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Release No.: 11/MAY 07-1/95/05/08

SPEECH BY RADM (NS) TEO CHEE HEAN, ACTING MINISTER FOR THE ENVIRONMENT AND

SENIOR MINISTER OF STATE FOR DEFENCE, AND CHAIRMAN, NATIONAL INFORMATION TECHNOLOGY COMMITTEE,

AT THE IPC CORPORATION LTD'S

I am 10th Anniversary . emerging group of companies (MN'Cs).

10TH ANNIVERSARY CELEBRATION DINNER AT SHANGRI-LA HOTEL, ISLAND BALLROOM

ON MONDAY, 8 MAY 1995 AT 7.30 PM

pleased to celebrate with you IPC Corporation ' s This event marks IPC as one of the leading members of an

companies in Singapore: our Singapore multi-national

The story of IPC's growth is well-known . under its original name , Essex Electric , IPC has recognition as a fast growing company in personal (POS) terminals, multimedia entertainment systems supplies businesses .

First established in 1985 now earned international computers, Point-of-Sale and related peripheral

In 1994 , IPC crossed the S$1 billion mark when its worldwide revenue exceeded S$1.3 billion , recording an equally impressive profit growth. IPC' s second plant in Singapore will be completed by the end of this year. This new building will allow the company to expand its Printed Circuit Board (PCB) assembly capacity by some 400 per cent . IPC will also be able to expand its research and development (R&D) base beyond the 40 R&D engineers it now employs in Singapore. I am pleased that IPC is rapidly expanding its R&D , manufacturing , sales and distribution network across the Americas, Europe and Asia Pacific , with new products , services and markets.

IPC is a good example of the kind of Singapore MN'C we need to develop for our long-term economic growth . Increasingly, our future prosperity will depend upon creating and harnessing new knowledge. We need a new generation of techno-entrepreneurs in Singapore to spearhead this drive. But the path to achieving this status is not easy, as Patrick Ngiam will tell you. The Government recognises the challenges and is committed to supporting our local enterprises in their quest towards this goal. We want more companies to emulate IPC' s success and the Government is prepared to help these companies at each stage of their development .

First, we will continue to develop the 60,000 plus small and medium sized enterprises or SMEs . We will utilise and enhance the existing comprehensive multi-agency support programmes to assist these SMEs in all major facets of their operations. As an exampl e, IPC's predecessor , Essex Electric Pte Ltd , benefited from Economic Devel opment Board ' s (EDB) Local Enterprise Finance Scheme with fixed-rate loans that enabled the then small company to finance its production machinery and equipment. The company has also been awarded Investment Allowance and Pioneer Certificates.

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This broad-based effort will help companies with strong growth potential to become Promising Local Enterprises or PLEs. The second phase of this Programme seeks to nurture such companies into large entities capable of playing a bigger role in our economy. The EDB has set a target to nurture 100 PLEs each with an annual revenue of at least S$100 min the next 10 years .

Let me elaborate on what we aim to achieve with these PLEs. A model PLE should have one or more of the following characteristics :

(a) A dynami c and growth-oriented management;

(b) A range of core competencies and capabilities . These include strong manufacturing technologies, R&D, innovative and strategic product management, timely and fully-serviced distribution and logistics, dedicated supplier development efforts, asset management and manpower development;

(c) A management that recognises that there are more opportunities and challenges in the world market than can be met from a single company's resources. A company which is open-minded, internationally oriented and prepared to foster and maintain successful international alliances to achieve technology, manufacturing and marketing synergy; and which is prepared to initiate alliances with other local enterprises to achieve a critical mass for better business performance;

(d) A readiness to regionalise to secure new markets, additional resources and access new technologies; and

(e) At the same time, the PLE should root its operations in Singapore. It must focus on Singapore to develop new capabilities, upgrade manufacturing operations, and manage its regional businesses.

On its part , the Government, through EDB and associated agencies, will pay close attention to companies with these qualities and provide them with maximum support. We will work with them to develop strategic growth plans, help in business development, introduce potential partners , and facilitate alliances to access new markets and technologies. Attractive loans, grants and tax incentives will also be applied to encourage these companies to grow rapidly. When necessary, EDB is prepared to invest in these PLEs under the $1 Billion Cluster Development Fund to provide additional capital for expansion and strategic projects.

Using IPC as an example again of these schemes, the National Science and Technology Board (NSTB) has provided a grant to IPC under the Research Incentive Scheme for Companies or RISC for its five-year R&D programme to develop core competencies in human interface, signal processing , wireless communication and multi-processor technologies. This would enable the development of high-end, innovative products for computer, telecommunications and cons umer applications. EDB' s venture capital fund has also co-invested with IPC to establish a company that focuses on the development and manufacture of products such as multimedia, communications and other computer peripherals.

With such support in place, we hope more PLEs would emerge to achieve the $100 million revenue goal and embark on the third phase towards

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achieving a strong position in the regional and global markets and become a Singapore MNC like IPC.

However, even with these development programmes and the ability of our local entrepreneurs' ability to discern and grasp the numerous business opportunities emerging in the Asia Pacific region and the rest of the world,

·there are no guaranteed returns nor short cuts to success . Nor can a successful company rest on its laurels in this competitive and fast changing world. The journey of each SME towards becoming a PLE and, ultimately, a successful Singapore MNC will still be driven by the age-old virtues of dedication, determination and drive by their founders, management and staff . Vision, timing, daring and the ability to create and seize opportunities are also required. I am confident that many more local companies will live up to this challenge and reap the rewards of their enterprise, bringing greater prosperity and progress for themselves and for Singapore.

On this note , I would like to congratulate IPC Corporation on its achievements in its first 10 years. Its success is a strong inspiration and model to many of our local enterprises . I wish the staff and management of IPC Corporation Ltd every success in the years ahead .

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Release

KEYNOTE ADDRESS BY SINGAPORE PRIME MINISTER GOH CHO AT THE ASIA SOCIETY INTERNATIONAL CORPORATE CON

IN BEIJING ON SATURDAY, 13 MAY 1995

LOPMENTS THE CHINA FACTOR IN THE ECONOMY

I Introduction

It is common knowled that the sun is now rising in the east . However, it is not a red sun, ut the blazing sun of intense capitalism.

2 Deng Xiaoping aunched China's economic revolution in 1978 with his modernize the Chinese economy. The impact of this

beyond China to other parts of Asia such as Indonesia, further afield to countries like Australia and the United

'open door ' policy policy reverberate Vietnam, India, nd States.

3 For China , it is an ideological revolution as much as an economic revol ion, even if the free market is acceptable only with Chinese ch acteristics. For several other countries in Asia, economic competition in

free market is also a revelation. For several decades, Asian leaders closed