Speech by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong at Sheng Siong’s new Integrated Headquarters and Distribution Centre Groundbreaking Ceremony

Mr Lim Hock Eng, Executive Chairman of Sheng Siong,

Mr Lim Hock Chee, CEO

Mr Lim Hock Leng, Managing Director,

Distinguished guests,

Ladies and gentlemen,

1.                 Good morning. It is my pleasure to join you here at the groundbreaking ceremony of Sheng Siong’s new Integrated Headquarters and Distribution Centre (IHDC). 

2.                 From a single neighbourhood provision store in Ang Mo Kio in 1985, Sheng Siong has grown into one of Singapore’s most trusted supermarket retailers. 

3.                 For many Singaporeans, Sheng Siong is a familiar part of daily life, where they do their grocery runs and find quality products at affordable prices. 

4.                 But keeping prices affordable is a difficult task in today’s context: 

a.    Geopolitical tensions, climate change, rising energy prices and supply chain disruptions have made food prices more volatile globally. 

b.    As we import of 90% of our food supplies, Singapore is particularly exposed. 

5.                 Sheng Siong has been doing its part. 

a.    Today’s groundbreaking demonstrates Sheng Siong’s efforts to improve operational efficiency and strengthen supplier partnerships to better serve its customers. 

b.    This forward-looking approach is what keeps businesses competitive and keeps Singapore resilient. 

6.                 The new IHDC is Sheng Siong’s largest single investment to date – at approximately S$520 million:

a.    It will be built on a site 2.5 times the size of its current facility, spanning over 61,000 square metres, and designed to support more than 120 stores.

b.    The project is supported by JTC and EnterpriseSG. 

7.                 The new facility will feature advanced automation capabilities – including automated storage and retrieval systems, robotics, and intelligent warehouse management systems. 

8.                 Such end-to-end automation helps to free manpower from repetitive and manual tasks, so that they may be redeployed where they can add greater value. 

a.    For instance, warehouse staff will be reskilled to operate automation systems and perform technical maintenance. 

b.    Others will be trained for e-commerce fulfilment and frontline retail roles. 

c.     New technical positions will be created to support new systems. 

9.                 Beyond upgrading its workforce, the new facility is also an investment to strengthen Sheng Siong’s network of suppliers.

a.    By consolidating deliveries through a single, centralised platform, suppliers can expect more predictable schedules, better demand forecasting, and automated handling that reduces errors and product damage. 

10.             Over four decades, Sheng Siong has grown together with over 900 local suppliers, helping to strengthen their capabilities and expand their businesses. 

a.    Through their Supplier Code of Conduct, Sheng Siong has actively supported supplier development and sustainable practices. 

11.             Large players like Sheng Siong have the responsibility and ability to uplift the ecosystem around them through long-term partnership. 

12.             To the suppliers here – I encourage you to also pursue productivity enhancements for your own operations. 

a.    The Government will do our part – supporting product innovation, supply chain resilience, and enterprise transformation. 

b.    Together, we can ensure Singaporeans continue to enjoy a wide variety of food at affordable prices. 

13.             I also want to take this opportunity to thank the Sheng Siong team for stepping up for Singaporeans during this period, through discounts for CHAS card holders and special promotions for CDC voucher users to help households better cope with their cost of living concerns. 

14.             To Sheng Siong and all its partner suppliers here – thank you for your commitment to serving Singaporeans. 

15.             Congratulations once again on the groundbreaking of this project, and I wish your new facility every success. Thank you.