Scale-up SG to groom promising local firms to be world powerhouses

Singapore

A NEW initiative to turbo-charge the growth of promising local enterprises to become international names was launched on Wednesday, as part of the government's efforts to grow more companies that can compete on the world stage.

Known as Scale-up SG, the 2½ years invitation-only programme - first announced in Budget 2019 - aims to groom high-growth companies with a proven track record and the aspiration to scale rapidly.

This is a marked move by the government towards more targeted support for companies ready for their next phase of expansion, even as broad-based measures remain in place for fledgling firms to get off the ground.

Among the well-known names that made the cut for the pioneer run include Jumbo Group, PBA Group, Goldbell Corporation and Koufu.

These 25 companies are of varying revenue sizes ranging from S$10 million to over S$300 million, and come from various industry clusters such as lifestyle and consumer, trade and connectivity, manufacturing and engineering, and urban solutions.

Minister for Trade and Industry Chan Chun Sing said that Scale-up SG aims to strengthen companies at the "core" of Singapore's business landscape, which he describes as those in the middle tier.

Addressing the participating companies, he said: "We did not select you based on industry or by size. We selected you based on your ambition."

This level of ambition entails growing beyond Singapore to markets worldwide. In the process, this would create good jobs and help support the government's strategy to grow its "external wing", he added.

Participating companies stand to gain from peer learning, the development of their leadership team and succession planning, as well as access to networks of Enterprise Singapore and partners.

Consultancy firms McKinsey & Company and PwC Singapore have come onboard as anchor partners for the inaugural programme.

Enterprise Singapore's chairman Peter Ong said that a key element of Scale-up SG is community and the opportunity for "cross-pollination" of ideas among companies.

He said: "A tenet influencing the design of this programme is that leaders learn best from leaders, and this is true in both success and failure."

Seafood restaurant chain Jumbo Group's CEO Ang Kiam Meng concurred, adding that he did not see the other food and beverage (F&B) players as rivals, but potential collaborators.

He said: "We are learning from one another and seeing if there's anything we can work together (on)."

Mr Ang even suggested that a merger among some of the F&B groups to become a supersized Singapore company could be a possibility at the end of the day.

Through the programme, he is hoping to get guidance on best practices and how to grow the company, as well as to connect with potential partners in various markets.

Jumbo Group is already in China, Taiwan, Vietnam and Thailand, with plans to expand further into Asia, although Mr Ang said that he is not ruling out other regions such as Australia, the US and Europe.

He said that his dream is for Jumbo Group to become "synonymous with seafood around the world", and to be as well-known as brands such as Shake Shack and Din Tai Fung.

Another participating company with similar lofty goals is Durapower, a firm specialising in electric vehicle battery technologies.

Group CEO Kelvin Lim said that his motivation for joining the programme is enabling the company to prepare for its next growth phase.

In the past five years, the company's revenue has jumped from S$3 million to S$50 million. The aim is to hit S$100 million in the next three to five years, through deeper penetration into Asean, China, Europe and India. To date, its products can be found in 40 cities across 18 countries.

Mr Lim added that he is looking forward to working with consultants to bounce ideas and to "stress test" his company's strategy for the future.

Enterprise Singapore intends to have two to three runs of the Scale-up SG programme each year, in collaboration with public and private sector partners.

Aside from a proven track record of growth and strong leadership ambition, eligibility criteria for participating companies include having global headquarters in Singapore and the ability to create positive economic spin-offs, such as good job opportunities.