Speech by SMS Chee Hong Tat at SHA SHATEC Anniversary Dinner

​SPEECH BY MR CHEE HONG TAT, SENIOR MINISTER OF STATE FOR TRADE AND INDUSTRY & EDUCATION, AT THE SINGAPORE HOTEL ASSOCIATION (SHA) – SINGAPORE HOTEL AND TOURISM EDUCATION CENTRE (SHATEC) ANNIVERSARY DINNER, THURSDAY, 27 SEPTEMBER 2018, 8PM, MANDARIN ORCHARD SINGAPORE

Mr Albert Teo, President, Singapore Hotel Association (SHA)

Mr Loh Lik Peng, Chairman, Singapore Hotel and Tourism Education Centre (SHATEC)

SHA and SHATEC Board Members,

Ladies and Gentlemen,

Introduction

1.            Tonight, we are celebrating SHA’s 57th and SHATEC’s 35th Anniversary, and it is my honour to join you this evening.

2.            SHA was established in 1961 and has grown in strength over the years.  It now has a membership of 162 hotels, representing around 85% of our gazetted room count. SHATEC, the training arm of SHA, was set up in 1983 by the Association to provide a pipeline of skilled manpower to Singapore’s hotel industry, and upskill the existing workforce.  Over the years, SHATEC has expanded its presence, with more than 30,000 alumni today.

Industry Outlook

3.            Our hotel industry is integral to the tourism sector.  In 2017, Singapore welcomed a record 17.4 million international visitors and registered S$26.8 billion in tourism receipts.  This year, we are off to a promising start with international visitor arrivals reaching 9.2 million as of June this year, a 7.6% increase from the same period last year.

4.            Our hotel industry comprises 420 establishments and around 33,000 employees, and it is well-placed to benefit from a strong tourism sector.  To do so, we must seize the opportunities and overcome the challenges ahead.  I would like to focus on two areas in my speech: (a) the need for innovation; and (b) the importance of skills training and lifelong learning. 

Need for Innovation

5.            To stay competitive, our hotels must continue to innovate and develop new solutions.  While technology is a useful tool, we should avoid the pursuit of technology as an end in itself.  As an engineer, I always start by asking what is the problem we are trying to solve.  No point building a sophisticated mouse-trap if we are not trying to catch mice.  The challenges faced and the solutions required can vary across the hotel landscape, as we have different types of hotels that are targeted at different customer segments.

6.            This is the approach which we have taken for the Hotel Innovation Challenge, which was launched in May last year.  The initiative was driven by the Hotel Innovation Committee, led by SHA and supported by the Singapore Tourism Board (STB) through the Business Improvement Fund.  The hotel industry came together to first develop clear problem statements, such as those relating to operations and customer engagement.  Thereafter, vendors were invited to develop solutions and to collaborate with hotels to pilot these solutions.  More than 18 new solutions are now being developed through the Challenge, and these are piloted at 33 hotels in Singapore.

7.            One example is Andaz Hotel, which piloted a digital concierge system that functions as a chatbot with artificial intelligence.  The chatbot is able to instantaneously address the more routine guest enquiries through the hotel’s Facebook messenger account.  To date, the hotel has managed to direct around 60% of guest enquiries to the chatbot, freeing up their staff to engage guests who require additional services.  This helps to address the hotel’s manpower constraints and improve overall guest satisfaction. We cannot take away the human element. People still want the face-to-face human interaction. So while machines and technology can help, they help in certain areas. They don’t completely replace the need for humans and for us to be able to train our workers so that they can provide good customer service.

Creating a Business-Friendly Environment to Support Innovation

8.            Besides providing funding support, the Government also welcomes feedback from businesses to review our rules and regulations to support new ideas, reduce business costs and enhance our competitiveness.

9.            Let me share one recent example from this year’s Formula One Singapore Grand Prix.  Some of you may have seen the Flyboard demonstration before the start of the race, or what some people call the “Flying Man”.  Singapore Grand Prix, the race organiser, wanted to introduce this performance item to enhance F1’s entertainment value.  As the Flyboard has never been flown in Singapore before, SGP initially faced some challenges to persuade the government agencies to allow the performance.  When I did my site visit one week before the F1 race, Mr Ong Beng Seng surfaced this issue to me.  I asked MTI and STB to work with the regulatory agencies to sort out the approvals and make it happen.  I am glad our agencies were open to supporting new ideas at short notice, while ensuring safety and security.  So for this year, Flyboard Air was able to appear at F1 where it was very well-received by the crowd.  

10.         As I shared with my colleagues and business leaders at F1, the important thing is not the performance item per se, but what is our attitude towards new proposals and innovative concepts that push against our existing regulatory boundaries.  Are we willing to take calculated risks and try new ideas; or do we prefer to stay well within our comfort zone because we are afraid to face the possibility of failure?  This is the crux of the issue, and I believe it will have a direct impact on whether we are able to grow a strong innovation-driven economy. 

11.         The review of rules and regulations is an on-going effort that requires close engagement between Government and our industry partners.  Earlier this month, I had the opportunity to visit Shangri-La’s Rasa Sentosa Resort and Spa, where I learnt more about how the hotel is experimenting with new ideas to enhance customer experiences, and improve business processes.  I intend to continue with these site visits and dialogues, and look forward to hearing from all of you; to understand what are the challenges and opportunities; and how we can work together with our industry players to find practical solutions. It would not be possible to solve all the challenges, but if we have the process to listen to feedback to engage, to work together to find solutions, I am confident we can find the answers to some of the problems. We will try our best to see what we can do to work with you to improve the competitiveness of industry. Ultimately, that is what we need to create good jobs, to create good salaries for our people, and to support a vibrant tourism sector.

12.         I am aware that one issue which affects the industry is MOM’s decision in early 2018 to tighten the Training Work Permit, or TWP scheme.  MOM explained that they made this move because they observed more firms were using the TWP to circumvent foreign worker levy, quota and source controls.  

13.         I understand why MOM had to do this.  At the same time, we know there are genuine needs from SHATEC and companies who are not trying to game the system.  STB and MOM are working with SHATEC on this matter to try and find a solution.  I urge the parties involved to continue discussing possible options that upholds the policy intent of the work pass system, while meeting the concerns and needs of the industry.   

Importance of Investing in Training and Skills Upgrading

14.         Next, we must continue to invest in our workers to equip them with the relevant skills to support industry transformation. Training is critical. When our companies do well, please remember to share some of the gains with your workers so that we can have a sustainable economy that is pro-enterprise and pro-worker.

15.         Our industry training providers, Institutes of Higher Learning (IHLs) and employers all play a role in building an ecosystem of responsive, industry-relevant training.  SHATEC has been working closely with SkillsFuture Singapore (SSG) and the industry to incorporate relevant emerging skills in its programme curricula for hospitality and related courses.

16.         In 2017, SHATEC has also rolled out a series of masterclasses to equip hoteliers with new skills, under the Executive Development Programme (EDP), supported by SSG.  Today, SHATEC has expanded its offerings to include classes in digital marketing, customer and social media engagement as well as restaurant revenue management.

17.        For students looking to enter the hospitality industry, there are also programmes that support their transition into the workforce.  The SkillsFuture Earn and Learn Programme (ELP) for the hotel sector was designed in collaboration with the industry to provide structured workplace learning and mentorships for fresh graduates from polytechnics and the Institute of Technical Education (ITE).  Through the programme, students from hospitality-related diploma programmes can build on the skills and knowledge they acquired in school to gain a head start in their careers. 

18.         During my recent visit to Shangri-La’s Rasa Sentosa Resort and Spa, I spoke to one of the Guest Relations Officer, Ms Lim Si Qi.  She spoke fluently in English and Mandarin to assist guests with their check-in, as well as to address their queries, to make their stay at the resort an enjoyable one.  Si Qi, a student from Republic Polytechnic is a participant of the ELP.  She told me that her attachment had allowed her to develop a better understanding of how her curriculum can be applied at work.  I am glad to know that Si Qi is considering a career in the company after her studies. 

19.         Since July 2015, SHATEC has also offered the Industry Mentorship Programme, designed to help individuals grow into future-ready professionals.  Many students have benefitted from the programme where they gain first-hand insights and career advice from accomplished leaders in the industry.  Since its inception, the programme has expanded to include more than 80 mentors, and has benefitted more than 250 students per cohort. Ultimately it benefits our employers too, because you develop pipeline of talent and they can come and work for you, with the proper training and skills.

20.         One example is Ms Jamie Lim, who is enrolled in SHATEC’s Diploma in Culinary Skills.  She was paired with Chef Robert Stirrup, Director of Culinary, Fairmont Singapore and Swissotel The Stamford.  During the mentorship programme, Jamie was introduced to Chef Robert’s team and reputable fine dining spaces such as Jaan and Anti:dote.  Inspired by Chef Robert’s work, Jamie applied to serve her industrial attachment with Equinox at Swissotel where she worked to develop her plating techniques.  The stint provided Jamie with first-hand experience and she is keen on building her career with the group after her attachment. The is what I hope we can do more of, to partner our industry, partner SHA and SHATEC, provide training opportunities for your people, to let the, see that this hospitality sector has a good future. Get them started when they are young in the polytechnics, ITEs and universities, to let them see that it’s a career path that they can grow and make good career out of it. To do that, we need to ensure that our industry is strong and competitive. Pro-enterprise and pro-worker go hand in hand. What the government will do is to build the larger pro-enterprise pro-government ecosystem to bring in the tourists to benefit the industry and allow the whole industry to grow.    

Conclusion

21.          In closing, I want to commend SHA and SHATEC for your efforts in supporting companies in their business transformation and nurturing a strong pipeline of skilled talent in the hospitality industry.  Let us continue to work together to invest in our workers by supporting skills training and lifelong learning, and create a pro-business environment that encourages our companies to innovate, build strong capabilities and bring the Singapore brand name overseas.

22.         I wish you all a pleasant evening ahead. Thank you.