18/11/2016

Food Manufacturing Industry Transformation Map To Develop Singapore Into Asia’s Leading Food And Nutrition Hub

Ms Sim Ann, Senior Minister of State for Trade and Industry, and Culture, Community and Youth launched the Food Manufacturing Industry Transformation Map (ITM) today at the inaugural Food Innovation Product Award Ceremony. With the vision to develop Singapore into the leading food and nutrition hub in Asia with globally-competitive food companies, the ITM strives to catalyse a compound annual growth rate of 4.5% in productivity and create some 2,000 new Professionals, Managers, Executives and Technicians (PMET) jobs for the Food Manufacturing industry, from now till 2020.

The Food Manufacturing ITM is one of the 23 ITMs to transform Singapore’s key industries, and the fifth to be rolled out. Led by SPRING Singapore (SPRING) and supported by various government agencies and associations, the Food Manufacturing ITM lays out the strategies for the industry over the next five years.

Developing a Progressive Food Manufacturing Industry

The Food Manufacturing industry plays a significant role in Singapore’s economy, with more than half of its output being exported to countries such as Japan and China. In 2015, the industry contributed S$3.7 billion to Singapore’s GDP and employed about 40,000 workers .

"Singapore's Food Manufacturing industry is performing well. To continue thriving in today’s world of myriad options, our food manufacturers need to find needw ways to differentiate themselves from the competition. Leveraging Singapore’s strong reputation for high quality, we could develop new products or product extensions based on lifestyle and health trends, so as to better compete in the global arena", said Mrs Kee Ai Nah, Group Director (Industry & Enterprise), SPRING Singapore.

Strengthening the Ecosystem for Food Innovation and R&D

Efforts, like the establishment of the Food Innovation Cluster (FIC) will foster closer collaborations and sharing of resources. The FIC encourages development and commercialisation of new products and the establishment of shared R&D and production facilities. An example is the High Pressure Processing (HPP) resource sharing facility that will be launched in the second half of 2017. The facility gives companies access to the advanced technology without the need for them to invest in the equipment. SPRING will lead a multi-agency workgroup to facilitate the development of FIC.

Food companies can continue to tap on the Food Innovation Resource Centre (FIRC) for technical advice in new product and process development. To further encourage innovation, the Singapore Food Manufacturers' Association (SFMA) also conducts design thinking and product development workshops under the Local Enterprise and Association Development (LEAD) Programme.

Building Globally-Competitive Singapore Food Companies and Expanding the Global Footprint

Regional and global expansion continues to be an important growth strategy for Singapore’s food companies. IE Singapore has successfully helped local enterprises to internationalise through various avenues. For instance, it worked closely with SFMA last year to launch an online Singapore shop, "Tasty Singapore", on China’s top e-commerce platforms – Alibaba’s Tmall and JD.com. More than 130 of Singapore’s food products offered by 27 companies have been listed on Tmall since the launch of the platform in July 2015. This initiative has enabled Singapore companies to reach the vast consumer market in China more efficiently and quickly. IE Singapore will continue to deepen industry promotion efforts for Tasty Singapore by collaborating with overseas hotels and restaurants and conducting in-market activities such as food festivals.

To compete sustainably overseas, it is also important for local food companies to establish presence in key markets. This could be in the form of owning manufacturing facilities, distribution networks, or outsourcing last mile manufacturing to a foreign Original Equipment Manufacturer (OEM) partner.

Driving Productivity through Automation

The ITM also aims to help companies quicken the pace of technology adoption to improve productivity. There are existing schemes that companies can tap on, such as the Automation Support Package (ASP), which supports the large-scale deployment of automation and robotics solutions across existing operations, as well as the redesigning of workflows and processes.

Food Manufacturing is one of the industries under the National Robotics Programme. Given that many companies now require customised technological solutions enabled by system integrators, there are efforts to build up the capabilities of system integrators to support their development and growth needs.

Creating Quality Jobs and Reskilling the Workforce

Upgrading the workforce is another focus area of the Food Manufacturing ITM. As the industry progresses, knowledge in fields such as food science, food production methods, quality assurance and expertise in operating new systems will be highly sought. SPRING, SkillsFuture Singapore and Workforce Singapore, in close consultation with the industry and key stakeholders, will co-develop a Skills Framework to provide a common reference of current and emerging skills required for individuals, employers, and education and training providers for the Food Manufacturing industry. The framework is expected to be completed by end of 2017.

More information on the available support for companies who are interested to embark on the initiatives under the Food Manufacturing ITM is enclosed at Annex A, and information on the LEAD and LEAD+ programmes at Annex B.