Distinguished Guests,

Ladies and Gentlemen,

Good morning.

1.                  I am delighted to be here this morning to join all of you in this visit to Mimolette.  I would like to thank Camp Dempsey Pte Ltd for hosting the event.

Importance of F&B Industry

2.                  Ask any Singaporean who has spent time overseas what he missed most about Singapore, and the most likely reply is our food.  Indeed, the dynamism of our F&B industry reflects our national passion for food.

3.                  In 2004, the F&B industry generated $3.9 billion in operating receipts.  About 4,500 F&B establishments, employing close to 65,000 workers, account for $880 million of the total expenditure by visitors to Singapore.  At 14%, this is the third largest share after shopping and accommodation.

4.                  Singapore’s cosmopolitan environment and diverse cultures have created a melting pot of delectable choices, ranging from upmarket exotic cuisines to inexpensive hawker fares.  We have seen many new and exciting F&B concepts over the past year.  Our home-grown chefs have also made their mark on the international culinary scene.  Last year, our National Culinary Team emerged overall second runner-up in the prestigious Expogast Culinary World Cup in Luxembourg.

5.                  With such a vibrant F&B scene, it is no surprise that Singapore was ranked second for ‘Nightlife and Dining’ in the 2006 Country Brand Index compiled by FutureBrand and Weber Shandwick.  We expect even more excitement in the F&B industry with the development of the Integrated Resorts, which are likely to attract world-renowned F&B players and talents to Singapore.

Staying Relevant with Creativity and Innovation

6.                  Singapore’s F&B industry is doing well, but there is also intense competition.  A high quality of food is no longer enough, as consumers become more sophisticated in their quest for good food and unique dining experiences.  To stay relevant, our companies will have to be responsive to changes in consumer tastes and preferences, especially given the short lifespan of concepts and products in this sector.

7.                  Therefore, the F&B industry must inject new ideas and find new ways of doing things.  Our companies need to acquire the competencies and capabilities to meet and sustain market preferences.  Only then will they be able to remain successful.

8.                  This trend is not peculiar to Singapore.  A survey released last year showed that almost three in four US F&B companies planned to increase their budget for innovation.  These companies also believed that up to a quarter of their revenues over the next three years will be driven by newly-created products and services.

9.                  I am glad that some of our companies are already embracing innovation.  A good example is Mimolette, which is the brainchild of Camp Dempsey.  Its founding partners were inspired by their travels in the United States and Europe, and they have brought many of their ideas back to Singapore to create Mimolette.  I have heard a lot about its distinctive dining concept and I am eager to see it for myself later.  Mimolette’s creativity also extends to its food.  I understand that its menu features interesting takes on ‘global food with a local twist’, including foie gras fried rice, sweet potato pancakes with gula melaka, and chempedak preserves.  These are unique offerings that will attract consumers who want to experience something new in their next dining experience.

$12 million Food & Beverage Capability Development Programme (CDP)

10.             We need more stories like Mimolette to build Singapore into a gourmet capital.  I am happy to learn that some of our companies have already started projects to upgrade their capabilities.  In April last year, 18 F&B establishments started implementing international food safety standards under the Hazard Analysis and Critical Control Point or HACCP certification.  SPRING and the Restaurant Association of Singapore also launched the Mystery Diner Programme to enhance service excellence.  Household names such as Jumbo Seafood, Jack’s Place, Tung Lok, and NYDC were among the 33 establishments that took part in the pilot phase.

11.             To encourage more companies to improve themselves, I am pleased to announce that SPRING Singapore is launching the F&B Capability Development Programme (CDP).  F&B will be the third industry to benefit from the CDP initiative after the Marine and Logistics industries.  The Government will set aside $12 million under the F&B CDP to develop and enhance the capabilities of our F&B companies over the next three years.  Through this programme, our companies will be able to:

• Develop innovative concepts, product and processes;
• Implement International Standards Certification;
• Improve service standards; and
• Streamline processes by adopting global best practices, redesigning workflow or enhancing the use of IT deployment.

12.             We expect to generate some $250 million in value-added for the industry within this three-year period.  I hope that our companies will be able to leverage on the F&B CDP to introduce new and improved concepts, products and processes.

Conclusion

13.             I applaud innovators, such as Camp Dempsey, who take our F&B industry to a new plane with their innovative concepts.  With the F&B CDP, we hope that more companies will be encouraged to improve their innovation capabilities to create new value and sustain growth for themselves, and for the industry.

14.             On this note, I wish Camp Dempsey success in this new venture.

15.             Thank you.