also set its
sights on stopover traffic
passing through Changi Air-
port, especially from mar-
kets such as Australia, Ger-
many and the UK.
A record 37.7 million
passengers passed through
the airport last year, said
STB chief Aw Kah Peng.
But a third of them did not
venture outside. “We have
to draw them out,” she
said.
In addition, from
March 1, the BE in Singa-
pore (BEIS) scheme will be
enhanced to allow Mice
companies to defray a larg-
er proportion of the cost of
projects. For instance, the
convention and exhibition
industry can obtain extra
funding support, with up to
70 per cent support for the
bidding cost of strategic
AP
of allowable costs for certifi-
able training held overseas
or local training conducted
by an overseas trainer.
Earlier this week, STB
said visitor arrivals this
year will come in at 9-9.5
million, a number still sig-
nificantly higher than the
6.1 million arrivals in 2003
due to Sars.
Asked how the 2015 tar-
get of 17 million tourist ar-
rivals will be affected by the
downturn, Ms Aw said STB
will have to see how 2009
and 2010 pan out.
STB will still work to
said assistance for the sand-
wich class will be condition-
al and pegged to the level
the most needy Singapore-
ans require.
When people lose their
job, the government will
“spare no effort” to match
Entertainment
design school
to open in April
By ZEINAB YUSUF
HOLLYWOOD concept de-
signer Feng Zhu will launch
a new school in Singapore –
the FZD School of Entertain-
ment Design.
Enrolment for a diploma
in entertainment design be-
gins this month and the
one-year full-time pro-
gramme starts in April.
The first-of-its-kind
school will train students
for the gaming, film and ani-
mation industries.
Singapore is the perfect
place to set up such a
school, said Feng Zhu.
“With 3dense and the Singa-
pore government, we hope
to elevate the design indus-
try here and make a huge
impact on the overall educa-
tional system.”
The FZD school will col-
laborate with 3dense Me-
dia School to boost training
for the entertainment indus-
try. FZD will focus on indus-
trial design and concept
art, complementing the dig-
ital media and animation
courses offered by 3dense.
expenses and food, among
other things.
For the retrenched, the
length of assistance under
the Work Support scheme
will be doubled to 12
months for the 2,400 benefi-
ciaries today, who may
puter graphics (CG) and me-
dia landscape.
“Feng brings with him
massive industry experi-
ence at the highest level in
Hollywood. Starting a
school here will not only
help ensure the long-term
sustainability of the labour-
force eco system for the me-
dia industry, but also make
Singapore a very attractive
and viable place for the CG
and visual effects industry.”
Feng Zhu’s credentials
include working on block-
busters such as Transform-
ers and Teenage Mutant
Ninja Turtles.
He also led visual design
for many popular games in-
cluding Superman, The
Lord of the Rings and the
James Bond franchise.
Industry professionals
are enthusiastic about the
new FZD school, singing its
founder’s praises.
Ryan Church, senior art
director and concept design-
er for Industrial Light &
Magic, Lucasfilm and Pixar,
said: “Feng is one of the top
artist educators in the con-
“For all the resources
that we have given to help
the needy, we will fail if our
debate degenerates into a
squabble over how to split
the family fortune into
handouts and inheritanc-
es,” he said.
IE’s iRural
initiative
to help
ICT firms
launched
INTERNATIONAL
Enterprise (IE) Singapore
officially launched an
“iRural Initiative”
yesterday as part of its
efforts to help
Singapore-based
infocomm technology (ICT)
companies expand
overseas.
The initiative promotes
Singapore-based ICT
solutions for rural
communities in emerging
and growth markets such
as China, India, Latin
America and Vietnam. The
end goal is to set up
well-connected wireless
networks and IT
infrastructure in these
communities.
Under the initiative, IE
Singapore will support
moves by ICT consortiums
to provide complete
solutions from Internet

Sing $ seen weakening

infrastructure to health
events, versus 50 per cent achieve its long-term goal Excited by the alliance, cept design world. I am ex- care, education and
now. through “different ways”, 3dense director Sen Lai cited by the prospect of one micro-finance applications.
And under a revised she said, acknowledging said: “The partnership day working with a genera-

against US$ in H2: Nomura

MAS may shift its
policy mid-point
lower in April
By EMILYN YAP
CURRENCIES of open
Asian economies – includ-
ing the Singapore dollar –
are likely to weaken into
the second half of the year
as global conditions deterio-
rate, Nomura said yester-
day.
Its foreign exchange re-
search analyst Craig Chan
said at a briefing that the
Singapore dollar could
reach S$1.53 to the US dol-
lar by the end of Q1 2009,
and S$1.55 by end of Q2.
According to Bloomberg
data, one US dollar would
have fetched close to
S$1.51 yesterday.
“With the Singapore
economy falling into a deep
recession and set to encoun-
ter deflation this year...our
base view is that the Mone-
tary Authority of Singapore
(MAS) will shift its policy
mid-point lower at the
April policy announce-
ment,” says Nomura’s re-
port dated Feb 5.
The Government has set
Singapore’s 2009 GDP
growth estimate at between
minus 2 and minus 5 per
cent. In an even more pessi-
mistic call, CLSA said last
week that Singapore’s econ-
omy could shrink 10 per
cent.
But the Singapore dollar
is nowhere near free-fall rel-
ative to the greenback. Mr
Chan expects it to bounce
marginally back to S$1.53
per US dollar by the end of
the year.
Part of this has to do
with a possible weakening
of the US dollar at the same
TIP-iT scheme, companies
can claim up to 90 per cent
time, said Nomura’s global
head of foreign exchange re-
search, Simon Flint.
Nomura believes the
greenback could suffer as
the Federal Reserve aggres-
sively expands its balance
sheet to salvage US finan-
cial institutions, even as the
country’s fiscal position re-
mains delicate.
Nomura also has similar
concerns for the sterling,
noting that quantitative eas-
ing and a more lax fiscal
policy have emerged in the
UK.
“We believe capital will
be attracted to those coun-
tries that are least likely to
print money and have solid
fiscal positions,” said the re-
port. “For that reason, we
recommend selling GBP
and USD against a basket of
NOK (Norwegian kroner),
SEK (Swedish kronor) and
AUD (Australian dollars).”
that it may take “a little
longer to get there”.
Budget Terminal to get solar panels
CAAS estimates it will
generate about 281,000
kwh of energy per year
By VEN SREENIVASAN
SUNLIGHT will be converted into
electricity at Changi Airport’s
Budget Terminal, under a project
launched yesterday by the Civil
Aviation Authority of Singapore
(CAAS).
Tenders were called to install a
solar photovoltaic (PV) system to
provide clean sustainable energy
to supplement the terminal’s main
power supply and cut electricity
costs.
Panels to capture sunlight will
be installed on the rooftop of the
marks a milestone in the
history of Singapore’s com-
Budget Terminal’s departure hall.
Installation work will start in June
and should be finished by
mid-2010.
CAAS estimates the system will
generate about 281,000 kilowatt
hours of energy per year,
translating into annual electricity
cost savings of about $60,000.
The cost of the project has not
been revealed, but it is believed
the solar panels will cover a
rooftop area of about 15,000 sq m
– roughly the size of three football
fields.
CAAS director-general Lim Kim
Choon said the project is part of a
plan to make Changi Airport more
environmentally friendly.
“We are on the lookout for
opportunities to cut energy costs,”
By competing for
tion of students he has
overseas projects as a part
taught.”
of a consortium,
companies can
complement one another’s
strengths and tap on
existing connections to
boost their chances of
success.
The first consortium
he said. “In addition, we hope to formed under the latest
be able to contribute to clean initiative is the iRural
energy research by allowing other Community Consortium
organisations to make use of the (iRCC).
weather and electrical data that Led by anchor company
our solar PV system will generate.” smartBridges Solutions,
The project is a part of with member companies
Singapore’s Clean Energy InnoMedia and Nera
Research and Test-bedding (CERT)
Telecommunications, iRCC
programme launched by the
aims to achieve overseas
Economic Development Board and
revenue of $300 million
Clean Energy Programme Office in
over five years.
August 2007.
It has already clinched
CAAS will make available
two projects worth a total
environmental data such as wind
speed, ambient temperature, of $10 million in India and
relative humidity and temperature Peru and has more than
of solar modules, and electrical 10 others in the pipeline.
data such as voltage, current and IE Singapore will work
energy, to Singapore Polytechnic, closely with iRCC to
which is the lead research identify project leads in
organisation under CERT. Asia, Africa and Latin
America.