DBS Bank D05 will offer sustainable financing at “preferential rates” to up to 1,000 small- and medium-sized enterprises (SMEs) in Sheng Siong’s supply chain over the next two years.
DBS says it will also recommend government grants to companies that wish to go green, as part of a new partnership between the bank and supermarket chain announced on Feb 26.
The two Mainboard-listed firms say they will jointly introduce a comprehensive sustainability programme that aims to help businesses become more resource-efficient and reduce their carbon footprint by identifying, developing and implementing decarbonisation plans.
According to DBS and Sheng Siong, the programme will be tailored to meet the specific needs of SMEs in the wholesale trade and retail sector.
The programme includes introductory workshops to understand the basics of sustainability reporting and tracking. The two companies will also recommend energy-efficient systems, electric vehicles and waste reduction and recycling solutions.
This initiative also represents the first-ever collaboration between two SkillsFuture Queen Bee companies.
Introduced in 2020, the SkillsFuture Queen Bee initiative aims to support skills and workforce capability development in SMEs. SkillsFuture Queen Bee companies, like DBS and Sheng Siong, have been identified as industry leaders that can influence companies, particularly SMEs.
Tan Kok Yam, chief executive officer of SkillsFuture Singapore, says this collaboration will help reach out to more SMEs as they develop sustainable business capabilities and relevant skillsets of their workforce. “We also hope to see more of our SkillsFuture Queen Bee partners do likewise — [to] come together organically to share and expand their network so that more SMEs will benefit from their support.”
Budget 2024 underscored the government’s efforts to strengthen Singapore’s economic competitiveness, says Koh Kar Siong, group head of corporate and SME banking at DBS, and companies that do not start making this transition towards sustainability risk losing out.
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“Building a thriving business is no longer just about being profitable, but being sustainable as well… DBS recognises that this journey of sustainability and upskilling is not easy — smaller businesses especially need more support to navigate this journey.”
Collaboration is key to unlocking a sustainable future, says Lin Ruiwen, executive director, Sheng Siong. “By empowering our suppliers to operate more efficiently and decarbonise their operations, we can collectively minimise the environmental impact of our supply chain. Together, we hope to build a more sustainable and resilient ecosystem.”
To remain competitive, SMEs need to adopt sustainable business practices to meet the demands of a low-carbon economy, says Gilbert Koh, executive director of Allswell Trading, one of Sheng Siong’s suppliers.
“Our challenge lies in developing green capabilities so that our business can survive and thrive,” adds Koh. “We are keen to be part of this joint programme and learn from it. We want to be empowered to make the necessary changes to build up our eco capabilities, through knowledge building and upskilling, and eventually transiting to a more climate-friendly business model.”
Shares in DBS closed 33 cents lower, or 0.98% down, at $33.50; while shares in Sheng Siong closed 1 cent lower, or 0.64% down, at $1.56 on Feb 26.
