Speech by Minister Lim Hng Kiang at the Singapore Food Expo 2014 Opening Ceremony at Singapore Expo Hall

Mr Thomas Pek, President, Singapore Food Manufacturers’ Association

Distinguished Guests,

Ladies and Gentlemen,

A very good evening

I am pleased to be with you this evening at the opening of the Singapore Food Expo. This is the 15th year that the Expo has been held. I am heartened that the event has grown from strength to strength, championed by the Singapore Food Manufacturer’s Association (SFMA).

Role of the SFMA

The SFMA has played a key role in the food manufacturing industry, through its leadership in building up the capabilities of industry players and initiatives to drive business growth. Besides the annual Food Expo, the SFMA has also organised the Asia Pacific Food Expo since 2004 to further promote Singapore food products to the region and encourage food trade.

The Singapore Food Expo has grown to become one of the largest events in the Singapore food events calendar. For its first instalment in 2000, the show attracted 200,000 visitors. Last year, more than three times that number attended, with some exhibitors chalking sales figures of up to $70,000 over the 5 days of the exhibition.

This year’s Expo will showcase over 150 local food exhibitors, and is expected to attract at least 600,000 visitors. The Food Expo is therefore an excellent platform for our local F&B players to showcase their products to fellow exhibitors, trade buyers, and consumers. It offers a valuable opportunity for our food players to conduct market testing, and obtain first hand feedback from consumers.

Positive Outlook for the Food Manufacturing Industry

Singapore’s food manufacturing sector has shown strong growth. Our companies have taken steps to effectively manage their costs, and established a strong reputation for their products. Total sales in 2012 were about $8 billion. VA growth has been healthy, with a compound annual growth rate (CAGR) of 8.7% over ten years¹.

Food exports are an integral part of the industry growth story. Singapore’s F&B exports to the world reached over $4.5 billion in 2012, reflecting a double-digit CAGR of 12.9% over ten years.² This reflects the sound positioning which our food players have established in overseas markets, leveraging their good reputation and branding.

Government will Continue to Support the Growth of our Food Manufacturing Companies

The Government will continue to support the growth of Singapore’s food manufacturers by helping them increase productivity, innovate and grow the top-line, and expand into new markets.

I am glad to note that JTC will be commencing construction of the new Food Hub at Senoko later this year. The Hub will be completed by 2017, and provide key infrastructure to support the push for further productivity improvements by SMEs in the food sector. JTC has been working closely with the industry players, including the SFMA, to understand their infrastructure needs and devise solutions to reduce operating cost, increase productivity and raise operational efficiencies.

A key feature of the Hub will be the shared integrated cold room-warehouse facilities. Such a provision reduces initial startup cost of tenants, and

also enables them to enjoy better economies of scale and lower operating costs. The facility will be operated by a third party logistics company who will provide a full suite of logistics services to the Food Hub’s tenants. In the coming months, JTC will be calling for proposals from interested parties to operate the integrated cold-room-warehouse.

The Hub will be able to house different sizes of SMEs, with 50 modular units that can be combined to form larger units if necessary. This provides the flexibility to meet the needs of different small and medium food manufacturers and central kitchen operators.

Tapping Opportunities in International Markets

Besides raising productivity, our food sector players have been actively venturing abroad to drive growth. Singapore is ultimately a small market, and our companies must go overseas to continue growing.

There is strong potential for international expansion, particularly into Asian markets. The Asian middle-class is fast becoming an important group of consumers, and is expected to account for 80% of the growth in middle-class global spending from now to 2030³. Singapore’s total F&B exports to Asia grew by about 37% between 2008 and 2012 to reach nearly $3 billion⁴. Malaysia and China remain the top two countries for our food exports, while emerging markets like Cambodia have experienced over 20% growth in F&B exports from Singapore over the past 5 years⁵.

However, competition is more intense in the international arena. To do well, companies need to have quality products that are well-differentiated. They need to have strong marketing and branding for their products. And they need to offer a clear value proposition for their customers.

Under the Tasty Singapore Brand initiative developed by IE Singapore, our manufacturers have successfully come together to promote a coherent image for Singapore’s food manufacturers. This has helped in branding for the export market.

One such company is Unifood International. The company provides quality soya milk products in convenient single-serve stick packs under its brand UNISOY, offering the ideal blend of nutrition and taste that demonstrates the attributes of the Tasty Singapore brand. Unifood has taken part in IE-supported tradeshows like Anuga, Gulfood and Food & Hotel Asia, and through these generated many business leads. Last year, at the prestigious Anuga tradeshow in Germany, its Black Soy Milk Powder was picked by an international panel for the taste13 award, and was recognised as a top new global product.

I am encouraged that SFMA is introducing the Great Singapore Food Gift Award, to build on the success of the Tasty Singapore brand. Supported by SPRING and IE, the award will recognise food that exemplifies the “Product of Singapore” brand. Selling the distinctiveness of Singapore food will promote a stronger value proposition. The award will be used to develop a Singapore Food Gift Catalogue, to better market food products as gift items. The products in the catalogue will then be available through a variety of sale channels – online, in our supermarkets, in niche retail outlets, in showrooms and in Changi airport for tourists to purchase. I encourage all food manufacturing companies to participate in this initiative that will help to strengthen branding for the food industry.

Conclusion

With a generally improved global growth outlook and sound potential in Asia, there are good opportunities for players in our food manufacturing industry. I would like to encourage our food manufacturers to continue to innovate, develop new product offerings and push ahead with tapping opportunities for growth.

Many of the products on display here over the next 5 days are the results of innovation by our food players. I am sure that many of the attendees will be sampling them and enjoying the exciting line-up of activities planned. I wish all of you a fruitful and rewarding Food Expo 2014.

¹ Source: EDB

² Source: EDB

³ Asian Affluence: The Emerging 21st Century Middle Class. June 2011. Morgan Stanley.

⁴ Source: EDB

⁵ Source: IE Singapore