SBF to engage more firms, build more public-private partnerships amid global uncertainty

SINGAPORE - Singapore’s apex business chamber will work with more companies here as they tackle the challenges from domestic concerns, global uncertainties and rapid technological changes.

In an exclusive interview with The Straits Times, Singapore Business Federation (SBF) chief executive Kok Ping Soon said the association plans to grow its membership by more than 30 per cent. This will increase its membership, which includes firms in industries such as manufacturing, healthcare and retail trade, from 30,000 to 40,000 local companies by 2030.

He added that SBF plans to engage 25,000 members and non-member companies by the end of the decade, up from the current 13,000, through dialogue sessions with the Government, projects to help firms expand overseas and training courses for workers.

The association also aims to double its partnerships with government agencies and private organisations, from 150 to 300, by 2030.

“We asked ourselves how we can better support local businesses thrive in a ‘business-not-as-usual’ landscape,” Mr Kok said.

“SBF’s key approach is to strengthen our network of partners across both the government and private sectors so that we can mobilise their resources, expertise and networks to to scale our impact to the business community,” he added.

Established in 2002, SBF helps businesses in Singapore address concerns related to trade and investment, labour management and wages.

All companies with paid up capital of $500,000 or more are statutory members of the SBF. Smaller companies with paid up capital of less than $500,000 are able to join as associate members.

When asked about how the operating environment for Singapore’s businesses has changed in the two decades since SBF was established, Mr Kok noted that Singapore’s economy has grown exponentially.

But he also highlighted that there are external uncertainties and internal constraints affecting Singapore’s businesses.

Mr Kok said: “There are two wars right now, a lot of talk about how multiculturalism is breaking down, and the slow economic growth in China… Singapore can’t control these things because we are a small economy, but they are affecting general business conditions.”

On domestic concerns, Mr Kok said that the Republic has several, including demographic challenges, limited land and rising operating costs.

He cited the recent IMD World Competitiveness Report 2024 in which Singapore reclaimed the top spot after three years, noting that this achievement reflects the country’s strong economic policies and government investments.

But Singapore’s ranking in the “prices” sub-indicator in the report dropped from 51 to 62, out of the 67 countries studied, he noted.

“I’m not saying that we have to be No. 1 in terms of being the cheapest country to operate in, but the question is how can we make sure that the cost and value gap is not too far,” he said.

Mr Kok, who was previously chief executive at GovTech where he led the development of digital solutions such as TraceTogether and SafeEntry during the Covid-19 pandemic, also highlighted what he called a “100 times world”, where businesses need to adopt quickly to a fast-moving world. Technology, environmental sustainability and the needs of the workforce are some of the things that are developing rapidly, he noted.

He said: “If you look at how fast things are moving, 18 months ago, nobody knew anything about ChatGPT, but now everybody’s talking about how there’s a general artificial intelligence (AI) capability.

“That whole digitalisation journey that Singapore has been pushing since an e-government was set up will just continue to accelerate, and businesses need to catch up.”

The “desires and inclinations” of Singapore’s workforce have also changed, Mr Kok said, adding that companies need to try and accommodate the requests of workers for things such as hybrid jobs and more work-life balance.

He noted that the requests are related to workers’ needs and there are good societal objectives behind them.

“We would like to believe that more engaged workers will lead to higher productivity in the workforce,” he said.

Mr Kok also emphasised that companies should demonstrate their commitment towards a net-zero transition, as it is a key factor in attracting and retaining employees.

He added: “If a firm here is supporting companies in Europe, note that the European sustainability reporting standards are more stringent, and they require their supply chain to do the reporting… So if a company fails to do it, they will be ‘greened’ out of the supply chain.”

In 2023, SBF organised more than 600 events in its mission to support businesses’ overseas expansion, digitalisation and transformation, and to develop talent.

This year, Mr Kok said the association plans to develop more public-private partnerships to boost business digitalisation, assist companies in their net-zero transition, and enhance their social impact.

The association will also help 1,500 companies on internationalisation plans, and deliver 400 training courses via its training arm – the SBF Business Institute.

Additionally, SBF will also initiate programmes to support companies in cyber security and the usage of AI.

Mr Kok said: “Our vision is to build a globally competitive and sustainable economy, supported by future-ready businesses and impactful trade associations and chambers.

“We will continue to do this by shaping solutions, building partnerships and fostering capabilities for businesses to advance Singapore.”