Mr S Iswaran at the SRA Ball 2012

​SPEECH BY MR S ISWARAN, MINISTER, PRIME MINISTER’S OFFICE & SECOND MINISTER FOR HOME AFFAIRS AND TRADE & INDUSTRY AT THE SRA BALL 2012 ON 30 AUGUST 2012 AT 7.20PM, RAFFLES CITY CONVENTION CENTRE

Dr Jannie Chan, President of the Singapore Retailers Association,

Retailers and Industry partners,

Ladies and Gentlemen,

Introduction

A very good evening to all.  I am pleased to join you today for the celebration of the 35th anniversary of the Singapore Retailers Association (SRA).

Celebrating the Achievements of SRA & the Retail Industry

The retail industry has done well over the last six years. The growth has been strong, underpinned by the introduction of new stores, new concepts and new ideas that have served to delight customers in Singapore. The vibrancy of our retail sector has added to the buzz – the attraction of Singapore as a place to live, work and play.

The Singapore Retailers Association has played a pivotal role in the growth and development of our retail sector.  In particular, SRA has made significant contributions towards capability development in the industry.  These efforts started back in 1985, when the SRA Institute for Retailing was established to train workers for the retail industry.  Today, more than 40,000 workers have benefited from training at the Institute.  In 2004, SRA and SPRING Singapore jointly started the Retail Academy of Singapore.  And in 2007, SRA jointly launched the National Retail Scholarships with SPRING Singapore and the Singapore Workforce Development Agency (WDA) to attract and groom talent in the retail industry. I want to add my words of congratulations to SRA’s strong dedicated work in cooperating with government agencies in building up the industry and ensuring that its capacity continues to grow over the years.

Outlook for the Retail Industry – Challenges and Opportunities

The key question at this point is really what lies ahead and the challenges that it heralds.  There are uncertainties because of what is happening in the G3 economies, which in turn will have an impact on consumption demand globally. Domestically, our land and labour constraints will exert pressure on our retail industry, as with all other industries. The question here is how we can ensure the vitality of our retail sector.

i)  Overcoming Domestic Challenges

We are well aware that the SMEs, especially those in the manpower-intensive sectors such as retail and F&B, face manpower challenges due to the tightening supply of foreign manpower. I do believe that our businesses understand the context and the need for such measures, especially as an indefinite reliance on low-cost foreign manpower is unsustainable. Equally, I believe that our businesses have the perseverance and commitment to explore new pathways for sustainable growth. The government agencies will be your resolute partner in this effort.

Productivity is a good way to start. We are well aware that productivity in Singapore in the retail sector lags behind that of other cities, such as New York and Hong Kong, standing at about US$41,700 in nominal value-added per worker. The Government is determined in its commitment to support our businesses to raise productivity levels.

Tonight, I wanted to share with you the latest developments in one of the key initiatives that was announced in April last year.  The Part-time Pool programme was piloted last year to develop a sustainable pool of part-timers to meet the business demands of the retail and F&B industries.  These part-timers could include students and housewives.  The pilot programme has been well-received, with some 100 companies tapping on close to 2,500 part-timers over the past year.  As a result of the good response from the industry, SPRING Singapore will be expanding the programme to co-opt more service providers so as to reach out to more part-timers and businesses.

In addition, SPRING and WDA are working closely with SRA and the Restaurant Association of Singapore (RAS) to enhance the programme to benefit more retail and F&B businesses.  Both associations will develop a WSQ-accredited curriculum for the training of part-timers in their respective industries. For businesses, this industry-led training programme will help to ensure that the deployed part-timers will have the requisite skills to perform their jobs competently.  About 2,000 part-timers are expected to participate in this training programme with RAS and SRA over the next two years.

I am also pleased to announce that SRA has developed a two-day curriculum that is aligned to the WSQ framework for the retail industry.  Once this is accredited, SRA will start training interested part-timers to address the needs on the shop floor and that would just in time for the year-end festivities.

Collectively, these efforts will create a sizeable pool of trained and professional part-time workers that retail companies can tap on for their needs.  I urge all of you to take full advantage of this programme to supplement your core manpower.

There are numerous other programmes that we have put in place to develop talent in our retail industry. I would sum it up by saying that these are all designed to ensure that we have a sustainable pool of Singaporeans in the core workforce particularly in the retail industry - both in the middle management level and in the leadership level.

ii)  New Markets and Trends Present Opportunities for Growth

The other point is how we continue to explore and expand the retail sector. I want to congratulate Jannie, the President of SRA, in this regard. As we talk about expansion in the retail markets, Her appointment as the Chairman of the Federation of the Asia-Pacific Retailers Associations is an important marker of that move. Jannie’s appointment will certainly be a catalyst for the overseas expansion efforts of our retailers.

Besides new markets, we need to keep pace with consumers’ needs. That means not just understanding through research but also through pilots and other test products in order to achieve the kind of outcomes that would appeal to our consumers and increase the market share of our businesses.

Innovative products and concepts are effective in capturing market share.  One example is H&M who launched its eco-friendly Conscious Collection earlier this year, and has since established its market leadership position in sustainable design.  The eco-friendly collection was not only innovative, but also resonated with the growing group of consumers who seek out retailers with an authentic track record of corporate social responsibility. On this note, I want to encourage our companies to pursue the path of innovation. I look forward to an even more vibrant retail industry as they do so.

Let me conclude by commending all our industry partners who have taken significant efforts to propel businesses to greater heights. Besides investing in your people, you have improved your processes, enhanced service levels and developed creative store concepts. Some of you are being recognised tonight with the annual SRA Awards. I would like to congratulate all the winners - your journey and that of others like you is a model of what we can and must do to meet the challenges that lie ahead in order to stay ahead of the game. 

My heartiest congratulations also to the outstanding individuals who will be awarded the prestigious National Retail Masters Scholarship tonight.  I wish you all the best in your academic pursuits and hope that your success will inspire more Singaporeans to pursue a dynamic career in the retail industry.

I wish everyone a pleasant and memorable evening ahead. Happy 35th Anniversary to SRA. Thank you.

^[1]

Source: Singapore Department of Statistics (2011e). The figures are excluding motor vehicles and petrol stations. 

^[2]

Source: Singapore Department of Statistics (2011e).

^[3]

 Source: 

http://www.rolandberger.co.uk/european-retail/e50_ways.pdf

. http://www.rolandberger.co.uk/european-retail/e50_ways.pdfhttp://www.rolandberger.co.uk/european-retail/e50_ways.pdfThe Coca-Cola Retailing Research Council Europe commissioned Roland Berger, in association with Europanel, to explore new sources of growth in the European retail sector.

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Source:

http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Emerging-Trends-Online.pdf

Asia Consumer Product Trends: Implications for Retailers and Manufacturers.