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SINGAPORE: The social enterprises run by NTUC operate on market principles and have to compete for Government spaces and contracts just like any other commercial enterprises, NTUC Secretary-General Chan Chun Sing said in a blog post on Tuesday (21 Jun).
In his post, he wrote that there is a need to clarify a “common misperception” – that NTUC’s social enterprises enjoy privileges from the Government.
“The difference here is the fact that as social enterprises, the majority of our earnings are reinvested to expand our services for the nation. This allows us to do more with what we have for the people we exist for, as compared to other enterprises who exist for purely commercial reasons,” he wrote.
He also addressed why the prices of NTUC’s social enterprises are not significantly lower than their competitors.
“The real answer is the other way round”, he wrote. “The fact that there is an NTUC social enterprise in a sector means that the social enterprise can rein in the prices that the competitor can charge. We are happy that our competitors try to match our prices and sometimes even beat us at it. This ultimately benefits all Singaporeans.”
NTUC SETTING ITSELF A HIGHER GOAL
Mr Chan said that while the form and shape of NTUC’s social enterprises change over time, their mission remains unchanged, and that is to provide timely, relevant, affordable and accessible essential services to Singaporeans, and moderate the excesses and extremes of a pure capitalist system.
The NTUC Secretary-General also wrote that it is setting itself a higher goal: To be pioneers in new concepts to meet the needs of tomorrow.
He said NTUC wants to “experiment with new ideas” and “be the catalyst for social change”, highlighting the example of NTUC Fairprice’s new enabled store, which provides elderly customers and those with disabilities access to affordable daily necessities.
On a broader scale, Mr Chan wrote that NTUC’s social enterprises have also come together with initiatives such as the Pioneers OK! package and the Big Value Bag: Made for Singapore programme, where services and products from the various social enterprises were bundled together for both our pioneers and fellow Singaporeans.
But he said advances in technology can disrupt the way things are done. For example, in e-commerce, the way consumers traditionally consumer goods and services is changing.
“Social enterprises like FairPrice and Income have bridged this change with online e-commerce portals, but how well prepared are they for future disruptions?” he wrote.
“This is our challenge, today.”
http://www.channelnewsasia.com/news/singapore/ntuc-s-social-enterprises/2890942.html?cid=FBcna
