Speech by Mr Gan Kim Yong, Minister for Health, at the Food Productivity Conference 2014, 27 Oct 2014

Distinguished Guests,

Ladies and Gentlemen,

Good morning.

Introduction

1.            It is my pleasure to join you today for the opening ceremony of the Food Productivity Conference 2014, part of the National Productivity Month, a national-level platform to showcase and share ideas, practices and perspectives on how companies can improve their productivity.

2.         The food industry, comprising of food manufacturing, food processing and food service sub-sectors, plays an important role in Singapore. It not only caters to Singaporeans’ love for food, but also adds vibrancy to our community and supports our tourism industry and overall economy. It also provides good jobs for many Singaporeans. The food industry is still growing as new companies are being formed. There is therefore an urgent need for companies to transform and raise productivity to seize the opportunities for growth.

Progress update on the productivity roadmaps for the food industry

3.         Recognising the importance of the industry, and to support industry transformation, the Government has rolled out sectoral productivity roadmaps for the Food Services and Food Manufacturing sectors in 2011. I am happy to note that both plans have gained good traction.

4.         To date, about 1,300 food companies have embarked on productivity upgrading projects[1]. Some of these projects include process improvement such as workflow redesign, revenue growth through service excellence, and workforce upgrading through training. In addition, more than 4,000 CEOs, productivity managers and workers have undergone a learning journey through various forms of training.

5.         While progress has been good, the industry will have to achieve new breakthroughs to stay ahead of competition. The theme for this year’s conference - “Breaking Convention, Embracing Transformation” is apt. It underscores the importance for a change in mindsets to achieve transformational change. I am heartened to learn that many companies have embarked on this bold journey of transformation. Let me share some of their stories which can be summed up into four key areas.

Innovating to generate higher value for growth

6.         The first area is innovation, in particular innovation of food products, to generate higher value. There is a growing emphasis on food quality and safety, and the global demand for functional and nutritious food is expected to exceed $160 billion by 2015[2]. Singapore’s food industry has built up a good reputation for high food hygiene standards and we are well-positioned to capitalise on this for the development of functional and nutritious food.

7.         Several food manufacturers have adopted this strategy to develop functional and nutritious food. An example is Advanced Frontier, a manufacturer of collagen enriched beverages. Riding on the momentum of lifestyle trends, the company has taken steps to innovate to capture higher value-add as well as drive business growth. The company collaborated with the Food Innovation and Resource Centre (FIRC) to develop the Colla E beverage that is enriched with collagen, vitamins and Omega 3. Coupled with an innovative packaging that allows for easy consumption and export, the product has given Advanced Frontier 50% more revenue and it has now made inroads to many markets in Asia, including Indonesia, Malaysia, Taiwan and Thailand.

Collaborating with partners

8.         The second area is collaboration – not just within, but beyond the industry. Within the industry, various stakeholders, such as the suppliers and trade associations, can work together to transform the traditional way the industry operates to achieve higher productivity and stronger competitiveness.

9.         To this end, the Restaurant Association of Singapore (RAS), Singapore Food Manufacturers’ Association (SFMA) and Singapore Manufacturing Federation (SMF) have worked together to help more than 50 restaurants find suitable food manufacturers to outsource the preparation of their non-core food items. This multi-party collaboration has resulted in time and cost savings for both restaurants and food manufacturers.

10.       Collaboration beyond the food industry has seen good success as well. JCS-Echigo, a manufacturer of precision-cleaning machines, worked with food companies to set up a dishwashing facility so as to reduce the burden of dishwashing in the food services industry. Yum Cha, whose Changi Business Park restaurant is using this service, is now relieved of the problems in hiring and managing workers to wash dishes and it is very happy with the service so far.

Taking advantage of technology

11.       The third area is technology. Local restaurateurs have started to leverage on technology through the use of mobile apps and digital service kiosks for ordering and payment, as well as the use of service robots.

12.       Before implementing technology, companies must first understand how customers would prefer to be served so as to create the right experience.

13.       This was what a local cafeteria called Food Glossary did in order to operate a 400-seat outlet with just 10 employees. It leveraged technology to support a new concept of self-service. Customers can order and pay through their mobile phones, the website or digital kiosks, and collect their food upon receiving a notification through their mobile phones. Not only has queuing time decreased, Food Glossary’s kitchen can now handle large volumes of orders efficiently, especially during the peak hours.

14.       In the food manufacturing sector, Eng Soon Dry Bean Curd Manufacturing Pte Ltd is now using robotic arms in production to increase its efficiency. This has halved the manpower required compared to its manual process. The company has also improved the quality of its product as a result by achieving an even higher level of food safety.

15.       These examples show that companies can use technology in many ways to transform their businesses. Forward thinking F&B operators are already using data analytics, e-procurement and cooking machines with artificial intelligence to improve their operations, to reduce costs and assist their employees. I encourage companies to explore how technology could help you improve productivity further.

People at the heart of transformation

16.       Last but not least is the focus on people. People are at the heart of everything we do, every company, every business. Thus, retaining and recruiting the right talent are crucial to staying competitive, especially in a tight labour market today. Different employees look for different things in a job – some want to learn new skills and challenge themselves, while others want a nurturing environment where they can develop and contribute. I urge companies to think of ways to create an open and nurturing culture to better recruit and retain talent at every level.

Conclusion

17.       I strongly urge companies to take the initiative to implement your own productivity improvement strategies and initiatives. The Singapore Productivity Centre (SPC) will be happy to help you with productivity diagnosis and improvement. The Government remains committed to supporting the food industry in its transformation and restructuring efforts.

18.       This Food Productivity Conference these two days is a good opportunity for us to learn from local and international industry experts and thought leaders as well as expand the network and build partnerships.

19.       I wish you a fruitful conference.

Thank you.

[1] Figures are as at end of Sep 2014.

[2] Source: Euromonitor