SPEECH BY MINISTER FOR TRADE AND INDUSTRY (INDUSTRY) , MR S ISWARAN AT THE SINGAPORE PRODUCTIVITY AWARDS 2016 ON FRIDAY, 11 NOV 2016, 1945HRS, SHANGRI-LA HOTEL
Mr Teo Siong Seng, Chairman, Singapore Business Federation,
Distinguished guests,
Ladies and gentlemen,
Good evening.
1. It is my pleasure to join you at the Singapore Productivity Awards Gala Dinner.
Singapore Productivity Awards Celebrates Productivity Excellence
2. The Singapore Productivity Awards recognises Singapore companies which have exemplified productivity excellence in the F&B, Hotel, Logistics, Retail, Manufacturing and Infocomm industries. My heartiest congratulations to all of tonight’s Award recipients.
3. I would like to thank the Singapore Business Federation (SBF) for being a catalyst and keen advocate of our productivity drive though initiatives such as these Awards. As the apex business chamber, SBF plays a vital role in championing the interests of the Singapore business community and is a valued partner of the Government in the effort to transform our industries.
Productivity Growth is Crucial for Sustained Economic Growth
4. Today’s Awards come at an important time in our journey of economic development and growth.
5. Structurally, we have entered a new mode of growth. Domestic constraints and demographic trends restrict the capacity to grow our labour force. Therefore, productivity growth remains our primary means of achieving sustainable economic growth.
6. Our companies can employ a variety of strategies to boost productivity. These include embracing new technologies, automation, innovation and skills upgrading. Tonight’s Award winners have taken the productivity drive to heart, and demonstrated how these strategies can be employed to reap tangible productivity gains and new growth opportunities.
7. For example, Koufu Pte Ltd, the winner in the F&B category, was able to reduce its food preparation time by 50% by automating its steamed bun and siu mai production at its central kitchens. As a result, Koufu has increased its operational efficiency without compromising on the quality of its food offerings.
8. Koufu is also firmly committed to skills development. Despite the many competing demands, the company has consciously allocated time and resources to train its employees through regular in-house workshops and external training sessions, to improve employees’ decision-making and financial skills, as well as their customer service standards. I understand that Koufu’s founders, Mr and Mrs Pang, go to the ground to personally share their experiences with their line managers and ground staff during in-house training programmes, which their employees appreciate greatly. Koufu’s example clearly shows the benefits of investing in skills development, and that it need not be difficult to execute, even in today’s challenging economic environment.
9. Aalst Chocolate Pte Ltd, Award winner in the Manufacturing category, is a company that exemplifies a commitment to innovation. It has undertaken five R&D-related projects over the past 2 years to raise the productivity of its manufacturing operations by 90%. These projects included the adoption of laser particle analysers to measure the particle sizes in its chocolate, as well as customised packaging and wrapping machines. In addition, its emphasis on product innovation has resulted in more than 32 new recipes for customers over the past 5 years.
Collective Effort Toward Industry Transformation Needed
10. We need to ensure that this same spirit of innovation and transformation permeates throughout all segments and sectors of our economy.
11. That is the reason why we have embarked on the Industry Transformation Programme (ITP) which was announced in Budget 2016. As part of the ITP, the Government will be developing customised roadmaps for priority industries. The S$4.5bn budget for the programme is a strong signal of the Government’s commitment to support our companies and industries in their transformation journeys.
12. What is the ITP? It is an integrated programme that brings together strategies to upgrade productivity, develop skills, promote technology adoption and innovation, and help our companies expand overseas. The roadmaps for each industry, called Industry Transformation Maps (ITMs), are being developed jointly by businesses, trade associations and chambers, unions and government agencies.
13. These ITMs will lay out the growth and transformation strategies for 23 industries over the next five years. Since September this year, ITMs for the Food Services, Retail and Precision Engineering industries have been launched. More will follow before the end of the year.
14. What is the purpose of the ITMs? For each industry, the ITMs are part of our longer-term strategy to create opportunities for our businesses and jobs for our people. They are designed to equip companies and workers with the necessary tools to transform and upgrade.
15. Let me illustrate using the recently announced Retail ITM. One of the key strategies for this sector is to support the growth of highly productive omni-channel retailers. To do so, we need a concerted approach to help SMEs adopt e-commerce platforms. Under the Enhanced iSPRINT programme, easy-to-use online platforms are being identified and pre-qualified by SPRING and IMDA to help SMEs in entering the growing e-commerce market. More than 500 SME retailers are expected to benefit from this solution by end-2017. New PMET jobs will also be created as e-commerce executives will be needed to grow and maintain the e-commerce infrastructure of businesses.
16. For each ITM to achieve its objectives, government, businesses, trade associations and chambers, unions and workers must work together. We need the collective effort of all stakeholders, including all of you here today, to transform your respective industries and ensure the future economic success of Singapore.
Winners have Demonstrated the Capacity to Transform
17. The winners today are testament that our companies are willing and able to transform themselves and become more productive and competitive. These companies have demonstrated resilience in the face of economic headwinds, and have excelled in their respective industries through the use of technology, innovation and talent management.
18. Let me illustrate with a final example – Aerolog Express Pte Ltd, winner in the Logistics category, improved its productivity through innovation and talent management in a labour-intensive industry. The company adopted a “3R” approach to drive productivity. It “restructured” its staff remuneration model to incentivise staff to be cross-trained in tasks, as well as its customer payment model to optimise staff deployment across peak and lull periods. This lessened the manpower needed for these tasks by 20%.
19. The company also “redesigned” its jobs while helping their workforce upskill to perform higher value roles. For example, Aerolog trained their Forklift Operators to become Cargo Specialists, who were then able to take on more responsibilities with checking and handling cargo documentation. This initiative resulted in a 30% improvement in efficiency. Through the implementation of its advanced iTrek system to track its cargo, Aerolog also “reduced” the amount of manual paperwork needed by 70% and “reduced” the turnaround time by 20%. Together, these “restructuring”, “redesigning” and “reducing” actions led to a 30% increase in the company’s overall productivity.
20. Aerolog has differentiated itself from its competitors by constantly seeking opportunities to improve productivity. I encourage more of our companies to follow its lead.
Conclusion
21. Productivity will be crucial for Singapore to achieve sustainable growth in the next phase of our economic development. We need the collective effort of all our stakeholders if we are to succeed in transforming our industries to achieve such growth.
22. Today’s Award winners demonstrate what can be achieved when businesses have the will and capacity to transform themselves. I hope their experience will inspire many others to follow suit. Once again, my heartiest congratulations to all the Award winners, and I wish you continued success in your ventures. Thank you.