Mr S Iswaran at the Singapore International Jewellery Show 2009, 30 Jul 09

SPEECH BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE & INDUSTRY AND EDUCATION, AT THE SINGAPORE INTERNATIONAL JEWELLERY SHOW 2009 ON THURSDAY, 30 JULY 2009, 1005 HRS, AT SUNTEC INTERNATIONAL CONVENTION & EXHIBITION CENTRE LEVEL 4, HALL 402 & 403

His Excellency Mano Wijeyeratne,

Minister of Enterprise Development of Sri Lanka,

Ambassadors,

Distinguished Guests,

Ladies and Gentlemen,

Good Morning

Introduction

It is my pleasure tojoin you at the opening of the Singapore International Jewellery Show (SIJS) 2009. I would like to extend a warm welcome to our guests from overseas.

The economic downturn has dampened consumer sentiments worldwide and the retail trade has not been spared. In Singapore, retail sales dropped 10.3 per cent in May 2009 compared to a year earlier after dropping 11.7 per cent in April and 7.3 per cent in March. Trends show that shoppers are staying away from big-ticket purchases including jewellery items.

The outlook for the rest of the year remains one of caution.So, while there are some tentative signs of a weak recovery in parts, it is one that is quite susceptible to downside risks. Amidst these uncertainties, it is essential for Singapore jewellery retailers to look beyond the immediate challenges and identify critical strategies to prepare for the upturn in consumer sentiment.

New Growth Areas in the Global Market

Firstly, we must identify and tap on new growth areas in the global market. And, there certainly are some positive growth areas, particularly in Asia. According to a recent report[1] ↗ (opens in new tab) on the jewellery sector, India and China together are projected to emerge as a market equivalent to the United States by 2015.The Middle East is yet another large market to consider. According to the World Wealth Report 2009, High Net-Worth Individuals (HNWIs) are investing 22 per cent of their wealth in jewellery, gems and watches.[2] ↗ (opens in new tab)This consumption resides mainly inAsia and the Middle East. The rising trend of HNWIs devoting proportionatelymore to this category suggests that they perceive jewellery, gems, and watches as safer, tangibleinvestments with long-term value.

I am glad that these trends have not gone unnoticed by Singapore’s jewellery retailers who are actively growing their export markets. Last year, S$5.7 billion worth of jewellery and precious metals were exported, an increase of nearly S$2 billion from 2007[3] ↗ (opens in new tab). The substantial increase can be attributed to strong demand from the UAE and India which were the main countries of export last year[4] ↗ (opens in new tab).

Another platform for long term growth is to leverage on design innovation for new growth opportunities. Fashion, art, furniture and jewellery are sectors where there are significant synergies for collaboration.In that regard, I am pleased to see a continuation of last year’s partnership between the organisers and Paris-based artist Mr Thomas Diego Armonia. I understand that Mr Armonia has now taken on the role of Artistic Director for the fashion show runway and the VIP lounge. An inspiring artist, Mr Armoniahas also collaborated with Nivrel timepiece to personally reproduce his paintings on watch dials.This cross-collaboration between art, fashion, jewellery and timepiece elevates and distinguishes SIJS from other jewellery trade shows.

In the area of local collaborations, famous personalities and celebrity designers have helped to inject a fresh appeal. Some examples include the recently concluded Audi Fashion Festival.Aspial-Lee Hwa was also the official jeweller for renowned home-grown designer, Ashley Isham’s new collection showcase.Another example saw local designer, Wykidd Song design an exclusive jewellery line for Soo Kee Jewellery in 2007 which has proven to be popular. As a result, I understand that Song is planning a new collection for later this year.

Several jewellery retailers have also revolutionised their collections by expanding into the men’s market.They have diversified into accessories such as cufflinks and bracelets and introduced new jewellery collections. Retailers who have seen such expansion include imported brands like Verve [pronounced Verve] and Zoppini [pronounced Zjo-pi-ni] by Soo Kee Jewellery and Goldheart’s Giovanne [pronounced Zjo-va-ni] collection.

Conclusion

It is timely for the jewellery sector to not just take stock of the industry’s achievements but also cast an eye towards the future – to contemplate the direction it should take for the next three to five years. This could be in the form of a roadmap to bring the industry to the next level and to position itself anew for years to come. I urge the Singapore Jewellers Association (SJA) to consider tapping on the Local Enterprise and Association Development Programme (LEAD) administered by SPRING and IE Singapore to develop and implement such strategic projects.

To our Singapore jewellers, I wish you continued success as you strive to build on Singapore’s established reputation of trust, quality and reliability, and to provide innovative products and exemplary service.I wish all exhibitors and guests a rewarding and enjoyable experience.Thank you.

[1] ↗ (opens in new tab) Global Gems and Jewellery: Vision 2015: Transforming for Growth Report by The Gem & Jewellery Export Promotion Council (GJEPC) of India and KPMG

[2] ↗ (opens in new tab) Report jointly released by Merrill LynchGlobal Wealth Management and Capgemini

[3] ↗ (opens in new tab) Total export value was $3.75 billion in 2007

[4] ↗ (opens in new tab) Source: IE Singapore