Upload
casechallenge
View
332
Download
2
Embed Size (px)
Citation preview
Frost and Sullivan
Case Challenge 2013
Han Wee. Jonathan. Marc.National University of Singapore
DID YOU KNOW?
The GDP per capita of Panacea stands at
US$1050 – in the same bracket as
Vietnam, India and Kenya
In 2011, agriculture and primary
industries accounted for 55% of
Panacea’s GDP
Local SMEs contributed
only 25% of Panacea
GDP
IS THIS
GOOD
ENOUGH?
The Next East Asian
Miracle
Strengths
•Large labour force
•Resource abundant
Weaknesses
•Lack of Skilled Labour
•Lack of innovation
•Weak SME Sector (lack
of entrepreneurship)
Opportunities
•Free Trade
Agreements
established
•FDIs in Service
sectors
Threats
•Possible loss in
comparative
advantage in
agriculture and
primary industries
Business
Creation
Restructuring
the Economy
Manpower
Initiatives
Research and
Development
' 11 Jan2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ' 21
10th Year Review of Revamped Education Focus
2021
Commencement of RI-industry Tie-ups2018
SMEDA - SME Foreign Placement Programme2018
Angel Foundation National Campaign2017
Opening of RI Hub2017
Start SMEDA SME-Consultancy Collaboration2016
Mass implementation of Revamped Education Focus 2015
Unveiling of SME Development Agency (SMEDA)2014
Customization of SEZ2012
Start Annual Re-skilling initiatives2012
Formulate SME assistance scheme2011
Identify Niche Areas2011
Pass IP Rights Bill
2011
Set-up Education Review Committee2011
Global Recruitment of R&D Talent
2016 - 2017
Develop infrastructure for RI Hub 2013 - 2017
Pilot of Revamped Education Focus
2013 - 2015
Redevelopment of SEZs 2012 - 2017
Service Sector Training Incentive 2012 - 2015 Overview of timeline
Overview of Timeline
Overseas Missions2012
Business information
database to include in-
depth information of >80%
of all key economic sectors
by 2030
Actors Involved
-Ministry of Trade and
Investment
-Business Consulting
Groups
-Private-sector
Entrepreneurs
Resources
-Organisational Set-up costs US$3 million
-Communication infrastructure for SME business
consultation US$1 million
-Cross functional teams from various ministries
-Over 200 business consultants
Case Study:
-Spring Singapore
- StartUp Britain, with
StartUp Loans
- C.f. Structural Funds by
European Commission
' 11 Jan2011
2012 2013 2014 2015 2016 2017 2018 2019 2020 ' 21
Business Creation
SME Development Agency (SMEDA)
Formulate SME assistance scheme
2011
Unveiling of SME Development Agency (SMEDA)2014
Start SMEDA SME-Consultancy Collaboration
2016
Angel Foundation National Campaign
2017
SMEDA – SME Foreign Placement Programme
2018
Problems Tackled
•Difficulties to start a business
•Bureaucratic Inefficiencies
•Difficult to penetrate foreign
markets
NPF Objectives met
• Increase contribution of
services to total GDP and
exports
Cabinet Secretary KPIs
•Positive economic impact
•Positive social impact
•Business creation
•Minimal budget impact
Business CreationSME contribution to GDP
from 36.2% in 2011
to 40% by 2030
Business Info Database Foreign Placement Programme
SME-Consultancy Collaboration
Educational Campaigns
National recognition of Venture capitalists
' 11 Jan2011
2012 2013 2014 2015 2016 2017 2018 2019 2020 ' 21
Business Creation
Angel Foundation National Campaign
Angel Foundation National Campaign
2017
Problems Tackled
•Lack of funds for start-ups
•Low rate of business
formation
NPF Objectives met
•Developing high end
services sectors (in tandem
with SMEDA-SME Foreign
Placement Programme)
Cabinet Secretary KPIs
•Positive economic impact
•Business creation
•Increasing innovative start-
ups
1) By 2030, angel funds to
contribute to 20% of
investment in all start-ups
per year
2) High public contribution
to start-up funds
Actors Involved
-Angel investors
-Government bodies
-Members of public
Resources
-Setting up of committee
-Funding to constantly recognize contributions
to angel foundationsCase Study:
-Angel funds in Silicon Valley
amount to 39% of the
$7.5Billion throughout Q2
2011
-Angel Investors Tax
Deduction (AITD) Scheme in
Singapore Angel investing
scene more active
Annual compound increase for business startups to
reach 5.7% by 2030
Problems Tackled
•Poor Knowledge of
mechanized production
techniques
•Current economic focus on
low-value goods
NPF Objectives met
•Develop high tech
manufacturing sector
• Influence Total Factor
Productivity
Cabinet Secretary KPIs
•Positive economic impact
•Positive social impact
• Innovation
•Business creation
' 11 Jan2011
2012 2013 2014 2015 2016 2017 2018 2019 2020 ' 21
Restructuring the Economy
Restructuring the Economy2012 - 2017Develop infrastructure for
Niche Industries
2012 - 2015Service Sector
Training Incentive
Identify Niche Areas2011
Overseas mission
2012
Complete redevelopment of
SEZs with appropriate
industries and infrastructure
in 5 years’ time
Actors Involved
Ministry of Trade and
Investment
- Ministry of Finance
- Special Economic Zone
Authorities
Resources
-Organisational and travel/miscellaneous
costs US$2 million
-Existing SEZs authorities to facilitate the
shift in focus
Case Study:
-Overseas missions:
Economic Development
Board (Singapore)
- Successful SEZs in
France, Germany, Ireland
and USA for the past 50
years
- Export processing zone
model (India)
Customization of SEZs
2012
FDI net inflow as % of GDP
from 1.8% in 2011
to 6% by 2030
Export of services as % of total exports
from 12.6% in 2011
to 25% by 2030
Customization of SEZs
' 11 Jan2011
2012 2013 2014 2015 2016 2017 2018 2019 2020 ' 21
Reskilling Initiatives ManpowerInitiatives
Start Annual Reskilling Initiatives2012
Incentive Program for skills
upgrading expenditure
Data-base of
Potential Trainees
Encourage growth of
Private Training Institutes
Problems Tackled
•Structural unemployment
•Stagnation of economy in
lower-value sectors
NPF Objectives met
• Increase contribution of
services to total GDP and
exports
• Develops the high-tech
manufacturing sector
Cabinet Secretary KPIs
•Positive economic impact
•Positive social impact
•Business creation
•Minimal budget impact
Retrain 5% of workers in
low value sectors (such as
agriculture, commodities)
every year
Actors Involved
-Ministry of
Manpower/Labour
-Private firms/employers
-Private training institutes
Resources
-Govt to match 20% of every firm’s
spending on approved upgrading
schemes forecasted US$1 Bn
-Department to oversee programmeCase Study:
-Workforce Development
Agency (Singapore)
-UK total private training
expenditure £$50 bn
Unemployment figures
from 8.3% in 2011
to 2.3% by 2030
Services as % of GDP
from 25% in 2011
to 65% by 2030
Strong IP protectionEase of filing for
global patents
' 11 Jan2011
2012 2013 2014 2015 2016 2017 2018 2019 2020 ' 21
Pass Bill that strengthens IP Rights2011
Opening of RI Hub2017
Commencement of RI-industry Tie-ups2018
Global Recruitment of R&D Talent
2016 - 2017
Develop infrastructure for RI Hub
2013 - 2017
Research & Development
Pass Bill that strengthens IP Rights
Problems Tackled
•Aversion to invest in R&D
due to fears of
Intellectual property theft
NPF Objectives met
•Develop high-end
manufacturing and
service sectors
Cabinet Secretary KPIs
•Positive impact on GDP,
employment and
productivity
•Innovation
•High-tech exports
25,000 patents filed
per year (based on
India’s figures)
Actors Involved
-Ministry of Trade
and Industry
-Firms
-Law Enforcers
Resources
- Review Committee on current
IP Rights
Case Study:
Singapore – World
Bank’s 2010 Ease of
doing Business report
Research and DevelopmentTotal Factor Productivity to
increase by 5% in
each decade until 2030
Develop state
of the art
infrastructure
Scholarships
for research
talents
Fiscal
incentives
and tariffs
exemption
' 11 Jan2011
2012 2013 2014 2015 2016 2017 2018 2019 2020 ' 21
Opening of RI Hub2017
Commencement of RI-industry Tie-ups2018
Research & Development
Develop infrastructure for RI Hub
Global Recruitment of R&D Talent
Problems Tackled
• Inertia of R&D Program
•Lack of synergy with
commercial industries
NPF Objectives met
•Develop high-end
manufacturing and service
sectors
• Increase Total Factor
Productivity
Cabinet Secretary KPIs
•Positive impact on
GDP, employment and
productivity
• Innovation
1) 80% of occupancy rate of each
phase (by 10 years after
completion)
2) 10% commercialisation success
rate of RI-industry tie-ups
Actors Involved
-Private developers
- Firms
- Research Institutes
Resources
- Design and construction of Hub and
Infrastructure
(5 phases x US$1.2 billion = US$6 billion)
- Incentives to attract research talents
Case Study:
- Singapore’s Science Park I
and II 80% occupancy
- L’Oreal Advance Research
Centre in Biopolis to enhance
collaboration
Total Factor Productivity to
increase by 5% in
each decade until 2030
Panacea Renewal Committee Cabinet Secretariat
NGOs
Ministry of Labourand Women Welfare
Ministry of Trade and Investment
Advisory Panel
Steering Committee for IP Rights Act
RI Hub Development Taskforce
SMEDA Management Board
Angel Foundation Board
National Reskilling Board
Panacea Investment Agency
Biz Consultancies
Research Institutes
Angel Investors
Public
Entrepreneurs
Training Institutes
Unskilled Workers
R&D Talent
Firms
SEZ Authorities
Institutional Framework
Infrastructure
US$6.01billion
Incentives
US$3 billion
Organizational cost
US$5 million
Publicity
US$5million
Total CostUS$9.02 billion
+ Operating Costs+ Manpower Costs
+ Bureaucratic Costs
Increase FDI net inflow to from
1.8% of GDP to 6% of GDP
Increase SME contribution to GDP
from36.2% of GDP to 40%
Increase services as % of GDP
from 25% to 65%
Export of services as % of total
exports from 12.6% to 25%
Annual compound increase
for biz startups to reach 5.7%
Unemployment decrease
from 8.3% to 2.3%
Total Factor Productivity to
increase by 5% in each decade
Total BenefitsUS$413.07 billion
+ Increase Biz Startups+ Decrease Unemployment
+ Increase TFP
SMEDASMEs may require
financial assistance
1) Separate
creditworthiness checks
by SMEDA
2) SMEDA to be guarantor
Policy Risk Factor Mitigating Solution
IP Rights BillImpede widespread
implementation of
patented ideas
First Bill need not be
overly strict and
inclusive
Overseas
mission for
wooing FDI
Companies in current trade
partner countries might not
see the immediate benefit of
moving to Panacea
1) Companies set up in our
SEZs are exempt from all
taxes
2) Reduced logistics and
transportation costs
SMEDA
Prioritization
Type of
economic
Impact
Immediacy of
Results
Ease of
Administration
Primary Policies
•From current
state to a pointed
focus on high-
tech production,
service etc.
Secondary Policies
•Honing
innovation and
entrepreneurship
initiatives for the
long-term
Short Term
•SMEDA
•Reskilling
programme
•IP Rights Bill
Mid Term
• Attracting
FDI
• RI Hub
Long Term
•Revamp of
Education
Focus
•Angel
Foundation
National
Campaign
Lower Cost Policies First
• Implement policies
based on existing
resources
•Projects partially
funded by private
sector
Restructuring
the Economy
Manpower
Initiatives
Research and
Development
Business
Creation
A fresh focus on high-value sectors
An emphasis on driving innovation
Novel policies
Focused on the unique conditions in Panacea
Addressing Panacea’s economic targets
Synergetic
Versatile
Questions?
Thank You!