Minister Lim Hng Kiang at the Official Opening of the International Furniture Fair Singapore 2007 & the 24th ASEAN Furniture Show 2007

SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE OFFICIAL OPENING OF THE INTERNATIONAL FURNITURE FAIR SINGAPORE 2007 AND THE 24TH ASEAN FURNITURE SHOW 2007 (IFFS/AFS 2007), AT THE SINGAPORE EXPO AT11.45 AMON THURSDAY, 1 MARCH 2007

Your Excellencies,

Mr Andrew Ng, President, Singapore Furniture Industries Council (SFIC),

Distinguished guests,

Ladies and gentlemen,

Good morning.

Let me first wish everyone a happy and prosperous Lunar New Year!

Introduction

I am pleased to open the International Furniture Fair Singapore 2007, held in conjunction with the 24th ASEAN Furniture Show 2007. Now into its 24th year, the IFFS has matured into one of Asia’s best international furniture trade shows. Today, it is highly-regarded by many international buyers, and attracts more than 17,000 visitors. I am confident that the IFFS will continue to be the natural gateway for international furniture players to debut their products and expand into the high-growth Asian markets.

Outlook for Furniture Sector

The global furniture industry has been growing at a rate of 10% per annum for the past five years[1]. It is expected to grow by another 8% this year. This reflects the buoyant outlook for the industry.

I am happy to note that our furniture companies have done very well in riding this global growth. Over the past few years, many of them had internationalized to search for new production facilities and markets. We can now see the fruits of this strategy. Our exports from overseas factories have doubled in five years to $2.4 billion last year.

Update on SFIC’s LEAD Programme

To build on this success for future growth, our furniture companies have to continue upgrading their capabilities and move up the value chain. This will allow them to differentiate their products in an increasingly-competitive market.

SFIC has taken a leading role in spearheading the industry upgrading efforts. The government supports this through the Local Enterprise and Association Development, or LEAD, programme, which helps industry associations build up their industries. Last year, SFIC received support from LEAD and announced a $16 million industry upgrading programme to enhance its competitiveness. I wish to highlight three key achievements by SFIC under this programme. 

A. Furniture Design Award

The Furniture Design Award provides a high-profile platform for designers to showcase their talents and explore possible partnerships with local companies. I was told that Mr Jarrod Lim, last year’s Gold award winner in the Young Designers Category, is currently working with Air Division to commercialize his ‘Streamline Chair’. He has also recently been talent-spotted by Jaco Singapore to design a new collection. I hope to see more local companies that can nurture young talents like Jarrod, and groom them for bigger and better things.

B. ‘PLATFORM’

Another avenue for furniture designers to showcase their products and designs to the world is ‘PLATFORM’. This is a new and very exciting feature of this year’s IFFS.I am glad to hear that SFIC has received an overwhelming response of 67 designers for this inaugural event. Through SFIC’s workshops, the designers have also gained valuable tips on the use of materials, the manufacturability of furniture designs and even sales negotiation. I look forward to seeing many interesting concepts when we tour the exhibition later.

C. International Furniture Centre (IFC)

The third initiative is the International Furniture Centre. The IFC was conceptualized as a catalyst to transform Singapore into an International Furniture Hub. As the focal point of the region’s furniture industry, the IFC is a one-stop, year-round venue to showcase the region’s furniture exporters. It is expected to attract at least 100 more companies into Singapore and bring in more than US$150 million of additional investments by 2009.I urge the industry to give your full support to the IFC.

Industry Branding Initiative

Besides these programmes which have made good progress, I am happy to learn that many companies have also taken the initiative to upgrade themselves. For example, Koda has experimented with new materials to develop a line of non-wood based furniture collection to target new markets

Singapore’s Furniture Branding Programme

To help such companies be more effective in reaching the new markets, I am pleased to announce that the furniture industry will embark on a Singapore furniture industry branding programme.

Spearheaded by SFIC and supported by SPRING and IE Singapore, this programme aims to improve the industry’s competitiveness in export markets by building its brand recognition. “Singapore Furniture” already enjoys a good reputation in international circles. Going forward, we intend to focus on our unique characteristics, for example design and quality, to further differentiate our products. This programme is also designed to enhance the image of the industry so that it can attract the next generation of talented Singaporeans into its ranks.

An effective branding strategy will complement the current LEAD initiatives to realize our goal of positioning Singapore as an International Furniture Hub. I am confident that these initiatives will further enhance the position of the Singapore furniture industry on the world furniture map.

Conclusion

I am glad that SFIC has taken such a proactive role to strengthen the competitiveness of our furniture industry. Its efforts will contribute to the creation of a more exciting, creative and innovative furniture sector in Singapore. I wish the IFFS/AFS 2007 another year of success.

Thank you.

[1] World trade of furniture, World Furniture Outlook 2007, CSIL Milano