Mr Teo Ser Luck at the Singapore Retailers Association Ball 2013

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SPEECH BY MR TEO SER LUCK, MINISTER OF STATE FOR TRADE AND INDUSTRY AT THE SINGAPORE RETAILERS ASSOCIATION BALL 2013 ON 29 AUGUST 2013 AT 7.15PM, RAFFLES CITY CONVENTION CENTRE

Dato’ Dr Jannie Chan, President of the Singapore Retailers Association, Ladies and gentlemen,

1.    A very good evening to all of you. I am delighted to attend this year’s Singapore Retailers Association (SRA) Ball.

Growth of the Singapore Retail Industry

2.    Singapore’s retail industry has grown from strength to strength. Nominal value-add for the sector grew at an average of 7.5% per annum from S$3.9 billion in 2008 to S$5.2 billion in 2012. Operating receipts also grew from S$26 billion in 2008 to over S$32 billion in 2012[1]. New local and international retailers have brought much vibrancy to our retail landscape, making Singapore a desirable place to live, work and play in. The industry also contributes to our economy through the creation of jobs, and enhances Singapore’s attractiveness as a tourist destination.

Productivity in the Retail Industry

3.    Nevertheless, the industry has its own set of challenges. 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. At approximately $43,000 per worker, the nominal value-added per worker of the Singapore retail industry lags behind that of other cities like New York.[2] Helping our retail industry improve productivity is therefore a key focus of the Government.

4.    SRA has played a pivotal role in working with Government agencies in supporting the retail industry.  The Association has been active in promoting industry and manpower development, and has been a key partner to the Government in encouraging retailers to boost their productivity through increasing top-line, improving processes and manpower management as well as upgrading the workforce.  

i)    Updates on Part-Time Pool Programme

5.    Tonight, I am happy to update on the progress of the Part-Time Pool (PTP) Programme. A key initiative under the retail productivity roadmap, PTP aims to address the significant fluctuations in customer traffic and business volumes which are characteristic of retail businesses. The programme allows retailers to tap on part-timers to complement their full-time staff, thereby enabling them to maintain a significantly smaller staff strength while coping with the daily and seasonal peaks of customer traffic.

6.    The programme was piloted by SPRING Singapore in 2011.  Since its inception, around 1,700 trained part-timers have been deployed in close to 50 retail companies to help meet manpower needs. These companies have made effective use of part-timers and introduced flexi-scheduling initiatives that ultimately will allow them to increase productivity and lower costs through more efficient manpower management.   It is a good job by SRA to support this initiative.

7.    I would like to take this opportunity to urge retail companies to tap on SRA’s efforts, and take advantage of this retail-ready pool of trained part-timers to better manage your manpower needs.

ii) Uplifting Retail Capability through Retail Scholarships

8.    SRA is also playing a critical role in shaping the quality of the retail workforce. The National Retail Scholarships, a joint initiative by SRA, SPRING and the Singapore Workforce Development Agency (WDA), was launched in 2007 to professionalise the retail workforce, raise retail standards and maximise career opportunities in the retail industry for Singaporeans.

9.    From 2007 to 2011, a total of 78 scholarships were awarded under the National Retail Scholarships, including Diplomas, Degrees and Masters Programmes.  In the second run from 2012 to 2015, SRA and SPRING will continue to profile retail professions as a career of choice, attract and retain talent in the industry.

10.  I am pleased to learn that this year, SRA in collaboration with MasterCard, has launched the SRA-MasterCard Retail Scholarships. Aimed at attracting new talent into the retail industry, the scholarships will be awarded to both full-time students currently pursuing a Diploma in Retail Management with Temasek Polytechnic, and full-time retail staff of sponsoring retail companies. Under this initiative, up to seven scholarships will be awarded to aspiring retail leaders each year, from 2013 to 2015.

Recognising Retail Excellence through the SRA Retail Awards

11.  It is critical for our retailers to have the mindset of continuous upgrading. Besides investing in your people, it is important to improve processes, enhance service levels and develop creative store concepts.  I would like to commend SRA for organising the annual SRA Retail Awards since 2000, to raise standards, enhance the profile and image of the retail industry by spearheading innovation, creativity and retail excellence. Tonight, SRA will also be announcing the winners of the SRA Retail Awards 2013, which are supported by SPRING and the Singapore Tourism Board. Let me congratulate all our winners, and hope that you will inspire other retailers to constantly strive to raise the bar, and add new and exciting concepts to the retail landscape.

Conclusion

12. Let me conclude by commending all our retailers who, like The Hour Glass and our winners tonight. You have undertaken significant efforts to propel your businesses to greater heights.  Your journey and that of others like you are inspirations of what we can do to overcome the  challenges to stay ahead. 

13. My heartiest congratulations go also to the two Temasek Polytechnic students and five retail professionals who have been awarded the inaugural SRA-MasterCard Retail Scholarships, as well as the six retail professionals who have been awarded the National Retail Scholarships Masters Programme this year. I wish you all the best in your academic pursuits, and hope that your success will inspire other Singaporeans to pursue a dynamic career in the retail industry.

14. I wish everyone a pleasant and memorable evening ahead. Thank you.

[1]

Source: DOS, 2012e. Retail sector as defined by SPRING excludes motor vehicles & petrol stations as well as hawkers & stall-holders

[2]

The nominal value-added per worker of New York was about S$63,000 in 2007.