Challenges in Applying for Assistance under Lean Enterprise Development Scheme

Mr Thomas Chua Kee Seng asked the Minister for Manpower (a) what are the key challenges encountered by companies in applying for assistance under the Lean Enterprise Development Scheme (LEDS); and (b) how can these issues be addressed.

The three main challenges faced by firms in applying for the Lean Enterprise Development Scheme (LEDS) assistance are lack of solutions, lack of scale and lack of impact.

First, lack of solutions. Some firms can identify their problems but have not found the solutions. We will help such firms by identifying and promoting more prequalified, ready-to-go solutions that can be quickly adopted to help companies become more productive. As shared in the Ministry of Manpower's Committee of Supply debate this year, there are 71 prequalified, ready-to-go solutions which can drive productivity improvement, skills development and innovation across various industries. Subsidies are made certain upfront for any firm adopting these ready-to-go solutions.

The LED Taskforce will spread awareness of the prequalified solutions through the small and medium enterprises (SME) Centres and industry associations to showcase their solutions to companies.

Second, lack of scale Some firms have a solution in mind, but they are unable to implement them as they lack the scale or volume. The LED agencies will help bring different firms that face similar issues together and help them find a common solution to transform as a cluster.

Third, lack of impact. Some firms have solutions but their solutions lack impact. Their proposed plan only results in marginal improvements in productivity and strengthening the Singaporean Core. As these firms are committed to change, the LED agencies will guide and handhold them to improve their plan to achieve stronger outcomes. The LED taskforce will then help with funding support and, if necessary, transitional manpower support, to implement their plans. Companies can get more information from industry associations, the SME Portal or from any SME centre.