Mr Primus Cheng, Chairman and Chief Executive Officer, Prima Limited

Mr Fabian Doh, Principal, Prima-SPRING Singapore Baking Industry Training Centre

Distinguished Guests, Ladies and Gentlemen

Good morning

I am pleased to be here this morning to join you in celebrating the 10^th anniversary of the Prima-SPRING Singapore Baking Industry Training Centre, or BITC. This joint initiative between Prima and SPRING has helped the local bakery and confectionary industry to upgrade the skills and professionalism of the workers as well as to improve the image of the industry. Over the years, BITC has steadily forged relations with local and foreign partners, further enhancing its influence and prestige. It is amazing how fast the local bakery and confectionary industry has transformed itself in just over two decades.

When I was a young boy, I could only choose between eating white bread and brown bread, with butter or kaya. I bought them from men on bicycles or neighbourhood breadshops, popularly known as "roti shops". Back then, butter cake with icing was a luxury. Today, to some, bread has become a substitute for rice and noodles as a breakfast staple. And we now have a wide choice of European bread and pastries, and local selections like Bak Kwa Delight and meat floss buns.

With the rapid economic growth and improvements in our standard of living during the past three decades, there has been a tremendous change in our lifestyles. Singaporeans today are very conscious of their daily food intake, especially the calorie value of the food consumed. They also demand not only better quality products, but also wider selections.

Like everyone else, the baking industry is facing challenging times. The industry as a whole is a fragmented one, consisting of numerous smaller players and some stronger ones. Neighbourhood bakeries compete intensely with the bigger players and other neighbourhood bakeries offering similar products. New product offerings by one bakery are quickly copied throughout the industry. And with the current economic downturn, competition is intensified further because customers are now more careful with their spendings.

Customers, too, are spoilt for choice. Gardenia, for instance, has over 20 varieties of bread. Sunshine and Top One have some 25 varieties. Even a newcomer like Bonjour has eight varieties, apart from the traditional white bread. With so many choices, customers have little brand loyalty, preferring novelty and sampling varieties. Furthermore, customers are able to easily produce their own bakery products, especially with the convenience of modern technology such as bread-making machines, readily available cake mixes and countless baking recipes on the Internet.

Faced with this competitive structure, it is difficult for bakeries to compete on price alone. In order to increase market share, factors such as customer satisfaction and innovation become important.

It, thus, becomes imperative for bakeries to constantly engage in product research and development, to produce a comprehensive range of innovative baking products to meet the needs of their customers. Bakeries also need to develop signature products, differentiating themselves from other players in the industry. And the key to winning this competition is in the investment and development of the workforce.

BITC was formed in 1993 to address this need. Today, BITC conducts more than 20 courses covering all aspects of baking. About a thousand were trained in the year 2002 alone. The BITC has not only accomplished its original objectives, it has also chalked up many firsts. I need not elaborate as Mr Primus Cheng and Mr Fabian Doh have proudly listed out these milestones in their speeches.

What I would like to highlight is the new developmental initiative that BITC and SPRING Singapore have embarked on, that is, to certify the skills of local bakers under the National Skills Recognition System or NSRS. With this system in place, customers can look forward to consistently high quality bakery. Our bakeries will be better able to meet customer expectations and enhance business performance.

The BITC has already established an Industry Assessment Centre for assessing the competence of bakers. To date, the baking industry functional map and five skills standards have been developed. Another 20 skills standards will be developed by the end of the year. The target is to train and assess 1,000 bakers over the next 12 months.

I urge all the players in the baking industry to support BITC in implementing the NSRS. It will help develop a skilled and professional workforce, create market distinction and sustain competiveness. The BITC is indeed the ‘yeast’ that enhances the ‘bread’. It is one sure way to ensure that our local bakeries have access to well-trained bakers to compete with imports. And to justify the premium we pay to our bakers compared to their counterparts in less sophisticated markets.

On that note, let me convey my heartiest congratulations to the BITC on its 10^th anniversary and the graduates who will be receiving their diplomas today.

Thank you.

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