Mr M Harikrishnan,

Adviser, IRA(S)

Mr G Shanmugam,

President, IRA(S)

Mr M Rajaram,

Chairman, Singapore Indian Chamber of Commerce & Industry

Mr V R Nathan,

Chairman, Hindu Endowments Board

Ladies & Gentlemen

Good evening.

            I am happy to be here to join you for the Indian Restaurants Association (Singapore) [IRA(S)] Annual Dinner and Dance.

Potential for Growth

2.                  This is a time of renewed growth in the Singapore economy.  The F&B sector, a small but integral part of our economy, is also showing healthy growth.  Tourism and the business and convention traffic have picked up strongly.  Overall, the outlook for the tourism industry this year is upbeat.  We are on track to achieving our 2004 target of S$8.7 billion in tourism spending, about 8% of which usually goes to the F&B industry.

3.                  In particular, we have been seeing particularly strong growth in visitors from India.  The Indian tourist market has grown at least 8% nearly every year for the last decade.  In recent years it has reached double-digit growth.  Strategic campaigns, such as the International Indian Film Academy Awards event, have reinforced Singapore's appeal as a travel destination to Indian visitors.  In fact just last Saturday at the Jurong BirdPark, I was pleasantly surprised to see numerous Indian visitors, of all age groups.  We expect to see a record number of Indian tourists this year, exceeding the 2002 mark of about 375,700 visitors.

4.                  F&B is an important part of the Singapore experience for Indian visitors.  Last year, the average Indian visitor spent $110 on F&B, up 30% from $77 in 2002.  With a wider selection of restaurants and cuisines, Indian visitors will I am sure be prepared to spend more on dining.

5.                  I understand that the Singapore Tourism Board has undertaken an Indian Cuisine Study, to better understand Singapore's Indian restaurant sector, the business environment for the local Indian restaurateurs as well as the profile and needs of the Indian visitors.  The study showed that the profile of the Indian visitor is evolving.  There is a growing number of Indian visitors who shop not just at Little India but also in Orchard Road.  As such, there is an opportunity for Indian restaurateurs to consider expanding their businesses beyond the traditional locations to Orchard Road and Marina Centre so as to tap this evolving Indian market.

6.                  Equally important, we have to stay alive to trends in the non-Indian tourist market.  Singapore’s uniqueness is that it offers all its visitors a multi-cultural experience.  While some groups of tourists have tended to be more comfortable with their own ethnic cuisines, this too is evolving.  Singapore is receiving more well-travelled visitors, who are more cosmopolitan and open to diverse cultural experiences, and keener to sample different ethnic cuisines.

7.                  Our Indian restaurants have always attracted a share of non-Indian clientele.  We have to market ourselves to this evolving non-Indian tourist market, including those from other Asian countries.  We have to meet their desire for something new and help them stretch their tastes.

8.                  For example, we can do more to develop and market an appetising and health-oriented Indian cuisine, from starters to desserts, aimed at the growing market of health-conscious individuals, local and foreign.  Health and personal well-being will be a growing business for many years to come.

Key Strategies for the F&B Sector

9.                  Service excellence is a fundamental priority, for our restaurants to remain vibrant and attract both local and tourist customers.  We will never have the advantage of low costs, compared to many other Asian locations.  But we can stay competitive by promoting service excellence, and offering differentiated and high‑contact service.  Even the humblest restaurant business can develop a reputation for pleasant and even enchanting service, with a touch that keeps bringing customers back.

10.             Our restaurants should also continue to streamline their operations, train up their staff, and use IT to improve productivity and reduce their over-reliance on manpower.  IRA(S) took the lead a few years ago to develop a set of skills standards for Indian Restaurant operations based on the National Skills Recognition System.  (Under this system, workers who have undergone the approved training programmes will be certified.)  This has helped to build a more skilled and professional workforce in the Indian restaurant sub-sector.

11.             Finally, given the size of the Singapore market, some of our local enterprises should seek to build strong Singapore brands and take them overseas.  This takes some preparation, in terms of strengthening the operational capabilities as well as branding, but many F&B entrepreneurs have shown that there is a Singapore brand worth selling abroad.  One example is Komala’s Restaurant, which has franchised its Indian fast food concept in India, Malaysia, Sri Lanka, Thailand and Oman.

12.             On its part, the government and agencies like the Singapore Tourism Board will do their part to encourage the development of the Indian F&B sector.  The Singapore Food Festival 2005 will showcase Singapore’s unique food delights, including our local Indian and vegetarian cuisines.  I encourage our Indian restaurants to join in SFF 2005 and make the most of this opportunity, by taking part in its food tours, culinary workshops and master-classes, dining promotions as well as exhibitions and festivals.

Conclusion

13.             I commend the IRA(S) for its efforts to promote a unity of interests among its members, and to upgrade skills and professionalism.  We have to collaborate with each other to take maximum advantage of new opportunities in the industry.  There is considerable untapped potential in the tourist market, which is expanding quickly.  There is also scope to develop new F&B products to meet evolving tastes and needs, both local and foreign.  I encourage all segments of the industry to learn from each other, find new synergies and forge ahead.  I wish you all an enjoyable evening ahead.

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