S'pore firms take steps to boost productivity

Its results, out yesterday, found that 84 per cent of small and medium-sized enterprises (SMEs) have put in place measures to lift output, including sending staff for training or automating their processes.

“This shows that SMEs have already accepted that increasing productivity is the way to go, and are taking the necessary steps,” said Thomas Chua, president of the Singapore Chinese Chamber of Commerce and Industry (SCCCI), which carried out the poll.

The survey findings were released during SCCCI’s SME Conference. The survey found that of the 516 firms polled, 57 per cent were tapping government-assistance schemes to boost productivity, up from 50 per cent last year.

The bulk of the increase came from the Productivity and Innovation Credit scheme, which gives firms greater tax benefits.

Fewer firms are using training subsidies and grants from the Singapore Workforce Development Agency.

Association of Small and Medium Enterprises president Chan Chong Beng was surprised by the findings. He noted that while 84 per cent of firms took steps to boost productivity, only 57 per cent benefited from government schemes. “We need to understand why not all firms tapped the government schemes,” he said.

But Senior Minister of State, for Trade and Industry and for National Development Lee Yi Shyan saw the dip in training subsidies differently. Speaking on the sidelines of the conference, Lee said: “When the labour market is very tight, understandably most workers are required on the job ... Employers are less willing to send workers for training.”

To help firms raise productivity and restructure their businesses, the SCCCI yesterday signed an agreement with the Taiwan-based China Productivity Centre to conduct workshops and advise local firms on improving productivity.

Dr Chang Bao Cheng, the centre’s general manager, spoke at the conference on ways to lift productivity.

The SCCCI also signed a memorandum of understanding with the Singapore Institute of Manufacturing Technology (SIMTech) to train about 40 productivity managers by the end of the year. SIMTech is a research institute of the Agency for Science, Technology and Research (A*Star).

At the conference, Lee said local SMEs could learn from Switzerland. The country has transformed itself into one of the richest in Europe and is famous for its chocolates, watches and pharmaceuticals, all within about 100 years because its firms focused on value creation, he said.

Besides the conference, which attracted about 4,000 participants, the SCCCI held an exhibition at Suntec City for banks and IT companies to showcase their products and services. The free exhibition and the conference both end today.