I am delighted to join all of you this morning for the 8th International Design Forum.

This year’s theme revolves around how design touches all aspects of life, especially in business. Good design is not only of interest to arty types; it should be a part of our everyday life. I cannot remember who said that one should not have anything in the house that is neither beautiful nor useful. Well, if what is useful is also beautiful, life would be wonderful.

Many consumers today demand more than just function in a product. They want the product also to be attractive. In July this year, BusinessWeek covered the 2003 Industrial Design Excellence Awards (IDEAS) [Footnote: An annual award organised by the Industrial Designers Society of America and sponsored by BusinessWeek for the last 20 years. Article attached for information]. Analyzing the entries and winners over the last 2 decades, BusinessWeek saw a Global Design Revolution underway. Countries in the East, not only Japan, are fast catching on to the importance of good design. This is evidenced in the growing number of entries from Asia and the growing number of winners from Asia.

The global design revolution reflects the growing sophistication of young middle-class consumers whose concerns are no longer with basic needs. Handphones today have become a fashion statement. Good designs command a premium. Companies which pay attention to design enjoy significant competitive advantage. A good example is Samsung which has successfully reinvented themselves as a brand name for trendy products, partly by doubling its number of designers to 300 in the space of just a few years.

In China, emerging brands like Legend and Haier, have invested heavily in in-house design capabilities. International companies like General Motors, LG Electronics and Electrolux have set up design centres in Shanghai and Beijing. It is estimated that some 200 schools in China produce about 8,000 designers a year for industry.

Good design can make a big difference to a company. When the iMac was unveiled, it not only saved Apple it spawned several look-a-like’s. The new Beetle boosted Volkswagen’s flagging image and became a catalyst of change in automobile design.

Well-designed products command higher prices. Sainsbury’s packaging redesign of its supermarket’s premium product range increased sales by 50% to 200 million pounds.

Clever design also reduces costs. For instance, Unilever compressed detergent powder into tablets wrapped in light, airtight plastic films. It not only saves transportation cost, the new product also offers users convenience and a longer-lasting product. When Unilever launched this product, it hoped for a 20% market share in 5 to 6 years. It achieved 25% in half the time.

In developed economies like the US and UK, the creative industries account for 5 to 8% of GDP. The UK Design Council reported that overseas earnings for their design consultancies’ increased by 40% to ?1.4 billion in 2002 over the previous year. In Singapore, there is great potential for our creative industries to grow. A joint IE Singapore-NUS study estimated that the Singapore design industry has an output multiplier of 1.76, compared to 1.4 for banking and 1.47 for IT [Footnote: IE- NUS Centre for Business Research & Development 2003].

Singapore companies are gradually realising the importance of design as a key factor for business success. Design cannot be an afterthought. Design should be organically incorporated at all points of the value chain – from R&D and product development all the way to packaging, marketing and distribution.

Some Singapore companies have become quite good at this like Asia Pacific Breweries (APB). APB introduced a unique packaging design for its recently launched Touché drink in March combining the appreciation of art with the drinking experience. The Tung Lok Group is another company that has used design to make fine dining finer. It has made a name for itself in the way food is presented in its restaurants. Careful attention is paid to the overall ambience like the "Humble House" which is anything but humble.

Some of our technology companies have also done well. Asis Technologies has distinguished itself from other players in building security by designing access control panels and switches that are ergonomic and user-friendly.

Recognising the importance of design and how it can add value to our businesses, the Singapore government has launched a series of design initiatives. In March this year, the Ministry of Information, Communications and The Arts (MITA) launched a multi-agency DesignSingapore Initiative and established the DesignSingapore Council to spearhead the development of design clusters and capabilities [Footnote: Response by David Lim, ex-Acting Minister, MITA, in the Committee of Supply Debate 2003 in Parliament, on 20 Mar 03]. Our vision is to make Singapore an Asian hub of design excellence, where design is a key driver of competitiveness and a source of growth for the economy.

As part of the overall DesignSingapore effort, IE Singapore launched the Design for Internationalisation Programme in July. The goal is to encourage more Singapore companies to make good design an integral part of their business strategy. The Programme helps companies through (i) developmental assistance, (ii) local and overseas design training and education support, and (iii) recognition of companies that have successfully leveraged on design.

In line with the Design for Internationalisation Programme, IE Singapore will be enhancing the Singapore Design Award (SDA). Over the years, SDA has become a prestigious biennial international award recognising innovative products and packaging. Going forward, SDA 2004 will be expanded to include the incorporation of good design in corporate strategies, particularly the way design has been effective in increasing sales and achieving higher returns. SDA 2004 will recognise companies not only on the basis of the fit, form and function of products, but also on the role of design in corporate strategy.

Good design requires inspiration. With so many experts here at this International Design Forum and so many success stories, I hope many individuals and companies will be inspired to think creatively and see in good design a new way to add value and achieve excellence.

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