Speech by Minister S Iswaran at the Launch Of The Food Services Sectoral Manpower Plan at the White Rabbit, the Lo & Behold Group

Good morning friends and partners,

2          I am happy to join you here today at The White Rabbit for the launch of the Food Services Sectoral Manpower Plan (SMP).  

3          This plan represents a concerted effort for the industry, and by the industry, as it was developed based on contributions from members of the Food Services Sectoral Tripartite Committee, employers, unions, industry associations, institutes of higher learning, and training providers, together with SPRING and the Workforce Development Agency (WDA).  It contains strategies and initiatives to: (i) make every food services job a better job, (ii) help companies be more manpower lean and (iii) build skills for local workers to progress towards achieving a stronger Singaporean core.

4          The Food Services SMP is a key part of the Industry Transformation Map (ITM) that we are developing for the sector.  ITMs were first announced at Budget 2016.  They are whole-sector strategies to promote growth and competiveness by integrating productivity improvement, skills development, innovation, and internationalisation.  The strategies will be implemented in close partnership with companies, industry associations, and unions.

5          By doing so, we can drive industry transformation initiatives that require the involvement of the whole industry.  We can also develop cross-cutting responses to increasingly complex industry trends and challenges.

Transforming the Food Services Sector for Sustainable Growth

6          The food culture is an essential part of the Singaporean identity which brings our multicultural population together.  Given our diverse and vibrant F&B offerings, Singapore has also gained a reputation as one of Asia’s food capitals.

7          Apart from its important place in our social fabric, the Food Services sector also contributes significantly to our economy.  It has grown steadily in recent years, with operating receipts growing at a CAGR of 8.3%[1] between 2010 and 2014.  However, this growth has also resulted in a corresponding increase in manpower – the Food Services sector employs approximately 160,000 workers across 6,000 establishments today, which is about 4.5% of the nation’s workforce[2].  This is not sustainable given Singapore’s tight labour market.

8          For this sector to continue flourishing and contributing to Singapore’s economy, it needs to transform in a number of areas.  First, companies must change the way they operate and reduce their reliance on manpower.  This can be done by redesigning business models and processes – in terms of how food is prepared, served and delivered – and using technology to increase productivity.  Second, food services operators must also recognize the evolving career aspirations of young Singaporeans, and enhance their appeal as employers in order to attract talent.  Similarly, to retain staff and build a strong middle management team, HR practices have to be reviewed.  Lastly, employees too, must play their part to stay updated with relevant skills, embracing new technologies and continuing to acquire new skills that can support the transformation of businesses.

Key Initiatives in the Food Services SMP

9          The five-year Food Services Sectoral Manpower Plan will support companies’ efforts in the three areas I have outlined.  It will guide the development of a manpower-lean sector, as well as nurture a skilled, productive and future-ready Food Services workforce.  The Plan involves three key strategies.

Accelerate job redesign through business transformation

10        For a start, companies can review their current jobs, and tap on technology to reduce manual work and improve the working environment.  The idea is to allow employees to focus on delivering a better customer experience.  Hence, I am pleased to see more establishments operating with productive technologies such as the e-waiter app here at the White Rabbit, which is a wireless ordering system. 

Build a strong Singaporean core through SkillsFuture initiatives and masterclasses

11        As jobs transform, the workforce needs to upskill in tandem.  The WDA and SPRING are developing the Food Services Skills Framework to address the emerging needs of the sector.  The framework will provide guidance on career progression pathways and skills training needs. 

12        SkillsFuture Initiatives such as the Enhanced Internships (EI) and the SkillsFuture Earn and Learn Programme will also help to ensure that young entrants to the industry are better prepared with the requisite skills to meet the needs of the sector. 

13        We have with us today two trainees Mei Jin and Mei Yu.  They are currently undergoing their On-the-Job Training (OJT) through job rotations in the BreadTalk Group, and facilitated learning at the Asian Culinary Institute (ACI), as part of the SkillsFuture Earn and Learn Programme.  The programme is intended to help them transition smoothly to the workplace where they can apply their skills and knowledge immediately.  By September this year, both trainees will complete the programme and graduate with a Singapore Workforce Skills Qualifications (WSQ) Specialist Diploma in Culinary Management.

14        Mid-career professionals can also deepen their skills with the SkillsFuture Study Awards and Masterclasses.  Both initiatives will enable employers and employees to be future-ready as the sector transforms.

Strengthen companies’ HR capabilities

15        One strong success factor for most companies is the ability to build a strong pipeline of talent.  Besides adopting technology and up-skilling the workforce, companies need to view HR as a strategic function and improve their HR practices.  SPRING’s complimentary HR Diagnostic Tool can help management understand its current HR performance and identify possible gaps.  Support from the WDA, SPRING and the Employment and Employability Institute (e2i) is also available to enhance core HR competencies, as a foundation for talent attraction, retention and skills upgrading.

16        The Lo & Behold Group is a good example of a future-ready food services company that has managed to attract and retain talent, overcoming the manpower constraints faced by the sector in general.  In particular, The White Rabbit is one of The Lo & Behold Group’s iconic establishments, which has embarked on initiatives under the SMP.

17        We have many schemes and plans, and government agencies listening and responding to the needs of the industry, but fundamentally, what we need is a clear appreciation and commitment on the part of our industry leaders and their dedication to have manpower upgrading and transformation that we want to achieve.  The experience of The Lo & Behold Group confirms and affirms our provision that this can be done.  We can make this industry, like any other industry, attractive for Singaporeans with high career aspirations or passionate for the service and for the sector that they are involved in.  We can make it attractive for them to join, retain and grow in these enterprises and progress in their career.

18        I want to congratulate The Lo & Behold Group for setting a very good example.  I would like to invite all of you to join hands with WDA, SPRING and our agencies, because this is important work for the future of our businesses and ultimately, the future of our people and their aspirations.  I want to congratulate you once again and I wish you all the best.  Thank you for inviting me.

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[1] Based on figures from the Department of Statistics.

[2] Based on 2014 employment data from the Ministry of Manpower.