Mr Sam Tan at the 6th Asia Pacific Food Expo, 20 Nov 09

SPEECH BY MR SAM TAN, PARLIAMENTARY SECRETARY FOR TRADE AND INDUSTRY & INFORMATION, COMMUNICATIONS AND THE ARTS AT THE 6th ASIA PACIFIC FOOD EXPO ON FRIDAY, 20 NOVEMBER 2009 AT 6.15 PM, SINGAPORE EXPO

Mr Wong Mong Hong, President, Singapore Food Manufacturers’ Association,

Distinguished guests

Ladies and Gentlemen

Good evening. It gives me great pleasure to join you today for the official opening of the 6th Asia Pacific Food Expo. Let me first extend a warm welcome to all of you, especially to our overseas friends who have come to Singapore to attend this Expo.

Overview of Food Manufacturing Sector

The food manufacturing industry plays a key role in the Singapore economy. It employs over 21,000 people and contributes to about $1.3 billion of our GDP[1]. In fact, we observed that the SMEs in the food industry have shown significant growth in the recent years.

Amidst the global economic slowdown, the food manufacturing industry has demonstrated signs of resilience. Food manufacturers are expecting sales to grow or at least maintain the same level as last year. While domestic consumption remains stable, exports have become the key driver of the industry’s expansion.From 2003 to 2008, Singapore's total domestic food exports showed a compounded annual growth rate (CAGR) of 11.3%, from S$2.2 billion to S$3.8 billion.

This would not have been possible if not for the industry’s concerted effort to invest in food safety systems and upgrading themselves to develop their capabilities in areas such as product and process innovation during the good times. Therefore, our food manufacturing sector must remain competitive in an increasingly challenging global marketplace. I would like to highlight and elaborate the three factors that are critical to our success:

1. First, the necessity to maintain a high level of food safety standards.

2. Second, the importance to innovate and create new products or processes that will grow the topline and the bottom-line for a company.

3. Finally, the need to develop and nurture human capital with right knowledge and skills to support a company’s future growth.

Enforcing Food Safety and Enhancing Market Access

Firstly, food safety has always been the top priority of the industry.Recent food incidents in various parts of the world have further heightened the awareness about the importance of implementing a robust food safety management system to control food safety risks throughout the entire food supply chain.To avoid similar incidents from happening here in Singapore, food manufacturers are encouraged to put in place a Food Safety Management system based on international standards of Hazard Analysis and Critical Control Point, or HACCP.

It is heartening to note that ‘Made in Singapore’ food products are well recognised and received in many parts of the world as quality products that are safe for consumption.Having said this, we must not rest on our laurels. We must continue to uphold and maintain high standards of quality and food safety so that companies can then capitalise on our trusted reputation to gain access to overseas markets.

Venturing out of Singapore would be a long-term, sustainable strategy. China for example, is a potential market that food manufacturers can consider. In particular, Shandong province is an agricultural-based economy and offers abundant opportunities in food sourcing and manufacturing, especially in fresh, semi-processed or processed food products. Food manufacturers may wish to explore the commercial viability of banding together to invest in food processing parks. This way, the food product carries the Singapore brand name and is differentiated with our food safety practices and processing technologies. Besides trading activities, companies can also consider partnering Chinese companies in joint ventures or distribution in order to target China’s 1.3 billion consumer market.

At the same time, companies can penetrate new markets by leveraging on the ‘Tasty Singapore’ branding. This is a joint effort by IE Singapore and the Singapore Food Manufacturers’ Association to promote and increase awareness on Singapore-manufactured food products. Tasty Singapore brand ambassadors demonstrate the attributes of quality and safety, innovation, diversity and dynamism, providing assurance to both overseas buyers and their customers. Through trade missions and active participation in flagship shows such as ANUGA and Gulfood, Tasty Singapore helps to raise awareness of our Singapore food manufacturing industry. Beyond trade shows, IE Singapore and SFMA members have adopted new and innovative ways to profile food manufacturers through the Tasty Singapore brand, such as featuring them in local and overseas supermarkets. This year, promotions were done with NTUC Fair Price in Singapore and Selfridges in London and both were very well received.

Growth through Innovation

Secondly, consumers are becoming increasingly more sophisticated and demanding. Apart from quality and taste, many also look for health benefits, design, and functionality. Our food manufacturers must constantly innovate to create food products that meet such diverse needs. To this end, the government and association have put together various programmes to create an environment that is conducive to the pollination of great ideas and the creation of novel and delicious products.

One good example is theFood Product Concept Competition organized by SFMA and supported by SPRING Singapore and IE Singapore. Inaugurated in 2007, I am pleased to note the continued interest by companies. This year, a total of 26 new products were developed by students from ITE, Polytechnics and University. I am impressed by the exciting range of products created. Some examples include Bird’s Nest Ice Cream, Beetroot Sauce, Prawn Otah amongst many others, which are showcased at the exhibition area. Moving forward, I urge companies to constantly transfer your achievements in R&D labs to the marketplace, so that consumers can enjoy the fruits of your labour.

Indeed, Asian food has great potential with increasing demand by global consumers. Given Singapore’s location and open trade, companies here are exposed to many types of cuisines and food products, which can stimulate new ideas. Recognising that many of our food companies are SMEs which do not have an in-house R&D team, the government has set up the Food Innovation and Resource Centre (FIRC) to address this gap. Companies who are interested to embark on new product development or adoption of technology can tap on FIRC’s team of well qualified food technologists.Since it started 2 years ago, the centre has a full suite of equipment that has helped 125 companies commercialise their ideas for sale in global markets.

Human Capital Development

To build a sustainable business requires a team of competent and committed individuals who shares the company’s vision and mission. You can achieve this by attracting and grooming a pool of talented staff. Investment in training will help your staffs gain the knowledge, skills and abilities that are necessary to do their jobs efficiently.To assess if your HR system is robust or needs enhancement, I encourage all of you to adopt the HR Capability Package, a complimentary toolkit which is available on the SPRING Singapore or Singapore National Employers Federation website. Companies who have completed the assessment have found the tool to be useful in helping them identify gaps.

Conclusion

The food manufacturing industry offers tremendous opportunities for growth. I urge food manufacturers to focus on constantly developing innovative and exportable products with superior quality and safety. Our Singapore brand will then be seen as the premium lifestyle choice for the discerning global consumer.

Thank you and I wish all of you an enjoyable evening.

[1] EDB Principal Statistics by Industry, (2003-2007)