Ladies and gentlemen

Good afternoon

Opening Remarks

I am delighted to be here this afternoon to join all of you in this visit and tour of Win Sin.  I would like to thank Mr Cheong Chung Kin for his hospitality and for hosting this visit. I understand that Win Sin is one of the five chocolate manufacturers in Singapore. Although an SME, Win Sin has made every effort to maintain a high level of hygiene and food safety standard. This is possible only with the dedication and cooperation from everyone in the company. I am also pleased to learn that Win Sin is the first ISO and Hazard Analysis and Critical Control Point (HACCP)-certified chocolate praline manufacturer in South East Asia, the first to establish an in-house test kitchen to ensure quality in its products and one of the two Asian companies outside Switzerland licensed to manufacture the “Lindt” brand of chocolates.  This is indeed an achievement for a local enterprise. 

Importance of Food Safety

2.               The secret to Win Sin’s success is the company’s uncompromising emphasis on quality.  One critical aspect of quality is food safety.  Concerns about food safety have been heightened as a result of recurring livestock diseases such as Avian Flu, Foot and Mouth disease. Governments worldwide are imposing stringent requirements on the industry to ensure disease-free food sources and globally accepted standards. 

3.               Win Sin implemented and achieved their food safety certification ahead of many companies. It was HACCP-certified in 2003. This helped Win Sin clinch the contract to be one of the two Asian companies in the world, outside Europe, to manufacture the quality “Lindt” chocolates from Switzerland. 

4.               Like Win Sin, many food manufacturers have begun to recognise the importance of food safety.  Companies like Kong Guan Pau, Ya Kun Kaya and Unicurd tofu manufacturer have also recently taken steps to get HACCP certification.

5.               If no proper food safety system is in place, food manufacturers may run the risk of losing their entire business due to a major catastrophe.  Take for example, Kraft, a leader in branded food and beverages, which was made to pay up to several million dollars over a peanut butter contamination in 1998. In the US state of Washington alone, there were a number of cases when people fell ill after drinking unpasteurised juice.  Victims have come together to join the class action lawsuit to seek compensation for their numerous medical bills and long-term health risks associated with this contamination. Hence, to stay relevant and competitive, it is vital to build preventive controls in production process up front.

Encouraging Adoption of HACCP

6.       In the 1970s, a food safety programme was developed for astronauts. Today, that same programme developed for astronauts has been put into a system known as Hazard Analysis and Critical Control Point or HACCP in short. HACCP is an internationally recognized management system used by food processors and manufacturers to ensure that their food products are safe for human consumption.

7.       In Singapore, the AVA has been encouraging food manufacturers to adopt the HACCP system to manage and control the production of safe food.  Food retailers, like NTUC Fairprice, who is HACCP-certified, and overseas buyers are demanding quality process standards, food safety benchmarks and stamp of hygiene approval from regulatory and certifying bodies, including HACCP.

8.       To encourage more companies to adopt HACCP, SPRING Singapore is introducing the HACCP Toolkit.  

HACCP Toolkit

9.       Many food companies are deterred by the high cost of HACCP implementation and certification.  HACCP consultancy fees may range from $8,000 to $15,000.  To many companies, this creates an additional burden on their business costs.  The HACCP Toolkit may alleviate some of this concern.  The Toolkit offers an alternative to the consultancy-led approach.  It is a comprehensive software package which enables a company to develop a food safety system covering all aspects of food safety obligations. This S$6,500 self-help package comes with a two-day workshop, CD-ROM, manuals together with online and on-site consultancy support. 

10.     SPRING, together with Singapore Food Manufacturers’ Association (SFMA) and Silliker Pte Ltd, the toolkit provider, piloted the programme with 10 food companies.  To date, five companies have obtained HACCP certification.  More of the pilot companies are expected to be HACCP-certified in the next few months.

11.     One of the pilot companies that received certification is Boncafe.  Boncafe decided to embark on HACCP to meet customer requirements. With the help of the Toolkit, the company successfully obtained HACCP certification although the company had very limited knowledge on HACCP requirements at the beginning. The company committed resources, followed step by step instructions, and was guided by the consultant.

12.     Boncafe told SPRING that they were glad they took up the challenge and enjoyed substantial cost savings using the Toolkit. There was also an added advantage of ownership by the company as there was involvement by the company’s staff.  With the skills acquired, Boncafe is now capable of setting up a HACCP system themselves when they develop new products.

13.     The Toolkit is an alternative approach to implementing HACCP.  It is suitable for companies that are willing to commit their own resources in setting up and implementing the HACCP system. In addition, management commitment and communication are key to the success of a robust HACCP program.

Accreditation Scheme for HACCP Certification Bodies

14.     In addition to encouraging more companies to adopt HACCP, there is a need to ensure that we have a pool of competent certifying bodies that provide HACCP certification.

15.     Currently, there is no local body offering accreditation to the 10 certification bodies in Singapore. To upgrade the competence and improve the professionalism of these certification bodies in Singapore, the Singapore Accreditation Council (SAC) is developing an accreditation scheme for HACCP certification bodies. The scheme is targeted to be launched in April 2005.  

Conclusion

16.     It is essential for our local food manufacturers to implement HACCP to stay aligned with global practice and sharpen their competitive edge in the international marketplace. Currently, some 20% of the food manufacturers in Singapore have already adopted HACCP. This is however lower than countries such as Australia and the U.S.  Our target is to increase the adoption rate in Singapore to over 50% in the next three years. Food manufacturers must commit to food safety if they wish to gain the trust of their customers and have access to overseas markets that demand HACCP certification.

17.     To compete internationally, Singapore must continue to strengthen its position as an innovative food producing country known for its premium quality and high safety and hygiene standards. Competing internationally aside, it is also food manufacturers’ social responsibility to ensure that the foodstuffs they make and sell are safe to eat. So I urge all local food manufacturers to strive to implement HACCP at their earliest opportunity – for both business and corporate citizenship reasons.

Thank you.