By Alvin Foo

TWO years ago, CEI Contract Manufacturing was seen simply as a traditional electronics firm battling for its place in a crowded marketplace.

But it has since taken important steps to distinguish itself from the pack.

It has developed new expertise and is able to make higher-end electro-optics components - resulting in an improvement of its reputation and a likely rise in revenue. This was possible after a researcher from the Agency for Science, Technology and Research (A*Star) was seconded to the firm as part of a government programme to boost innovation at small and medium-sized enterprises (SMEs) to expand their businesses.

'The researcher was instrumental in the transfer of knowledge...this has moved us up the value chain,' said CEI's managing director Tan Ka Huat.

CEI is one of 251 SMEs here to have gained from the Growing Enterprises with Technology Upgrade (GET-Up) programme, which was launched in 2003 by A*Star, the Economic Development Board, International Enterprise Singapore, and Spring Singapore.

A new study has now found that SMEs which were part of this scheme were twice as bullish over revenue and employment growth prospects in the next three years as those which were not.

The study, done by the NUS Entrepreneurship Centre, surveyed 100 companies on the scheme and 100 other firms from last December to February this year.

'The findings were extremely positive,' said Minister of State for Trade and Industry and Manpower Lee Yi Shyan at a seminar yesterday. 'GET-Up participants have reported better business and revenue projections.'

The study found that participating companies expect revenue to grow 15 per cent and employment to rise 18 per cent.

Those not on the scheme were far less optimistic, projecting 6 per cent revenue growth and a 7 per cent employment rise.

Firms taking part generally spent more on research and development - about 3 per cent to 4.9 per cent of sales - than non-participants which spent 1 per cent to 2.9 per cent.

Those on the scheme also saw a greater proportion of new or improved goods sold, with 16 per cent to 20 per cent of sales from such products as opposed to 11 per cent to 15 per cent for non-participants.

The GET-Up programme has a facility sharing component, and other schemes in which researchers help SMEs develop long-term plans or give in-depth technical consultancy. It also includes a secondment scheme, in which Spring Singapore funds 70 per cent of the researcher's salary, with the SME paying the rest.

A total of 208 researchers have been seconded to 138 companies, with 23 of them joining these firms after their attachment. Also, 95 per cent of companies said this helped them achieve their overall objectives, the survey showed.

Last month, SMEs were also handed a research and development boost when Spring Singapore launched a $2.25 million Innovation Voucher Scheme to give firms some initial funding to let them tap various pools of brainpower islandwide.

Mr Lee said: 'Even in the current economic climate, it is important that our SMEs continue to invest in R&D and upgrade their technical capabilities.'

This article was first published in The Straits Times.