SPEECH BY MR S ISWARAN, MINISTER OF STATE FOR TRADE AND INDUSTRY,
AT THE SINGAPORE RETAILERS ASSOCIATION BALL 2006, 26 OCTOBER 2006, 8PM,
AT THE RITZ-CARLTON MILLENIA SINGAPORE 

Good evening

Dr Jannie Tay, President of the Singapore Retailers Association

Ladies and gentlemen

Introduction

I am pleased to join you today, at the Singapore Retailers Association Ball 2006.

Positive Outlook And Potential Of Retail Scene

The retail sector in Singapore has been growing strongly in the first eight months of this year. The retail sales index (excluding motor vehicles), for the months of April to June, was between eight to ten percent higher than that for last year’s. MAS estimates that retail grew 5%, in the 2nd quarter this year, on a seasonally adjusted basis, prompted by increased visitor arrivals, a buoyant job market and a rebound in consumer spending.

Recent developments are further testament to the promise and potential of the retail scene in Singapore. Over the past 12 months, we welcomed new flagship stores and brand boutiques such as Massimo Dutti, Jimmy Choo, Ben Sherman, River Island and GAP.We saw the opening of concept stores such as the Club 21 ishop, Cortina’s Watch Couture Gallery and Sincere’s Haute Horlogerie. On a larger scale, we witnessed the unveiling of the new-look Marina Square and VivoCity which adds some 300 shops and over 1m sq ft of shopping space.In addition, fringe concepts such as the Venue VBox have also made for a more colourful retail scene. The Venue VBox, as some of you know, is essentially a portable store in a shipping container – something quite different to our traditional notion of a store!

Locals and visitors continue to enjoy annual highlights such as the Great Singapore Sale, and the Singapore Fashion Festival. The Great Singapore Sale registered S$5 billion in total sales during the months of June and July both in 2005 and 2006. Consumers have also given strong support to the pilot Friday Late Night Shopping initiative that was launched in July. Aside from extending operating hours to cater to working professionals and visitors who have busy schedules, retailers also organised individual in-store promotions and activities to enhance Singapore’s late-night shopping experience. These retail events have registered good results and attendances, further boosting Singapore’s profile as a compelling shopping destination.

To upgrade the sector, the Government is committed to helping retailers hone their capabilities in branding, IT, franchise development and subject matter knowledge through assistance schemes offered by SPRING Singapore.Since Jan 05, SPRING has helped close to 800 retailers in various projects, involving branding, IT, enterprise resource planning, as well as improving their service standards.

Impact Of Tourism On Retail Industry

Retailers, in turn, can do their part by continuing to do what is second nature to you – which is to look out for innovative and creative ideas, and capitalising on new opportunities, particularly in areas such as tourism shopping.

Tourism has always been, and will continue to be, a key pillar supporting the long-term growth of Singapore’s retail industry. Last year we welcomed 8.9 million visitors and recorded nearly S$11 billion in tourism receipts. In the first half of this year, we posted S$5.5 billion in tourism receipts, a 5.2% increase over January to June last year. We also welcomed 4.7 million visitors, registering an 11.8% increase from the same months last year. This is the highest number of visitor arrivals ever recorded in the first half of any year. By 2015, we aim to double visitor arrivals to 17 million, and triple tourism receipts to S$30 billion. Statistics show that half of current tourism receipts come from retail – higher than any other component of tourist activity.

The generally positive outlook and upcoming developments, including the two Integrated Resorts, will continue to stimulate demand from, and investment in, tourist shopping. This will surely mean many opportunities for retailers to seize, as you anticipate and adapt to the needs of tourists who will be arriving at our shores in the years ahead.

Challenge To Take Singapore's Retail Industry To The Next Level

It is also good to note that Singapore continues to maintain its reputation as an internationally recognised shopping haven, notwithstanding the increasing competition. Singapore offers a world class shopping experience with world renowned Orchard Road, a variety of malls and signature events such as the Tempus, JewelFest, and the Singapore Fashion Festival. Our strengths ultimately lie in the availability of a diverse range of merchandise, value-for-money products, authenticity and high quality assurance, all at a reasonable price. Visitors from overseas also like our safe streets and efficient public transport.

To take Singapore’s retail scene to the next level, we must aim to provide consumers a world-class shopping experience. The first step towards achieving this is to improve our service standards. As business owners and managers, I know that you continually aspire to raise service standards, setting new service benchmarks and upgrading your employees’ skills. These are the finer aspects that transform shopping from a prosaic purchase of merchandise into an unforgettable experience for your customer, prompting them to come back for more.

The Government will support your efforts through the national movement, “Go-the-Extra-Mile-for-Service”, otherwise known as GEMS. GEMS was launched one year ago to boost service excellence among retailers. It is driven by an inter-agency secretariat and supported by business leaders from various fields including Retail, F&B and Hospitality. GEMS focuses on four service aspects in SMEs, namely, Leadership, Capability, Mindset and Service. Some of SRA’s members are already participating in the GEMS movement through the “Mall-Wide Service Initiative”.It will be rolled out in 35 shopping malls over the next three years, and will involve some 5,000 establishments and 15,000 workers.

Conclusion

The challenge for our retail industry is not unlike that faced by other sectors in Singapore.Given the intense regional competition in the retail sector, we need to continually innovate and upgrade our retail infrastructure and products to stay attractive and relevant to our customers. We must offer exceptional service to them. To achieve this, we need talented individuals to go into retail. The SRA scholarship, launched in 2000, is one way to attract and groom talented, budding retailers from a young age. The SRA Award also accords recognition to outstanding achievements in the retail sector, inspiring many others to emulate the award recipients.I congratulate SRA on these initiatives

The SRA and all its members have an important role to play in shaping a vibrant and exciting retail scene in Singapore. Your customers, local or foreign, look forward to the many exciting new offerings you will introduce in the coming years. And I am sure you will exceed their expectations and give them every reason to continue shopping in Singapore.

I wish you all an enjoyable evening.

Thank you.