SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE SINGAPORE FOOD MANUFACTURERS’ ASSOCIATION 40TH ANNIVERSARY CELEBRATION DINNER, FRIDAY, 12 JANUARY 2007, 8.15 PM, MERITUS MANDARIN SINGAPORE

Mr Allan Tan, President, SFMA

Distinguished Guests,

Ladies and Gentlemen,

Good evening.

Introduction

I am very happy to join you this evening to celebrate the Singapore Food Manufacturers’ Association’s 40th Anniversary.

Growth Opportunities for Singapore’s Food Manufacturing Sector

The food manufacturing industry is an important sector of our economy.There are about 700 food manufacturing establishments in Singapore employing almost 20,000 people.Food manufacturing contributed an estimated $4.6 billion of manufacturing output and $1.2 billion of value-add in 2005.

Singapore’s domestic food exports have grown healthily by 7% per annum since 2003, hitting $2.5 billion in 2005.There is much potential for further growth.The world market for food manufacturing is expected to reach over US $5 trillion by 2007.Amongst the overall global demand growth, some key trends have emerged.

With aging populations, especially in developed countries, there is increased emphasis on the health and nutritional aspects of food.For example Japan, which is Singapore’s largest domestic export market for food manufacturers, is also the biggest market for functional foods.Consumers leading modern urban lifestyles are also looking for convenience and sophistication in food.So, easy and fast usage, and good packaging and presentation are important.Yet another trend to highlight is the growing consumer and regulatory interest in food safety, heightened by recent food-related disease outbreaks.

Our local food manufacturers can capitalise on such trends to improve their product offerings and capture growth opportunities.To achieve this, we must work on three key areas at the industry level.

Technology Innovation

First, our food manufacturers can harness the potential of technology to innovate – to increase the efficiency of manufacturing processes, improve taste and functionality of food products, or enhance packaging features.As part of the supporting infrastructure, the Food Innovation and Resource Centre (FIRC) will be launched in a few months.To be sited at Singapore Polytechnic, the FIRC will pull together expertise to provide technology consultancy and advice on food related areas.The FIRC will collaborate with SFMA to link technology developments with industry needs.The FIRC is supported under SPRING Singapore’s Technology Innovation Programme, or TIP. Besides innovation centres such as this, companies can also tap the TIP to support the secondment of technical expertise from research institutes, polytechnics and universities, and to undertake technology innovation projects.

Industry Branding

Second, it is important to build a strong brand for Singapore food products to be differentiated in the global market. With this in mind, the ‘Tasty Singapore’ branding was launched three years ago by IE Singapore, in collaboration with SFMA and others. ‘Tasty Singapore’ reflects the variety, taste and high standards of production associated with Singapore food.There are now 26 Tasty Singapore brand ambassadors, who place the Tasty Singapore logo on their food packaging.The Tasty Singapore branding has been adopted in the National Pavilions in all overseas trade shows organised by the associations and supported by IE Singapore.Going forward, IE and SPRING will work with the industry to further profile and strengthen the Tasty Singapore brand locally and in focussed overseas markets, and also increase the adoption.

Market Connections

Third, industry players need to make strategic market connections for both demand and supply aspects.I am happy to note that your Export Club, supported under SPRING and IE’s Local Enterprise and Association Development, or LEAD Programme, is doing well.Indeed, the Export Club organised an impressive nine international trade exhibitions last year.Besides bringing Singapore to the world, SFMA has brought the world here to interact with our industry players, through the annual Asia Pacific Food Expo and Singapore Food Expo.I would encourage SFMA to build on these efforts and further enhance the effectiveness of such initiatives, by follow-through to generate more business leads.IE Singapore would also be happy to partner you in your market outreach activities.

Conclusion

In conclusion, our local food manufacturing sector needs to boost efforts in the areas of technology innovation, branding and market connections, to be better positioned to tap on growing global opportunities.As the main representative body of the food manufacturing industry, SFMA is in the best position to know the current trends and business needs of the industry.Our government agencies will continue to partner SFMA to build up industry capabilities and facilitate access to market opportunities.

SFMA has demonstrated pro-activeness and leadership in its various industry development efforts.I congratulate SFMA on 40 years of good work, and I wish you continued success ahead.Thank you.