Mr Wong Mong Hong
Vice President, Singapore Food Manufacturers’ Association

Mr Lim Neo Chian
Deputy Chairman & Chief Executive, Singapore Tourism Board

Mr Lee Suan Hiang
Chief Executive, SPRING Singapore

Distinguished Guests

Ladies and Gentlemen

Good Morning

I am very pleased to be here for the launch of the Singapore Premium Food Gift programme.

Singapore is well known for its food and award-winning restaurants. A survey done by Temasek Polytechnic two years ago showed that tourists were prepared to double their spending on food gifts from Singapore. Yet, there is only a limited range of food gifts that tourists can bring home with them.

Seeing the potential in this unexploited market, the Singapore Tourism Board and SPRING worked with the Singapore Food Manufacturers’ Association, to pilot the Singapore Premium Food Gift programme in February last year. Favourite Singapore dishes and flavours were packaged into shelf-stable quality gift products. Tourists who have savoured these Singapore foods can now bring home 'the taste of Singapore' to share with their families and friends and even to Singaporeans living or working overseas.

There is indeed great potential in the food gift market. Between 1997 and 2002, tourist spending on food gifts grew by an average of 6.8% a year, from $87 million to $121 million. The main spenders are from Asian countries. Among them, South Koreans and Indians registered the highest spending, with an annual growth of 20%, followed closely by the mainland Chinese, at 19%.

Based on sales performance of food gifts in the pilot scheme, it is estimated that the programme will generate some S$4 million in sales from tourists. We also expect good response from Singaporeans living overseas, from the export market for such ‘Made-in-Singapore’ food products and also from Singaporeans going on overseas visits, missions and conferences.

We have received positive feedback from industry on the programme. Sin Hwa Dee Foodstuff Industries Pte Ltd, which took part in the pilot scheme, said that the programme helped them reach new customers. They received many enquiries on their best-selling ‘Hainanese Chicken Rice Mix’. Some enquiries eventually led to sales agreements.

Sing Kee Kaya, a new participant in the programme, wanted to break into the tourist market but was deterred by the cost of doing it on their own. This programme enabled them to share the risk with other like-minded food manufacturers. It provides an affordable platform for testing the potential of their food gifts. The programme also encouraged Singapore’s food companies to upgrade their capabilities to create quality food gifts that meet the sophisticated demands of the market.

The programme is gaining momentum, as evidenced by the increase in the number of participating companies and the range of products. The number of companies has grown four-fold, from four to 16. More than 30 food gifts have been developed, from seven in the pilot scheme. They include familiar favourites like:

• Bee Cheng Hiang’s Bak Kwa (barbecued meat)
• Prima Food’s Singapore Chilli Crab sauce
• to innovative creations like Owl’s Teh Tarik and local kopi-o
• Sin Hwa Dee’s yam and carrot cakes
• Sinsin’s tropical fruit jams, which can also be used to make fruit-flavoured smoothies and popsicles as well as
• Thong Siek’s Fish Ball with Udon

For the programme to succeed, we require not only a variety of innovative food gifts but also good channels to retail these products. I am happy to note that retailers are giving their strong support. The number of retail chains carrying these food gifts has increased from two to eight. In total, there are more than 20 outlets. These include DFS Galleria, Yue Hwa, Chinatown Heritage Centre, Mustafa Centre, Straits Shop at Takashimaya Department Store and selected NTUC and Bee Cheng Hiang outlets. I am told that you can also go on-line to Singapore Food Industries’ e-mart to buy these food gifts. This will make them more accessible and open up markets overseas.

More companies offering more food gifts, more retail outlets selling them, and making them available online -- all these will help build a critical mass and attract more players to come on board, expanding and enhancing the product offering.

Recognising the importance of a common identity for the Singapore Premium Food Gift programme, a logo has been developed. This branding aims to distinguish and promote the four key attributes of these food gifts.

First, these food gifts symbolise the richness of Singapore’s culinary heritage. Second, they are innovative products that have married the latest food technologies with tasteful and well-designed packaging, conveying premium value and positioning. Third, they dispel the myth that Singapore does not have its own unique foods. As we know, this is not true -- these foods are all produced by Singapore-based companies, a number of which are homegrown enterprises. And finally, these food gifts uphold Singapore’s stringent hygiene and food safety standards.

Indeed, Singapore’s food industry presents many exciting opportunities. Recognising this, the Singapore Tourism Board recently set up a Food & Beverage Strategic Tourism Unit to develop and promote the wide range and diversity of Singapore’s food offerings to tourists. The aim is to attract more tourists to Singapore for various F&B activities, such as food-centric tours and major events like the Singapore Food Festival and World Gourmet Summit. Where food retail is concerned, this programme is timely and complementary to reinforce the attractiveness of our food industry. It can help Singaporean cuisine evolve and develop an international identity not unlike the French and Japanese cuisine. Through this process, it can also create a big upside market potential for Singaporean cuisine, whether be it enticing visitors to Singapore to partake in food activities or purchase food items.

But initiatives like the Singapore Premium Food Gift programme are not just for tourists. They encourage companies to innovate and experiment and seek out new markets. They also contribute to the colour and vibrancy of Singapore's domestic sector, and enhance the quality of life for those working and living here as well.

The Singapore Premium Food Gift Programme would not have materialised without the commitment and support from industry. It is an excellent example of local enterprises pooling their resources to work towards a common goal. By collaborating, they have created an impact far beyond what any of them could have achieved alone. As a combined force, and with the facilitation of the two government agencies, they have carved a niche market for the Singapore food industry.

On this note, I am very happy to launch the Singapore Premium Food Gift Programme. I wish all of you success and I hope more food companies will participate in this programme.

Thank you.