MCYS MEDIA RELEASE NO: 20/2008

DATE OF ISSUE: 05/03/2008

5 March 2008

MEDIA RELEASE

GOVERNMENT TO FOCUS ON
BUILDING CAPABILITIES OF SOCIAL ENTERPRISE SECTOR

The Ministry of Community Development, Youth and Sports (MCYS) has

accepted 25 of the Social Enterprise Committee’s 26 recommendations
submitted in December 2007. One recommendation is under further study. MCYS
will be committing $4.5million in 2008 to support the implementation of the
recommendations. (Please see table of recommendations attached). The Social
Enterprise Committee was chaired by Mr Philip Yeo, and comprised members from
the public, people and private sectors.

2 As a strategic partner and supporter of the social enterprise sector, MCYS will
focus on capacity-building, in terms of developing better support services for social
enterprises, and helping social enterprises to build up capability and manage their
business better.

3 The Ministry supports the formation of a social enterprise association,

which is a key recommendation of the Social Enterprise Committee. The association
will provide leadership to the sector – driving new initiatives and forming partnerships
with various community stakeholders. The association is expected to be established
by the middle of this year.

4 MCYS will also be implementing the recommendations to raise the capability

of social enterprises, by setting up a social enterprise development centre.
MCYS will continue to seed-fund new social enterprises through the ComCare
Enterprise Fund (CEF), so as to increase employment and training opportunities for
needy disadvantaged Singaporeans. We will also revise some of the rules of the
CEF, so as to better help social enterprises. For example, to extend CEF funding to
the second year of operations, to allow time for the new social enterprises to
establish and mature as businesses.

5 MCYS will also implement the recommendations on the Caring Companies

initiative as they are in line with MCYS’ mission to uplift needy and disadvantaged
Singaporeans. The Caring Companies initiative aims to give financial and
operational support and recognition to socially responsible enterprises that hire
needy disadvantaged workers. These socially responsible enterprises are existing
for-profit businesses that are already successful in the market-place, which are
driven by a mission to help the less fortunate in our society. MCYS will also
encourage the business community to be more involved in the social enterprise
sector through sharing their resources and expertise, so as to enable the growth of
the sector.

6 A Committee will be set up to oversee the implementation of the Social

Enterprise Committee’s recommendations. The Implementation Committee will be
chaired by Mr Gerard Ee, a member of the Social Enterprise Committee, who is also
Chairman of the National Kidney Foundation.

ISSUED BY

MINISTRY OF COMMUNITY DEVELOPMENT, YOUTH AND SPORTS

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 TABLE OF RECOMMENDATIONS

Encouraging and Facilitating Socially Responsible Enterprises (SREs)

RECOMMENDATIONS STATUS
Caring Companies Initiative
1. Provide support for training, job redesign and integration Accepted
programmes, including supervisor and employee training

2. Develop a one-stop focal point for SREs – centre or virtual resource Accepted
for employers on funding for and sourcing for disadvantaged
jobseekers

3. Greater Recognition for SREs – high profile awards or certification Accepted

to recognise socially responsible employers

Public Sector Initiatives

4. Modify the Civil Service Manpower Management Framework - Accepted with
facilitate the hiring of needy disadvantaged Singaporeans by modifications
Ministries and Statutory Boards

5. Create an internship scheme - for needy disadvantaged workers to Pending further

work in a Ministry or Statutory Board for up to three months while study
receiving a training allowance

Building a Pro-Social Enterprise Environment

RECOMMENDATIONS STATUS
Financing for Social Enterprises
6. Develop more funding options - equity and loan financing Accepted
customised for SEs.

7. Enhance the ComCare Enterprise Fund Accepted

- Prioritise Work Integration SEs for CEF
- Extend CEF funding to second year of operations
- Extend CEF funding to businesses creating new subsidiaries
or joint ventures with VWOs
- Require SEs to be registered as separate legal entities – CLG,
Pte Ltd, LLP, Cooperative.

8. Allow profit-sharing for SE shareholders after specified time Accepted

period, with guidelines & conditions.

Business Support & Development for Social Enterprises

9. Develop business consultancy services for SEs - including Accepted
subsidised business consultancy for CEF-funded social
enterprises

10. Develop a mentorship scheme to match SEs with volunteer Accepted

business mentors

11. Facilitate access to services – corporate secretarial, accounting, Accepted

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 auditing, legal services

12. Develop Business Development Masterclasses, Workshops & Accepted

Management Training

13. Expand the VWO Charities Capability Fund (VCF) criteria Accepted with
- include staff of CEF-funded SEs who are not NCSS members modifications
- expand training course list to include business management
and other SE-related courses

14. Facilitate Market Access & Business Opportunities for SEs Accepted
- shared resource listings
- networking platform for SEs
- vertical expansion strategies
- incorporate SE into conventional business’ value chain
- networking with design community
- on-line directory of SEs and catalogue of products and
services
- regular, aggregated retail and marketing platforms
- joint SE label
- explore new markets through new marketing and distribution
channels

Creating a Culture of Social Entrepreneurship

RECOMMENDATIONS STATUS
Develop Focal Point and Specialised Support for SE Sector
15. Form a Social Enterprise / Social Entrepreneur Association Accepted

16. Establish a Social Enterprise Development Centre Accepted

Build Capability
17. Develop customised training courses, workshops and modules on Accepted
social entrepreneurship and social enterprise for students and
potential entrepreneurs.

18. Offer certificate programmes or diplomas incorporating modules Accepted

on social entrepreneurship and social enterprise for social
entrepreneurs and SE practitioners.

19. Build an evidence-base through academic and empirical research Accepted

on social entrepreneurship and social enterprises.

Attract More Business Community Involvement & Investment

20. Engage the private sector to build up their knowledge and Accepted
capacity to work with social enterprises and social entrepreneurs

21. Offer investor / donor education on SEs Accepted

22. Hold ‘Pitching’ Sessions for SEs to pitch for investments from Accepted
corporate investors

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23. Set-up a community social venture fund to support social Accepted
entrepreneurship initiatives

Raising Awareness of Social Enterprises

24. More public education and promotion through, education, Accepted
networking and promotional events.
(e.g. talks, conferences, roundtable discussions, forums,
carnivals, workshops, business plan competitions)

25. Platforms and awards to recognise the achievements and Accepted

contributions of social entrepreneurs and social enterprises.

26. Monitor public perception and understanding of social enterprises Accepted

and social entrepreneurship.

Full details on the Social Enterprise Committee’s recommendations can be found in the
Report of the Social Enterprise Committee, which can be downloaded from the MCYS
website (www.mcys.gov.sg) or the ComCare Enterprise Fund webpage (www.se.gov.sg).