Yi Shyan: What it takes to be a world-class outfit

Singapore

THE issue of what it means to be a "world-class Singapore enterprise" was debated in Parliament on Tuesday. Senior Minister of State for Trade and Industry Lee Yi Shyan listed two distinguishing attributes in order for a company to be defined as such.

First, it should have a competent leader at the helm, backed by talented people. Second, it should have a business model that stands out from the competition in its industry.

Mr Lee was responding to points raised by Nominated Member of Parliament and Singapore Chinese Chamber of Commerce & Industry president Thomas Chua, who said that a world-class Singapore enterprise should not be judged solely on size or business performance.

Rather, he said, it needs to have a unique business model that enables it to be better recognised, gain acceptance in more markets and become internationally renowned.

He added that small and medium-sized enterprises (SMEs) in Singapore have the chance to become world-class if they can find their niche in Singapore's open economy and on the international stage, are prepared to work hard, cooperate with industry leaders and leverage the country's good infrastructure.

He also expressed the wish that the government would one day appoint a minister to oversee a one-stop agency to help SMEs, which he stressed would be a major step forward in the goal to build world-class enterprises. He called on the government to retain the existing productivity-assistance schemes to help companies tide over this period of economic restructuring.

Conveying the wishes of the local business community, he hoped that the government would not further tighten its manpower policy, and that there could be a policy that large companies bidding for government projects must partner local SMEs.

In his speech, Mr Lee said that the economy needed to be vibrant, diversified and globally competitive in order for Singaporeans to enjoy a higher standard of living. "We can only be globally competitive if our companies are constantly innovating, transforming and creating products and services of higher value."

He cited the example of WhatsApp, the popular instant messaging service. "When it was acquired by Facebook last year, it had only 55 employees but was worth US$21 billion. We all know that an SME with 55 employees is a small company - even in Singapore - but its business model sets it apart. The question is whether we can produce our own WhatsApp or Facebook - small, but with world-class capabilities."

Mr Lee cited a study that found that at least 27 Singapore-based startups have been bought out for more than US$500 million in the last three years alone.