Media Division, Ministry of Information and The Arts, 36th Storey, PSA Building, 460 Alexandra Road, Singapore 119963. Tel: 3757794/5
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SPEECH BY DR LEE BOON YANG MINISTER FOR LABOUR AT THE OFFICIAL OPENING OF NTUC FAIRPRICE BRANCH AT CHOA CHU KANG LOT 1 SHOPPERS MALL ON WED, 30 APRIL 1997 AT 10.30 AM
It gives me great pleasure to open the NTUC FairPrice Lot 1 Branch.
2 The NTUC FairPrice supermarket chain was started by the labour movement to stabilise the cost of living in Singapore. FairPrice serves workers by offering them a wide range of basic daily necessities at reasonable and affordable prices. FairPrice has indeed achieved its original objective admirably. Surveys conducted by the Consumer Association of Singapore showed that FairPrice regularly top the chart for having the most lowest-price items. When Government introduced the Goods and Services Tax in 1994, FairPrice generously offered to absorb GST charges. By doing so, it had provided a buffer for ordinary workers and their families against the one-time effect of a 3% GST.
3 FairPrice is an example of the successful family of cooperatives established by our progressive labour movement. Other members in the family include NTUC Income, NTUC Childcare, NTUC Denticare and NTUC Healthcare. Each of these cooperatives function in their specialised area and have special role in serving workers. But there is a common thread running through the network of cooperatives. That is, cooperatives also need to be productive and competitive. NTUC cooperatives do not serve a captive market. Nor are they protected from competition. Union members are not compelled to buy from FairPrice or insure with INCOME. They do so and continue to patronise these cooperatives because they get good value for money. It is thus very important for all cooperatives including FairPrice to continue to improve productivity and enhance competitiveness.
4 Today the retailing sector in Singapore is not doing well for various reasons. This means greater effort must be invested to enhance productivity and improve service quality. While supermarket operators are perhaps not so badly affected by the slowdown in the rest of the retail sector, there is no room for complacency. FairPrice management must continue to invest heavily on training for employees. So I am happy to hear Chairman, Mr Das outlined his approach to staff training and readiness to invest in training opportunities for FairPrice employees.
5 I would like to take this opportunity to reiterate that with our greying population and tight labour market, all employers should adopt measures such as skill-upgrading to raise productivity and competitiveness. While foreign labour can provide some relief for the tight labour market, we cannot be over-dependent on them. This is especially so as our neighbouring countries are also experiencing rapid economic growth and will be competing with us for scarce skilled labour. Over-dependence on foreign workers will also make us more vulnerable to threats to recall workers to their home countries.
6 Instead of just relying on foreign workers, we should try to expand our domestic workforce. Employers should change their mindsets on hiring policies, in particular, their approach to hiring of older workers, job scope and working hours. Older workers can continue to contribute to a company if they are given proper training and upgraded with new skills. Alternatively, some jobs can be re-designed so as to make it easier for housewives or retirees to re-join the labour market. Part-time labour and flexi work scheme can also be introduced to help relieve the tight labour market. As a major employer, Fairprice should also consider some of these alternatives.
7 Everyday, more than 300,000 shoppers visit Fairprice's 56 islandwide stores. This is a measure of how effectively NTUC FairPrice is fulfilling its promise of serving workers and their families. I believe that one of the reasons for people to shop at FairPrice has been good value for money. With its emphasis on training employees, NTUC FairPrice will be better placed to grow and prosper in the years ahead even as operating conditions get tougher and competition keener. Emphasising value for money builds up customer loyalty which will enable NTUC FairPrice to maintain its leadership position in the supermarket business.
8 Finally, I would like to take this opportunity to wish all the workers Happy Labour Day. I would also like to congratulate the Board of Directors, Management and Staff of NTUC FairPrice on the opening of its Lot 1 Branch and wish you continued success in your operations.
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