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SBF FAQs
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Q. How did SBF come about?
A. In 1998, Prime Minister Mr Goh Chok Tong urged the then Singapore Federation of Chambers of Commerce and Industry (SFCCI) to examine how it could restructure itself, so as to enhance its effectiveness in serving its members, as well as to better promote Singapore's national interests. The SFCCI rose to the challenge, and proposed the formation of a Singapore Business Federation, an apex chamber to enhance the organisation of the business community in Singapore. It will represent and advance the interest of businesses both in Singapore and abroad. An integral part of the SFCCI's proposal was for Government to enact legislation requiring the top 20% companies to pay a business levy to fund the work of SBF.
In Feb 2001, in response to the SFCCI's recommendations, the Minister for Trade and Industry appointed a Pro-tem Committee to form the SBF. In June 2001, the Pro-tem Committee made public its recommendations, including those on compulsory membership of companies with paid up capital of $0.5 m and more, and sought feedback from the business community. The Minister for Trade and Industry introduced a Bill in Parliament in July 2001 to establish the SBF Act, which was passed by Parliament and became law on 5 Oct 2001. The SBF was formed on 1 April 2002. All companies that have a paid-up capital of $0.5 mil and above are now members of the SBF.
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Q. How will the SBF ensure that it can fulfil the role that has been laid out for it?
A. The SBF is managed by a Council which is representative of our business community. SBF will be directly accountable to its members, and will have to ensure that it meets the needs of our companies within Singapore and also represent their interests overseas. The Minister for Trade and Industry has appointed a Board of Trustees to protect the assets of the SBF, and to ensure that the SBF does not deviate from its mission. The composition of the Board of Trustees is at Annex A.
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Q: What is the expected period of time before we can expect results from the new SBF?
A. Much of SBF's work is about building long-term strategic alliances within our private sector and also between our local businessmen and their foreign counterparts. This will take time to build up. However, in the short-term, once SBF is up and running, it is expected to be actively looking for ways to contribute to the business community and individual companies during this downturn.
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Q. How will the formation of the SBF benefit the business community in Singapore?
A. Globalisation and rapid technological progress have fundamentally changed the way business is done worldwide. Our companies are relatively small, and they have to work together and leverage on each other's strengths to grow and internationalise. Domestically, there is a need to strengthen the representation of the business community in fora such as the National Wages Council, ASEAN, APEC, ASEM and many bilateral business councils. In our bilateral free-trade negotiations, there are opportunities which our business community should help identify. We therefore need a stronger collective voice to strengthen our tripartite structure, facilitate better co-ordination between public agencies and the business community, and assist our companies when they venture overseas. This is much like the role the Keidanren plays in Japan. As an apex business organisation in Japan, the Keidanren engages the Japanese government and foreign governments on policy issues, helps its members network, organises exchanges with other countries, and cultivates business contacts worldwide.
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Q. Will the formation of the SBF undermine the various business chambers and business associations in Singapore and make them redundant?
A. No, this should not happen. As long as the chambers and associations serve their members in meaningful ways, they will continue to play an important role in our business community. In countries with compulsory membership like France, Germany and Brazil, the apex chambers work closely with the other chambers and trade associations that continue to flourish alongside. In the same way, the SBF will work closely with existing chambers and associations in carrying out its role.
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Q. Was the public consulted?
A. Yes, a public consultation exercise was carried out from 15 June to 14 July 2001. The Pro-tem Committee, appointed by MTI to form the SBF, released its recommendations, along with the draft SBF Bill at a press conference on 15 June. These were posted on both the MTI website and the Singapore National Employers' Federation website for public feedback. Separately, letters were sent out to 60 key chambers and associations to solicit the organisations' and their members' feedback on the proposals. Many of the suggestions received have been incorporated into the SBF Act.
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