Minister's Opening Remarks at SCCCI's 28th SMEICC, 3 September 2025

Mr Kho Choon Keng, President, Singapore Chinese Chamber of Commerce & Industry (SCCCI),

My many old friends in the audience,

Distinguished guests, including those from overseas,

Ladies and gentlemen.

A very good morning to you and I am very honoured to join you today at the SME (Small and Medium Entreprises) and Infocomm Commerce Conference 2025. I am also aware that this is SG60 as Mr Kho has said. I would also remind the audience here that the SCCI is 119 years old, almost twice the age of Singapore. For many of us in the audience, including myself, 119 years is four generations. Even for me, I recall my great grandparents leaving China, more than 120 years ago. What it is worth all of you thinking about in your own families and in your own businesses, which have lasted the test of time, is that when they left China 120 years ago, they left in a time of great change, a time of turbulence. Our ancestors came here with no capital. But they came here determined to look for opportunity in the Nanyang area. They worked hard, they saved, they invested, and that spirit has built what we all have today. It is worth remembering this even as we celebrate the 60^th year of Singapore's independence and even as the world goes through another period of great change and transformation and turbulence. So that is why whenever I am invited by the SCCCI, I always say yes because you have been a critical part of the success of Singapore and of Southeast Asia. So, thank you very much for this honour.

When Singapore became independent 60 years ago, as Prime Minister Wong has reminded us, we were an improbable nation. We did not believe it was possible to be viable, an independent city state in the heart of Southeast Asia – we would lose our hinterland, our access to natural resources and our networks. But we made a virtue out of necessity. It meant that Singapore, 60 years ago, could not depend on old ideas like import substitution, protectionism and giving our own SMEs a shelter in which to build up your companies. It meant we had a very small domestic market. It meant we could not impose tariffs. It meant that all and every single SME in Singapore from the start was exposed to global competition. If you were not able to make products and services that the world would buy at market rates, we would not survive. So, our SMEs in Singapore literally had to fight for survival. They had to be competitive from Day One, and you had to rely on your own strength, your wit, your ideas, your innovation, your determination to succeed. But 60 years ago was also a time when the world was very different. It was a world that was integrating economically. It was a world in which trade barriers were coming down and tariffs were lower year by year. It was a world in which international supply chains were growing. You would realise therefore, that the SMEs in Singapore were in fact optimally placed to be competitive and to plug into the global economy. Our local business ecosystem in Singapore was able to provide essential services, goods and services, both to the multinational corporations (MNCs), if you are coming into Singapore, as well as the emerging large local enterprises in Singapore. In other words, you were part of an ecosystem which took advantage of the global economy and we have had this advantage for 60 years. But it is also worth remembering, it is not just about American globalisation or American rules-based economic integration, or American or European or Japanese MNCs. It is not just about that. The other big advantage we had was in 1978, when Deng Xiaoping embarked on gǎigé kāifàng – the reform and opening-up of China. And that meant we had a second turbocharge and particularly for the enterprises represented here. Historical, cultural, linguistic and business networks with China and with Southeast Asia, gave our businesses a second turbocharge.

So, you can see that actually the last 60 years we have had the best of both worlds. We were able to connect to the West, connect to the East and to connect within our own region in Southeast Asia. Let me give you an example. In the semiconductor industry for example, we have had the Dutch semiconductor manufacturing equipment supplier called VDL Enabling Technologies Group. When VDL Group came to Singapore, in fact, they had been working with a Singapore SME called Richport Technology for more than 20 years. The Singapore SME, Richport, has been specialising in a very specific special process of surface cleaning, which enhances VDL’s equipment components. An example of plugging a local SME into a global ecosystem.

I have spoken to business investors from overseas. They say, well we come to Singapore not because it is the cheapest, but because you also have other SMEs, other businesses and people who are innovative, hardworking, honest and reliable. And that makes Economic Development Board (EDB)’s job so much easier. Our SMEs have benefitted from this global and regional growth. To reiterate the role of trade associations and chambers like Singapore Chinese Chamber of Commerce and Industry, you have been part of that success. That is why Mr Kho, I am glad you started off the session with a very comprehensive analysis of the current assessment of both the challenges as well as the opportunities from the future.

Let me give you another example. We have a logistics company called Global Air Freight International, started in 1970, specialising in air freight forwarding between Singapore and Indonesia. Today, they have expanded significantly to become a regional player in the logistics trade, and have 15 set-ups in our region, and are building up capabilities in areas like cross-border trucking and warehousing and logistics. Notably, they also were essential during the Covid pandemic for to support the regional movement of test kits and vaccines, another example. The point I am making is that the entrepreneurship, the adaptability, the pragmatism of our SMEs have allowed you to thrive under volatile and difficult conditions.

Today, our SMEs are a key pillar of Singapore economy and society. SMEs account for 99% of businesses registered in Singapore, and you employ 70% of the Singapore workforce. You encapsulate the Singapore Spirit and the Singapore Story. I am here on behalf of Prime Minister Lawrence Wong, who is in New Delhi, Deputy Prime Minister Gan Kim Yong, who is in Beijing this morning to give you that assurance of the Government's commitment to work with you and to support you. Congratulations and thank you for all your contributions. But, and like I said, there is a but. The but is the world of the last 60 years, for which Singapore and Singapore SMEs have evolved to thrive, is now undergoing a major tectonic shift.

First, the first geopolitical shift is that the big powers, the superpowers – you do not need me to name them, they nowadays take a narrower view of their national interests and have adopted a more transactional approach to the conduct of their relations. This means several things. First, it means between the powers, there is greater rivalry, less dialogue, not enough trust. You must understand for Singapore, a country that has thrived on globalisation, that has benefitted from both the rapid growth of American companies in the world and the reform and opening of China. What has been the best of both worlds is always in danger of becoming the worst of both worlds, if we get caught up wrongly, between the sharpening rivalry. A more fragmented world with fractured supply chains also makes doing business more difficult, and that is reflected in the presentation by Mr Koh just now.

The second big earthquake is that we are also in the midst of a technological and digital revolution, which is occurring at a faster and faster pace. If you think about our businesses 120 years ago and now, our businesses have to adapt, whether we like it or not, whether we are ready or not. We have to adapt to this technological change. Today, in particular, with the advent of artificial intelligence,  it is like a new steam engine, a new age of electricity, a new age of connectivity, all combined. It will have far reaching implications on the business you do, the networks you establish, and it will disrupt our businesses, and our challenge is to get ahead of the curve, rather than to be swamped by this tsunami of technological change.

The third earthquake we watch in many countries is domestic politics, and you see that sometimes in the headlines. Protests, riots, disruptions, deeply contested elections. All these are signs of domestic polarisation and division, whether it is reaction against widening inequality or a loss of social capital and unity. The truth is, for all of you in business, it is very hard to do business if your homefront is in trouble, and we should recognise that every time the homefront gets divided and polarised, it is always one step away from discrimination and challenges to ethnic, multi-cultural harmony and solidarity. I do not need to remind Chinese SMEs that this is an ever present danger that we need to be mindful of.

That is why the theme of this conference, a “Shared future and business reimagined”, in fact, is very, very timely, and as we navigate these changes globally, regionally and domestically, we need to reimagine how we do business, how we connect with one another and how we take advantage of the new technologies.

In fact, the first point I wanted to leave with you is that we need all our businesses here and in our region to double down on internationalisation, particularly in our immediate neighbourhood, which for Singapore, means Malaysia, Indonesia, ASEAN, and to also look for new opportunities in wider markets and new production bases and new sources. We need to leverage, and we need to enhance our regional networks and look for new opportunities amongst this new reshuffling of production and supply chains.

Let me give you a few examples we all know, and Mr Koh has also emphasised just now – ASEAN has got huge potential. It is vital, it is growing, it is still young, ASEAN as a whole, and there is an enlarging middle-class, which means this market is going to grow, and our SMEs must tap into the ASEAN market. And at the political level, what we are doing within ASEAN is to promote further ASEAN integration, to fulfill our vision of creating a single market, a single production and investment zone across Southeast Asia, which has a population the same size as the EU. Unlike many parts of the world which today are worried about involution, are worried about loss of competitiveness, are worried about aging, for the next 20 to 30 years, ASEAN is a very big opportunity which we would be foolish to miss. Beyond Southeast Asia, as I said, our first line is Malaysia and Indonesia. So, you would have heard about the Johor-Singapore Special Economic Zone. We believe this is an opportunity to tap into the complementarities and comparative advantages of Johor and Singapore. Particularly for SMEs, for you to tap into the resources – the land, the production capabilities and opportunities in Johor whilst you continue to operate your regional headquarters, your R&D and other critical functions in Singapore. Look for complementarities. It is not a, win-lose, either-or binary proposition. We are also exploring how the Johor-Singapore SEZ can also enhance collaboration with Indonesia and in particular, our closest neighbour in Indonesia – Batam, Bintan and Karimun. We have this concept, SIJORI (Singapore-Johor (Malaysia)-Riau Islands (Indonesia), which is an old concept, and I am here to remind you this is still alive and the more we can do amongst the three of us, closest neighbours, the better it will be to tapping opportunities for the future.

Second, I want you to look beyond – beyond Johor and the Riau and beyond ASEAN – because there are significant opportunities in other parts of the world. For instance, we believe there is great potential in South Asia – that is why Prime Minister is in New Dehli today. Middle East – the wars will settle down, but there is great economic opportunity in the Middle East. There are also great opportunities in Africa and South America. It is not some faraway pipe dream. We are actively encouraging you to explore opportunities and you would have noticed that in recent weeks, months, there has been a very high level of networking. For instance, just last week, we hosted the fifth Singapore-Africa Ministerial Exchange Visit. This time, we had about 18 countries present. The African ministers come to Singapore (and) they realise this is a very special place. But they do not just come to Singapore for Singapore’s sake, because they also know that we are in the heart of Southeast Asia, and we can connect them to a larger market in Southeast Asia. So, building the institutional links, and then introducing the businesses to each other is critical if we are going to tap into the rich opportunities that African will provide.

We held the third India-Singapore Ministerial and Business Roundtables last month. As I told you, Prime Minister Wong is currently in India. You remember I mentioned semiconductors just now. We have also signed an MOU with India just last year to facilitate our semiconductor companies’ participation. We asked the Indians what they wanted and hoped for from Singapore. They said, you know, we know it is not just the big foreign companies doing semiconductors. We know that there is a business eco-system. We know that Singapore SMEs are good at that. In fact, we want Singapore SMEs to also participate in building up a maturing Indian semiconductor sector. We have also concluded FTAs – free trade agreements – in Latin America through the MERCOSUR trade bloc, which is Argentina, Brazil, Paraguay, Uruguay, the Pacific Alliance, which is Chile, Peru, Colombia, Mexico, and in the Middle East, the Gulf Cooperation Council. And I want to remind you of our strategic partnership with the Kingdom of Saudi Arabia, (and) our comprehensive partnership with the UAE. All these are opportunities. We have done the travelling, we have done the signatures. But to be honest with you, we need the businesses to go there, knock on the open doors, establish the partnerships and the networks. The point I am making is there is still a lot of business and you are welcome. You are trusted. They want to meet you. It is not me. They want to meet; they actually want to meet you. Because that is where the real business is being made. The decisions and the opportunities.

The third area is in technology and innovation. You would have heard, Prime Minister Wong’s speech during the National Day Rally. We want our SMEs to be able to leverage and access the latest technologies. We may not invent artificial intelligence here, but we should be a country where the application of artificial intelligence through all our businesses, through our government services, through our schools, our research institutions – the diffusion of technology should be accelerated, the barriers to entry lowered, and you know that the government will support both from a regulatory (standpoint) as well as providing enterprise support for you to make use of technology to enhance your business. But it is not just about buying new computers or paying for subscriptions. Really, it is about upskilling your labour, upskilling your workers, and we need you to work with government and the trade unions to train and uplift the capabilities of your workers.

To give you an example of a business that is coping with disruption – we have this company called Marco Polo Marine. It used to provide offshore support and marine logistics to the oil and gas sector. But you all know the oil and gas sector can also be very volatile. And Marco Polo Marine is now providing specialised vessels for the growing wind and energy sector. Walking – keep walking in pace with the industrial and technological changes. Another example, we all know about cranes used in construction. But even if construction of buildings and residential units slow down, do not forget there is also a boom in wind – wind turbines on shore, offshore, renewable energy. Even nuclear facilities need to be built. Need buildings, need specialised skills. The point is to be able to pivot, to be able to transform your businesses to take advantage of these technological changes. Another example – we have got a company like GetGo Technologies which is a car sharing platform launched in 2021. It has grown very rapidly in a short span of time. GetGo has capitalised on new consumer trends because drivers want flexibility over car ownership. It has forged alliances across the mobility ecosystem to electrify the fleet, expand its footprint and to integrate seamlessly into Singapore’s broader vision.

So I am here basically to reaffirm that the government will stand shoulder-to-shoulder with all the SMEs. We will work very closely with the Singapore Chinese Chamber of Commerce and Industry under Mr Koh’s leadership; we will celebrate your 120^th anniversary with great joy. But also to remind you, and that is why I started by the reminder that when our great grandparents came here, it was a time of turbulence as it is today; it was a time of political and technological change as it is today. It was time, when sometimes the Chinese diaspora was welcomed; sometimes we also had to face tensions. My point is, we have been through all this before. But so long as the Chamber remembers its role, that SMEs, and especially in the (Singapore) Chinese Chamber of Commerce and Industry also work together, also share, and are also part of a multiracial, multi-cultural Southeast Asia, we can keep doing this. Then, as Mr Koh says, we can look forward to success – collective success – in the future. I wish you all the very best. I wish you a very profitable time together and good health and success and peace for everyone. Thank you very much.         

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