Singapore Government Press Release
Media Division, Ministry of Information and The Arts,
MITA Building, 140 Hill Street, 2^nd Storey, Singapore 179369
Tel: 837-9666

Distinguished guests

Ladies and Gentlemen

Good evening

It has been over 13 years since the International Organisation for Standardisation (ISO) published its ISO 9000 series of international standards for quality management in 1987. This series of standards is among the most widely known and successful of the 13,000 standards published by ISO since it began operations in 1947. The ISO 9000 standards have become an international reference in business-to-business dealings. Businesses need to know the standard of the quality management system of potential business partners. Today, more than 350,000 private and public sector organisations and companies in at least 150 countries have been certified to this ISO 9000 series.

Here in Singapore, the adoption of the ISO 9000 has been just as strong. The number of ISO 9000 certificates issued jumped 60-fold in 12 years, from 50 in 1988 to some 3,000 currently. About half of them were issued by PSB. PSB promoted the ISO9000 standards aggressively and widely to industry as early as 1988 when few countries in Asia were adopting the standard. PSB championed the adoption of the ISO system as a way to ensure that our industries could remain competitive in the export markets. We anticipated the need to have systems that would enable us to plug into the global trading network.

The wide adoption of ISO9000 has brought benefits to Singapore and the organisations that have been certified. Implementing ISO 9000 has helped enterprises, big and small, to develop a strong foundation for managing the quality of their key processes and systems. Their operational personnel speak the same language and are better able to tackle issues related to quality in a systematic way, guided by operational manuals. This, in turn, has enabled them to have better control over the quality of their processes, products and services and paved the foundation for many to vie for the Singapore Quality Award.

At the PSB Awards Dinner last year, I announced that the ISO 9000 series of standards were being reviewed and a revised set of standards called ISO 9000:2000 would be released by the end of 2000. Indeed the much awaited ISO 9000:2000 was formally released in December 2000 and adopted as Singapore standards.

Whilst ISO 9000:1994 has served industries well in the last ten years, it is now inadequate for companies meeting challenges in the new economy. Where change, flexibility and innovation are the norm rather than the exception, the 1994 standard did not guide companies to progress further on their quality journey. Organisations in the service sector also found it difficult to understand the standard as the language used was manufacturing-oriented.

The ISO 9000 standards have been radically transformed in several significant ways. Let me highlight a few of the major changes.

First, the revised standards are restructured on a business process model that more accurately represents the way organisations actually operate, rather than the linear 20-clause structure of the 1994 standard.

Second, the focus on meeting customer requirements has been reinforced by the addition of a requirement for measuring customer satisfaction.

Third, the responsibilities of top management in driving quality have been extended to include requirements for communication with staff and customers.

Fourth, the new ISO 9000:2000 series of standards explicitly makes continual improvement a requirement. Where the old standards emphasised certification and compliance to requirements for a quality management system, the new standards give equal emphasis to certification and continuous improvement.

Fifth, the revised standards have made it easier for organisations to embark on other quality initiatives, such as pursuing the Singapore Quality Award or a total management programme.

This approach taken by the new ISO standard is consistent with the international trend set by all the major business excellence awards, such as our Singapore Quality Award, the Malcolm Baldrige Award in the US and the European Quality Award. Hence the adoption of the new ISO 9000:2000 will bring organisations closer to achieving Singapore Quality Class (SQC) and the Singapore Quality Award.

The new ISO standard moves one level up. Companies can now consider a combined audit to achieve ISO 9001:2000 conversion and qualify for SQC scheme.

PSB started preparation for transition to the new standard more than a year ago and worked with IQNet members in Asia to develop an Interpretation Guide for industry. Local quality professionals, such as consultants, trainers and industry groups, were invited to participate and give their inputs. PSB also organised 60 training workshops for its certified customers involving some 2,000 participants. A third series of training workshops will run from March to June this year. All the PSB auditors had undergone three to four rounds of training courses that were developed jointly with the IQNet partners.

To facilitate the conversion process, PSB worked with industry on the ISO 9001:2000 pilot audit scheme. Ten organisations took part in the pilot phase and pre-award audits using the draft standard FDIS and SS ISO 9001:2000. They are here today as proud recipients of the first ISO 9001:2000 certificates presented by PSB.

I am pleased to announce that the government will provide financial assistance to SMEs to encourage them to attain the new ISO 9001 standard. Any SME that engages a consultant to help implement the new standard is eligible to apply for assistance ranging from 50% to 70% of consultancy fees, under the Local Enterprise Technical Assistance Scheme (LETAS).

I am told that 65 SMEs have taken up the challenge and embarked on ISO 9001:2000 and another nine SMEs, which had previously attained ISO 9000:1994 certification, are seeking help to upgrade to the new standard. PSB-certified companies will be given a grace period of three years, that is, until December 2003, to convert to the new standard.

The total number of ISO 14000 certificates worldwide has reached 18,000. Japan has about 20% of the market, followed by Germany with 13%, UK with 8% and Sweden with 6%. In Singapore, 220 certificates have been issued so far. The Big Three in the US automotive industry - Chrysler, Ford and General Motors - now require QS 9000 certified companies to go for ISO 14000 certification as well. This will boost the demand for ISO 14000 certification in the near future, and at the same time help to develop Singapore as a manufacturing centre for key automotive components.

I mentioned last month that PSB is re-inventing itself. For the past year, we have been reviewing our role, structure and scope of activities, as part of an overall review of the functions of the statutory boards under the Ministry of Trade and Industry. The aim is to ensure that PSB remains relevant in the new economy.

I am pleased to announce that revenue-generating activities of PSB will be corporatised from 1 April this year. Two companies will be set up to run the businesses. One is PSB Corporation Pte Ltd and the other, PSB Certification Pte Ltd. PSB Corporation will offer the following services -- training, consulting, testing and technology, while PSB Certification will offer system certification services. They will operate in the same environment as private sector companies. Corporatisation will give the people who run business activities greater flexibility and agility to grasp the many opportunities. As a result of competition, customers will benefit from integrated services in terms of speed, reliability, customisation and innovation. More details will be released soon.

In conclusion, obtaining certification is but a launching pad for an organisation in its pursuit of business excellence. To all Award recipients, I extend my congratulations. I would also like to encourage you to press on and work towards achieving world-class standards of business excellence.

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