​Your Excellencies, Ambassadors and High Commissioners

​Ms Lindy Wee, 
Chief Executive, Singapore Exhibition Services,

Mr Gernot Ringling
Managing Director, Messe Düsseldorf Asia

Distinguished Guests,

Ladies and Gentlemen,

A very good morning.

1.  I am happy to join you this morning at the opening of Food&HotelAsia 2016 (FHA) and ProWine ASIA 2016.  Let me also extend a very warm welcome to our guests from all over the world who have joined us for this event.​

2.  I am delighted to hear from the organisers that this exhibition continues to grow from strength to strength.  This year’s exhibition has once again filled all 10 halls of the Singapore Expo – our largest convention and exhibition venue – and has even required an outdoor extension.  I have also been told that the next edition in 2018 will be even larger, and will take place across two venues: Singapore Expo and Suntec Singapore.  This achievement is all the more impressive, given the current economic environment.  

Opportunities despite Economic Challenges for the Food and Hospitality Industries

​3.  Despite the challenging environment, there remain opportunities that businesses in the food and hospitality sectors can take advantage of to innovate, create value and improve their services and business processes.  These opportunities, both now and in the medium to long term, are underpinned by the growing middle class of Asia seeking superior quality products and services with their higher disposable incomes.  It is therefore important that companies in the food and hospitality sectors prepare well for these opportunities by investing in capabilities to enhance productivity and innovation.  

Government Support to Enhance Competitiveness

4.  In terms of innovation, Singapore companies continue to make their mark by developing new and exciting products to differentiate themselves from the competition.  In particular, strong partnerships with our Centres of Innovation (COIs) have enabled SMEs to access new technologies and embark on innovation efforts.

5.  Gan Hup Lee, a local rice importer and food manufacturer, worked with the Food Innovation and Resource Centre at Singapore Polytechnic to create Yamie Rice, a series of ready-to-cook and ready-to-eat meal kits.  Customers can easily enjoy a steaming plate of Hainanese Chicken Rice or Yam Rice that has been designated a Healthier Choice food by the Health Promotion Board.  Yamie Rice is available in Australia, New Zealand, Germany, London and the Netherlands.  It is also halal-certified, which paves the way for export to markets like the Middle East.  Gan Hup Lee is one of about 300 enterprises which the 7 COIs supported in various technology adoption and development projects.

6.  In terms of productivity, many businesses are looking at ways to reduce overheads and enhance their business operations.  The Government has rendered support to our enterprises in various ways.  In 2015, A*STAR signed a Memorandum of Understanding with the Singapore Productivity Centre (SPC), to encourage greater adoption of technology and address industry-wide technology gaps within the retail, food and hotel sectors with A*STAR’s Ready-to-Go (RTG) technologies.  And, I would like to encourage more restaurateurs, food manufacturers and hoteliers to tap on Government schemes and programmes such the Technology Adoption Programme (TAP), which aims to improve access to technology for SMEs to enhance their productivity and innovation.  

7.  In this year’s Budget, the Government announced support for firms to scale up automation projects through the Automation Support Package.  The package comprises 3 components: grant, tax incentive and loan support.  It will also simplify the application process and enhance companies’ access to the suite of assistance available.  We are committed to supporting firms which are committed to transforming their operations to boost productivity and stay competitive.

Government Support for Internationalisation

8.  In terms of internationalisation, I am glad to see Singapore companies seizing opportunities to forge partnerships and venture overseas to capitalise on new and emerging markets.

9.  The Government stands ready to support companies which seek to internationalise, through schemes like IE Singapore’s Market Readiness Assistance Scheme and Global Company Partnership Scheme.  In this year’s Budget, we also announced that the double tax deduction scheme for internationalisation will be extended until end March 2020.  This means that businesses seeking to expand overseas can continue to enjoy up to 200% tax deduction on expenses ranging from market expansion to manpower development.

10.  For the food sector, IE Singapore has created the Tasty Singapore programme to promote Made-in-Singapore products overseas.  The SMH Food Group of Companies, a dim sum manufacturer, is a Tasty Singapore brand ambassador.  I visited the company last week, and was pleased to hear that this programme has helped their internationalisation efforts due with its strong branding, associated with Singapore’s reputation for quality and food safety.  Interestingly, about 20% of SMH’s revenue comes from overseas sales in markets such as Dubai, Saudi Arabia and Egypt.

11.  SMH has also found it beneficial to band together with other food manufacturers to collectively enter overseas markets for a stronger value proposition and bargaining power.  Such collaboration is especially important for our SMEs which may not have the scale to go it alone.  I encourage all our companies to prioritise internationalisation, work out a clear business strategy, find other like-minded partners and fly the Singapore flag overseas together.  Our government agencies will be your partners in this journey.

Role and Importance of Partners

12.  Trade Associations and Chambers (TACs) are also important stakeholders in these efforts as they understand industry trends and the needs of their members.  Through SPRING’s LEAD and LEAD Plus programmes, the Government aims to work with TACs to strengthen them in order to create business-led industry transformation.  TACs such as the Singapore Manufacturing Federation (SMF) have rich industry knowledge, and can create value for their members by providing assistance or organising events for them.  This morning, I will be witnessing the signing of an MOU between SMF, the Singapore Food Manufacturers Association and the Forum of India Food Importers, which represents F&B importers in India.  The MOU aims to help Singapore companies overcome regulatory hurdles when entering the Indian market, and for the private sector to deepen their networks. This is a good example of a TAC-led initiative that has the potential to have significant impact for its members.

13.  Events such as FHA also play an important part in helping companies in Singapore progress and internationalise.  With more than 65,000 trade attendees, 58 international group pavilions and more than 3,100 exhibitors from all over the world, FHA provides an excellent platform for companies to network, exchange ideas and share best practices.  More importantly, the event provides the opportunity for participants to learn about the latest industry trends and developments, as well as business and product improvements that can enable and enhance competitiveness.

14.  I would like to make special mention of the Singapore Pavilions, which have grown in size to almost 2,400 square metres, more than 30% larger than the Pavilions in 2014.  We have 138 exhibitors this year, of which a third are new.  I welcome all of you to visit the Singapore Pavilions to find out more about the exciting products and services our companies have to offer.  

Conclusion

15.  There are many creative solutions and innovative products on display, and numerous activities and networking opportunities available at FHA over the next few days.  I encourage all of you to make full use of the opportunity to consider which of these solutions and products can be adopted to enable your company to improve, grow, and be better positioned for the future.

16.  I wish everyone a rewarding and productive time at Food & Hotel Asia 2016, and a very pleasant stay in Singapore for our overseas guests.  Thank you.