(SINGAPORE) Though Dorothy Seet caught the eye of the media at the Singapore Business Awards press conference yesterday - she left her young daughters in her husband's charge while she works overseas - reporters were just as curious to hear from her about the problems exporters in China are facing. 'A lot of small exporters have closed down,' said Ms Seet.
She said a triple whammy - the yuan appreciation against the US dollar, the lower tax export rebate and higher labour cost - has made it very hard to operate in China, particularly for textile exporters.
'When the US dollar depreciates against the yuan, it is very hard to survive as margins are very slim,' said Ms Seet, chief executive of Beijing Smart Garments.
Supportive family: Ms Seet poses for a picture with her proud husband Michael Ng and daughters Vivien and Charlyn at the Singapore Business Awards press conference (main head picture). She is only the second woman to clinch a trophy in the 23-year history of the awards
The US dollar has depreciated about 8 per cent against the yuan from a year ago.
In addition, Beijing has reduced the 13 per cent rebate tax for exporters to 9 per cent and is looking to further slash it as part of measures to shrink the US trade deficit with China, she said.
Then there is the Labour Law Reform which imposes a minimum wage for workers plus other regulations which has increased wage costs at least 12-15 per cent, said Ms Seet.
The tough measures are hard especially on contract manufacturers, she said. 'We have to value add, like offer designs,' said Ms Seet who is also the chairman of the Singapore Chamber of Commerce and Industry in China.
For Beijing Smart Garments, it has also switched to selling in euros to its customers in Europe and in Australian dollars to its clients Down Under. On the impact on Singaporean-owned factories operating in China, Ms Seet said they may not be affected as badly as the local exporters. 'Singapore companies are more law abiding, they'll be better cushioned because they have already been complying with regulations,' said Ms Seet, the 2007 winner of the Outstanding Chief Executive (Overseas) award.
Ms Seet is only the second woman to clinch a trophy in the 23-year history of the Singapore Business Awards. Olivia Lum of Hyflux won the Businessperson of the Year award in 2005.
Working in Beijing since 1995, Ms Seet said it was a very difficult decision then as her two daughters were young - aged five and 14.
In addition, she knew no one and was not familiar with the culture. 'China was not what it is now and it was very foreign to me, especially when Chinese was not a language I was fluent in. I had no friends, nor colleagues whom I knew well. The main consideration was for the family business to survive,' said Ms Seet.
Her proud husband Michael Ng and daughters Vivien and Charlyn were at yesterday's Singapore Business Awards press conference.
'Honestly I never realised she was that capable,' said Mr Ng. He said the decision to send his wife to Beijing in 1994 was because of her experience in running the family's retail outlets in Singapore, China Silk House, which subsequently closed down.
Ms Seet is now looking forward to list Beijing Smart Garments in Singapore in two to three years' time.
The company is a joint venture between Ms Seet's family and the Shunyi Municipal Government.
It has more than 2,800 staff producing some 1.5 million suits a year and exporting to more than 15 countries. It also operates about 100 retail outlets in China. Last year, Beijing Smart Garments posted sales of 400 million yuan (S$78.7 million) and profits of 17 million yuan.
