The past few years have seen massive increases and sudden losses in both the values of businesses and the prosperity of people, on a global scale. Prosperity and optimism has been replaced with the fear of unemployment, salary cuts, loss of business and bankruptcy. As the financial meltdown plays out, a shortage of capital is affecting us all. These are times of turmoil, and patience and perseverance are essential to endure and overcome in these times.

The need of the hour is to work hard to survive the present and to lay the foundations for a better future for our business community, bearing in mind that the current global economic crisis is likely to last into 2010. Having observed past economic cycles, I have learnt that these tough times can be opportunities for re-positioning, investing and - most importantly - improving ourselves. As our EDC enters its third year of operation, we need to reflect on our past successes, adapt to current issues and realign our future aspirations.

It is important to remember that old SME business models are under terminal strain at the moment. This is especially true in the industries favoured by Malay Muslim businesses. There have been structural changes in the global economy that significantly affect the Singapore economy. This requires us to relook and rethink the way we do business and manage our finances. In all sectors, we are likely to see an increasing rate of business failure, driven by declining sales volume and reduced profit margins, but those businesses that take the opportunity to drive down costs by merger or partnership arrangements will come out stronger and more sustainable.

EDC@SMCCI’s vision is to be a leading EDC, with regional best practices in micro and SME development programmes and services by the end of 2011. This is possible because of our strong support for and ability to facilitate the transformation of Malay/Muslim businesses, in particular, into sustainable, scalable and profitable businesses. In challenging times, the EDC plays an even more critical role to ensure that businesses work together, engage stakeholders - including the wider community – positively, and facilitate business sustainability.

1. Consolidate and streamline EDC activities to deliver our core mission

2. Set and stick to a realistic budget

3. Control costs and deliver value

4. Develop the EDC team to deliver relevant and high quality programmes

5. Focus on the 5Is:

   1. Internalisation

   2. Innovation

   3. Integration

   4. Investment

   5. Internationalisation

To achieve the vision, I am pleased to announce the appointment of Vector Scorecard (Asia-Pacific) (“VSAPAC”), a regional financial management agency, to manage the centre with effect from 2 December 2008. This appointment is expected to bring significant benefits to the Malay-Muslim business community over the next 2 years. These include strengthening MMBs in core areas such as financial management, dealing with competition and business innovation. In view of the current challenging business environment, EDC - with the help of VSAPAC - will especially focus on capital-raising and market access strategies. There will be renewed emphasis on mentoring MMBs to survive and thrive in the unfolding financial crisis.

With these new priorities and a strong management team, we now have a clear, methodical plan to raise the competence of MMBs - particularly in financial areas - to compete on a level playing field with other businesses. While the challenges ahead are significant, our strategic framework will ensure that every step is implemented carefully, and measured to ensure that we remain on track.

On behalf of EDC@SMCCI, we invite you to be part of the transformation process that will bring greater good to the community.

Sincerely
Mr. Akbar Kader
EDC@SMCCI Chairman