Speech By Mr Lee Yi Shyan, Minister of State for Trade and Industry & Manpower, At The Official Opening Of The International Furniture Fair Singapore 2011 And The 28th ASEAN Furniture Show 2011 (IFFS / AFS 2011) At The Singapore Expo, Wednesday, 9 March 2011, 10.30am
Mr James Goh, President, Singapore Furniture Industries Council (SFIC),
Distinguished guests,
Ladies and gentlemen,
I am pleased to join you for the opening of International Furniture Fair Singapore 2011, or IFFS. To all participants and foreign visitors, a warm welcome.
As a venue host, Singapore offers a unique value proposition for events. This is validated in Singapore being ranked as the Top International Meeting City for the third consecutive year[1] and The Best Convention Bureau/National Tourist Office and the Best City for MICE Events[2].
Over the years, IFFS has grown to become one of Singapore’s largest exhibitions. I understand that this year, the organizer is expecting to attract some 34,000 visitor nights, 2,600 more than last year.
Besides IFFS, 3 other shows are being held in parallel: the 28th ASEAN Furniture Show, the inaugural Hospitality Asia and the rebranded Deco Asia. The three shows occupy a total show space of 70,000 square meters, 16% more than last year. The number of exhibitors has also increased by 24% from 2010.
The combined show has not just grown in size but also in content, focusing on innovative design and trends. Last year, D’Space was introduced as a petri-dish for trendsetting designs. This year, it has seen a 100 per cent increase in space set aside for designers and design-centric exhibits.
Growth opportunities for furniture industry
According to CSIL World Furniture Outlook 2010/11, Asia accounts for the greatest growth in furniture consumption. In 2009, China surpassed USA as the largest furniture consumption market in the world.
In this regard, Singapore is well-placed to act as an ideal nexus for international furniture trade and sourcing in and out of Asia. We attract great design talents and partnerships, leading to a unique fusion between East and West in our designs.
Singapore Furniture Industry - moving up the value chain
To take full advantage of these bright prospects, our Singapore industry must continue to innovate. Our firms should make full use of the newly enhanced Productivity and Innovation Credit to invest in automation, computerization, process improvement, design, skills training and cross industry collaborations. At the industry level, industry associations such as SFIC (Singapore Furniture Industry Council) could propose productivity improvement projects to SPRING Singapore and some could be supported by the $2billion National Productivity Fund.
In addition, SPRING Singapore offers many customized programs to help SMEs build new capabilities. Consider Pacific Forest, a manufacturer of wood products and an interior builder for hotels and resorts. With SPRING’s assistance, Pacific Forest, invented its own eco-friendly wood alternative named One Wood which is even superior to real wood. Such an invention reduces producers’ dependence on timber in the long run, and allows Pacific Forest to develop new products for new markets.
Other furniture companies focus on design. Consider Air Division, a furniture designer and retailer, clinched the prestigious Red Dot Design Award in 2010. Design Studio, a furniture manufacturer, is one out of eight local SMEs that have made it to Forbes Asia’s annual ranking of the best 200 firms in the Asia-Pacific region. Finally, at the prestigious Asian Furniture Leadership Awards 2010, five out of 20 winners came from Singapore.
Addressing international markets
More Singapore furniture companies are tapping international expertise for their growth. Koda Ltd, for instance, commissioned Italian designer Luigi Garbarino to develop a new dining furniture series. Recently, Koda Ltd also engaged Futhark, a design company from Denmark, to produce yet another new collection that is showcased today.
At this year’s IFFS, a special collaboration between world renowned designer Mr. Naoto Fukasawa and our local designers will be unveiled. Design Inevitable, a special series of furniture design encapsulating the traits of Singaporean design, will be showcased here.
More firms are entering new markets by mergers and acquisitions, joint ventures or franchising. For instance, Lorenzo International Ltd recently acquired a majority stake in a joint venture to sell premium leather furniture in China under the Lugano brand. The joint venture has ambitious plans to open 60 retail outlets in 12 Chinese cities within the first year of operations. Star Furniture is now looking at growing its retail brands LUCANO and ZEN in Asia through franchising. With the support of IE Singapore, the company is now setting up a franchise model for Southeast Asia and China.
Conclusion
To achieve higher productivity, our furniture players must raise sales, create higher value products through good design, and improve production methods and distribution efficiency.
SPRING Singapore is committed to helping companies upgrade through capability development programmes such as Design Engage and Brand Pact. Likewise, IE Singapore supports companies in internationalization efforts through various programs like the International Marketing Activities Programme and Overseas Marketing Office Scheme. Other government agencies such as Design Singapore Council, IDA, Intellectual Property Office of Singapore are equally ready to offer their continued support.
Let me conclude by congratulating the SFIC on its efforts in making this event a continual success for almost 30 years, since 1982. I wish all exhibitors and business participants a fruitful time at this Fair.
Thank you.
[1] The Union of International Associations' 2009 Global Rankings
[2]CEI Asia Pacific 2009 & 2010 Annual Industry Survey Readers’ Choice Awards