SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE & INDUSTRY AT THE OFFICIAL OPENING OF FOOD & HOTEL ASIA 2006, AT 9.15 AM ON TUESDAY 25 APRIL 2006, AT SINGAPORE EXPO

Distinguished Guests,

Excellencies,

Ladies and Gentlemen,

Good morning.

I am pleased to join you here this morning for the Opening Ceremony of the Food and Hotel Asia or FHA 2006. To our friends from overseas, I extend a very warm welcome to all of you. I hope you will be able to take the time to enjoy the rest of Singapore as well.

Since its debut in 1978, FHA has become one of Asia’s largest and most established food and hospitality trade shows. I am happy to note that this year’s show is the biggest so far, attracting more than 2,300 exhibitors from some 70 countries. I am also heartened to note we have the largest ever Singapore pavilion this year. I congratulate the organizers for your good work, and hope that FHA will continue to be a key platform for the creation of new business opportunities and launch of new products.

The staging of the event here further affirms Singapore’s leadership position as a hospitality hub in the region. All signs are pointing towards sustained growth and excellent prospects for the hospitality sector. Under the Tourism 2015 plan, the Singapore Tourism Board has set a goal of achieving 17 million visitor arrivals and S$30 billion tourism receipts by 2015.Singapore currently has an inventory of about 34,000 hotel rooms. To cater to the surge in visitor arrivals, the hotel industry will need to gear up by maximizing their existing capacity as well as by building new hotels.

While the Government will let market forces take the lead in anchoring new hotel developments, we can facilitate the entry of exciting and novel hotel concepts, from family-friendly hotels to iconic, boutique hotels. With the greater variety in hotel options, we can inject more diversity into our hotel scene.

To support such “hardware” or infrastructural development, we also need to develop the capabilities of our hospitality workforce. It is projected that 100,000 new tourism-related jobs would be created by 2015.The Singapore Workforce Development Agency will be working with associations under the Hospitality Alliance Singapore to build a pipeline of skilled workers to meet the increased manpower demand for the tourism sector.

I am also heartened to note that various training providers have embarked on other significant initiatives to train well-qualified and professional manpower for the hospitality sector. Among them are Temasek Polytechnic's Tourism Academy at Sentosa, Nanyang Technological University's degree programme in Tourism and Hospitality, and the Masters programme offered by Cornell-Nanyang Institute.

Indeed, exciting times lie ahead for the tourism and related sectors. One such sector to benefit is the Food & Beverage or F&B industry.

Our F&B scene is a diverse and exciting one, with cuisines ranging from traditional Chinese, Malay, Indian, Peranakan and Eurasian favorites to the more exotic, such as Moroccan and African cuisines. We also host major culinary events such as the World Gourmet Summit. This annual event brings to Singapore world renowned chefs and restaurateurs to display their culinary skills as well as to exchange views and ideas with our local talents.

However, a vibrant F&B scene is more than just offering the best selection of cuisines. It is also about being able to cater to increasingly sophisticated global consumers. Markets are constantly evolving, driven not only by changes in consumer tastes and advances in technology, but also demand for higher quality and safer food.

With heightened concerns about food safety as a result of recurring livestock disease such as bird flu, consumers want the assurance that the food they consume is safe and hygienically prepared. Singapore has built up an impeccable reputation for our high standards in food safety. Therefore, I see food safety as one competitive advantage we should build up further for our food sector.

In fact, we are not alone in this race. Many countries have also adopted third party certifications to provide assurances on food safety. One such certification is the Hazard Analysis and Critical Control Point, or HACCP.HACCP is an internationally recognized food safety management system adopted by food manufacturers in many countries, such as US, Europe and Australia. By successfully implementing HACCP, food manufacturers can also meet foreign import regulations, thereby improving the exportability of their food products.

In Singapore, the Agri-Food & Veterinary Authority or AVA has been encouraging food manufacturers to adopt HACCP.SPRING Singapore has also introduced several initiatives to help local food manufacturers adopt HACCP, including an affordable HACCP toolkit. To date, some 60% of Singapore food manufacturers with more than 10 employees have been HACCP-certified.

While HACCP was first adopted by food manufacturers, its application to the whole food service sector has also gained momentum worldwide. For example, the National Restaurant Association in the US has implemented the “ServSafe” programme, which incorporates HACCP principles, to help their F&B players meet stringent food safety regulations. Dubai is set to impose a simplified HACCP requirement for restaurants by 2007.

In Singapore, we also have our own domestic system to ensure that all our F&B outlets observe basic food hygiene practices. This is undertaken by the National Environment Agency or NEA. Moving forward, it is important for our local players to adopt HACCP for two key reasons. Firstly, HACCP will help to facilitate the overseas expansion of our F&B players, similar to that for food manufacturers. For example, Fish & Co, a local F&B establishment, found it easier to penetrate overseas markets such as Australia with HACCP.

Secondly, HACCP allows us to create an environment in which visitors and locals alike can enjoy our cuisine with peace of mind. I am sure many of you here would have travelled to overseas countries, wanted to sample their local cuisine, but were worried whether the food was safe for consumption. For Singapore to become a true food haven, we need to overcome such ‘Fear Factor’ amongst our visitors.

For these reasons, I am happy to launch the Food Safety Programme for the F&B industry. Spearheaded by SPRING Singapore and the Restaurant Association of Singapore (RAS), with the support of NEA, this programme has been developed based on HACCP standards with the F&B sector in mind. I understand that 11 F&B companies, comprising 18 F&B outlets and two central kitchens have embarked on the pilot phase of this programme. Through this programme, HACCP consultants will work closely with the companies to understand, assess and improve their operations and food safety practices.

To encourage more companies to come on board, SPRING Singapore has set aside $1 million to help another 200 F&B establishments become HACCP-certified in the next three years. Through these initiatives, I hope that Singapore can continue to uphold high food safety standards that will serve to differentiate our products and services in the global market.

With the Government working hand in hand with our industries, I am confident that our F&B and hospitality industries will continue to flourish and excel, making Singapore an exciting tourist and gourmet destination.

On this note, I wish all of you a fruitful and rewarding time at this event.

Thank you.