Win-win partnerships
On stage with him, three pairs of executives representing three successful cases of MNC-SME collaboration chimed in, agreeing that such partnerships, underpinned by trust and common interests, have furthered their business goals.
Chee Teck Lee, founder and chief executive officer of precision optics manufacturer Moveon Technologies, said the keyword for him is “leverage”. His company is in what he called a win-win partnership with Aumovio, formerly the automotive group sector of German auto parts maker Continental.
“We live and breathe optics every day, so you can leverage our niche competence to help shorten your development timeline,” he said. “And SMEs like us can leverage MNCs’ access to market and, of course, their ideas, their overviews about what’s evolving in the marketplace.”
Pang Yong Kiang, general manager of Pratt & Whitney Component Solutions, said communication is key to fostering close collaborations, likening the process to a “dance”. The American aerospace manufacturer has teamed up with Applied Total Control Treatment, a Singapore-based aerospace pipe manufacturer.
He said that MNCs may not know what capabilities SMEs out there have, and SMEs may not know what MNCs are looking for.
“Sometimes, they may be asking about a capability (in which) you are 80 per cent there. You just need that 10 to 20 per cent to reach that particular stage, and that’s all,” Pang said.
For automation solutions company Clemvision, a partnership with global automation and electronics maker Omron has opened doors to more collaborations and an expansion of its product line, said Clemvision founder and director Chua Ren Tsong.
Working with Omron, he said, broadened Clemvision’s engineering knowledge and business contacts, as well as clinical access, and pre-approved certification.
Don Teng, group managing director of Omron Asia-Pacific, said working with SME partners has enabled the company to tap into niche business opportunities, given these smaller businesses’ agility and deep domain expertise.
More government and industry support
John Eng, vice-president at the Singapore Economic Development Board (EDB), said EDB and Enterprise Singapore are doubling down on efforts to facilitate more such partnerships within Singapore’s ecosystem.
He added that they are doing so by working with business associations, such as the Singapore Manufacturing Federation (SMF), and through incentive programmes, such as the Partnerships for Capability Transformation (PACT) scheme, to co-share the costs of forming such collaborations.
Separately, SMF has the MNC-Local Enterprise Alliance, launched in January, which aims to matchmake MNCs and SMEs.
SMF president Lennon Tan said the federation brought together 10 MNCs and 30 SMEs at the launch of the alliance; two to three are already in close conversation.
Such talks could take about three months to a year or two, depending on the complexity of the eventual collaboration, he said.
“Some problem statements could be very simple – it could be a slight tweak on their products, they are able to do it, but some will take longer, especially those that require regulatory approval,” he said.
In some cases, the SME may have to put in additional investment to meet the requirements of an MNC, in which case they may tap government grants, such as PACT, to do so.
