SPEECH BY MR LEE YI SHYAN MINISTER OF STATE FOR TRADE AND INDUSTRY AT THE OFFICIAL OPENING OF THE INTERNATIONAL FURNITURE FAIR SINGAPORE 2009 AND THE 26TH ASEAN FURNITURE SHOW 2009 (IFFS/AFS 2009) AT THE SINGAPORE EXPO AT 10.30 AM ON MONDAY, 9 MARCH 2009
Mr Andrew Ng, President, Singapore Furniture Industries Council (SFIC),
Distinguished guests,
Ladies and gentlemen,
Good morning.
I am pleased to be here for the opening of International Furniture Fair Singapore 2009, held in conjunction with the 26th ASEAN Furniture Show 2009.
The IFFS/AFS is highly regarded by many international buyers and draws over 18,000 visitors from across 100 countries each year. It has also seen strong annual participation from several renowned exhibitors from Italy, Spain, Thailand and China. I am confident that the IFFS/AFS will continue to be the platform where international furniture players debut and showcase their products to penetrate the high-growth Asian markets.
Singapore’s Furniture Industry
Singapore’s furniture industry has come a long way since the 1960s. It was among the pioneer industries in our national industrialization drive then. This local industry has weathered many cycles, such as the 1997 Asian Financial Crisis and the global economic recession in 2001-2003.And each time, the industry rallied together and emerged stronger and I am confident that it will be no different this time.
Despite this time of economic uncertainty, I am heartened to note that the industry, much through the efforts of the Singapore Furniture Industries Council (SFIC) is taking active steps to support their companies.
SFIC rolled out its third Members Assistance Scheme (MAS), and already, over 260 of its members have tapped onto the S$1 million worth of funds to help lower business costs, strengthen business capabilities and explore new business opportunities. I understand that over 60% of the funds have been disbursed to-date to mainly support companies in their internationalization efforts. The first two MAS schemes offered in the past saw a total sum of S$2.3 million in assistance and benefited some 229 SFIC members.
Exploring new, untapped markets
The Singapore furniture industry has grown at 10% over the past 5 years. According to the SFIC–SPRING Furniture Industry Survey 2008, Singapore’s contribution to the world furniture market stood at S$3.2 billion in 2007. Majority of the exported furniture went to Europe, UK and the US.
Our furniture industry is constantly exploring new frontiers. For instance, Haley wood Industries chose to grow its market share in new markets such as Czech Republic, Scandinavia and Sweden. It is expected to clock over USD $10 million of exports to Scandinavia this year. Another Singapore SME, Grand work Interior also recently made its first foray into the Middle East and has managed to clinch commercial projects with a high-end lifestyle brand in Dubai.
Amidst the economic gloom, I am glad to see that our furniture companies has remained stoic and are taking active steps to strengthen their capabilities and seek new growth markets.
Investing in design capabilities
In the world of furniture, design is a key contributing factor to business success. Italy’s Cassina and Alessi have been investing in superior design for over 80 years which is why they are still the premier brands in the industry today.
Our companies are also recognizing the importance of design. Singapore Company Office Planner for example has seized the opportunity during the current downturn to strengthen its design capability by working with renowned international designer, Karim Rashid, on a new home and office collection. Office Planner believes that the strategic partnership will enable creative knowledge and skill transfer that will help develop sustainable, innovative designs in a competitive marketplace.
Working with versatile international designers like Karim Rashid is one way for Singapore furniture companies to move out from competing in the mass market where margins are thinning. I would like to encourage you to explore collaborations with companies from other industries to create new niche markets that differentiate yourself from the masses. What are these industries? They could be fashion, jewelery and even precision engineering. Such cross-industry pollination will help you create new intellectual properties and process know-how.
Launch of Design DNA Programme
Recognizing the need to further catalyze the development of design capabilities in our furniture companies, SFIC has worked with SPRING Singapore on a capability development initiative for design. Today, I am pleased to announce the launch of the $1.4 million Design DNA Programme which will help establish Singapore to become the Asian hub of design excellence.
Design DNA aims to Develop design capability, Nurture local design talents and Accelerate business growth through design adoption. This 3-year programme will include a series of design seminars and workshops, overseas immersion programmes and study missions.
The idea for this programme came about during a 1-week workshop that SFIC organized last year for a team of 10 Singaporean designers to visit Italy. The group returned to Singapore with the invaluable experience of working with Magis, a world-class integrator and marketer of designed furniture. Moving forward, under Design DNA, SFIC will be working on 2 similar workshops to expose our designers to new philosophies and to nurture them through expert mentorship.
Currently, SFIC organizes the annual Furniture Design Forum as a broad-based platform, which aims to facilitate interaction between our local enterprises and foreign experts. Under Design DNA, SFIC will complement these forums with targeted seminars and workshops to enable more intensive discussion and hands-on learning among like-minded individuals.
SPRING and SFIC target to nurture over 300 local designers in the next 3 years. The industry also hopes to see a bigger pool of experienced designers on whom they would be able to tap and build innovative designs in their companies’ DNA.I applaud the industry’s focused approach and strongly encourage designers and enterprises alike to make use of Design DNA to develop and cultivate innovative, unique designs that will differentiate yourselves from the competition, create new market and demand for your products, and help Singapore become a center of design excellence in Asia.
Overseas missions for furniture designers and companies
Over the years, Government agencies have dedicated efforts and resources to help our furniture companies explore new overseas trends and facilitate international business collaborations. Through the International Marketing and Activities Programme (iMAP) by IE Singapore, and the Overseas Promotion Partnership Programme (OPPP) by Design Singapore, these agencies have actively supported Singaporean designers and design companies to participate at prestigious overseas platforms such as the Milan Furniture Fair, IMM Cologne Furniture Fair and INDEX Dubai. Nathan Yong from Air Division and Jarrod Lim from Jarrod Lim Design are some of the local designers who have benefited from these programmes and clinched projects through their overseas exposure.
SPRING and IE have also been engaging and supporting the industry in overseas study and business-matching missions and participation at international trade fairs through their respective programmes under the Singapore Mosaic industry branding. In May last year, SPRING led a 15-member delegation, comprising designers and design-centric companies on a furniture study mission to New York to explore new design trends and market opportunities. In November, IE took some furniture companies on a business mission to Russia to understand and assess the Russian market, as well as seek possible collaboration opportunities. Sitra Holdings, specialist manufacturer of outdoor furniture, returned home with spot orders from new Russian buyers.
As part of the ongoing efforts to build capabilities, expand markets and learn best practices, SPRING and IE will be working closely with SFIC to organize more overseas missions this year. The knowledge and networks created will put you in good stead for the eventual recovery of the world economy.
Conclusion
I wish to commend SFIC’s commitment and pro-active actions in building the competitiveness of Singapore’s furniture industry. Let us continue to support one another and build on our strengths and capabilities so that we can be ahead of the competition when economic recovery takes place.
I wish you another year of success at the IFFS/AFS 2009. May 2009 be one of learning and self-renewal. Thank you.