SPEECH BY MR LEE YI SHYAN, SENIOR MINISTER OF STATE FOR TRADE AND INDUSTRY & NATIONAL DEVELOPMENT, AT THE ASIA PACIFIC FOOD EXPO 2012 AT SINGAPORE EXPO HALL 4 ON 15 NOVEMBER 2012 AT 5.30 PM
Mr Wong Mong Hong, President, Singapore Food Manufacturers’ Association,
Distinguished Guests,
Ladies and Gentlemen,
Good evening.
Introduction
It is my pleasure to join you this evening at the opening ceremony of the 9th Asia Pacific Food Expo 2012. I would like to extend a very warm welcome to all exhibitors and visitors.
Call to action
The Singapore food manufacturing industry is a key sector of our economy. It employs 25,600 workers and contributes S$1.9 billion of value-add to the Singapore economy.1 From 2006 to 2011, the industry has seen healthy growth averaging 10.6 per cent annually.
Right here in Asia, food consumption is rising. Consumption patterns are changing too with rising affluence. Consumers are demanding safer and more nutritious food. Markets are becoming more segmentised.
Export to New Markets and Market Segments
For Singapore food manufacturers to grow, clearly we must grow our export market. Last year, our food exports amounted to S$4.5 billion. We should find ways to develop new markets in different geographies, and discover new market segments within the same market we have been exporting too.
The Government is committed to help food companies export their products. For many years, Singapore Food Manufacturers’ Association (SFMA) and IE Singapore have been bringing companies to international tradeshows, such as Gulfood 2012 and the Food & Hotel China Tradeshow, under the iMAP program. Besides, our food manufacturers could also consider developing HALAL-certified food for export to Middle East and some African countries.
Food Innovation
Local food manufacturers should also consider developing products for markets segmentised according to age group, health requirements, preferences and ethnicity. The global functional food market grew by about 40 per cent between 2006 and 20102. By 2014, the market is forecasted to grow to S$38 billion, with the Asia-Pacific region accounting for 40 per cent of the total market share3.
Consider the example of Pomefresh4. With support from the Food Innovation and Resource Centre (FIRC)5, Pomefresh introduced Otrimix blend that is infused with Omega 3, Antioxidants, Fibre and Minerals. This product enjoys strong reception from health-conscious consumers in Malaysia, China and Indonesia.
Another food manufacturer, Plum Organics, innovated on its packaging using pouches to contain its baby food products instead of traditional glass jars. The new packaging reduces breakage, lowers distribution costs and is well liked by its consumers.
Capacity Building
Many SMEs have given the feedback that they found rising costs and shortage of labor, challenging. To help SMEs improve their productivity, the Government introduced the $45 million Food Manufacturing Productivity Plan last year. So far, more than S$6 million have been committed to fund over 140 productivity upgrading projects amongst our companies. Many of them involve automation and workflow redesign.
I should also highlight that there are many different programs to help SMEs raise productivity. One such program is the Innovation and Capability Voucher (ICV), which provides S$5,000 voucher that help kick-start SMEs productivity improvement in 4 areas: Innovation, Productivity, Human Resources and Financial Management.
Companies can also make full use of FIRC’s expertise and facilities to strengthen their operations. FIRC has helped more than 360 companies to develop new food product variants, solve manufacturing issues and adopt best practices in operations and safety. It has recently started to advise on automation solutions.
Last but not least, companies can also leverage IRAS’ Productivity and Innovation Credit (PIC). Around 250 (or 30 per cent) of the food manufacturing companies have benefited from this tax incentive scheme.
Conclusion
Singapore food manufacturers enjoy good reputation in international markets for product safety and quality. Our industry must continue to safeguard these attributes. We should continue to invest in this brand premium, and upon which create higher value products to address a variety of market segments.
Together we can create a brighter future for the industry. Thank you.
1 EDB Census of Manufacturing, 2010
2 Speech by Dr Amy Khor, Minister of State for Health at FINEST Food Symposium & Exhibition on 10 July, 2012
3 Channel NewsAsia Report ‘More locally-made functional foods to provide health benefits’, 2012
4 Pronunciation: ‘pom’-fresh, rhymes with ‘home’.
5 The FIRC is an initiative by SPRING and Singapore Polytechnic, aimed to be a one-stop centre for food enterprises.