Derrick Goh on role of SMEs in green economy

Singapore as an International Green Hub

I mentioned during the Budget debate that I am glad that the Government continues to encourage SMEs to look towards the longer term to transform and capture opportunities in the new economy, even as they are focused on overcoming near-term challenges.

A key thrust I raised was about helping our SMEs develop Environmental, Social and Governance (ESG) capabilities.

SMEs must adopt greener practices in their service and products, as well as measure, track and report their own carbon footprint. Such measurement is not easy to do but is essential to stay relevant in tomorrow’s green supply chain.

Beyond internal transformation, SMEs should venture out to pursue green prospects. For example, countries in the region are boosting electric vehicle (EV) initiatives. This means opportunities for Singapore SMEs with capital and know-how. to help fellow businesses in the region to accelerate their green transition.

As transformation requires not just a push factor like carbon tax, can MTI further explain the pull factors that will be put in place to encourage and help SMEs in their green transition so that they can stay relevant and capture opportunities in the green economy?

I am glad that existing schemes, such as the Energy Efficiency Grant for the food and retail sectors, are retained. Nonetheless, while these two sectors presumably consume more energy, I hope more SMEs across sectors can be included as all local businesses should be brought onto the green journey. The reality is that SMEs, especially smaller ones, may not know how or where to start.

On this note, can MTI consider expanding the scope of current schemes and grants to spur our SMEs in more sectors?

In a nascent and growing market where standards have yet to achieve global consensus, there are opportunities for Singapore and our businesses to lead in the development of a credible regulatory framework and standards for carbon credits. These efforts will help establish Singapore as a growing and leading green hub, leveraging on and furthering our status as a trusted international centre for professional services.

To this end, can MTI share more on how businesses, including SMEs and the service sector, can play an expanded role, as part of plans to establish Singapore as an international green hub?

Watch the speech here.