By Francis Chan

BUSINESS associations and chambers can now tap a multimillion-dollar government scheme to help members deal with the challenging times - and to prepare for the upturn ahead.

Trade and Industry Minister Lim Hng Kiang said the Local Enterprise and Association Development (Lead) programme has been extended to cover non-industry specific business organisations.

Set up in 2005, Lead initially covered only industry bodies, which meant that organisations like the Singapore Malay Chamber of Commerce and Industry

(SMCCI) were left out. But such organisations can now seek funding from the $70 million available under the programme.

Lead funds can be used for industry development projects such as business missions and trade fairs abroad, reverse missions to attract foreign buyers, business capability and manpower development.

Mr Lim was speaking at yesterday's Lead forum, jointly organised by Spring Singapore and International Enterprise (IE) Singapore, at the Grand Copthorne Waterfront Hotel.

He called on businesses to focus on boosting productivity to deal with the downturn while preparing for the upturn.

In an appeal with echoes of a major 1980s productivity campaign, Mr Lim urged local firms to drive productivity at a sectoral level. 'As we prepare for the upturn, Singapore's competitiveness needs to be supported via a productivity-driven growth which is applicable to both services and manufacturing sectors,' he said.

With Singapore expected to see only 'modest growth' next year, he said business groups should consider establishing productivity indicators and innovative ways to enhance work processes.

'Beyond setting up training centres and developing skills-specific courses, associations can also explore enhancing HR management and practices that are unique to their sectors.'

And in an effort to widen support to firms here, Mr Lim announced that more business groups can now tap Lead.

The initiative, introduced to enhance enterprise growth and industry competitiveness, was originally offered only to industry-based associations.

From Feb 1, funding support for eligible expenses was lifted from up to 70 per cent to 80 per cent under the wider $200 million Business Upgrading Initiatives for Long-Term Development (Build) scheme.

Build, a separate scheme, was rolled out early this year to help firms get through the recent recession.

From today, non-industry specific bodies such as the Singapore Manufacturers' Federation (SMa) can also use Lead to help members cope with the slowdown.

The SMCCI said the funding support from Lead will go a long way towards helping it provide business consultancy services to its members.

'Our members are now able to get access to expertise and consultancy that they normally do not get, so in that sense they will now be able to diagnose the operations of their companies,' said Mr Abdul Rohim Sarip, the SMCCI president.

Aside from SMCCI and SMa, two more industry organisations - the Franchising and Licensing Association (FLA) and the Singapore Water Association - will also benefit from the programme.

FLA chairman Douglas Foo welcomed the enhancements, saying that Lead will help give FLA members a head start when expanding abroad.

The four new organisations will join 18 other industry groups already embarking on projects, worth about $85 million, aimed at boosting sectoral performance.

About 3,000 firms will be able to benefit from the projects when they are completed.

The projects by the first 18 industry associations are expected to generate about $1.5 billion of value-add to the economy and $3.5 billion in revenue, and possibly create 9,000 new jobs here, said Mr Lim.

Organisations like SMCCI and FLA can receive funding support of up to 80 per cent of project costs if they organise industrywide projects for members.

IE Singapore said overseas expansion has been a consistent theme in the proposals from the 18 associations.

More than 70 per cent of those projects supported by Lead come with internationalisation components. About 1,200 firms have benefited from market access initiatives. These firms participated in more than 150 trade fairs and business missions in the US, Middle East, Europe, China, India and South-east Asia.

This article was first published in The Straits Times.