Scheme to help S'pore furniture firms venture overseas

Singapore

DESPITE the global economy's sluggish performance, Singapore's furniture industry is performing reasonably well, with its revenue rising by 2.8 per cent from 2013 to reach an estimated S$6.24 billion in 2014.

To help support companies in this sector with their expansion plans, the Singapore Furniture Industries Council (SFIC) can now tap on the Local Enterprise Association Development or LEAD scheme, to engage in-market consultants to help their members target overseas markets, said Teo Ser Luck, Minister of State for Trade and Industry, on Wednesday at the Memorandum of Understanding (MOU) Signing Ceremony which saw nine furniture companies pledge their commitment to the programme.

Under the programme, SFIC will help the nine local SMEs seek deals in markets such as Australia, Europe and the Philippines. IE Singapore will fund up to 70 per cent of the professional fees required to engage overseas consultants, for a three-year duration.

These nine companies fall under three groups - building materials group whose target market is the Philippines; the home living group which intends to enter Europe; and the office sector group which aims to enter Australia.

To ensure sustainability of the three-year programme, SFIC has also established a framework to review programme progress and to measure customer satisfaction on the services rendered by the overseas in-market consultants, on a quarterly basis.

Ernie Koh, president of SFIC, said: "In order for the Singapore furniture industry to deepen its footprint on the global map, local enterprises must adjust their mindset and reinvent their business models, by taking the 3i Approach - Improve, Innovate, and Integrate.

"Such business transitions are never easy and we are very encouraged by our local players' willingness to step out of their comfort zone and to embark on this exciting initiative with us."

Last year, IE Singapore supported five trade shows and business missions led by SFIC under the International Marketing Activities Programme which defrays some of these costs while facilitating establishment of trade contacts in key markets such as Germany, China and the USA.