Mr S. Iswaran at the Singapore Retail Industry Conference 2008 - CEO Forum

SPEECH BY MR S ISWARAN SENIOR MINISTER OF STATE FOR TRADE AND INDUSTRY AT THE SINGAPORE RETAIL INDUSTRY CONFERENCE 2008 – CEO FORUM ON 2 SEPTEMBER 2008, 9.00AM, FUNCTION ROOMS 208/209 SUNTEC INTERNATIONAL CONVENTION & EXHIBITION CENTRE

Ladies and Gentlemen,

Good morning and a very warm welcome to all. I am pleased to join you at the opening of the Singapore Retail Industry Conference (SRIC) 2008 which commences with this morning’s CEO Forum. This is the 18th SRIC and the strong turnout today attests to its strength as a platform that generates insights into the retail industry, and opportunities for networking and forging of new partnerships.

The Retail Sector in Singapore

The annual Great Singapore Sale has continued to be a hit with shoppers. Figures released from MasterCard[1] indicated a 19 per cent increase in spending over the same period last year to a total of US$700 million or S$1 billion during the full two-month period of the Sale. Of this, total spending by Singaporean cardholders rose almost 25 per cent to S$645million, whilst spending by tourists increased by 11 per cent to S$354million.

The first 6 months of this year’s retail sales figures also showed an increase of 8 per cent over the same period last year.There is no doubt that retail is and will continue to be a vital part of Singapore’s economy, and a key contributor of the services sector. The industry employs 107,000 workers and accounts for $4.6 billion of value-added, generating $37.3 billion in operating receipts[2].

Nevertheless, (as mentioned by Dr Jannie Tay) it is evident that the global economic slowdown has begun to have an impact on Singapore’s retail scene.Retail sales for June have fallen, especially for big-ticket items like timepieces, jewellery, furniture and recreational goods.This is inevitable as consumer sentiments oscillate in tandem with the economic cycle.

Leveraging on the Buzz to the Retail Sector

Against this backdrop, how can Singapore retailers gird themselves to sustain customer loyalty and business performance?I have two suggestions.

The first, is to review and adapt operations to seize new opportunities. Let me illustrate.Later this month, Singapore will host the highly anticipated inaugural Formula One SingTel Singapore Grand Prix.The event will certainly add vibrancy and buzz to our island, whilst giving a strong boost to our retail sector. An estimated 50,000 overseas visitors will be coming to Singapore to watch race, and it is expected to generate incremental tourism receipts of approximately S$100 million a year.

The F1 race is not just a motor race but also a lifestyle event.The F1 fans will seek out retail and entertainment experiences to complement the race itself.As ours is the first and only night race in the world, the fans will want to shop and dine after the usual operating hours.Shopping malls, retail establishments and restaurants must adapt their operations to cater to this crowd of not only the F1 spectators, but also the many others who will be in the vicinity to soak in the atmosphere and excitement. I am glad to note that many retailers are already doing that by working with their landlords to adjust their operating hours during the race period, and holding special theme events, promotions and offers in conjunction with the F1.This and other major international events that Singapore will host in the years ahead present a unique opportunity that our retailers can and should leverage upon, even as we face challenges from a less sanguine global economic outlook.

The second is to strive for the highest standards in service excellence.Today’s shoppers, Singaporean and international alike, are a sophisticated lot.They are well-informed and well-travelled.We must meet the growing expectations of these customers in order to maintain our international attractiveness as a shopping destination.One key aspect is the branding and marketing of our companies and our distinctive shopping districts.Another is the quality of our people – their ability to communicate effectively, to guide the shopper knowledgeably, and to make themselves available and yet not be intrusive.It is a tall order but one that needs to be met if we are to sustain our competitiveness.We have just witnessed the enthusiasm generated by the Beijing Olympics and the lasting impressions that the Chinese have left on their visitors and indeed the world. We should aim to do the same in delivering a Singapore brand of excellent service to all customers. To this end, I would like to commend the Singapore Retailers Association (SRA) for taking the lead in various initiatives that serve to upgrade the service capabilities of the retail industry.

Conclusion

Next year, Singapore will be hosting the APEC meetings and visitors from 20 economies will be in Singapore throughout the year for meetings. Beyond that, we have the opening of the Integrated Resorts and the hosting of the Youth Olympics Games in 2010.The prospects are therefore positive and I urge all our retail establishments to seize upon this series of interesting opportunities to innovate, upgrade capabilities and sustain your competitiveness.

On this note, let me wish all participants a fruitful time of networking, learning and sharing at SRIC 2008.

Thank you.

[1] News release, MasterCard, Singapore, 15 August 2007

[2] Department of Statistics Economic Survey 2006