Singapore Government Press Release
Media Division, Ministry of Information & The Arts, #36-00, PSA Building, 460 Alexandra Road, Singapore 119963, Tel: 3757794/5
SPEECH BY MR MAH BOW TAN, MINISTER FOR COMMUNICATIONS, AT THE SINGAPORE FREIGHT FORWARDERS ASSOCIATION'S DINNER AND DANCE AT THE MANDARIN BALLROOM, MANDARIN HOTEL ON 12 OCTOBER 1996 AT 7.30 PM
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Mr Stanley Lim
Chairman of the Singapore Freight Forwarders Association
Distinguished guests
Ladies and gentlemen
It is my pleasure to join you in the celebration of the Singapore Freight Forwarders Association's 23rd anniversary. I am delighted to see so many familiar faces, and some new ones as well, from the industry, the various trade bodies and government agencies, gather here tonight for this joyous occasion.
Strategic link between trade and logistics
2 Logistics is an important element in the economic exchanges between buyers and sellers, traders and manufacturers, especially in the international marketplace. And freight forwarding is a crucial component in the total logistics value chain.
3 Traditionally, the freight forwarder canvasses for consignments to be shipped. He takes responsibility for their movement through engaging the services of air, land or sea transport providers, up to the point of delivery. The freight forwarder is therefore most knowledgeable about the most suitable services available, the local statutory and customs regulations, international financial arrangements and the technical aspects of cargo handling.
4 In today's complex and dynamic business environment, freight forwarders have evolved from being mere physical distributors of cargo to becoming integrated logistics providers. In addition to warehousing, freight forwarders have integrated their operations forwards and backwards to provide a comprehensive package of services including packaging and delivery, and managing the client's entire supply chain. With state-of-the-art facilities and software-based systems, they are now able to provide control and precision in cargo movement, maximise space and human resources, and make just-in-time deliveries.
5 The Singapore freight forwarding industry has in recent years, made similar progress. Companies such as Freight Links, YCH and CWT, to name a few, have invested in logistics centres with emphasis on efficiency, innovation and technology.
The Singapore Freight Forwarding Association
6 Since its establishment in 1973, the SFFA has played an important role in the development of Singapore's logistics industry, contributing to Singapore's status as a regional logistics hub. In recent years, the SFFA has spearheaded several new developments in order to further develop the freight forwarding industry in Singapore.
7 The launching of the Singapore Registry of Accredited Multimodal Transport Operators in April last year, for example, is a step in this direction. The Registry is a self-regulatory measure to promote the reliability, credibility and integrity of multimodal transport operators in Singapore. In the same way, the Association's opening of membership to logistics service providers like warehouse operators and equipment suppliers earlier this year reflects the SFFA's initiative in responding to the needs of the changing environment.
8 Recognising the need to constantly upgrade industry's skills, the SFFA also offers a comprehensive programme of vocational training courses. Recently, the SFFA introduced a Certificate in Logistics Management. In addition, the Association is currently working with the Institute of Technical Education to finalise the Apprenticeship Scheme in Freight Forwarding.
Harnessing Information Technology
9 One of the keys to staying competitive in today's sophisticated market place lies in the ability to effectively harness information technology. To this end, the SFFA has participated actively in the development of three key systems to benefit the logistics and trading community. These are TDB's TradeNet Plus, and PSA's Maritime Information Systems (MAINS) and PortNet on Window Systems. The systems form the backbone of the national IT infrastructure, and aim to improve efficiency and reliability in the process of documentation.
The need to identify and create own niche
10 Apart from the use of new technology, the freight forwarding industry in today's context must keep pace with broader business trends and new developments in the fast changing economic landscape. To sharpen competitiveness, Singapore freight forwarders need to develop their own niche. For example, the new demands brought on by Singapore's development as a regional exhibition hub and the centre for the arts can be transformed into opportunities.
11 The burgeoning Asia-Pacific region also presents many new and exciting opportunities for Singapore freight forwarders. I would like to encourage the SFFA to take advantage of Singapore's position as a gateway to the emerging Asian economies to continue to explore new ideas and tap new markets to propel the local freight forwarding industry to greater heights.
Role of the Government
12 The development of the logistics sector is a key to Singapore's development as a competitive trading and business hub. On the Government's part, we are as keen as you for companies operating here to be competitive in the global market place and for Singapore to remain attractive as a place to do business.
13 The Government has long recognised that transport and communications infrastructure play a major supporting role to our economy. Superior infrastructure helps us attract and retain high quality investments in manufacturing as well as services. It helps to facilitate trade and tourism. And it ensures the efficient and timely transfer of goods and information.
14 Countries in the world, particularly those in the region, also recognise the importance of a strong communications infrastructure as an essential backbone of economic development. They are investing heavily to build up their infrastructure. New airports, seaports, railways and expressways are being developed , and existing ones are being upgraded.
15 Singaporeans are justifiably proud of their excellent physical infrastructure. Our airport, seaport, land transport system and telecommunication services are among the best in the region. But we must be aware that past achievements are no guarantee of future success. We have to constantly monitor and scan the environment so that we can adapt and respond effectively to changes to remain relevant. This means striving to maintain Singapore's position as a major air, sea and telecommunications hub for the region. It means constantly reviewing and where necessary, adjusting policies to maintain our competitive position. It means investing ahead and harnessing technology to provide quality, value-for-money services. We intend to remain competitive and be a good business partner to those who make use of our services and facilities.
16 The SFFA and other business organisations are therefore important channels of communications and for exchange of ideas between the Government and the business community. I am heartened to note that the SFFA pro-actively engages in dialogue with government bodies like TDB, PSA, CAAS and other related agencies to identify pertinent issues in the logistics sectors and work out solutions to alleviate certain constraints faced by the industry.
17 We will continue to work closely with the SFFA to enhance the support infrastructure required to elevate Singapore's position as a hub for all forms of trading and ancillary activities. I am confident that the close and good working relationships the Government enjoys with SFFA will serve to further the interest of the industry as well as that of the nation.
18 On this note, I would like to congratulate the Association for its significant contribution to the Singapore logistics industry. On its 23rd anniversary, may I wish the SFFA and its members success in your business endeavours.
Thank you.
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