The document summarizes a study conducted on 25 Trade Associations and Chambers (TACs) under Singapore's LEAD Programme. The study aimed to develop an Association Capability Enhancement Framework (ACEF) to assess the TACs and identify areas for improvement. Key findings included that TAC leaders are committed but rely heavily on membership fees, secretariats are not often outsourced, and services could be expanded. Recommendations focused on improving strategic planning, financial sustainability through diversification, regular self-reviews, and better promotion of TACs to companies.

1. Study on Trade Associations and Chambers (TACs) under the LEAD ProgrammePresentation- Developed For -April 2011Developed By:Public Sector PracticeFrost & Sullivan Asia Pacific

2. AgendaEngagement Background and Scope1Our Consulting Approach2Insights from the Study3

3. Engagement Background and ScopeKey Objectives and StatusThe engagement aimed to identify key areas where government support can be enhanced to better nurture the capabilities of Trade Associations and Chambers (TACs) under the LEAD Programme. With this aim in mind, the following work items were undertaken by the Frost & Sullivan engagement team123Develop an Association Capability Enhancement Framework (ACEF)Use the developed ACEF to conduct a comprehensive study on the TACs included under the LEAD ProgrammeIdentify and prioritize areas in the current operations of the LEAD TACs and develop recommendations for the high-priority areas Work Objectives

4. Engagement Background and ScopeCoverage ScopeAs part of this engagement, a total of 25 Trade Associations & Chambers (TACs) were studied. They are listed as belowSustainable Energy AssociationAssociation of Aerospace Industries SingaporeSingapore Food Manufacturers’ AssociationAssociation of Private Schools and CollegesSingapore Furniture Industries CouncilAssociation of Process IndustrySingapore Infocomm Technology FederationAssociation of Singapore Marine IndustriesSingapore Malay Chamber of Commerce & IndustryContainer Depot Association SingaporeSingapore Manufacturers’ FederationSingapore Logistics AssociationTACs CoveredSingapore National Shippers’ CouncilSingapore Transport AssociationSingapore Precision Engineering & Tooling Association Franchising and Licensing Association SingaporeSingapore Water AssociationSingapore Semiconductor Industry AssociationTextile and Fashion FederationSingapore Chemical Industry CouncilRestaurant Association of SingaporeSingapore Contractors AssociationSingapore Industrial Automation AssociationSingapore Jewellers AssociationSingapore Venture Capital & Private Equity Association

5. AgendaEngagement Background and Scope1Our Consulting Approach2Insights from the Study3

6. Our Consulting ApproachFormulating the Association Capability Enhancement Framework (ACEF)Association Capability Enhancement FrameworkFrost & Sullivan ViewpointReview of Global and National BenchmarksSource 1Three Buckets of ParametersSource 2Intrinsic1Extrinsic2Industry-Specific Economic3Feedback from SPRING/IESource NExtensive review of global benchmarks from Europe, US, Australia and the ASEAN countries

7. Intrinsic: Study how the TACs are internally structured and run. Captured via interactions with TACs’ leadership

8. Extrinsic: Study how the TACs are perceived by their members. Captured via interactions with the TACs’ member firms

9. Economic: Provide a background on the industry in which the TAC operates. Captured from public sources.Our Consulting ApproachAssociation Capability Enhancement Framework (ACEF) - ParametersExtrinsicIntrinsic TransparencyTransparencyRepresentationRepresentationIndustry StandingStrategic DirectionQuality of LeadershipQuality of LeadershipPromotional EffortsEmployee RecruitmentQuality of SecretariatFinancial SustainabilityPerformance ReviewFinancial PlanningServices OfferedSecretariat ManagementInnovationPromotional EffortsMembership CostsBreadth of ServicesOwn Performance ReviewMember Account Mgmt.Strategic DirectionACEFEconomicEmployment GrowthValue AddedProfitabilityOverseas Sales

10. Our Consulting ApproachResearch MethodologyInteractionsIntrinsic StudyExtrinsic StudyRepresentatives from the TACs’ member firmsTarget RespondentsRepresentatives from the TACsPre-arranged interactions (face to face or phone) with industry players that are members of the TACsN = 600(spread across the industries)Pre-arranged face to face discussions with TAC representativesN= 25(1 discussion/TAC) Mode & SampleIntrinsic Study – Took the form of pre-arranged face to face discussions with senior representatives from the TACs. One detailed discussion was conducted per TAC.

11. Extrinsic Study – Took the form of phone interviews conducted by Frost & Sullivan’s associates. Minimum number of N=20 interactions per TAC. Adequate coverage and representation given current scope. Could be expanded in subsequent iterations to a more statistically significant sample

12. Economic Parameters – Took the form of gathering industry-specific information for each TAC of focus, from such sources as DOS, EDB etc.AgendaEngagement Background and Scope1Our Consulting Approach2Insights from the Study3

13. Insights from the StudyKey Observations on the LEAD TACsOver the course of the study, the Frost & Sullivan engagement team formed some useful opinions on the capabilities of the LEAD TACs. These are highlighted below:LEAD TACs – Some Key Observations23451Leaders are committed to their TACs’ success with council members spending up to 4 days a month on association business in addition to time commitments to their own firmsTACs recognize the dangers of relying solely on membership subscription revenues and are endeavoring to diversify their income streams to achieve financial sustainabilityOutsourcing secretariat functions to specialized association management firms is not quite the norm for local TACsIn contrast with their counterparts in Europe and North America, most local TACs do not as yet offer auxiliary services like supplier discounts, access to funding, testing/certification, and dispute resolution/arbitrationThe TACs represent their industries well, with most having greater than 75% of industry players on their membership rolls

14. Key Insights3.2Insights from the StudySalient points about service portfolio of TACs from Extrinsic InterviewsKey Observations on the LEAD TACs6On an average, approximately 58% of companies are aware that a part of the association which they are a member of, is funded under the LEAD program7The top-6 services (by importance) that are utilized by TAC members are highlighted below:UtilizationTop-6 ServicesMarket Information/ Economic Forecasting Dissemination31%Exhibitions / Trade Shows36%Legislative/ Regulatory Information Dissemination19%Training32%Conferences & Seminars43%Matchmaking Services/ Trade Missions16%

15. Areas of Focus and Improvement OpportunitiesPertinent Observations and Recommendation to TACs and AgenciesExtrinsicIntrinsic TransparencyTransparencyRepresentationRepresentationIndustry StandingStrategic DirectionQuality of LeadershipQuality of LeadershipPromotional EffortsEmployee RecruitmentQuality of SecretariatFinancial SustainabilityPerformance ReviewFinancial PlanningServices OfferedSecretariat ManagementInnovationPromotional EffortsMembership CostsBreadth of ServicesOwn Performance ReviewMember Account Mgmt.Strategic DirectionACEFEconomicEmployment GrowthValue AddedProfitabilityOverseas Sales

16. Gaps & RecommendationsAreas of Focus and Improvement OpportunitiesThe key recommendations for above-mentioned gaps are provided belowPertinent Observations and Recommendation to TACs and AgenciesPertinent ObservationsFocus AreaRecommended Action ItemsEncourage TACs to submit annual business plans as a means to strengthen their case when applying for new / continued LEAD funding

17. Encourage key secretariat employees at TACs to attend training sessions in the field of business plan preparation

18. Organize sharing sessions where best practices followed by mature and successful TACs can be disseminated to the newer TACs

19. Encourage TACs to solicit regular feedback from their members on their strategic direction, via channels such as surveys, town hall meetings, group discussions etc.

20. Lack of clear and detailed plans to achieve stated mid-term and long-term Vision/Mission

21. Member participation in reviewing TACs’ strategic direction needs to be more regularStrategic Direction

22. Gaps & Recommendations3.3Areas of Focus and Improvement OpportunitiesThe key recommendations for above-mentioned gaps are provided belowPertinent Observations and Recommendation to TACs and AgenciesPertinent ObservationsFocus AreaRecommended Action ItemsConsider setting up a common pool of shared resources (manpower, infrastructure etc.) to help ease some of the financial strains on the TACs

23. Conduct a global study to identify best practices in how TACs elsewhere have successfully diversified their income streams and decreased reliance on government support

24. Own income not able to cover expenses

25. Low growth rate of own income

26. Need to diversify income streams furtherFinancial Sustainability

27. Gaps & Recommendations3.3Areas of Focus and Improvement OpportunitiesThe key recommendations for above-mentioned gaps are provided belowPertinent Observations and Recommendation to TACs and AgenciesPertinent ObservationsFocus AreaRecommended Action ItemsEncourage TACs to solicit regular feedback from their members on their strategic direction, via channels such as surveys, town hall meetings, group discussions etc.

28. Explore launching Association Excellence Recognitions to incentivize TACs to review themselves regularly and take measures to upgrade their operations.

29. Process of internal performance review needs to be more regular and structuredOwn Performance Review

30. Gaps & Recommendations3.3Areas of Focus and Improvement OpportunitiesThe key recommendations for above-mentioned gaps are provided belowPertinent Observations and Recommendation to TACs and AgenciesPertinent ObservationsFocus AreaRecommended Action ItemsConsider implementing a system to provide information (brochures etc.) on the industry associations to new companies at the time of business registration itself

31. Create a pool of shared IT resources / templates to guide TACs in how to improve their web portals and run them effectively as primary channels of promoting their services to members

32. TACs need to ramp up their promotional efforts and add more innovative channels to their repertoirePromotion/Recruitment Efforts

33. Gaps & Recommendations3.3Areas of Focus and Improvement OpportunitiesThe key recommendations for above-mentioned gaps are provided belowPertinent Observations and Recommendation to TACs and AgenciesPertinent ObservationsFocus AreaRecommended Action ItemsEncourage TACs to conduct annual performance reviews for all their employees to provide them constructive feedback. Should encourage TAC leaders to attend available courses on employee performance management to assist them with this process

34. Encourage TACs to diversify their means of employee motivation to include not just remuneration, but also opportunities for training and continuous professional development. In-house trainings at the TACs can be well supplemented by sending employees for available training programs outside

35. Need to instill systems and processes to ensure continuity in associations’ work

36. Lack of formal professional development for secretariat staff

37. Need for proper staff appraisal and compensationSecretariatManagement

38. Vikas Sharma, PMP®Principal ConsultantPublic Sector Practice (APAC)+65 6890 0934vsharma@frost.comFrost & Sullivan Singapore100 Beach Road#29-01/11, Shaw TowerSingapore 189702Tel: +65 (0) 6890 0999Fax: +65 (0) 6890 0988www.frost.comFrost & SullivanFrost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.