Companies that Have Tapped on Lean Enterprise Development Scheme

Mr Zainal Sapari asked the Minister for Manpower (a) what is the number of companies that have tapped on the Lean Enterprise Development Scheme (LEDS) since it started; (b) how do these companies perform in terms of achieving the outcomes of becoming more manpower lean, having a stronger Singaporean Core and a better quality workforce; (c) how are the outcomes measured and monitored to determine the success of the scheme; and (d) which industry or sector has been most impacted by LEDS.

The Lean Enterprise Development (LED) scheme, started in October 2015, is an umbrella scheme for enterprises to access Government support for productivity improvement or manpower-lean initiatives, through grants offered by Workforce Singapore (WSG), Enterprise Singapore (ESG) and other sectoral development agencies, as well as the National Trades Union Congress' (NTUC's) Employment and Employability Institute.

The LED scheme aims to make transformation and innovation more pervasive among enterprises of different sizes and across different sectors. We have made good progress so far. As at September 2018, over 11,000 enterprises have tapped on the LED Scheme.

Usage of the LED scheme is broad-based. The top three sectors – Construction, Food Services, and Wholesale Trade – account for about a third of the enterprises which have benefited from the scheme. The others come from a diverse range of industries and include many traditional businesses.

We do not use a single metric to assess the impact of LED projects. This is because the LED scheme supports a range of objectives and outcomes, depending on the transformation needs of enterprises. For example, enterprises that are just starting their productivity journey may receive funding support to procure ready-to-go productivity solutions identified by economic agencies. Enterprises looking to build deeper capabilities may partner agencies to develop more customised technology solutions or business process improvements. Others may receive support to redesign jobs, for example, to ensure that older workers can continue to be productively employed.

Together with other initiatives to promote industry and business transformation, the LED scheme has contributed to Singapore’s productivity growth of 2.6% per annum over the last two years, and real income growth of 4% per annum and 5.4% per annum at the median and 20th percentile levels respectively.

We will continue to work with industries, industry associations and enterprises to grow businesses in a manpower-lean manner, which would, in turn, help create better employment outcomes for Singaporeans.