Amid a confluence of factors, including geopolitical issues and trade tensions, entrepreneurs will face challenges arising from the volatile environment ahead, says Liew Nam Soon, regional managing partner for EY Asean and managing partner for Singapore and Brunei at Ernst & Young Solutions LLP.
For example, businesses reliant on Chinese manufacturing will need to navigate potential tariff hikes under US President-elect Donald Trump, Liew adds. During his campaign, Trump proposed increasing tariffs by 10% to 20% on most foreign goods and suggested raising tariffs on Chinese imports to as much as 60% once in office.
Entrepreneurs must also contend with economic shifts, although Asia, particularly Southeast Asia, is still a “bright spark”. While the region has seen and will see a number of leadership changes in a number of countries, including Singapore, Liew believes that there is an opportunity for these new leaders to “come and shape the new world order”. Amid these situations, entrepreneurs will have to position their businesses to look across industries, governments, markets and beyond.
To stay ahead, entrepreneurs must also find new ways to differentiate themselves, better understand their customers through digital innovation, lower competitive barriers and offer consumers more choices.
EY’s four finalists or category winners for this year’s Entrepreneur of the Year (EoY) Singapore exemplify these strategies. Representing a diverse range of industries spanning the gamut of traditional businesses to new economy start-ups, the winners are Edy Tan Wei Hock, CEO and second-generation business leader at Chye Thiam Maintenance (environmental services); Samuel Yik, managing director and founder of restaurant chain, Dian Xiao Er Group (food and beverage); Anthony Chow, CEO and co-founder of smart access solutions company, igloocompany (technology solutions); and Zachary Wang, co-founder and CEO of safety-leading e-scooter and e-bike operator, Neuron Mobility (mobility).
In addition to the category winners, EY has given out two honorary awards. Lance Y. Gokongwei, president and CEO of JG Summit Holdings, has been named the winner of this year’s EY-Bank of Singapore Asean Entrepreneurial Excellence Award, which recognises successful Southeast Asian businesses that contribute to the region’s economy and community.
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The other honorary award goes to Tecity Group, now headed by executive chairman Chew Gek Khim, recipient of the EY-Bank of Singapore Family Business Award of Excellence. Knowledge partners jointly select the award recipient, Business Families Institute @ Singapore Management University and the Insead Wendel International Centre for Family Enterprise.
Bank of Singapore is the presenting title sponsor for the two honorary awards and the platinum sponsor of the EoY awards. The Edge Singapore, together with local business daily The Business Times and Portfolio magazine, are again among the official media partners of EoY, which is supported by the Singapore Exchange S68 (SGX), Action Community for Entrepreneurship, Enterprise Singapore, Singapore Business Federation and SkillsFuture Singapore.
Emerging technologies
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In Liew’s view, this year’s winners all “come with very different backgrounds and trades.” However, they all have good visions for their businesses, including what they want to disrupt and innovate. These entrepreneurs also share common themes, such as foresight, agility, and courage, and they are not afraid of being held back by challenges.
“They all — increasingly so — are leveraging tech innovation and are looking at new ways of operating with the community and ecosystems in order to drive transformative change within their industries,” says Liew. “Leveraging emerging technologies is, quite frankly, one of the biggest challenges, just because it’s moving so quickly.”
Today, Liew believes entrepreneurs should go beyond examining net promoter scores (NPS) and tapping into technologies, especially tools such as generative artificial intelligence (gen AI), to better understand their customers’ profiles and behavioural patterns.
According to the EY Entrepreneur Ecosystem Barometer released on Nov 12, about 72% of the 500 entrepreneurs surveyed ranked themselves as “intermediate”, which means they use AI systems and are developing fluency, or “established”, which means they have implemented AI systems with teams fluent on their use. About six in 10 — or 61% — of these entrepreneurs say they want AI to enhance their business’s overall efficiency and competitiveness. The survey also found that 60% of respondents included technology such as AI and machine learning in their top three investing priorities.
While Liew acknowledged that such tools — such as large language models (LLMs), edge computing, and smaller LLMs — can require significant investments, they can also help companies identify data points that will benefit their businesses. For instance, AI can locate relevant trends among vast amounts of information for industries such as food and urban transportation.
He advises small and medium-sized enterprises (SMEs) with limited resources to prioritise in order to maximise return on investment. Liew also emphasises the importance of staying visible, keeping up with industry trends, and collaborating with firms to identify the right solutions that can drive growth while reducing costs.
Sustainability matters
In recent years, sustainability has become a core concern for many businesses. While some view it as a buzzword, Liew sees it as a crucial element of modern company operations.
While the trend has moved from setting goals to becoming net neutral or net zero by a certain year, Liew notes that the decarbonisation journey has costs. He adds that there is increasing realisation that the two pillars of innovation and sustainability are two sides of the same coin. “There needs to be the right balance. So, you can’t transition from a wider context. You can’t transition to renewable energy at the get-go. There needs to be a pathway to see how we can get that.”
For instance, IT businesses that are dealing a lot with AI and gen AI and require a lot of electricity will have to explore ways to put in place a sustainability strategy to reduce energy usage.
Businesses should also address sustainability challenges while they’re looking to innovate the next new product. Plus, there is one perk to doing so: sustainability can be a “powerful tool” for competitive differentiation, says Liew.
Keeping it in the family
Liew also stresses the importance of multigenerational leadership in family businesses, which play a key role in EY’s operations in Singapore. Recent regulatory changes by the Monetary Authority of Singapore (MAS) have led to increased wealth management activity, making Singapore a preferred destination for family enterprises.
“Family businesses are a big part of the market in Southeast Asia,” he says. As the new generation of family business leaders becomes more globally educated, Liew notes they are increasingly open to seeking external advice on matters such as trusts and tax issues.
With the MAS launching a review group to strengthen Singapore’s equities market, Liew says the firm is looking to see how it can contribute to the growth by supporting SMEs beyond Singapore’s shores, building sustainable businesses and the possibility of going public on the SGX.
Entrepreneurs, especially in SMEs and start-ups, often depend on capital to drive growth, whether through banks, venture capital, private equity or an IPO. While some businesses prefer to stay private, decisions on raising capital are shaped by factors such as control, funding structure and growth stage.
Ultimately, each company’s path is unique, and Liew affirms that EY is dedicated to supporting entrepreneurs on their growth, including helping them to determine the most suitable funding strategies for their long-term goals.
