Mr Teo Ser Luck at the Singapore Retailers Ball 2011 at Raffles City Convention, 18 Aug 2011

SPEECH BY MR TEO SER LUCK, MINISTER OF STATE FOR TRADE & INDUSTRY, AT THE SINGAPORE RETAILERS ASSOCIATION BALL 2011 ON 18 AUG 2011, 7PM AT RAFFLES CITY CONVENTION CENTRE (FAIRMONT BALLROOM)

Dato’ Dr Jannie Chan, President of Singapore Retailers Association,

Distinguished Guests,

Ladies and Gentlemen,

Introduction

1. Good evening. Thank you for the invitation and I am delighted to be here at the Singapore Retailers Association Ball 2011

Importance of increasing the productivity

2. We have made great strides in turning Singapore into a vibrant and exciting city to live, work and play in. The retail sector, especially, contributes significantly to tourism spending. It is also one of the few sectors that have a mass appeal across all ages

3. Shopping is no longer restricted to brick and mortar stores. You can now buy with just a click of the mouse, regardless of the time or your location.

4. With its extensive reach on the population and the economy, the Retail sector is undeniably an important part of Singapore’s economy and lifestyle.

5. In 2009, the sector also registered some $26 billion in operating receipts and generated $3.8 billion in VA. Despite its significance, the VA per worker for the retail sector is a mere $37,000, which is only 40 per cent of the national average[1]. The productivity needs to be improved further to reap the full benefits of our vibrant retail scene.

6. It has been shown that higher productivity has led to a positive improvement in sales, quality and customer satisfaction.

7. It’s not about clocking in more opening hours. It’s about looking for creative ways to enhance the customer experience, garner a larger customer base or diversify your product offerings. I would encourage retailers to explore new tools and learn from others on how to boost productivity in your business.

8. As human capital forms an integral part in providing a great customer experience, retailers must find ways to retain their staff, upgrade capability and knowledge through training. These will facilitate companies to move up the value chain and spur productivity. One important industry initiative to assist retailers in this is the National Retail Scholarship. The Programme aims to groom future leaders of the retail industry; attract and retain talents; profile retail as a career choice; and professionalise retail jobs. Since the launch of NRS in 2007, a total of 78 scholarships benefitting 66 retailers have been awarded.

9. In response to the positive feedback received from retailers and the continued demand for middle management training, SRA and SPRING have decided to extend the Masters in Retailing Scholarship to 2015. This will help bridge the existing talent gap between middle and top management in the industry. I would like to encourage more retailers to look within your existing management pool, identify potential “stars” and nominate them for these scholarships and build a pipeline of future leaders within your organisations.

The role of SRA in driving the industry forward

10. I would also like to take this opportunity to commend the efforts by the Singapore Retailers Association (SRA) and its members in transforming the Singapore’s retail landscape into one which is dynamic, energetic and exciting today.

11. The Association has been working in tandem with the various government agencies to actively promote industry upgrading, manpower development and continuing education and training through various initiatives such as the annual SRA Awards, and adding a feather to their cap is the successful bid to host the Asia Pacific Retailers Convention & Exhibition in October this year.

12. I would like to urge SRA and its members to work together to explore innovative solutions that can add vibrancy and improve the capability of the sector. There are numerous initiatives and programmes to help kick start these projects.

Commemorating the SRA Awards 2011 Winners

13. Some retailers have taken the effort to discover ingenious ways to evolve their business and sector. Their efforts will be rewarded at tonight’s SRA Awards 2011. All these winners have added a new and exciting dimension to the retail landscape.For example, the retailer with the best new concept was selected based on the concept’s creativity, uniqueness and the level of excitement that it generated to customers and retail scene. Above all, this new concept must be sustainable and financially viable for the retailer.

14. Another important puzzle piece in determining the success of the company is: People. Two outstanding individuals will be awarded tonight for their abilities, leadership qualities and their contributions to both the company and the industry. As the winners will be announced in a while, I shall not reveal too much now.

15. I would like to congratulate all the winners and hope that other retailers and individuals will be inspired by your success stories.

Conclusion

16. I hope that you will continue to lend support to the SRA and its initiatives.

17. In closing, I wish one and all an enjoyable evening. Thank you.

[1] Source: Singapore Department of Statistics, 2009 (Note: The data for retail sector is based on SPRING’s cluster definition which excludes motor vehicles, motorcycles and petrol stations.)