INSIS : Industry Overview - Food & Beverage

There are nearly 700 food manufacturing establishments in Singapore according to figures from International Enterprise (IE) Singapore. Of these, more than half cater mainly to the export market.

In 2006, total trade generated by the industry hit SG$15.2 billion, an improvement of about six percent from SG$14.4 billion in the previous year. Exports accounted for nearly 40.5 percent of this figure.

To date, Singapore’s top five F&B trading partners are Japan, Malaysia, Indonesia, the US and China. Within the European Union, the UK is the largest export market for Singapore F&B manufacturers, followed by Finland, Belgium, the Netherlands and Germany.

Other major F&B trading partners include France, Australia, Thailand, Taiwan, and New Zealand.

As is the case for other industries, the Middle East is becoming an increasingly important market for the local F&B industry too. In 2006, food exports to the region rose by 16 percent from a year ago to reach SG$252 million. In particular, the United Arab Emirates accounted for SG$102 million of total F&B exports to the Middle East, making it Singapore’s 13th largest F&B export market.

As for the foodservice industry, figures are only available up till 2005. According to the Department of Statistics, the industry generated total operating receipts of SG$4,173 million in 2005, a slight increase of 5.9 percent from 2004. Total value added generated by the industry meanwhile was SG$1,362 million, an improvement of eight percent when compared with the previous year.

According to the department, restaurants formed the largest segment in the industry, as they made up 28.1 percent of the total number of establishments. They were also the largest contributors of operating receipts and value added, as they accounted for 37.3 percent of the former and 41.9 percent of the latter.

Government and Industry Support

Both the government and the industry are working together to help the Singapore F&B sector build up its capabilities in R&D, efficiency, education, and the attraction and retention of talent. Some of the initiatives undertaken to achieve these goals include:

The awarding of 250 WSQ Culinary Scholarships

at-sunrice and the Singapore Workforce Development Agency (WDA) have jointly given out 250 Workforce Skills Qualification (WSQ) Culinary Scholarships to successful applicants from the at-sunrice Diploma in Culinary Craft & Service Excellence (DCCSE) and Diploma in Pastry & Baking Arts (DIPB) programmes. The scholarships are worth some SG$4.36 million.
The introduction of the Fonterra-SCA-WSQ scholarship

Fonterra Foodservices, in partnership with WDA and the Singapore Chefs’ Association (SCA), has launched a new scholarship called the Fonterra-SCA-WSQ Scholarship to help develop Singapore’s next generation of leading chefs and culinary talents. Scholarship awardees will receive a 100-percent course fee grant, as well as a training allowance during their course of study.
The launch of the Food Import Regulations and Standards database

Singapore food manufacturers now have a dedicated website for easier access to information on overseas food regulations and import requirements, thanks to a new database developed by SPRING Singapore’s Export Technical Assistance Centre (ETAC). The Food Import Regulations and Standards (FIRS) database is part of SPRING’s efforts to help exporters access overseas markets by providing them with information on standards, as well as technical and compliance requirements that could pose barriers to Singapore F&B exports.
The establishment of Singapore’s first institute for service excellence at SMU

WDA and the Singapore Management University (SMU) have jointly set up Singapore’s first institute for service excellence at SMU’s city campus. The new Institute of Service Excellence@SMU (ISES) is set to champion service excellence and help raise the level of service competitiveness in Singapore. ISES will work in close collaboration and consultation with government agencies and industry leaders to achieve these objectives.
The launch of the Customer-Centric Initiative for F&B sector

The customer-centric initiative for the F&B sector has been launched by SPRING and the Restaurant Association of Singapore (RAS) to help set a benchmark for service levels in the industry, so that the various establishments can have a guide as to what is acceptable and what is not.
The setting up of the Food Innovation and Resource Centre

A joint initiative by SPRING and Singapore Polytechnic, the Food Innovation and Resource Centre (FIRC) is a food technology and development centre that is meant to help food companies, especially SMEs, develop new and innovative products, processes and packaging.

Food companies with plans to expand their markets can develop new ideas or enhance the appeal of their existing products with the help of the FIRC.

Some SG$7 million will be invested to bring in state-of-the-art food processing and development equipment for the FIRC.
The introduction of a scholarship scheme for Service Leadership Programme

WDA has introduced a scholarship scheme for students in the new Warwick Diploma in Service Leadership programme to help develop the competencies of professionals and supervisors in the service industries. The programme is conducted in partnership with the Warwick Business School (WBS), which is part of the University of Warwick, and the Singapore Institute of Management (SIM).