SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY (TRADE) AT THE Opening of International Furniture Fair Singapore 2016 / 33rd ASEAN Furniture Show / The Décor Show and furniPRO Asia AT SINGAPORE EXPO, HALL 4 THURSDAY, 10 MARCH 2016, 10.45 AM
Mr Ernie Koh, President, Singapore Furniture Industries Council (SFIC)
Excellencies,
Distinguished guests,
Ladies and gentlemen,
Introduction
It is my pleasure to join you at the opening of the International Furniture Fair 2016 (IFFS), 33rd ASEAN Furniture Show (AFS), The Décor Show (TDS) and furniPRO Asia today.
2 Let me first extend a very warm welcome to the international exhibitors and buyers who are here to attend our furniture shows. Over the next few days, over 18,000 industry professionals from more than 100 countries will be gathered here to view the latest in furniture trends and explore new business opportunities. I hope that you will find your next few days in Singapore a fruitful and engaging one.
3 I would also like to congratulate the Singapore Furniture Industries Council (SFIC) for your successful leadership of the furniture sector in Singapore. This sector has shown remarkable resilience and adaptability throughout the years, witnessing a credible growth of 7.4% from 2012 to 2015, or some $6.25 billion in sales as of last year. SFIC’s efforts have been pivotal to the continued transformation of our furniture sector. I am confident that our furniture sector is well positioned for the future.
Long term opportunities for the furniture sector
4 For the furniture sector to remain competitive and be able to take advantage of future opportunities, it is important that our companies look ahead and capitalise on some of the long term trends. Two key structural trends will have particularly far-reaching impact on the furniture industry, both within Singapore and globally. First, the rapid advancement of technology will change the way that furniture is designed, manufactured and distributed in the future. One technology to look out for is additive manufacturing, also popularly-known as 3D printing. Already, 3D printing has sparked off a revolution in furniture design, by giving designers the ability to create rapid prototypes and experiment with designs, without the constraints of conventional manufacturing techniques.
5 But as 3D printing technology continues
to improve and the technology becomes more accessible to the masses, what does
this mean for the way we manufacture and distribute furniture in the
future? Could the future consumer also
become the designer or manufacturer?
Which parts of the value chain would be disrupted and which parts would
become even more valuable? These are
questions which have no ready answer today, but must be on the top of our minds
if we are to be prepared for the future.
6 The second trend is the rise of
the Asian middle class. Two years ago at
the opening of the IFFS, I mentioned that, within Asia, the middle class was
expected to account for an estimated 80% of the growth in global spending up
till 2030. The opportunities presented
by a rapidly urbanising, more sophisticated, and more affluent Asia remain
unchanged today.
7 For instance, China – a large market for our exporters – may be seeing slower economic growth in the near future, but Chinese consumer spending is still expected to rise tremendously over the next decade. In a report published by The Boston Consulting Group (BCG) earlier this year, it was found that China’s consumer economy was projected to expand by about half, to US$6.5 trillion by 2020, even if annual real GDP growth cools to 5.5%, below the official GDP growth target. This growth will be driven by the rise of the Chinese middle class – spurred on by a new generation of sophisticated consumers, as well as the increasingly powerful role of e-commerce in China.
Developing capabilities and talent
8 The
Singapore furniture industry is well-placed to take advantage of these trends. I am heartened to note that our furniture
companies, under the leadership of SFIC, are already investing heavily in developing
capabilities and talent. As part of
SFIC’s plan to transform the industry, the Council had earlier this year
unveiled a new blueprint to carry out a three-year capabilities-building
roadmap for the furniture industry. This
blueprint will help SFIC and its stakeholders identify future markets, and
implement initiatives to identify and meet future market needs.
9 One of the cornerstones of the new
industry blueprint is the development of talent. SFIC and its training arm, SFIC Institute,
will be working with IE Singapore and WDA to develop design and technology
innovation capabilities. This will strengthen the long-term competitiveness of
our companies.
10 A key initiative is the Overseas Place and Train Programme, which SFIC is exploring with IE Singapore and SPRING under the Local Enterprise and Association Development (LEAD) programme, and with WDA. Local furniture designers will be given the opportunity to go through a 3-to-6-month attachment with accomplished overseas design houses or technology application houses. These include renowned companies such as “Studio Makkink & Bey” from the Netherlands, and “a studio” from Japan. Following the attachment, the designers will also be expected to develop prototypes for commercialisation, and share their newly-acquired knowledge at industry sharing sessions such as talks and workshops.
11 Such exposure to leading global players in the furniture industry will help to uplift the capabilities of our furniture industry as a whole, and sharpen our competitive edge as our companies strike out for overseas markets.
Strengthening the industry ecosystem
12 To strengthen the industry ecosystem for the furniture sector, the Government is also putting in place infrastructure that can help to foster greater collaboration, by clustering furniture and furniture-related companies under one roof at the JTC Furniture Hub @ Sungei Kadut.
13 The Hub, which will be completed by the end of 2018, will co-locate trade, manufacturing, interior fit-out design, distribution and material supplies within one location. Furniture companies will further benefit from resource-sharing arrangements at the Hub, and will be able to experiment with innovative concept stores at the permanent display space, or test-bed new e-fulfilment business models.
14 Recognizing the challenges of moving from land to space, the design of the JTC Furniture Hub will also enable companies to transit seamlessly from their current land-based facilities to high-rise space, as every unit will have its own factory frontage, a mezzanine floor that overlooks the multi-use shop floor, as well as an integrated loading-unloading bay.
15 SFIC will also be setting up a Furniture & Furnishings Experience Centre at the Furniture Hub to further support the growth of the furniture sector. This centre will comprise a trade showroom, a training institute, an e-commerce fulfilment centre and design studios to nurture talents in the industry, and enhance the capabilities of the furniture and furniture-related companies. The trade showroom, in particular, will enable year-long trade displays, allowing companies to attract both local and international buyers throughout the year.
16 I am pleased to witness the MOU singing between JTC and SFIC for this important endeavour later today.
Conclusion
17 With these plans in the pipeline, I am confident that we will continue to see exciting developments coming from our furniture sector in the years to come.
18 Let me take this opportunity to encourage international furniture and design companies to plug yourselves into the Singapore ecosystem over the next few years, and to collaborate with our local furniture companies. Here in Singapore, you will be able to take advantage of our excellent infrastructure, create innovative products and designs by tapping on our growing pool of talent, and gain access to the rapidly growing regional markets.
19 Let me also congratulate the winners of the Furniture Design Award 2016, who will be receiving their prizes today. May this be your first step towards greater success in the years to come.
20 To conclude, let me wish everyone here a fruitful time at the International Furniture Fair 2016, the 33rd ASEAN Furniture Show, The Décor Show (TDS) and furniPRO Asia. Thank you.