Question
Ms Tin Pei Ling: To ask the Minister for Trade and Industry (Industry) given that the rise of milk powder prices in Singapore far exceeds inflation rates and the increment in other countries, whether the Ministry will work with local distributors and retailers to ensure fair pricing.
Oral reply (to be attributed to Senior Minister of State for Trade & Industry Dr Koh Poh Koon)
1. I share the Member’s concern that local distributors and retailers
should price milk powder appropriately.
Another Member, Ms Sun Xueling, has also spoken about milk powder in her
interviews with Straits Times and ZaoBao over the weekend.
Consumer Awareness
of Infant Feeding Options
2. The Government is as concerned as Members are about the high price of
infant formula. We have been monitoring
the situation and are taking steps to address the situation. The Health Promotion Board (HPB) and
international organisations including the World Health Organisation (WHO),
strongly encourage breastfeeding as it can provide the nutritional needs of
infants, with the added benefits of promoting motherchild
bonding. Breast milk is the best milk
for growing infants. It has the best constituents to meet the nutritional needs
of our infants. HPB recommends that, where possible, mothers should exclusively
breastfeed their babies for the first six months. Between 6 and 12 months, babies should be
given breast milk together with complementary foods. For children above 12 months of age, cows’
milk, as part of a balanced diet, is adequate to meet their nutritional
needs. Formula milk is not required for
children beyond the first year of age.
3. We recognise that, however in some cases, infants cannot be exclusively
breastfed and will therefore need infant formula as a form of supplementation
or main form of feeding. Hence, we have food regulations in Singapore which
stipulate quality and safety standards for infant formula milk to be sold in
Singapore.
4. Singapore’s standards are similar to international standards in terms
of required essential vitamins and minerals.
We assure all members and all members of the house that infant formula
sold in Singapore, regardless of price, meets Singapore’s Food Regulations and
the nutritional needs for infants to grow healthily.
5. Some infant formula companies give the impression that their particular
brands of milk powder can do more. The
scientific evidence for this is weak.
Without better information, parents should therefore be careful about
relying on the claims made by infant formula companies, or be misled into using
price as a proxy for the quality of the product. The government will take steps to address this
problem, including referencing the best practices in other jurisdictions.
6. Public
awareness is important, to support parents in deciding what is best for their
children. HPB,
together with healthcare institutions and healthcare professionals, will get
the message out, especially to mothers-to-be.
7. Besides consumer education, the Government
will also do more through three ways. First, to do more through our maternity
hospitals. Second, to review import requirements to facilitate more formula
milk options on our shelves and third, to put in place stronger consumer
protection by tightening advertising and labelling regulations. Let me elaborate each of this in turn.
Role of Hospitals
8. Hospitals play an important role where healthcare professionals provide
information and advice to parents, and infants have many first experiences in
our hospitals.
9. All hospitals, both public and private,
encourage and support breastfeeding. They will provide infant formula when
needed, for example if the mother is unable to produce enough milk to meet the
baby’s needs or for specific medical reasons for which the mother should be
discouraged from breastfeeding. For example, mothers who are on medication for
chemotherapy. The Ministry of Health (MOH) will work with industry players to
make available more infant formula options in hospitals.
10. We will also strongly encourage all hospitals providing maternity
services to achieve the Baby-Friendly Hospital Initiative (BFHI)
certification. All public hospitals
offering maternity services are already BFHI-certified today, but private
hospitals have yet to come on board and this is unsatisfactory. BFHI-certified hospitals are committed to
actively encourage and support breastfeeding targets, and are not allowed to
enter into sponsorship arrangements with milk powder companies, given the
potential for conflicts of interest. We
hope private hospitals will see this as beneficial for their patients, and will
come on board to support the initiative.
Government
Regulations
11. The Competition Commission of Singapore (CCS)
recently completed a market study which examined the milk formula industry in
Singapore, and the nature of competition at each level of the supply
chain. CCS will publish its report this
week, and more details will be available then.
Should there be any evidence of companies acting in cohort to increase
prices together, CCS will not hesitate to investigate the anti-competitive
behaviour under the Competition Act.
12. There are several measures that can be taken together to encourage
greater price competition between brands.
In Singapore, the six major manufacturers which supply formula milk have
a market presence which is much bigger than the other manufacturers.[1]
This was also a point also highlighted by Ms Sun Xueling’s online survey of
about 2,500 respondents.
13. The Government will simplify and streamline
import requirements, as well as remove unnecessary barriers to entry, in order
to bring in more options for parents but most importantly, without compromising
food safety.
14. At the same time, we should also improve consumer protection. The Government will strengthen restrictions
on advertising and labelling. The Sale
of Infant Food Ethics Committee, Singapore (SIFECS) Code of Ethics already had
a code of ethics that restricts advertising, marketing and promotion of infant
formula for infants below 6 months in Singapore. Nevertheless, HPB is supporting an
ongoing review of the SIFECS Code which will include extending its coverage to all infant formula for infants up to 12 months of
age. The
Agri-Food and Veterinary Authority (AVA) will tighten its regulations on
labelling and advertising further, including
prohibiting the use of nutrition and health claims, and idealised images for
infant formula milk. This will also
discourage companies from incurring massive costs on aggressive advertising and
marketing activities, and subsequently passing these costs on to
consumers. Taken together, the increased
choices available, and improved clarity of labelling should enhance the
competitiveness of the infant formula market.
Assistance
for Families with Infants and Children
15. The Government is also committed to help
ensure that the basic needs of all children in Singapore are met. In this regard, ComCare provides assistance
to low-income families in financial need, including families raising infants
and young children. They can approach
their nearest Social Service Office (SSO) to apply for ComCare Short-to-Medium
Term Assistance. The SSO will assess
their needs, and families may receive cash assistance for their basic
needs. Let me assure members that the
cash assistance for families with infants and young children will take into
account the costs of infant formula milk.
16. In addition, to support for the low-income
families, all parents of Singaporean children can tap on the wide range of
support measures under our Marriage and Parenthood Package, including the Baby
Bonus Cash Gift, and Child Development Account to help defray child-raising
costs.
Conclusion
17. To conclude, Madam, I would like to
reiterate that the Government shares parents’ concern about rising prices of
formula milk in Singapore, and is committed to addressing them. MTI and other government agencies such as
MOH, HPB, and AVA will take steps to increase consumer awareness, encourage
good practices in our hospitals, facilitate more formula milk options, and
further tighten regulations on labelling and advertising. The Consumers Association of Singapore (CASE)
will also remind businesses to price their products fairly, and look into
consumer feedback on potential profiteering.
[1] The six major manufacturers are Abbott, Danone, FrieslandCampina, MeadJohnson, Nestle and Wyeth. The smaller manufacturers include Bellamy, Hipp, Holle, Wakado and Bimbosan.