Speech by Minister S Iswaran at the International Furniture Fair Singapore 2017

​SPEECH BY MR S ISWARAN, MINISTER FOR TRADE AND INDUSTRY (INDUSTRY) AT THE INTERNATIONAL FURNITURE FAIR SINGAPORE 2017 ON 9 MARCH 2017 AT 10.45AM AT THE SINGAPORE EXPO HALL 4

Mr Ernie Koh, Chairman of IFFS

Mr Mark Yong, President of the Singapore Furniture Industries Council (SFIC)

Dr Michael Pulch, Ambassador of the European Union to Singapore

Distinguished guests

Ladies and gentlemen

Introduction

1.    It gives me great pleasure to join you at the International Furniture Fair Singapore (IFFS) 2017, the annual flagship event of the Singapore furniture industry.  

2.    Among our guests are manufacturers, designers, distributors, retailers, wholesalers, hoteliers and many other industry professionals. This attests to the growth and success of IFFS over the years, as a channel for local, regional and international companies to reach out to the global market, build networks, and seek out collaborative opportunities.

Growth opportunities in Asia

3.    IFFS is an excellent showcase of Singapore’s dynamic furniture industry which has grown steadily over the years, and contributed $6.27 billion in sales in 2015. The industry will continue to benefit from the robust growth opportunities in Asia. ASEAN, China and India are bright spots, with the ASEAN-5 countries expected to grow at 4.9% in 2017, China at 6.5% and India at 6.6%.  In our immediate region, Member States of the ASEAN Economic Community are studying the harmonisation and mutual recognition of standards across a wide range of sectors. ASEAN Member States are also working to improve trade facilitation through the ASEAN-wide Self-Certification regime and the ASEAN Single Window (ASW). These and other developments, will ensure that ASEAN remains an attractive and substantial market with its population of over 600 million people and one that will continue to grow and offer more economic opportunities to the furniture industry.

4.    Asia’s urban middle class is also growing rapidly. For instance, the proportion of population living in urban areas[1] in China reached 56.1% in 2015, and it is on average rising by about 1% every year. In this urbanisation process, it is estimated that 37.6 million more houses would have been renovated by 2020[2], generating significant demand for furniture that is designed to meet the tastes and needs of the Asian urban consumer, and present growth opportunities for companies who wish to expand in the region.

Remaining open to global talent and ideas

5.    Singapore’s furniture industry is well positioned to partner with many others in order to seize many of these opportunities. The industry exemplifies three important themes which the Singapore Government has emphasized several times over the past few weeks, when the report of the Committee on the Future Economy was released, and at the Budget and Committee of Supply debate.

6.    First, Singapore remains committed to staying open to trade, investments, talent and ideas from around the world. IFFS epitomizes this commitment to openness and connectivity. Now in its 34th edition, this year’s event showcases 428 exhibitors from 35 countries, and welcomes visitors from over 100 countries who are in Singapore to attend this event. The European Union (EU), represented by 42 interior design companies from 15 different European Union countries, will be presenting at the “EU Business Avenues in the South East Asia Pavilion” for the first time at the IFFS.

7.    Singapore has always endeavoured to work with the best talents, partners and companies from around the world in order to pursue new avenues of growth. The furniture industry is no exception, with design increasingly drawing inspiration from diverse sources. 

8.    SFIC has been spearheading the SingaPlural event, which is taking place this week at the F1 Pit Building. It is a showcase of installations by local and international designers, and also a flagship event of the Singapore Design Week. Supported by SPRING, latest editions of SingaPlural have catalyzed collaborations between local designers and local brands to develop creative products for the market. As part of SFIC’s efforts to uncover budding design talents, the SFIC has been organising the Furniture Design Award (FDA) in conjunction with SingaPlural. With support from the LEAD programme, this award is now an international award for young design talents from across the world, with 259 entries from 35 countries this year. The success of this effort affirms the attractiveness of this region as a location for budding designers from all over the world to showcase their talent and develop their ideas. Through such efforts, we also hope to attract more talented designers to collaborate with local partners and translate their ideas into creative solutions for the needs of the Asian consumer. 

Building deep capabilities

9.    Second, given the pace of technological change and advent of disruptive business models, Singapore needs to focus on building deep capabilities in our industries, to be well-positioned for the challenges and opportunities arising from these changes.  Our furniture sector has done this by adopting new technologies and some of our furniture retailers have been trailblazers in this regard. 

10.  Local furniture and home décor company HipVan for instance has built an online first brand to cater to young millennial households. Using data analytics and digital marketing tools, HipVan has been able to spot trends, optimise its product layout, reduce search time and expand its reach. The flagship Retail Experience Centre of KODA Commune, has also introduced the 3D floor planner and Virtual Reality (VR), to enhance its in-store experience.  These technologies allow customers to create digital mock-ups of their rooms, in order to better select furniture across a wider range of designs.  The IFFS organisers have also collaborated with an A*STAR startup, Dimension 5 Technologies, to set up a dedicated zone with virtual reality (VR) showrooms featuring furniture pieces from a select group of exhibitors. I urge you to visit Hall 4 later to experience these new technologies, which should inspire many of our retailers.

11.  Furniture wholesalers have seen the impact of B2B e-marketplaces on global trade. E-marketplaces are changing the economics of doing business across borders, by reducing the costs of international transactions and enabling companies to gain access to new markets. To strengthen collaboration within the industry and reap the benefits of digitalisation, SFIC, with the support of IE Singapore, will be launching a B2B e-marketplace for the furniture industry this year. This e-Marketplace, open to companies in the furniture trade and other adjacent industries, will encourage more brands to go digital and tap on overseas growth opportunities. It will also bring about greater collaboration between big and small players.

Industry Transformation Maps

12.  Third, our industry sectors will continue to be strengthened through the Industry Transformation Maps (ITMs). In particular, the Retail ITM, which was launched last year, includes a number of initiatives which the furniture industry will benefit from. These include creating shared industry platforms, helping companies access the global market through digital channels, and making use of technology to promote service innovation. The success of the ITMs depends critically on the industry, workers and government agencies working together. In particular, Trade Associations and Chambers (TACs) such as SFIC will play a key role as partners to the Government in spearheading projects that help members develop capabilities, innovate and tap on new opportunities.

13.  In that regard, I would like to commend SFIC on cultivating a strong partnership with our government agencies, and for your leadership in the furniture industry which has been pivotal in transforming Singapore’s furniture industry into the vibrant and competitive sector we see today.

Conclusion

14.  Let me once again commend SFIC for the successful organisation of the IFFS, for showcasing the best of the Singapore furniture industry to the world, and for bringing some of the most promising furniture design talent and companies from around the world to Singapore.

15.  I wish everyone a very fruitful and productive time at the IFFS. Thank you.

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[1] Source: National Bureau of Statistics of China

[2] Source: HKTDC Research

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