SINGAPORE: A “resilience roadmap” for the Meetings, Incentives, Conventions and Exhibitions (MICE) and events industry was announced on Thursday (Oct 8), offering pandemic-hit businesses guidance on implementing necessary safety measures.

It also gave the firms tips on adopting a new “hybrid model” and how they can develop their workforce for the long term. 

The Event-Industry Resilience Roadmap (IRR) was developed by the Singapore Association of Convention and Exhibition Organisers and Suppliers (SACEOS), together with government agencies Singapore Tourism Board (STB) and Enterprise Singapore (ESG).

It is the world’s first roadmap for the MICE and events industry, said a press release from SACEOS.

Its objectives include helping the industry to implement “best in class” standards under STB’s protocols for safe business events, creating agile business models with a focus on hybridisation and developing pathways for professional development in a post-pandemic world.

These will be underpinned by the SG SafeEvent Standard, an industry-led national accreditation programme set to be launched later this year. It hopes to serve as a “mark of assurance that Singapore is a world-leading destination for safe, trusted and innovative business events”, said the press release.

Pilot events are under way to put these standards into practice, according to SACEOS president Aloysius Arlando at the launch of the roadmap.

“These pilot events (will) provide us with data points and rich insights so that events of varying scale can be carried out in a safe and responsible manner, and in due course.”

The MICE industry, which contributes close to 1 per cent of Singapore’s gross domestic product, has been among the worst-hit sectors by the COVID-19 pandemic and the resulting strict public health measures and border controls.

More recently, authorities have begun easing restrictions for MICE events, with the STB announcing last month that event organisers can apply to pilot large-scale meetings of up to 250 people from Oct 1. 

The move, an increase from the previous maximum number of 50 attendees, comes as part of a gradual resumption of economic activities in the country.

READ: STB will start accepting applications to hold business events for up to 250 people from Oct 1

“The development of the Event Industry Resilience Roadmap is a significant step as Singapore resumes MICE events,” said ESG’s assistant chief executive officer Dilys Boey.

With a full recovery still a “long way off”, the industry understands the need to reinvent to survive, said Mr Arlando.

The IRR, he added, will be a “live document” that adapts to the evolving operating environment.

“It will sync with prevailing national healthcare protocols. It will reflect the way business conduct is changing, and a calibrated restart of our industry to the full extent possible.

“The IRR will help MICE enterprises reflect and rediscover ways to rebuild a successful business and restore the vibrancy and competitiveness of the MICE industry,” he told attendees at the launch, as well as those watching via Zoom.

SAFETY ADVICE AND ADOPTING A HYBRID MODEL

The first edition of the roadmap focuses on providing event organisers, venue operators and suppliers with advice on the safe management of events.

It also serves as a “playbook on the rudiments and economics of a hybrid event” – a new business model that has emerged for industry players amid the COVID-19 pandemic.

“We are mindful that hybrid models need to make commercial sense and the hybrid attendee experience engaging,” said Mr Arlando.

With many industry players struggling to formulate cost and revenue structures for hybrid events, as well as managing the expectations of attendees, the IRR hopes to provide innovative solutions and help businesses to establish models on how they can monetise virtual and hybrid events.

“The MICE industry is still trying to discover what truly defines hybrid events, but we are confident we will get there,” the SACEOS president added.

READ: Digital venues and virtual booths: How hybrid MICE events can be piloted

During a panel discussion, the association’s vice-president for digital and innovation Veemal Gungadin noted that hybrid events are likely “to cost more … at the beginning” due to the need for safety measures, as well as new digital infrastructure and equipment.

Initiatives to help businesses in this aspect, such as a centralised system of resources to enable economies of scale, will soon be rolled out, he added.

DEVELOPING THE WORKFORCE

The roadmap will also include capabilities development plans for businesses and their workers to survive and emerge stronger from the pandemic.

More details on this will be announced in the second edition of the IRR, which is being worked on at the moment.

As a start, a memorandum of understanding (MOU) to establish the “MICE and Events Capability Building Network” was signed by SACEOS and the National Trades Union Congress (NTUC) on Thursday.

The tripartite effort, supported by the STB, ESG, Workforce Singapore and SkillsFuture Singapore, will facilitate the capability development of MICE professionals, including freelancers and self-employed individuals.

It will partner educational institutions across Singapore to develop blueprints of new and refreshed career paths, as well as create and curate training programmes to support industry recovery, the press release said.

“We look forward to multiplying efforts to enable and support companies, as well as freelancers and self-employed professionals in the industry, to get ready to ride the wave of new and future trends and move ahead with new business plans,” said Mr Hassan Abdullah, NTUC’s representative for hospitality and consumer.

Mr Arlando added: “Through the network, the parties aim to adequately prepare the workforce for the new work model emerging from COVID-19 and raise the baseline of competencies to meet the demands of the future economy so that workers can aspire to have better jobs.”

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SINGAPORE: Two cruise lines will be allowed to offer Singapore residents “cruises to nowhere” from November, under a pilot scheme with enhanced safety protocols and mandatory COVID-19 testing for both crew and passengers.

Genting Cruise Lines’ World Dream will start offering those cruises on Nov 6, while Royal Caribbean International’s Quantum of the Seas will begin sailing in December, said the Singapore Tourism Board (STB) in a press release on Thursday (Oct 8).

The two vessels, whose home ports are in Singapore, are part of a pilot scheme that will allow round-trips with no ports of call at a maximum capacity of 50 per cent only to Singapore residents, said STB.

READ: Will you ever be able to go on a cruise again? Here’s what travel analysts say

“The Government will monitor the outcomes of the pilot sailings carefully in the coming months before deciding on the next steps for cruises,” said STB.

SUPER SEACATION ON WORLD DREAM

In a press release on Thursday, Dream Cruises, which is owned by Genting Cruise Lines, said that it has “completely re-examined and enhanced all of its health, hygiene and operating protocols” in accordance with the local authorities’ strict guidelines including stringent health screening processes.

“We are delighted to be the first cruise ship to restart operations here in Singapore and to give a much needed boost to the local tourism industry,” said Dream Cruises president Michael Goh. 

“We are able to provide Singapore residents with more vacation options beyond land-based resorts and we hope to bring back the joy of cruising with safety being paramount,” he added.

The World Dream will offer “Super Seacation” cruise packages for two or three nights. 

STB chief executive Keith Tan said that public health and safety was the authority’s utmost priority, even as it reopened various sectors of the economy.

“We are glad to work with Genting Cruise Lines on the cruise pilot with a focus on the necessary safe management measures to ensure the safety of passengers and crew,” he said.

“COVID-19 PROTECTIONS” FOR QUANTUM OF THE SEAS

Royal Caribbean said on Thursday that Quantum of the Seas will start offering three- and four-night cruises from Dec 1.

It said that the vessel will feature an upgraded heating, ventilation and air conditioning (HVAC) system, which will continuously supply “100% fresh, filtered air” from outside the ship to replace used air onboard the vessel.

In its press release, Royal Caribbean says that the air on Quantum of the Seas is “never re-circulated between spaces”.

“While the cruise experience will be different than it was pre-pandemic, we are committed to providing the signature Royal Caribbean holiday that guests know and love, while keeping the health and safety of everyone onboard as our top priority,” said Royal Caribbean International’s managing director Angie Stephen.

Royal Caribbean is also providing “COVID-19 protections” to passengers, including 100 per cent credit towards a future cruise should a guest or any member of their travel party test positive for COVID-19 during the three weeks prior to their booked cruise.

Full refunds will be provided if a guest, or any member of their travel party, tests positive during the cruise, it added. 

“Royal Caribbean will cover COVID-19 related costs up to S$25,000 per person in the travel party for onboard medical costs, any required quarantine and travel home,” it said.

CRUISESAFE CERTIFICATION

To provide assurance for safe cruising, a mandatory CruiseSafe certification programme is being developed by STB. 

The programme sets out stringent hygiene and safety measures throughout the passenger journey – from prior to boarding, to after disembarkation.

“STB’s CruiseSafe was created in consultation with the industry and is benchmarked against global health and safety standards,” said STB. 

“Singapore is one of the first countries in the world to develop and implement a mandatory audit and certification programme for cruise lines before they can commence sailings.”

Genting Cruise Lines and Royal Caribbean International were approved for the pilot as they have demonstrated the ability to put in place stringent protocols and precautionary measures as part of their CruiseSafe certification, said STB.

Prior to sailing, all cruise lines sailing out of Singapore must obtain the CruiseSafe certification, which requires independent assessment by a third-party certification firm.

The CruiseSafe standards include:
1. Infection control measures at every stage of a passenger’s journey, including a mandatory COVID-19 test prior to boarding
2. Strict and frequent cleaning and sanitisation protocols onboard
3. Safe management measures aligned with prevailing national policy at the time of sailing
4. Ensuring 100 per cent fresh air throughout the ship
5. Reducing ship capacity to enable sufficient safe distancing
6. Setting up onboard measures to discourage close contact and inter-mingling between groups
7. Emergency response plans for incidents relating to COVID-19

Pilot cruises will have to comply with prevailing safe management measures, such as mask-wearing and 1m-safe distancing.

Regular inspections will be conducted onboard to ensure compliance, with non-compliant cruise lines subjected to penalties including fines, suspension of sailings and revocation of CruiseSafe certification.

According to STB, crew members on these cruises are subjected to stringent measures beyond Singapore’s prevailing requirements for cross-border travel.

Crew members who need to enter Singapore must first undergo 14 days isolation in their home country and must test negative for COVID-19 before their departure.

They will also be tested on arrival in Singapore and serve a 14-day stay-home notice. They will be tested again at the end of the notice period, and be subject to routine tests once sailings begin.

SINGAPORE: When we think of unicorn start-ups in the region, many people will immediately think of Grab, valued at around US$14 billion (S$19.05 billion) based on its latest round of financing. 

But there is another successful start-up in Singapore that leaves Grab in its wake in some aspects.

Sea Limited is probably Singapore’s largest company. Yet many Singaporeans may never even have heard of it unless they happen to be an avid gamer or online shopper. 

But even then, the name might not be quite as familiar as Grab whose logo is emblazoned across its livery of private-hire cars, food-delivery riders and payment services through its mobile app.

The understated Sea Limited was founded by Forrest Xiaoping Li in Singapore in 2009 originally as Garena, which is an online games portal. Instead of listing on the Singapore Exchange (SGX) in its hometown of Singapore, the company chose to be floated on the New York Stock Exchange in 2017.

READ: Commentary: Why aren’t tech unicorns listing on the SGX?

That strategy has worked well for Sea Limited. The company’s stock has soared more than 1,000 per cent since the beginning of 2018 and nearly 300 per cent this year alone, giving it a current market value of S$92.7 billion and making it the company that has gained the most market value this year on the Nasdaq.

In terms of market value, Sea Limited’s lofty price tag makes it nearly twice as big as Singapore’s largest listed company, DBS Group; three times larger than Singtel, and almost eight times bigger than Singapore’s largest real estate investment trust, Ascendas REIT.

A STASH OF CASH

The staggering valuation of Sea Limited is even more amazing, given that it has not made a cent in profit either at the operating level or on the bottom line for the last six years. But as they say in the stock market, it is better to travel than to arrive, especially if you can afford to pay for the ride.

And Sea Limited has plenty of cash in the tank. Not only does its balance sheet boasts S$4.75 billion of cash in the bank, it also has a visionary investor, Tencent Holdings, which has very deep pockets. The Chinese internet conglomerate owns 22.9 per cent of Sea Limited’s outstanding shares.

READ: Commentary: Investing in markets? Why future gains lie in tech stocks

Tencent’s interest in Sea Limited probably stems from the Singapore company’s success in tapping into the growing video gaming market in Southeast Asia. 

For some perspective, the size of the global video-gaming market is estimated to be worth US$174 billion by 2021. The Asia-Pacific region is especially significant, with revenue of US$72 billion in 2019, which is more than double of the North American market.

EMERGING GROWTH

The key markets in Asia Pacific for Sea Limited are China, Japan, and South Korea. But beyond those top three countries, there are opportunities aplenty in Southeast Asia’s emerging growth market, which is where Sea Limited plans to dominate, through its Garena games platform.

READ: Commentary: COVID-19 is the perfect time to play video games

In 2019, revenue from its Digital Entertainment division of S$1.5 billion was more than double that of S$630 million a year ago. It accounted for almost half of the group’s total revenue of S$2.9 billion. What’s more, it has been growing quickly. It is three times more than at the time of its initial public offering (IPO) in 2017.

The secret of Garena’s growth has been through its popular video game Free Fire, which was developed by 111 Dots Studio and published by Garena. 

The success of Free Fire has been attributed to its ability to run on almost every device, especially on low-end handsets that tend to be more prevalent in some of the less developed regions of Southeast Asia. These include Indonesia, the Philippines, Vietnam, and Thailand where Sea Limited operates.

The rising demand for Free Fire has propelled it to become the most downloaded video game in 2019. In 2020, Garena said the video game hit a peak record of 80 million daily active users, which surpassed its previous record of 60 million daily active users.

FLAMES OF SUCCESS

Even though Free Fire has been a massive success for Sea Limited, gamers are typically on the lookout for the next best thing and might consequently choose to move on.

This is where Sea Limited’s strategic partnership with Tencent could be a win-win for both companies. 

READ: Commentary: How Tencent became world’s most valuable social media company – and then everything changed

A good example is the collaboration between China’s Tencent, Singapore’s Sea Limited and America’s Activision Blizzard to offer the Call of Duty: Mobile game in Southeast Asia. It has allowed Garena to expand beyond its own developed games.

There is another reason why the collaboration could be mutually beneficial. In 2018 China’s regulators took active steps to crack down on gaming addiction amongst minors. The State Administration of Press and Publication (SAPP) applied stricter regulation to limit the number of games entering the market each year.

READ: Commentary: Limits on video gaming the heart of a growing controversy in Japan

There are signs that some of the restrictions have been eased by the SAPP since the start of this year. But a collaboration between the two companies could provide a convenient alternative route to market for Tencent’s video games, which could also be beneficial for Sea Limited.

Collaboration is key – it makes little sense for Tencent to reinvent the wheel when there are established platforms and alliances that it can tap into overseas. 

The company said that Tencent Games aims to have as many users overseas as it has in China. For instance, Tencent is examining an expansion of its partnership with Nintendo to build console games for American gamers. 

Meanwhile, Sea Limited could be its door to growth in Southeast Asia.  

BEYOND THE SEA

Beyond gaming, Sea Limited is also active in e-commerce through its Shopee platform, which has grown faster than Digital Entertainment. In 2017, e-commerce registered revenue of S$24.08 million. By 2019, it had ballooned nearly 50-fold to S$1.12 billion. That said, e-commerce is still unprofitable for Sea Limited.

It recorded an operating loss of S$1.52 billion on those sales in 2019. It is unclear when Shopee would be profitable, given greater competition in this area, most of which, like its biggest rival Lazada, are backed by Chinese Internet titan, Alibaba.

READ: Commentary: Why is Alibaba planning to pour S$3 billion into Grab?

READ: Commentary: Why we can’t resist splurging on online shopping

But clearly COVID-19 has benefitted e-commerce companies as millions of people have been forced to stay at home.

In June 2020, Sea Limited said gross orders accelerated 150 per cent year-on-year, whilst adjusted revenue was up 187 per cent over the same period. 

It also said that in Indonesia, where Shopee is the largest e-commerce platform, a daily average of more than 2.8 million orders was 130 per cent higher than last year. 

It added that Shopee continued to rank number one in the Shopping category by active monthly users in Southeast Asia and in Taiwan.

A VIRTUOUS CIRCLE

Being number one is important. Apart from attracting more customers to the site, it also draws in more vendors to sell their merchandise on the platform, which in turn attracts more customers. 

The network can be a virtuous circle that could allow Shopee to invest in more efficient ways to fulfil customer orders by plane, boat, and road.

The key is to operate at lower cost than the competition, which can be achieved through investments in efficient fulfilment.

There is a third string to Sea Limited’s bow, which is Digital Financial Services through its SeaMoney digital payment and digital wallet. This is by far Sea Limited’s smallest divisions which accounted for less than 0.5 per cent of total revenue.

But it is early days, yet. The service was only introduced in the fourth quarter of 2019 with the idea that it could provide payment processing and e-wallet services by integrating it with Shopee.

READ: Commentary: China’s new digital currency is a bit of hot air

There are indications that it is working. In the second quarter of 2020, more than 45 per cent of Shopee’s gross orders in Indonesia were paid using the mobile wallet.

Sea Limited has aspirations for SeaMoney beyond an integration with its e-commerce platform. It recently applied for a digital banking licence in Singapore and it is one of the top contenders. A licence would allow it to take deposits and provide banking services to both retail and non-retail customers.

With gaming, e-commerce, and now digital payments in its suite of offerings, the future of Sea Limited is in its own hands. Its destiny will be determined by how quickly it can transform a business, which has turned cash flow positive, into one that is profitable at the bottom line.

READ: Commentary: E-commerce is set to boom, driven by COVID-19

From an investor’s perspective, the financial numbers in an improving profit-loss account, a healthy balance sheet and a strong cash flow statement speak volumes.

Sea Limited can make the right kind of waves by delivering the things that shareholders want – rising earnings. And if it can continue to see progress on that front, Sea Limited could remain Singapore’s most valuable company even in the future.

David Kuo is the co-founder of The Smart Investor and previously the CEO of the Motley Fool Singapore.