Speech by MOS Alvin Tan at the Tax Free World Association Asia Pacific Exhibition and Conference 2025

Mr Philippe Margueritte, President of Tax Free World Association (TFWA)

Members of TFWA Board and Management Committee

Distinguished guests

Ladies and gentlemen

1. Delighted to join you again at Tax Free World Association Asia Pacific Exhibition & Conference.

2. Mr Philippe Margueritte - Welcome to Singapore and congrats on your recent appointment as TFWA President. We look forward to your leadership in shaping the future of duty-free and travel retail.

3. Today is a Public Holiday in Singapore - Vesak Day. Vesak Day is celebrated by Buddhists all over the world, and in Singapore. As I was working on the speech last night, I was thinking and reflecting about the special significance of Vesak Day in a multicultural and multiethnic country like Singapore. Vesak Day is special because it is the most sacred day in the Buddhist calendar. It is significant because it commemorates the Buddha’s journey 2,500 years ago - through birth, enlightenment and death. This journey is inherent in humans to want to explore what's beyond that river that is inherent in who we are as human beings. If you allow me this morning, just borrowing on the inspiration that is Vesak Day and borrowing inspiration about that journey that Buddha took 2,000 years ago, we will go on a little journey for our particular sector. 

4. First, let's reflect on the journey that we have taken, over thirty years. Then let's also assess and reflect on how our current journey may be impacted by current developments globally, and then I will make a case on how and why we should expand and also extend this journey together. So, let's reflect on our journey together. 

Reflecting On Our Journey Together

5. First, Singapore’s journey with TFWA has spanned decades. Thank you TFWA for journeying with us over the 30 years and our 26^th edition together. Through the ups and downs of the global travel sector, through COVID-19, through the uncertainties in the current economic climate, TFWA has been together with us and we’ve stood by together. Three years ago, I made a personal pitch to TFWA to anchor this event here for another three years, and I think we're doing this until 2028. So, thank you, TFWA, for accepting my pitch and reaffirming Singapore's position as the leading regional hub for travel, for trade and for business events. 

A Challenging Journey Ahead

6. As we look back and reflect on our journey through 26 iterations of this event, it's also important to consider the present and assess how the current global landscape and situation can affect this journey that we're taking on together. Which brings me to the second point – It is a challenging journey, and the journey that is now immediately laid before us is fraught with challenges. We had a strong post-COVID recovery and the global situation currently remains troubling. There are geopolitical tensions, there are wars, there are conflicts, trade disruptions, supply chain disruptions, and an uncertain climate for all. They are pointing to a challenging environment for our industry. Businesses are taking a bit of a wait and see approach towards investing and expanding their businesses

7. But the good news is that there are silver linings along this journey. 2024 was a landmark year for Singapore’s tourism sector. We welcomed 16.5 million international visitors – a 21% increase from the year before – and, more significantly, we achieved record tourism receipts of about $30 billion.

8. We also saw healthy growth across key markets, including Mainland China, Japan, Indonesia, and India. Many of you come from the region and you will know that Asia is fast growing and there is a large middle class that is now burgeoning with spending power. Visitor arrivals from Mainland China surged by 126% following the 30-day mutual visa exemption that we launched last February. There are new air links – like the one to Austria – that will further strengthen Singapore’s position as a global air hub.

Expanding and Extending our Journey

9. Which brings me to my third point – while every journey has its ups and every journey has its downs, there are good reasons why it is worth taking this journey together and why we should expand and extend this journey together.

   1. First, Singapore is bullish on our travel and tourism sector. We are in for the long term. And with the recent conclusion of our general elections, we have the strong support of our people to execute on our ambitious not just for the future but for the long term future ahead. Like our air hub status, embodied by the Jewel in our crown - Changi Airport.

   2. In 2024, Changi Airport served nearly 70 million passengers, a 15% year-on-year rise. Changi Airport was recently named World’s Best Airport by Skytrax for the 13th time.

   3. We are now starting work on Terminal 5. Terminal 5 will be the size of Terminals 1, 2, 3 and 4 put together. It will increase total annual passenger handling capacity to 135 million.

10. We are not only making Changi Airport bigger, we are also making it faster. We are making journeys through Changi Airport even more seamless for travellers. Last year, our new passport-free immigration clearance cut processing time to just 10 seconds. Over the next six years, Changi Airport Group will invest $3 billion across all terminals to improve services, such as baggage handling, check-in and Skytrain connections.

    1. Recently at our Budget this year, we announced a $5 billion top up to our Changi Airport Development Fund to support Changi Airport’s journey of expansion. And in true Singapore style – When we say we will do, we will do it. We will do it fast, we will do it well.

11. It is not just the air journey that we are focused on. We are also growing our cruise sector. This year, we welcome new additions such as Disney Adventure, which will homeport here for the next five years, alongside luxury vessels like Ritz-Carlton Yacht Collections’ Luminara and Resorts World Cruises’ Star Voyager.

12. We are also increasing Marina Bay Cruise Centre’s capacity from 7,000 to 12,000 passengers, reinforcing Singapore’s role as the region’s leading cruise hub, unlocking exciting new opportunities for cruise travel retail. These expansions will benefit our travel retail sector. 

Our thriving and innovative travel retail scene

13. Our travel retail scene also continues to thrive. In 2024, over 30 new brands opened in Jewel, including flagship stores for Bimba Y Lola and Sam Edelman.

14. Leading global players – such as L’Oreal, Shiseido, Brown Forman, and LVMH Beauty – continue to anchor their regional presence in Singapore, and are familiar faces today at this event. In fact, our largest regional omni-distribution partner for beauty and luxury lifestyle travel retail brands, Luxasia, was founded and is based here in Singapore.

15. Singapore is also a dynamic launchpad for travel retail innovation. German duty-free giant Heinemann has chosen to house its Asia Pacific regional distribution centre here – their largest outside Germany. It is setting up a satellite innovation hub here to co-innovate with emerging start-ups in the region.

16. It is not just global names. More local homegrown brands in fashion, food, and confectionery are entering the travel retail space, offering airport-exclusive products to showcase our unique Singaporean culture. For instance, visitors can enjoy our iconic chicken rice at Chatterbox Express in Terminal 1, while in transit.

Conclusion

17. My dear friends, a journey taken with friends is the best kind of journey there is. In a more dynamic world, my team and I will continue our journey together with you, and we will reflect on the strength of our journey over the decades, overcome the current challenges of the journey, and then look forward to extend and expand our journey together.

18. Singapore will continue to be your travel companion as we grow travel retail across Asia Pacific and globally.

19. Thank you TFWA for organising this important event, and for continuing to choose Singapore as your home in Asia Pacific and your long-time journey companion.

20. I wish all delegates a fruitful time at this event. See you again next year.

21. Thank you.