SINGAPORE: Small- and medium-size enterprises (SMEs) need to tap on all the trade links Singapore has established with partners, in order to expand into overseas markets, said Trade and Industry Minister Chan Chun Sing on Thursday (May 10).
“This is the microcosm of how we want to develop our industries, use our free-trade platforms, use our good logistics and supply chain system to bring in the best materials,” said Mr Chan during his visit to food manufacturer SMC Food 21.
“At the same time, (we should) value-add and have the assurance that we do not compete on the basis of price alone, but instead on the quality of our products,” he said.
This is Mr Chan’s first such visit since taking on his new portfolio following a Cabinet reshuffle.
Mr Chan added that other SMEs should learn from SMC Food’s efforts in going global – by capitalising on its strengths to attract foreign companies to partner them.
“They know that while we may not be the cheapest in terms of land and labour, we can certainly be the best in terms of quality and quality assurance.”
The food manufacturer said it has spent millions investing in new technology and equipment. (Photo: Brandon Tanoto)
The food manufacturer said it has spent millions investing in new technology and equipment, which is in line with the food industry transformation roadmap launched in September 2016.
The blueprint aimed to steer growth in the food services industry through the adoption of innovative business models and technology.
The firm’s managing director Mr Cheng Liang Chye said that while machinery has helped raised output and productivity by at least twofold, more can be done to expand overseas.
As such, it has made use of Singapore’s trade relationships with countries like China and India to partner with the multinationals and helping them save costs through manufacturing their products for them.
“Singapore is not the cheapest place to manufacture products so we have to actually carve out a niche for ourselves … and quality is one of the main focuses we go after.”
“The trend going forward is that MNCs and food companies may not want to invest in brick and mortar manufacturing companies but they’d rather focus on brand building and marketing of their brands,” said Mr Cheng.
“So there is room for companies like us to partner with all these MNCs to grow their business at a much faster rate, instead of them building their own factories and manufacturing their own products.”
He added that the company’s strategy has already reaped benefits, having secured customers from the region including New Zealand, Vietnam, Pakistan, Malaysia, Hong Kong and Taiwan.
In fact, plans for further expansion are already in the works.
The company is constructing a new facility in Singapore, with completion slated for the end of the year.
SMC Food 21 has invested S$30 million in its new six-level facility which is expected to be completed by end-2018. (Photo: Brandon Tanoto)
The six-level facility which is located next to its Jurong premises, will add to its current count of six across Singapore, Malaysia and Thailand.
SMC Food 21 has invested around S$30 million in this new plant and is expecting it to help boost its revenue growth by at least two to three times.
Mr Chan also touched on the Malaysia general election results during his visit, saying that the Singapore Government is “closely following” the developments in the neighbouring country.
