More construction-related firms win at this year's Enterprise 50 Awards
By Ryan Huang, Channel NewsAsia | Posted: 02 November 2009 2350 hrs

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SINGAPORE: This year's Enterprise 50 Awards saw more winners from the real estate and construction sectors than the previous year.

The number of construction- and real estate-related companies winning awards rose from 7.5 per cent in 2008 to 11 per cent this year.

The awards recognise the top 50 most enterprising local SMEs and is co-organised by the Business Times and KPMG.

Organisers said the real estate and construction sectors' positive performance is due to strong business models and financials, which have helped them ride out the downturn.

Construction and engineering group Samwoh Corporation took the top prize this year. Diversifying into shipping sand is one way Samwoh kept its competitive edge amid the global recession.

The group is now looking into going overseas to work on green projects related to recycled materials. Samwoh said that enhancing its capabilities to supply building materials is among the efforts it has made to stay competitive and manage costs.

Samwoh's managing director, Elvin Koh, said: "We are not dependent on just one business. We are also into construction, building materials (businesses) and we have also looked at cost controls. We have started an internal audit committee to look into different departments, different companies, their operating costs - it's how we control the costs."

Organisers of the Enterprise 50 Awards said that among the common traits the winners shared are clear and strong organisational structures. They have also developed an innovation-led business model, enjoyed differentiated brand positioning, and operated sound financial management.

Company cash flow issues and risk management practices received increased focus in judging this year, in light of the recent economic crisis.

Jeya Poh Wan Suppiah, partner (enterprise services), KPMG, said: "For all companies, liquidity management is key. It's important they manage their cash flow to be able to satisfy their expenses, their pipeline of costs, to ensure that the companies are able to sustain themselves, especially in challenging times like this.

"The risk is that companies may not manage their finances well enough. They may breach banking convenants and lose confidence with the financiers and the bankers and so forth."

A recent government survey showed that one out of two small- and medium-sized enterprises saw the crisis as an opportunity to grow and tap into overseas markets.

One such firm which succeeded in venturing abroad is top-10 winner Consolidated Pipe Carriers (CPC), which specialises in pipeline logistics for the oil and gas industry.

The company said breaking into overseas markets was challenging, but it was rewarded with little competition as it carved a niche for itself. CPC said a crucial element for its success is having local expertise that helps it to understand local business practices such as accounting and tax laws.

Alvin Lim, managing director of Consolidated Pipe Carriers, said: "In terms of going into specific markets, you have to know that particular market very well. If you have the opportunity to work with a local partner, always look into that with a positive attitude. Also, get yourself a good lawyer and good accounting firm, that helps."

Many SMEs said hiring local talent remains a challenge, with job seekers still preferring to join multi-national companies. They said schools can help by creating more awareness that SMEs can offer a more rounded working experience.

CPC's Alvin Lim said: "There is an opportunity to go into, perhaps institutions - to do publicity, to create the awareness that working for SMEs isn't that bad after all, because of the opportunities that we give to a particular individual.

"More often than not, you are required to multi-task than just do your own job scope. You get to multi-task instead of sitting there and doing something mundane."

Some SMEs also feel that the government could step in by helping in more focused business-to-business matchmaking activities, on top of general business expeditions.

- CNA/ir