SPEECH BY MR LEE YI SHYAN,MINISTER OF STATE FOR TRADE AND INDUSTRY AND MINISTER IN CHARGE OF ENTREPRENEURSHIP, AT THE 5th ASIA PACIFIC FOOD EXPO, 14 NOVEMBER 2008, 5PM SINGAPORE EXPO

Mr Allan Tan, President, Singapore Food Manufacturers’ Association

Distinguished guests

Ladies and gentlemen

Good evening to all

Overview of 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. Contributing $1.2 billion to the GDP, this industry remains a growing sector. SMEs, in particular, are a significant part of the industry, contributing half of the industry’s GDP at $607 million[1].

Our F&B domestic exports have been growing steadily over the past few years. Last year, F&B domestic exports grew by 11.5% to $3 billion.[2]This is very encouraging. The limited size of the domestic market will continue to drive our local food enterprises to be export-oriented.

With the current economic slowdown, I urge our food manufacturing companies to use this time to develop new products, upgrade processes and built up skills and knowledge. In particular, our food manufacturers should focus on three key areas - quality and food safety, innovation and branding.

Quality and Food Safety

First, I encourage our food manufacturers to focus on strengthening and upholding quality and food safety. With increasing global concerns about food safety, consumers want the assurance that the food they consume is safe and hygienic. Singapore has built up an impeccable reputation for our high standards in quality and food safety. This is one competitive advantage we should leverage on and continue to build up.

Currently, SPRING supports up to 50% of the manpower, consultancy, training and certification costs for companies to implement and obtain Hazard Analysis Critical Control Point or HACCP certification through our Capability Development Scheme. To date, more than 350 food companies have obtained HACCP certification and we will continue to support food companies to adopt the HACCP under our Food Safety Programme.

Innovation in Products, Processes and Design

Second, we need to focus on innovation. New products, processes and design including packaging are needed to meet the needs of new markets, changing tastes of existing markets, as well as differentiate them from competing products. New manufacturing processes and technologies allow companies to improve their productivity as well as manufacture products that are of higher value and better qualities like longer shelf lives, ready-to-eat food etc. For example, Tungsan Food Industries Pte Ltd, saw an increase of 150% in the production capacity over the past 4 years since they started automating their sauces production processes.

SPRING Singapore has put in place infrastructure and resources to help food companies develop and commercialize their innovations quickly to meet the growing global demand. Food companies can use the expertise in Food Innovation and Resource Centre or FIRC, to develop new products based on food science, technology and nutrition. To defray the costs of their projects, SMEs can tap on SPRING’s Technology Innovation Programme.

To date, the center has helped almost 50 companies in food product development and other consultancy projects. An example is the extension of the shelf life of fresh noodles from three days to one year which was developed together with Saga Foodstuffs Mfg Pte Ltd. With the extended shelf life, the company can now export the fresh noodles.

Branding

Third, 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’ brand was launched four years ago by IE Singapore, in collaboration with the SFMA, SMa and supported by SPRING Singapore and Restaurant Association of Singapore. The brand, which articulates the core attributes of Singapore food, namely: diversity; innovativeness; dynamism; quality and safety, provides a common platform for our local food companies to generate greater awareness and mindshare amongst foreign buyers and consumers when venturing overseas with their products and services.

Under the Tasty Singapore umbrella, there are now 52 Tasty Singapore brand ambassadors, who have met stringent hygiene and food safety standards that comply with the highest international requirements for food production. The Tasty Singapore branding has been adopted in all food promotion and marketing initiatives such as the National Pavilions in overseas trade shows organized by the associations and supported by IE Singapore.

Going forward, IE and SPRING will continue to work with the industry to leverage on the Tasty Singapore brand to raise the profile of Singapore’s food industry and companies in the local and overseas markets.

Conclusion

Singapore’s food manufacturing industry has evolved from humble beginnings into one that is firmly anchored on accolades in modern processing technologies and innovative products. We also have a strong reputation for food safety and quality. I encourage food manufacturers to use this period of economic slowdown to continue their efforts in innovation. In doing so, companies will be better positioned against competition in tapping on new opportunities when the cycle turns.

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

Thank you.