Good Afternoon, Ladies and Gentlemen.

1 I am pleased to officiate at the launch of the Productivity and Standards Board’s HACCP Certification Scheme today. With the launch of this scheme, we have achieved yet another milestone in the development of our local food industry.

2 The food industry in Singapore plays a significant role in our economy. In 1997, output from the food and beverage industry totalled $3.5 billion. The bulk of the products were exported to markets world-wide, including the US, Europe, Japan and Australia. The industry has grown steadily over the years, with value added per worker increasing from $44,000 in 1989 to $58,000 in 1997. This reflects the continuous effort of the industry to innovate and introduce new products and to upgrade manufacturing processes through increasing automation and mechanisation.

3 Today, the food industry faces new challenges, one of which is the need to combat an increasing number of new food pathogens. Bacteria that were previously not recognised as major causes of food-borne illnesses have become more widespread. There is also increasing public concern about the possible health effects of chemical contaminants in food, such as the effects of excessive lead and aluminium on the nervous system.

4 To protect the public’s interests, the Government has implemented various regulatory measures over the years. The Ministry of the Environment (ENV) ensures the high standard of food safety and hygiene through regular surveillance of the food health situation in Singapore, prevention of unsafe food from reaching consumers, and improvement of the quality of food in the problem areas. The licensing and regular inspections of food factories and food retail establishments, effective enforcement and public education are also important elements of the Government’s efforts.

5 Complementing ENV’s role is the Primary Production Department (PPD), which ensures the supply of safe, wholesome and quality primary produce like meat, fish and vegetables. The vigilance and commitment of both ENV and PPD are attested to by the outstanding safety record of the Singapore food industry.

6 Nevertheless, it is heartening to note that many companies now realise that they must go beyond mere compliance to regulatory requirements and that food safety and hygiene should be one of their core concerns and focus. To this end, some proactive ones have expressed interest in implementing the Hazard Analysis Critical Control Point, better known as the HACCP system. HACCP is a powerful food safety management tool as it provides a framework for companies to prevent and control potential food hazards through effective management of the critical points in the process. Many developed countries have made a head-start in this aspect. For example, in the US, HACCP-based regulations have been implemented for the seafood, meat and poultry industries.

 7 The implementation of a HACCP system also makes good commercial sense. Losses associated with food-borne outbreaks, public health scares and product recalls can be enormous and can do irreparable damage to a company’s brand name and image. In some cases, it can result in the closure of a business and even lead to criminal prosecution. As a preventive system, HACCP will help companies prevent such unnecessary losses and protect their bottom line.

8 With the current economic outlook, the industry, especially local small and medium-sized enterprises (SMEs), should seriously look into upgrading their operations to increase their competitiveness in order to break into the world market. The HACCP food safety system certification and the national standard on HACCP that the Productivity and Standards Board (PSB) has developed are part of the Government’s overall plan to assist local SMEs to upgrade. This national standard is based on the internationally-recognised Codex HACCP standard, which is used by the World Trade Organisation as reference standard for food safety. Certification to this internationally-recognised standard will become a vital tool for companies to improve their processes for controlling and managing food safety and to obtain international recognition.

9 Other measures to encourage SMEs to upgrade include a 10-year programme by the Housing and Development Board to relocate its single-storey terrace factory tenants to multi-storey factories. This would affect more than 500 food manufacturing tenants, a large proportion of which are SMEs with annual sales turnover of less than $1 million. With the relocation, it is hoped that these food manufacturers will take the opportunity to improve their operational efficiency and raise the hygiene standards of food production.

10 To assist SMEs to overcome immediate problems as well as to plan for future growth and expansion needs, the PSB recently announced a 5-point action plan. Under the plan, PSB will provide financial grants under the Local Enterprise Technical Assistance Scheme (LETAS) to help SMEs defray the cost of engaging external consultants to improve their operational efficiency. I am pleased to announce that LETAS will also be extended for two years with effect from this month to help SMEs defray the cost of seeking HACCP certification. I therefore strongly encourage our SMEs to take advantage of this incentive.

11 For the HACCP system to be widely accepted and implemented in the food industry, all key personnel responsible for food safety and hygiene must become aware of its importance and their role. To this end, ENV has been organising joint workshops on HACCP with industry groups, such as the Singapore Food Manufacturers’ Association, to promote greater awareness of the benefits of HACCP and to encourage more local companies to adopt the system. New factories applying for licences from ENV are also encouraged to adopt HACCP in their quality assurance programmes.

12 I am sure that the seminar today will enable participants to share their experiences and expertise with one another. On this note, it is my pleasure to officially launch the PSB HACCP Certification Scheme, and to wish all of you a fruitful session.

13 Thank you.