Mr Lee Yi Shyan at the Inaugural Asia Food Technology, Innovation and Safety Forum 2009, 20 Jul 09

Opening Address by Mr Lee Yi Shyan Minister of State for Trade & Industry and Manpower at the Inaugural Asia Food Technology, Innovation and Safety Forum 2009 on 20 July 2009, 9:00am at The Matrix, Bio polis

Distinguished Guests,

Ladies and Gentlemen,

Good Morning

1.I am pleased to join you today at the inaugural Asia Food Technology, Innovation and Safety Forum 2009. Let me extend a warm welcome to our guests from overseas.

Evolving Food Industry and Changing Consumer Demands

2.The global packaged food industry is worth S$2.7 trillion in 2008[1]. Given rising affluence, ease of communication and transportation, the world has become one global marketplace. Food markets are constantly evolving. Besides changes in consumer preferences, market evolution is also driven by technological advances, linkages between members of the food supply chains, and changes in prevailing policies and business environments.

3.Amidst these changes, how can food manufacturers tap the vast opportunities and achieve success? I would like to expound on two critical areas.

Strong Foundation in Food Quality and Safety

4.The first is food quality and safety. There is rising global concerns about food safety as a result of recurring livestock disease such as bird flu and use of tainted ingredients. Today, consumers want assurance that the food they eat is safe and hygienically prepared. Governments worldwide are also imposing stringent requirements on the food industry to ensure food sources are disease-free and of globally accepted standards.

5.Singapore food companies are doing well in this area. We have built a strong global reputation for maintaining good standards in quality and food safety. Since SPRING Singapore kicked off a food safety campaign in 2007, some 70 local companies have tapped on almost $1 million of funds to adopt an internationally recognized food safety management system. This is a clear sign of their commitment to quality and food safety.

6.To this end, I am glad to note that there is an increasing number of companies who are interested in adopting the Hazard Analysis and Critical Control Points (HACCP) certification. Such a move will help companies gain a competitive edge in the global market. Currently, 17% or about 330 food manufacturers out of more than 1,200 of our food companies are HACCP-certified[2]. We hope to double the number to 35% within the next 3 years.

Innovation as a Key Competitive Advantage

7.The second area I would like to highlight is innovation. Food companies that are growing or planning to venture overseas should focus on technology innovation to develop more first-in-the-market products or enhance their processes and packaging for better-quality products with longer shelf-life. Functional foods such as collagen yogurt, functional coffee, fortified sauces, and healthy rice mix are some of the new food innovations that are fast gaining popularity.

8.One way to achieve this is to enhance in-house technology expertise. Food science and technology is gaining importance in the manufacturing value chain. By understanding the science behind food ingredients and material composites, food industries and companies are better able to reap benefits from better quality products and food packaging.

9. Companies can tap on SPRING’s Technology Innovation Programme to leverage on the expertise of research institutes. For instance, they can look at contracting the research scientists and engineers to work with them on a project basis. Alternatively, food companies can tap on external specialist facilities like the Food Innovation and Resource Center (FIRC) to create and trial new products, from concept to market testing.

10.Companies such as Gold Kili and CerealTech have successfully tapped on SPRING’s Technology Innovation Programme. Gold Kili, which began as a local coffee manufacturer and distributor, continues to invest in proprietary product development. One of its specialty products is the natural sugar-free ginger tea which was developed with SPRING’s support. The product today receives positive feedback from its export markets. CerealTech specializes in developing micro-ingredients like enzymes to enhance the quality and shelf-life of cereal-based products. The company has also worked with SPRING to upgrade its R&D capabilities and gain access to new market segments.

11.There are many government programmes that food companies can explore to enhance their key capabilities in these two critical areas of quality and food safety, and innovation. I urge all of you to work with SPRING to tap on existing assistance programmes, as well as explore ways to sharpen your competitive edge.

Partnerships for Growth

12.I am pleased to note that two MOUs will be signed today. The first is between FIRC and Sealed Air, a US-headquartered food packaging company. This MOU marks the commitment by the two parties to accelerate the development of new products and processes through new packaging concepts.

13. The second MOU is between the Singapore Manufacturers’ Federation (SMa) and the Restaurant Association of Singapore (RAS) to foster collaborations between the food manufacturing and food services players through jointly organized events. Through such partnerships, they can leverage on each other’s expertise to innovate products for export.

14.The collaborations also include the training of chefs and food manufacturers to create taste profiles to suit the palates of global and regional consumers. Such strategic partnerships between players in the same value chain will help propel B2B demand. I hope we will see more of such strategic collaborations going forward.

Conclusion

15.On this note, I would like to congratulate the Singapore Food Manufacturers’ Association, Singapore Manufacturers’ Federation, Food Innovation and Resource Centre, and Pinnacle Group for successfully banding together to organize this Forum. I hope that the insights gained and partnerships formed at this Forum will inspire and spur many more international companies to conduct their businesses in Singapore to capture the next phase of growth in Asia.

16.I wish you all a fruitful discussion.

Thank you.

[1]

Source: Euromonitor International

[2]

Source: AVA