Speech by SMS Low Yen Ling At The Food Services Forum

Ms Jeannie Lim, Assistant Managing Director, Enterprise Singapore

Ms Lydia Goh, Chairperson of Singapore Productivity Centre, and President of Singapore Productivity Association

Mr Pua Seck Guan, Chief Operating Officer of Wilmar, and Executive Chairman & CEO of Perennial Group

Mr Paul Kan, Country Head, Business Banking Singapore, United Overseas Bank Limited

Distinguished guests,

Ladies and gentlemen,

Introduction

1.             A very good morning to all of you.

2.             It is wonderful to see all of you here at the Food Services Forum 2025. When the Singapore Productivity Centre (SGPC) and Enterprise Singapore (EnterpriseSG) joined hands to organise the Food Services Forum, it was with a shared vision to create a platform for leaders in the food services sector to share best practices, learn from one another and tackle challenges and pain points together. This is something unique in Singapore, that we can come together to cocreate solutions.

Food Services Productivity Report

3.             It is with this same aim that EnterpriseSG partnered with SGPC in November 2024 to commission the Food Services Productivity Report. Our goal was to develop a practical tool to support you in measuring business performance, as well as support you in identifying areas for improvement, and enabling food businesses to stay competitive in an evolving market.

4.             Essentially, this Report uses a very simple yet effective metric, which is the amount of sales per man-hour. It enables businesses to gauge their standing against their counterparts. It also highlights what top performers are doing differently, so others can learn from the best practices and success.

5.             Before Mr Michael Tan, CEO of SGPC, walks us through the findings, let me share one insight that stood out for me. Across subsectors in food services, top performers generate almost twice the sales per man-hour compared to the average. What could be the secret of their success? The study indicated that top performers observed these three key practices: they streamline operations, which also helps them to maximise resource efficiency; outsource labour-intensive prep work, and make full use of technology. These are practical, proven steps that every business can take.

EnterpriseSG’s Support for the Food Services Sector

6.             To help businesses adopt such practices, EnterpriseSG is launching three new initiatives based on the Report’s findings – firstly, to enable the food sector to optimise operations, to go some way in lowering and mitigating operational costs. Secondly, to strengthen the supply chain. Thirdly, to accelerate digital transformation. Together, these efforts are expected to benefit over 1,000 F&B businesses over the next two years. Let me elaborate.

7.             First, the F&B Process Optimisation Programme (POP) will help businesses review and improve their outlet operations, covering everything from layout and workflow design to technology adoption as well as menu engineering. This is especially helpful for companies that are less familiar with new technologies, such as AI-enabled solutions or industry aggregators that streamline processes. To encourage businesses to embark on this programme, EnterpriseSG will provide up to 50% grant support.

8.             Second, the FoodX programme encourages F&B businesses to outsource food pre-preparation to established food manufacturers. This follows a successful pilot launched in 2024, which helped close to 200 F&B outlets streamline their operations and reduce manpower-intensive kitchen work through outsourcing. Even as these are outsourced, the quality is not compromised.

   1. An early adopter is a well-loved local brand, Kopi & Tarts, which operates close to 20 outlets across the island. Through the FoodX pilot, Kopi & Tarts outsourced the ingredient preparation for its Ayam Merah and Protein bowls. This saved each outlet 1 to 2 hours of food preparation time daily, allowing staff to be redeployed more efficiently.

   2.     To better support businesses in outsourcing, EnterpriseSG will fund up to 50% of outsourcing costs for eligible F&B businesses. More details will be shared in due course.

MoU for the Adoption of Digital Solutions

9.             Third, we are deepening our support for digital transformation. We cannot afford to overlook the power of technology to transform the way businesses operate. Digital tools and AI are no longer optional. They are essential for productivity and sustainable growth. Many solutions are already available today. From automating routine and time-consuming tasks to providing real-time performance insights, these tools help businesses make more informed decisions and optimise performance.

10.          To enable more businesses to harness these solutions, EnterpriseSG and UOB will sign a Memorandum of Understanding (MoU) today. This partnership will accelerate the food services sector’s adoption of digital and AI-enabled solutions by assisting in three key ways:

    1.     Providing advisory services to guide businesses in selecting the right digital solutions to improve operations;

    2.     Offering a curated suite of solutions will be available at preferential rates; and

    3.     Holding targeted seminars and workshops with a focus on AI-enabled solutions.

I am happy to share that the advisory services and suite of solutions will be available from 2026. More details will be shared soon. 

Conclusion

11.          We want to use this platform to encourage our F&B businesses to continue to embrace these opportunities to transform their operations, strengthen capabilities, and keep our food services sector vibrant and competitive. The Singapore Government will continue to walk this journey with you to be your steadfast partner, working with you to seize new potential and to drive productivity growth.

12.          Here's to a very fruitful and constructive Food Services Forum 2025. I wish everyone great success ahead. Thank you.