Wanted – the Genghis Khans of SMEs
By Anna Teo
December 1, 2006
Business Times
If Philip Yeo had his way, he would continue his mission at the Agency for Science, Technology and Research (A*Star) – especially to fuel the pipeline of Singaporean PhDs – for another two years.
But he was told that he is needed to see to Singapore’s small and medium enterprises (SMEs). So come April 2007 when he takes the helm at the Standards, Productivity and Innovation Board (Spring) Singapore, one can expect in the SME scene the same drive and derring-do that the 60-year-old public service stalwart has come to be known for.
Indeed, SMEs, be warned. Yesterday, in his first public comments on his latest move since it was announced six weeks ago, Mr Yeo made clear what he would bring in his new role as Spring chairman: a strong focus on the 'people’ part of the picture, as he has in leading Singapore’s science drive.
Plus, at Spring, ‘you will see me giving much emphasis to science’, he said. ‘Because I want to look for new technologies.’
But fundamentally, ‘for our SMEs, the only way to grow, it’s not just money, markets and know-how, but people who can lead and take the company to the next level’, he told BT. ‘And that’s the greatest challenge today – it’s leadership. Where are the future leaders of these small companies?’
In his view, the key to helping SMEs is honing their management skills. ‘The rest is all implementation. Open new markets? There’s no shortage of markets, the markets are out there. But unless you got a Genghis Khan in the SMEs, or Attila the Hun, no markets will be captured,’ he declared.
Which is why the Spring job is an important one, said the man who – after nearly six years at A*Star – clearly remains strongly fervent about what is needed to ramp up Singapore’s R&D capabilities. Just in September, Harvard Business School gave him its Alumni Achievement Award 2006, describing him as an ‘energetic engineer of Singapore's economy’ and a ‘passionate proponent of world-class research and development.’
Asked why he is leaving A*Star, Mr Yeo said: ‘SMEs are important. They need help. It’s a political need as well as an economic necessity. So I said OK.’
‘There are 130,000 SMEs. We can’t help everyone, but we will try to help as many as we can. Government cannot spoon-feed them. We may give more support, more help, but the key is to train a new breed of managers and CEOs.’
As to what plans he has up his sleeves, he hinted, if half in jest: ‘The moment I take Spring, it will not be Spring again.’
‘What’s my famous trademark? One, I change the name. Two, I change the logo. Three, I change the location.’
When he became chairman of the Economic Development Board in 1986, he updated its logo and redefined its mission to investment promotion. In 2001, he moved on to the National Science and Technology Board (NSTB), which, of course, became A*Star. ‘When I took over NSTB, I stayed on in Raffles City (his EDB office), built this building (Biopolis), then I moved,’ he said, chuckling.
But exactly what makeover changes, if any, lie ahead for Spring, he did not say. What he has done is meet with some Spring staff, among whom are former EDB officers, for briefings, adding: 'I’m meeting up with the SME guys in January.’
‘First, I want to define the size of the problem – how many SMEs are there?’
‘Secondly, how many souls can I save? How many people can you give hope to? We can only give hope to those that want to grow. I told Spring: your job is to train future managers. We must find a way to train people.’
‘The other thing I want to do, as (Harvard professor) Michael Porter said, we need to create new enterprises, with know-how and technology. Therefore we need to have more emphasis on tech startups.’
He calls this new breed of innovative technology firms Technology Growth-oriented Enterprises, or T-GEs.
‘T-GEs are innovative SMEs in new technology areas, or SMEs which may be in traditional services areas but eager to leverage on new technologies to innovate and transform their businesses. Spring will work with EDB, A*Star, IE Singapore and the local universities and polytechnics to fulfill its mission.’
In any case, he has already been indirectly involved with SMEs even since EDB days, with schemes like the Local Industry Upgrading Programme, he pointed out.
And in 2003, A*Star launched Growing Enterprises with Technology Upgrade (GET-UP) to render Singapore’s tech-startups more competitive globally.
Mr Yeo said: ‘I will make the time and effort to get to know and to understand the needs and aspirations of our SME entrepreneurs, as I have got acquainted with and befriended many of the world’s leading scientists in the last six years, and persuaded them to help A*Star achieve its objectives.’
So while his focus shifts to SMEs, he will remain a staunch champion of science. ‘Science is the necessary means to economic and social ends, but it comes with a far horizon. A far horizon is very challenging. It creates high barriers to entry. In any economic activity, the higher the barrier to entry, the bigger the opportunity to create a successful niche.’
The efforts to build up science here must continue unabated, he said. ‘We must have a Singaporean R&D community confident in its creative strength, and eager to compete globally. A culture of science counts.’
Of his work at A*Star, he counts as most important and fulfilling the build-up of a Singaporean PhD pipeline, from a shocking 'paucity’ when he first came on board.
A*Star has now more than 600 PhD scholars. ‘Of all my functions at A*Star, setting up the PhD pipeline, doing the final selection of scholars, staying in touch with them, monitoring their progress, learning about their hopes and aspirations, sensing their passion for science and watching them mature is the most fulfilling.’
‘For they are all young Singaporeans or Singaporeans-to-be, and they will help secure our future as a science-oriented nation.’