SINGAPORE - "If you don't innovate, you will be eliminated."

That is the mantra of Mr Sim Wong Hoo, chief executive and chairman of Creative Technology, which has been at the forefront of innovative technology developments since its birth in 1981.

To stay competitive, Mr Sim has tried to ensure that his firm is agile and creative.

He was lauded by Finance Minister Heng Swee Keat in the Budget speech on Monday (Feb 18).

Mr Heng said: "The spirit of entrepreneurship is critical for all these endeavours - having a vision of the future, and taking practical actions, day in, day out, to explore a range of possibilities and solve a myriad of problems."

"Mr Sim's story illustrates the point that to succeed, we must learn, we must walk the ground and we must persist."

At 64, Mr Sim is still innovating.

Creative Technology recently launched the Super X-Fi, a technology that recreates a holographic sound experience with headphones. It won 14 awards at the 2019 Consumer Electronics Show in the US.

"Innovation is the lifeblood and basic essential for any company in this new world. But to prosper, you also need to be lean, agile, highly competitive and not to mention mean, and some luck," he told The Straits Times.

Mr Sim added that the challenge Singapore firms face is a lack of talent in the field of innovation. Small and medium-sized enterprises also face difficulties in attracting talented people who may prefer to go to multinational companies.

He said: "Singapore companies should be given more space to participate in the local market for them to grow their wings before 'pushing them off the cliff', into the markets overseas."