Mr Lee Yi Shyan at the Singapore International Jewellery Show 2010, 29 July 2010

Speech by Mr Lee Yi Shyan Minister of State for Trade & Industry and Manpower at the Singapore International Jewelry Show 2010 on 29 July 2010, 10:45am at Marina Bay Sands

Mr. Ho Nai Chuen, President of the Singapore Jewelers

Association

Mr. Edward Liu, Managing Director of Conference and Exhibition Management Services Pte Ltd

Distinguished Guests,

Ladies and Gentlemen,

Introduction

Good morning. It is my pleasure to join you at the opening of the Singapore International Jewelry Show (SIJS) 2010. In particular, I would like to extend a warm welcome to our guests from overseas.

Strong and Sustained Economic Recovery

Last year was a challenging year for economies worldwide and Singapore’s economy was not spared. I am pleased to note that the outlook is more positive this year. The International Monetary Fund has forecast a worldwide GDP growth of 4.5%, with Asia leading the pack at a projected growth of 7.5%

[1]

.

Given this positive economic outlook, Singapore’s jewelry sector should take full advantage of this surging wave.

Ride on Global Demand

 
We must tap on this renewed growth in global demand. The World Wealth Report 2009[2] reported that High Net-Worth Individuals (HNWIs) are cautiously reinvesting in the wake of the economic recovery, preferring more tangible assets that are expected to hold long-term value. Jewelry, gems and watches became the second-largest passion-investment category for HNWIs globally in 2009, accounting for 23% of their investments. Regionally, the Asia-Pacific wealth, led by Hong Kong, rose 30.9% to $9.7 trillion, surpassing the $9.5 trillion worth held by Europe’s HNWIs.

Singapore’s jewelry sector has done well in meeting these global demand trends. Last year, $6.6 billion worth of jewelry and precious metals were exported. This increase of about half a billion from 2008

[3]

can be attributed to strong demand from Hong Kong, Malaysia and the United Arab Emirates

[4]

. Still, there is a huge market to be tapped in China, India and Indonesia.

 
Raise Competencies to Stay Competitive

 
Nevertheless, to keep up with changing local and global demands, the jewelry sector must raise its competencies to ensure that areas such as internal processes, design and branding as well as staff training are in place to provide par-excellent service to their well-heeled clientele. They must also continue to uphold the strong reputation the sector has built, in product quality and authenticity. Allow me to share some ideas.

Safeguarding the Industry’s Reputation

Firstly, we should safeguard the industry’s sound reputation by augmenting the accreditation framework so that it is recognized by both the industry trading partners and customers. This will help to further boost confidence in the authenticity and standards of the products for both trade buyers and end-consumers. In doing so, we should learn from the best practices of other jurisdictions.

Better Accessibility to SIJS

Secondly, show positioning. Since its inauguration in 2005, the Singapore International Jewelry Show has grown from strength to strength. But you must continue to take steps to enhance its accessibility and value to visitors in the face of keen competition from the region

[5]

.

For SIJS to emerge as a Premier Show in Asia, you will have to consider how best to raise its position and useful-ness to the trade. Some possible initiatives to consider include facilitating pre-show business-matching and having on-site GST refunds for overseas buyers. These initiatives, I believe, will help to remove the post-show hassle for exhibitors and allow overseas visitors to clear customs faster when they leave Singapore.

Grooming Design Talents

Thirdly, Design excellence. Design is the key differentiator from competition. As consumers become more sophisticated, they will demand better-designed products with greater emotional appeal. Understanding this, we need to focus our efforts to draw the best design talents, regionally and internationally, through initiatives like the Singapore Jewelry Design Award. The winner could be placed in employment with a sponsor jeweler, where he/she will gain the commercial exposure and the opportunity to learn the business.

Improving Service Standards

A fourth focus area is that of service quality. It is natural for buyers of high value jewelry to expect a high level of service, way beyond the basic “Greet, Smile and Thank You”. In today's context, it is a basic requirement for service staff to possess good product knowledge in addition to selling skills. Businesses too need to differentiate themselves amidst increasing competition. Business leaders must take up the mantle to motivate and empower their staff to put customers' satisfaction foremost. The end result would not only deliver revenue growth but also engender customer loyalty. Leaders who are serious about staff training should look at the GEMS UP movement that helps companies to reposition its business processes and improve staff performance through service capabilities development and skills upgrading. Embracing a culture of service excellence also means recognizing that it is a two-way street. It is equally important that customers appreciate service staff. Companies looking to be part of Singapore's drive towards service excellence may contact SPRING, STB or WDA for further details.

Conclusion

Finally, in opening this show, it is my wish that the Singapore Jewelers Association will continue to build on Singapore’s established reputation of trust, quality and reliability, and continue to encourage local jewelers to provide design-driven products and good service. With this, I am confident that Singapore will become an even more important hub serving the Asian jewelry trade.

I wish all exhibitors and visitors a rewarding and enjoyable experience at SIJS 2010. Thank you.

[1]

IMF World Economic Outlook Update, 7 July 2010

[2]

Report jointly released by Merrill Lynch Global Wealth Management and Cap Gemini,

[3]

Total export value was $6.09 billion in 2008. HS codes include:

 7106 - Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured forms, or in powder form.7108 – Gold;7112 - Precious metal;7113 - articles of finished jewelry
[4] Source: IE Singapore
[5] Keen competition from The Hong Kong International Jewelry Show; the Shenzhen International Jewelry Fair; and the India International Jewelry Show.