22 Sep 2017

ADDRESS BY

MR CHUA TAIK HIM, SENIOR ADVISOR FOR IE SINGAPORE,

AT THE MONEYMAX AND AUCNET JV SIGNING CEREMONY,

ON 22 SEP 2017, FRIDAY, 10:00AM, SOO KEE HQ

 

Dato’ Sri Dr Peter Lim, Executive Chairman and CEO of MoneyMax,

Mr Kiyotaka Fujisaki, President of Aucnet,

Distinguished guests,

Ladies and gentleman,

Good Morning,

 

  1. It gives me great pleasure to attend the Joint Venture Signing Ceremony between MoneyMax and Aucnet. It marks the start of a fruitful business partnership.

     

    Synergistic partnership between Singapore and Foreign Companies

  2. This JV between MoneyMax and Aucnet is an excellent example of a synergistic partnership between local and foreign companies. Moneymax will draw on Aucnet’s deep expertise in B2B auctions, as a market leader in Japan with over 30 years of experience. At the same time, Aucnet can leverage MoneyMax’s strength and networks in the regional distribution market, to reach out to markets including Singapore and Malaysia.

     

  3. This partnership is the first-of-its-kind B2B live auction platform in Southeast Asia. It allows for efficient cross-border trades, removing geographical limitations. This strengthens Singapore’s position as a gateway to Southeast Asia and South Asia.

     

  4. The partnership focuses on the luxury or branded goods segment. This segment is evolving very fast. Online is now the fastest growing channel globally, growing at a 26% CAGR over the past 3 years. It now accounts for 8% of the total luxury market value, up from 4% in 20131. Currently, there are B2C and C2C models that exist in the wholesale trade business eco-system. This new channel to facilitate B2B trade is a good addition that brings new capabilities. It reinforces Singapore’s reputation as a trusted and reliable trading and distribution hub.    

     

    Singapore’s WST ITM

  5. This is a timely partnership as it validates IE Singapore’s strategic intent of developing and rejuvenating Singapore as a compelling wholesale trade hub. IE has launched the wholesale trade industry transformation map early this month, working together with a wide range of stakeholders, from industry players, trade associations and unions, to government agencies.  Wholesale trade is a key pillar of Singapore’s economy - it contributes 12% of our GDP and employs 9% of our workforce.

     

  6. The term wholesale trade suggests an image of traditional merchants doing a simple buying and selling business. However, this is not the case.  It is time to reinvent our wholesale trade business models. MoneyMax is a good case in point.  It takes a holistic approach to re-examine the evolvement of marketplaces and the connectivity of the newly emerged sources and markets.

     

  7. Digitalisation will foster greater trade connectivity and market access. This B2B auction platform shows how companies can employ technology to create scalable marketplace that can expand the scope of their businesses, build know-how and enhance connectivity.

     

  8. Adoption of technology not only requires a change of mindset, but also a change of skillsets. This is important as companies go digital and internationalise. As part of the ITM, Singapore agencies, including academic institutes for example, have collectively developed a skills framework to train and equip PMETs and students for the future of trade. They will identify and address capability gaps in our workforce through various programmes, such as the Professional Conversion Programme (PCP) for International Trading Executives. We aim to strengthen the capabilities of enterprises and grow a vibrant ecosystem of wholesale trading enterprises in Singapore.

     

    Conclusion

  9. Technology is advancing at an unabated pace. It is changing the way we do business and our job functions. Companies must adapt and be open to innovation to stay ahead of the competition. The partnership between MoneyMax and Aucnet is a move in the right direction. We hope this joint venture would inspire more companies to embark on transformation, building up the momentum towards a new generation of trade.

     

  10. On this note, I would like to congratulate both Aucnet and Moneymax for the successful launch of the new venture and we wish you a great success.

1 Source: Bain and Altagamma, “Altagamma 2016 Worldwide Luxury Market Monitor””