Tag: Singapore

  • Singapore retail rents slip over latest quarter

    Singapore retail rents slip over latest quarter

    Singapore retail rents slipped during the last quarter – but experts say the outlook is not too grim.

    According to Edmund Tie & Company Research, average monthly retail gross rents across the island eased by 1.2 per cent quarter-on-quarter to about $29.30 per sqft in the three months to September 30. This was 9.6 per cent lower than its peak in the first quarter of 2015, when the average monthly gross rent was about $32.40 per sqft.

    “The decline was primarily due to a subdued economic growth forecast, as well as job cuts across various industries that led to weaker consumer sentiments,” the company said.

    According to the Ministry of Manpower in September, the total number of workers made redundant in the second quarter of 2016 rose by 2 per cent quarter-on-quarter and 48 per cent year-on-year to 4800 workers.

    Rents in the other city areas led the overall rental decline in the latest quarter, falling by 3 per cent to about $20.10 per sqft per month. This was followed by the suburban areas, with average monthly gross rents declining by 1.5 per cent to $30.60.

    Orchard Rd holds firm

    Retail rents in Orchard and Scotts Rd precinct, however, stayed unchanged at $37.20 per sqft,

    notwithstanding the slower economy and fears over the impact on tourism of the spread of the Zika virus.

    “The resilience of this district was supported by the lack of new retail developments. While retailers in Orchard/Scotts Rd face strong competition for tourist dollars from regional countries, renowned global brands and local retailers are still attracted to set up shops there. The recent opening of several high-profile flagship stores in the area has further enhanced Orchard/Scotts Rd’s position as one of the top shopping attractions in South East Asia,” said Edmund Tie.

    “Overall, we anticipate the decline in rents to moderate in 2017, barring any external shocks. Landlords and retailers are adapting to the challenges by integrating technology with their physical stores to manage manpower constraints and tap on the growing eCommerce market.” The company cited the upcoming OUE Downtown Gallery along Shenton Way which will introduce a 11,000 sqft “trend gallery” comprising pop-up stores and retail counters on the first-storey, and a 4000 sq ft “social kitchen” fitted with 10 cooking stations available for bookings on the third-storey.

    A new F&B concept will also be introduced, whereby diners place their food orders via a mobile app. The food is prepared in a central kitchen and is subsequently placed in an assigned locker for diners to collect at a specified time. This significantly reduces the amount of leasable space required by the food establishment, as well as its reliance on manpower.

    In addition, the upcoming Singapore Post Centre in 2017 and the newly revamped Funan mall in 2019 will be introducing hands-free shopping. Shoppers will be able to browse through the products in-store, purchase the product and arrange for the product to be delivered directly to their homes. Not only does this provide greater convenience for shoppers, it also allows retailers to save on storage space in their physical stores, as logistic arrangements are done in the warehouse.

    “Separately, there is also a trend towards Click-to-Brick, where the shopping is done online and the merchandise is collected in the shops. Retailers that allow consumers to click-and-collect include Harvey Norman, Courts, NTUC, Decathlon, and Tangs.”

    Too early to write off brick-and-mortar

    Despite eCommerce gaining traction, Dr Lee Nai Jia, Edmund Tie & Company’s Southeast Asia head of research, believes it is too premature to write off the brick-and-mortar retail sector.

    “In order to remain competitive, landlords and retailers are continuously looking for ways to improve their business models and remain adaptable to challenges. Many landlords and retailers are making use of big data analytics to understand the underlying purchasing psychology, which helps them to redefine their marketing strategies to better cater to their customers’ needs.

    “Additionally, retailers are introducing experiential shopping and new retail concepts to increase footfall and encourage in-store sales. They offer hands-on activities for customers to experience at their physical stores. For example, Uniqlo’s SEA flagship store at Orchard Central will be reeling in Singaporean creatives and talents to hold a wide range of workshops in its three-storey flagship store. Similarly, K+ at Scotts Square and Naiise outlets at The Cathay, Orchard Gateway and Clarke Quay Central also provide dedicated spaces for workshops within their stores,” said Jia.

    “While it is still too early to judge the effectiveness of experiential retail in increasing footfall and in-store sales in Singapore, the concept has worked well for some brick and mortar retailers in the US, which saw eCommerce gaining an increasing foothold in the retail industry. A case in point was the success of Whole Foods in the US, which built on its success by creating personalised rewards and in-store experiences, including cooking classes, juice and coffee bars and consultations with nutritionists.”

  • CapitaLand Mall Asia plans expansion

    CapitaLand Mall Asia plans expansion

    CapitaLand Mall Asia is stepping up its investment in India.

    During a visit by Singapore’s Prime Minister Lee Hsien Loong to The Celebration Mall in Udaipur (pictured) , wholly owned by CapitaLand Mall India Development Fund, CapitaLand Mall Asia announced plans to open two more malls in India over the next three years.

    The group already has four malls in the country.

    CapitaLand president/group CEO Lim Ming Yan says India has been looking to tap Singapore’s experience in urban planning as it plans to upgrade and build 100 cities.

    capitaland-mall-india

    “India thus presents opportunities for CapitaLand to share our expertise in real-estate development and management, particularly in integrated developments where we have established a strategic advantage, as well as in the shopping mall and serviced residence sectors where we have already gained a foothold in the country.

    “With more liberal rules on foreign direct investment in real estate, CapitaLand has been presented with a number of opportunities. We are also in discussion with several parties on management contracts for shopping malls and serviced residences.”

    Partnership

    CapitaLand’s two upcoming malls are opening next year and in 2019 respectively, Forum Mysore, and Forum Cochin.

    Both are being developed in partnership with real-estate developer Prestige, with whom CapitaLand also partners for three other malls, The Forum Neighbourhood Mall, Bangalore, The Forum Sujana Mall, Hyderabad and The Forum Fiza Mall, Mangalore. Including two other malls being developed in Jalandhar and Nagpur, CapitaLand is Singapore’s largest shopping-mall developer and manager in India with a total of eight malls.

    “In Asia, India is the next big retail prize after China,” says CapitaLand Mall Asia CEO Jason Leow.

    “India has a large and growing middle class with aspirations for a better life, and more than 400 million consumers between 15 and 34 years of age who are driving purchases in categories such as mobile phones, fashion, accessories and F&B.

    “Such favourable demographics are drawing retailers’ interest to India’s fast-growing consumer market, which is expected to be worth US$1.3 trillion by 2020.

    “As one of Asia’s leading mall developers, owners and managers, we are able to leverage our retail expertise and industry-leading network of about 15,000 leases to support local and international retailers who are keen to do business in India.”

  • Batam to facilitate SMEs export products to Singapore

    Batam to facilitate SMEs export products to Singapore

    The administration of Riau Islands city of Batam will facilitate the export of products manufactured by the Indonesian Micro, Small and Medium Enterprises (SMEs) to Singapore, an official has stated.

    “We are trying to facilitate (the export of products), because the products manufactured by the Micro, Small and Medium Enterprises are being exported to some neighboring countries, including Malaysia and Singapore,” head of the Batam office of the Community Empowerment, Cooperatives and Micro, Small and Medium Enterprises (SMEs), Pebrialin, said here on Monday.

    This October, the Batams administration will consult the Indonesian Embassy in Singapore to explore the market in order to facilitate the export of the SMEs products to Singapore, he added.

    As per a research undertaken by the local administration, many SMEs have shipped their products to Singapore. Unfortunately, the volumes are limited.

    According to Pebrialin, Singapore’s decision to replace the trademarks was detrimental to the Indonesian producers, because they cannot control the market directly.

    In addition, the manufacturers also face difficulty in developing their business, because they become dependent on the trademark of Singapore.

    The Community Empowerment, Cooperatives and Micro, Small and Medium Enterprises (SMEs) will also help the SMEs meet the norms applicable in Singapore and Malaysia, so that their products can be freely distributed in the market, Pebrialin added.

  • McDonald’s Malaysia ‘not in hurry’ to sell

    McDonald’s Malaysia ‘not in hurry’ to sell

    Despite shortlisting several bidders for the McDonald’s Singapore and McDonald’s Malaysia franchise rights, Malaysian subsidiary Golden Arches Restaurants says it is not in a hurry to sell.

    MD Azmir Jaafar says the deal is being discussed with the shortlisted bidders, but no time frame has been set to complete the transaction.

    “We want to find the right partner who understands the local market and can ensure continuity of McDonald’s value and tradition, as well as be backed by strong capital.”

    He says it has always been the group’s idea to sell the franchise rights to a local partner, which would be more efficient than management by a corporate entity.

    McDonald’s Corp announced a revamp of its ownership models throughout Asia in July, including plans to offload its China, Hong Kong, Malaysia, Singapore and South Korea master franchises.

    CEO Steve Easterbrook’s plan covers about 4000 restaurants with an ultimate goal of having at least 95 per cent of the group’s restaurants franchised.

    Meanwhile, Azmir says that as the Malaysian deal is a business transaction “we will ensure the valuation is done properly”.

    “Still potential”

    There are 260 McDonald’s restaurants in Malaysia, with Golden Arches managing 200 and the rest in the hands of a third party. Though Malaysia has a population of only about 30 million people, which is relatively smaller than China and Indonesia, Azmir still sees huge potential in the market.

    “There are still many underserved areas,” he says. “As the government is improving the infrastructure in Sabah and Sarawak, I think we can expand our footprint into Kota Kinabalu and Kuching and other cities.”

    Azmir says the company intends to open 30 stores in the Klang Valley, Johor, Melaka and Penang as well as Sabah and Sarawak in the next three years. Five to seven new stores are targeted for this year, with one in Presint 2, Putrajaya, and another in Chukai, Terengganu, already open.

    “Our expansion plan is focussed on stand-alone stores as this model works very well, especially in terms of accessibility and convenience. Our ultimate goal is to have 500 stores in the country.”

    Azmir says the company also intends to renovate and remodel up to 30 outlets, each to cost about RM1 million (US$241,700). They have been open for nearly 30 years and will also have their technology upgraded.

    Combined, McDonald’s Singapore and McDonald’s Malaysia have enjoyed record sales in the past few months and is still targeting higher double-digit growth this year.

    Even following the introduction of the goods and services tax in Malaysia in April last year, Azmir says the company raised its selling prices by only about 1 per cent to offset the higher raw-material cost.
    He believes McDonald’s has captured up to 42 per cent market share in the Malaysian fast-food market.

  • Fast Retailing rolling out GU shops overseas

    Fast Retailing rolling out GU shops overseas

    Japanese retail holding company Fast Retailing intends to have 1000 shops for its low-cost GU brand overseas in 10 years, up from about 10 foreign stores now.

    GU sells clothing often priced at about half that of stablemate Uniqlo.

    Fast Retailing will expand GU first in Asia, where Uniqlo has been successful, says chairman/president Tadashi Yanai.

    After increasing its GU outlets in Taiwan and China, Fast Retailing will turn its attention to South Korea, Hong Kong, Thailand and Singapore for growth in the next five years.

    GU’s first overseas store opened in 2013. In Japan, the brand’s low prices and sensitivity to fashion trends have helped store numbers grow to around 350.

    Meanwhile, Uniqlo now has more stores overseas than in Japan, with plans to set up around 100 shops a year in China.

    Other brands under Fast Retailing’s wing include Comptoir des Cotonniers, J Brand and Princesse Tam-Tam.

  • Vedder Price expands into Singapore

    Vedder Price expands into Singapore

    Vedder Price announced the opening of a new office in Singapore, continuing the growth of the firm’s global footprint. The Singapore office will initially tap existing members of Vedder Price’s prominent Global Transportation Finance (GTF) practice, with plans to further develop this new office through additional lateral hires. The office will practice U.S. and UK law.

    The Singapore location gives Vedder Price a foothold in a key region that is critical to the firm’s clients and where the firm’s GTF practice is already thriving. The Asian global transportation finance market is expected to undergo explosive growth in the next 20 years, particularly in aircraft finance, as the region’s population grows and air travel surges. Growth in maritime finance is also expected.

    Vedder Price enjoys a strong worldwide reputation for legal services related to global transportation finance. The firm serves a broad base of clients across all transportation sectors, including the aviation, aerospace, railroad and marine industries, and serves both U.S.-based and international clients who execute deals worldwide under U.S. and UK law. The firm was named the “Law Firm of the Year” at the 2015 Aviation 100 Awards and recognized for “Overall Deal of the Year.

    “This is an exciting time for our firm and practice as we expand our capabilities into Asia,” said Dean N. Gerber, Vedder Price Board of Directors member, Executive Committee Vice Chair and Chair of the firm’s Global Transportation Finance team. “Singapore continues to be a key focal point for global transportation finance and leasing, and we expect this to continue for years to come given market conditions. We look forward to establishing new relationships and to strengthening our ability to serve our many clients already doing business or domiciled in Asia.”

    The office will be established by Shareholder Ji Woon Kim who recently relocated from the firm’s New York office. Mr. Kim will manage the business development and strategic growth of the office, including lateral hires. Mr. Kim, who has spent his entire career at Vedder Price, has helped build the GTF practice for more than a decade. In 2013, he was recognized as a Rising Star by Airfinance Journal, and in 2014, he was listed as a Rising Star by New York Super Lawyers in the practice of aviation and aerospace. He will be joined by solicitor Lev Gantly who relocates from the firm’s London office.

  • New Silkroutes Group in Joint Venture to Offer Private Equity Funds in Asia Pacific

    New Silkroutes Group in Joint Venture to Offer Private Equity Funds in Asia Pacific

    New Silkroutes Group (“NSG” or “the Group”) has formed a joint venture with three parties, including the Singapore subsidiary of China’s Nanshan Group, to develop private equity funds that will focus on healthcare and infrastructure in the Asia Pacific region, including Japan and Australia.

    The new Singapore-incorporated entity, New Silkroutes Asset Management, is 30% owned by NSG’s subsidiary New Silkroutes Capital Pte Ltd, 30% by Nanshan Group Singapore, 30% by former United Overseas Bank (“UOB”) executive Terence Ong Sea Eng, and 10% by Fuji Capital Pte Ltd.

    New Silkroutes Asset Management, which is applying for the Capital Markets Services licence from the Monetary Authority of Singapore, will initially focus on the healthcare sector in the region.

    The number of people in the middle class in Asia Pacific is expected to rise to 3.2 billion by 2030 from 525 million in 2009, according to the Organisation for Economic Cooperation and Development. This increase, together with growing affluence, is expected to drive demand for better quality medical treatment and care.

    Healthcare is an area NSG recently said it would expand into. The Group announced last month it would acquire a 51% stake in Singapore-based Healthsciences International Pte Ltd (“HSI”) for S$2.17 million. HSI’s management team has experience in developing and managing hospitals and ancillary healthcare services. It also offers primary and preventive care through its three complementary integrative healthcare clinics, and runs employee healthcare benefits programmes in Southeast Asia.

    Mr Ong will head New Silkroutes Asset Management. The veteran banker retired recently from UOB after a 34-year career, during which he ran several of the lender’s key divisions. His last position at the bank was Head of Group Global Markets and Investment Management, where he drove UOB’s global treasury and asset management businesses.

    He was also Chairman of UOB Asset Management and UOB Venture Management, and a member of several of the bank’s key committees, including its management executive committee and investment committee.

    Mr Ong was previously Deputy Chairman of the board of Simex, a futures exchange that merged with the Stock Exchange of Singapore to form the Singapore Exchange. In 2010, he was conferred the Distinguished Financial Industry Certified Professional title by the Institute of Banking and Finance Singapore. In September this year, he received the Lifetime Achievement Award from Futures & Options World, a leading news and data service for the international futures and options industry.

    “The stakeholders in this joint venture have deep expertise in their respective fields. With this collaboration, I am confident we can offer investors an attractive alternative to generate a consistent stream of income,” said Mr Ong, who was instrumental in bringing Nanshan Group Singapore into New Silkroutes Asset Management.

    “Leveraging on the networks and expertise of New Silkroutes Asset Management’s stakeholders, we will be able to source promising healthcare services companies in Asia Pacific and add value to the companies we invest in,” he added.

    Nanshan Group is a privately-held company ranked among the top 500 enterprises in China. It started with an aluminium business, which subsequently listed in Shanghai, and evolved into a conglomerate with interests in textile, finance, healthcare, real estate, tourism, education and aviation.

    Within the healthcare space, Nanshan Group has invested in and built hospitals, nursing homes and related facilities in China. In Singapore, its main focus is real estate development and aluminium trading. It acquired several industrial buildings and hotels and launched its maiden condominium project in Singapore in recent years.

    Singapore-incorporated Fuji Capital provides strategic advisory and fundraising services to companies. Its major stakeholders have investments in the financial services sector in North America. These investments include licensed entities operating in gateway cities across the US.

    “As an associate company of NSG, the new joint venture will complement our wholly owned investment management arm, New Silkroutes Capital, which is also exploring investment opportunities in healthcare, among other sectors,” said Dr Goh Jin Hian, Group CEO at NSG. “Healthcare will be another engine of growth for NSG as we believe this is an area with huge potential in Asia Pacific.”

    Based in Singapore, New Silkroutes Capital offers investment management and strategic advisory services to institutions, enterprises and high-net-worth individuals looking for professionally managed investment products. It has a joint venture in New York that can develop structured products and private-label funds.

    NSG exited the SGX Watchlist in November 2014 and is morphing into an investment holding company with businesses in investment management, energy and resources, healthcare, and infocomm technology. The Group currently gets most of its revenue from oil and gas trading.

  • More companies delaying payments, says Singapore Commercial Credit Bureau

    More companies delaying payments, says Singapore Commercial Credit Bureau

    Fewer Singapore companies are paying their bills on time, according to data released on Monday by Dun & Bradstreet Singapore’s (D&B Singapore) Singapore Commercial Credit Bureau.

    Prompt payments fell 8.9 percentage points from 51.1% in 3Q15 to 42.2% in 3Q16. At the same time, slow payments increased by 8.1 percentage points to 46.4% from 38.3% a year ago.

    Compared with the previous quarter, prompt payments fell by 3.8 percentage points to 42.2%, and slow payments rose by 3.8 percentage points to 46.4%.

    Partial payments increased by 0.8 percentage points to 11.5% from a year ago but fell by 0.03 percentage points over 2Q16.

    The data was compiled from over 1.6 million payment transactions of Singapore firms operating through the bureau.

    Prompt payment is defined as having 90% or more of total bills paid within the agreed payment terms while slow payment is defined as having more than 50% of total bills paid later than 30 days beyond the agreed credit terms.

    Delays in payment increased across all industries — construction, wholesale trade, services, manufacturing, and retail — during the quarter.

    However, the biggest proportion of slow payments came from the construction sector, where payment delays increased by 10.8 percentage points from a year ago and by 4.2 percentage points from a month ago to 50.8%.

    On a quarterly basis, special trade contractors had the greatest increase in slow payments of 5.9 percentage points to 48.8%, while the heavy construction sector had the highest proportion of slow payments of 52.7%. Delayed payments also increased in the building constructor sector by 4 percentage points to 52%.

    The wholesale trade sector had some of the greatest increases in payment delays due to the declines in local and foreign wholesale trade. Slow payments increased 4 percentage points over the quarter and 8.3 percentage points over the month to 41.2%.

    In particular, slow payments by wholesalers of durable goods jumped by 4.5 percentage points q-o-q to 41.4%, while that of wholesalers of non-durable goods rose by 2.5 percentage points q-o-q to 40.4%. per cent in Q3 2016.

    Retail had the second highest proportion of slow payments, but registered the smallest q-o-q increase during the current quarter, after a large spike in 2Q16. Delayed payments rose 2.9 percentage points q-o-q and 6.8 percentage points y-o-y to 49.4%.

    Retailers of building materials and garden supplies had the highest increase in slow payments from 53.1% in 2Q16 to 61.2% in 3Q16, followed by retailers of general merchandise, with a 6.8 percentage point increase and automobile retailers with a 6.3 percentage point increase.

    Audrey Chia, D&B Singapore’s Chief Executive Officer, noted that the weaker performance in payment was a “clear indication that firms here are feeling the impact of a credit crunch”.

    To provide some relief to cashflow problems, Chia added that firms should seek alternative measures including rigorous credit checks on customers and the diversification of funding through non-traditional financing institutions.

  • DHL eCommerce Singapore has launched a hybrid shipping product to help e-tailers

    DHL eCommerce Singapore has launched a hybrid shipping product to help e-tailers

    DHL eCommerce Singapore has launched a hybrid shipping product to help e-tailers in Singapore tap into the cross-border e-commerce market in Australia.

    According to DHL, the new product, called Parcel International Direct Australia, delivers shipments of up to 20kg to major Australian cities in four to six business days.

    “Consumers worldwide are increasingly expecting greater choice and convenience in their delivery options, and demanding greater visibility and reliability during the process,” said Malcolm Monteiro, CEO of Asia Pacific at DHL eCommerce. “In a recent DHL study, we found that over 59% of customers consider shipping costs, delivery time and choice of the delivery partner before making an online purchase. As a result, e-tailing businesses and online sellers require more cost-effective and varied means to ship their products to remain competitive. Parcel International Direct Australia is a versatile shipping product that will help merchants expand their footprint in the online cross-border market.”

    Deliveries can be made to conventional addresses, P.O. boxes or parcel lockers. No additional charges will be imposed for delivery to remote addresses, according to DHL.

  • Business giants eye Singapore as springboard into South-east Asian e-commerce market

    Business giants eye Singapore as springboard into South-east Asian e-commerce market

    With South-east Asia’s Internet economy set to rocket to hundreds of billions of dollars by 2025, international business giants are eyeing Singapore’s strategic location to gain access into the region’s e-economy, in particular, e-commerce.

    In recent months, the Republic has seen several big names pump billions worth of investments into local e-commerce companies, including one investment by Chinese e-commerce giant Alibaba in Singapore online shopping website Lazada.

    This comes as brick-and-mortar retail giants pump up efforts to take their offerings online to ride the digital retail wave.

    The potential for growth, government assistance and Singapore as an entry point into South-east Asia make the Republic attractive, experts say.

    “If you compare the overall share of e-commerce in Singapore to its overall economic development level, it is quite low. (But) Singapore has the potential because it is a hub for the South-east Asian economy. (And) because there is market potential for Singapore, of course foreign companies will come here, either independently or in collaboration with local companies. They can acquire local companies, just like Alibaba did,” said e-commerce and online retail expert Chu Junhong, associate professor of marketing, National University of Singapore Business School.

    “E-commerce is a trend, (retailers) cannot avoid it. They must take advantage of this trend; it is good for them. The good news is that if retailers go online, they can open their market to the whole of South-east Asia. However, they have to be ready for the increased global competition when they go online,” Ms Chu added.

    According to a report by Internet giant Google and Singapore state investment firm Temasek Holdings in May, South-east Asia’s Internet economy is expected to surge to nearly US$200 billion (S$273 billion) by 2025, up from US$31 billion last year.

    The e-commerce segment alone is expected to make up almost half of the entire Internet economy in the region, with its value estimated to jump to US$88 billion by 2025, a 16-fold increase from US$5.5 billion last year.

    Filtering down to Singapore, the e-commerce market here is expected to grow more than five times to about US$5.4 billion, the report showed.

    Singapore has plans to increase that figure even further.

    Last month, at the launch of the retail industry transformation map (ITM), the Government said it would look at e-commerce as a key enabler for retail businesses to transform, with the aim of growing the e-commerce share of total retail receipts from the current 3 per cent to 10 per cent by 2020.

    Some brick-and-mortar retailers are embracing the digital wave in bold moves.

    Local tech retailer Challenger opened its online store hachi.tech in April, saying that the new portal would deliver 50 per cent of its revenue in just three to five years.

    It also set up a unit — Challenge Ventures — last year with a budget of S$20 million to invest in online companies and enable the firm to expand its e-commerce strategy.

    International companies are also investing or participating in Singapore’s local e-commerce platforms, as a means to tap into both the local and SEA markets.

    In April, Alibaba agreed to buy a controlling stake in privately owned Singapore company Lazada for US$1 billion. Lazada is a pioneer of e-commerce in many South-east Asian countries, with a presence in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

    This month, Chinese gadgets company Lenovo launched an e-store on Qoo10, a Singapore-based e-commerce platform. With the opening of the e-store, customers will be able to browse Lenovo’s range of mobiles, tablets, PCs and accessories on Qoo10’s platform.

    Other than Singapore, Qoo10 has marketplaces in Indonesia, Malaysia, Hong Kong, Japan, Korea and China.

    Mr Max Bittner, CEO of Lazada Group said in an interview: “We believe that there are still significant opportunities for online shopping in South-east Asia and the six markets that we are in. Our focus remains on these six markets where we are raising the customer experience and becoming the leading one-stop online shopping and selling destination of choice for consumers.

    “Alibaba’s partnership is helping us in this goal by providing the know-how, systems and processes to enhance the online experience for our customers and sellers in these markets.”

    Mr Bittner added that the deal with Alibaba would help Lazada accelerate its goal of providing 560 million consumers in the region with access to the broadest and most unique assortment of products, bringing significant synergies that would enhance the online experience for both buyers and sellers.

    Mrs Kee Ai Nah, group director (industry & enterprise), Spring Singapore, said: “For both sellers and buyers, e-commerce has opened up options that were not possible in the physical world. To grow topline and stay competitive, businesses have to reach new customers through multiple channels. As e-commerce platforms allow businesses to internationalise without a physical footprint, and since this channel is already well-developed, Spring encourages all enterprises to explore the possibilities of selling online.”

  • Uniqlo Canada takes it slowly

    Uniqlo Canada takes it slowly

    After the Japanese apparel retailer decided to open its first shop in Canada, Uniqlo Canada COO Yasuhiro Hayashi visited Toronto every month for nearly a year.

    During each visit he would spend the week taking notes on what people were wearing.

    “I didn’t expect that everyone was so unique and multicultural,” says Hayashi, who previously helped launch Uniqlo in Singapore and Indonesia. “That was very surprising in a very positive way. We don’t have a specific target customer – that’s our uniqueness. We say we are made for all.”

    Finally, the company is opening its first store in Canada on Friday, a 28,000-sqft (27,989 sqm) space in the Toronto Eaton Centre, between fast-fashion rival H&M and the newly arrived luxury retailer Nordstrom. A second store opening is planned at Yorkdale Shopping Centre in north Toronto on October 20.

    Even with more than 1000 stores worldwide, Hayashi says Uniqlo may not have the same name recognition in Canada as some of its international rivals before they entered the country. It is a challenges that needs to be overcome if it wants to continue expanding in Canada, but Hayashi says there is no rush.

    “We want to be very cautious,” he says. “Of course, I don’t want to give a name, but some other brands have had ambitious plans that didn’t work out. We want to make sure we serve the customers well and fine-tune the merchandise mix as well.”

    US retailer Target last year abruptly announced it was shutting down all its 133 Canadian stores only two years after arriving. Since then, several international retailers such as Muji, Nordstrom and Saks Fifth Avenue have taken a slower approach to opening locations in Canada.

    Hayashi says Uniqlo’s Toronto stores will largely be the same as its other locations, with a few nuanced differences for Canadian shoppers. Customers can expect more than usual plaid and flannel shirts. Most sizing will be for a North American fit, but there will also be some smaller sizes to reflect Toronto’s multicultural population.

    Uniqlo will also sell house slippers, commonplace in its stores in Asia.

  • Making Great Singapore Sale great again

    Making Great Singapore Sale great again

    With the relevance of the Great Singapore Sale (GSS) in doubt, going by falling retail sales, questions have been raised about what went wrong with the sale.

    Many consumers have pointed out that the annual sale of 23 years is not that great, as the discounts offered here are not as steep compared with those in sales overseas.

    They also lamented that the discounts are mostly for older merchandise. A possible reason for this is that Singapore has no seasons.

    Associate Professor Prem Shamdasani, from the National University of Singapore Business School’s marketing department, said the summer sales in Tokyo and Hong Kong tend to be more successful than the GSS due to the seasonality of the products sold.”(This) encourages (their) retailers to offer deep discounts to clear inventory and make room for new arrivals, which are also attractively marked down to entice local shoppers and tourists,” he said.

    Offering steep discounts is also not sustainable for businesses here, said Singapore Polytechnic senior retail lecturer Sarah Lim.

    “(This) will eat into the retailer’s overall profit, and with rental and manpower costs all added in, the retailer may not be able to sustain the business,” she said.

    Singapore Retailers Association (SRA) president R. Dhinakaran previously said holding sales to clear old stock is common worldwide.

    The retail scene has been slow in recent months. Latest official statistics show that retail sales excluding motor vehicles in June and July each fell 3 per cent over the same months last year.

    This is despite the attempts for this year’s GSS – which took place from June 3 to Aug 14 – to draw tourists and residents with an extended sale, more payment options and a more targeted focus on tourists from China. The poor showing, and similar sales declines in June last year and 2014, prompted the SRA, which organises the GSS, to suggest a need to discuss with the Singapore Tourism Board about continuing the event or revamping it.

    Retailers and retail experts have pointed to the slowing economy here and overseas as a key factor for the slump this year, but there are other concerns as well.

    One issue raised about this year’s GSS is its length and timing.

    The event started in June – a week later than last year – and was extended to 10 weeks to cover the bulk of China’s summer holidays.

    In the past 12 years, the annual sale stretched over eight weeks.

    But a 10-week sale might have led to sale fatigue among Singaporeans inundated with “end-of-season sales” or “anniversary sales” year round, said retail experts.

    Research suggests that local consumers with strong spending power are disciplined spenders and tend to spend more during the early weeks of the GSS, said Dr Guan Chong, head of marketing programme at SIM University’s School of Business. “Thereafter, their spending pattern should likely stay low for the rest of the GSS period,” she said.

    GSS’ new sale period also clashes with big sales elsewhere such as Tokyo’s famous end-of-summer sales, which start around the third week of July, she noted.

    Then, there is the perennial problem of retailers holding their own sales earlier to beat their rivals, dampening the effect of the GSS.

    Department stores Robinsons, Metro and OG started their GSS sales in May this year, while baby supplies store Mothercare and hardware chain Home-Fix held pre-GSS sales. Robinsons said this was done in line with shoppers’ expectations for the GSS to start in May, as in previous years. Mothercare did so because its competitors were also holding their sales early.

    SRA cannot stop retailers from holding their sales earlier, or dictate the duration of their sales.

    There also appears to be a lack of awareness of the GSS and whether it was still going on, in part because of its length, said experts.

    Given this, events could be held every weekend during the GSS period to highlight store promotions by themes – such as food or children – to create buzz and remind people the sale is ongoing, said Mr Steven Goh, executive director of the Orchard Road Business Association.

    Another suggestion is not to focus on only discounts. Dr Lynda Wee, an adjunct associate professor at Nanyang Business School, said the GSS should add a lifestyle spin and combine shopping and dining promotions with leisure deals, such as those for spa sessions, movies and cooking lessons.

    Dr Chong said merchants can ride on the digital marketing wave to connect with an international audience, such as using popular social media platforms.

    Still, lower retail sales should not be blamed on the GSS alone, said Ms Lim, adding: “Orchard Road, Raffles City, Marina (Bay) and Suntec (City) lack strong positioning. Can our malls be differentiated so that tourists desire to visit each one of them because they are different?”

  • Six ways to lift Singapore out of the retail doldrum

    Six ways to lift Singapore out of the retail doldrum

    Singapore’s retail sector may be looking gloomy, but all is not lost as six trailblazers share ideas on how to brighten up the scene

    To describe shopping here, six individuals – including influencers in their own industries – throw up the words homogeneous, safe, scripted.

    The outspoken Ms Patrina Tan, senior vice-president for retail, marketing and leasing at property developer OUE, calls it as it is: boring and dead.

    This lack of imagination, compounded by restrictions imposed by landlords, unadventurous shoppers and uninspired service staff, has eroded the Republic’s reputation as a shopping paradise, they say.

    One has to look only as far as the ailing Great Singapore Sale (GSS), seen by many as a microcosm of the wider malaise affecting the industry here, to see how times have changed.

    Launched by the Singapore Tourism Board in 1994 to market the city, the GSS had helped to cement Singapore’s standing as a shopper’s haven.

    Tourists flocked to the island during the sale period, stores trotted out steep discounts and Singaporeans would wait for the sale to make big-ticket purchases.

    But its golden days are over. Last week, GSS organisers questioned its relevance after three consecutive years of dwindling takings. Discussions are under way to see if it should be scraped.

    Critics say the GSS and brick- and-mortar stores in Singapore have failed to evolve with changing consumer preferences, letting regional competitors such as Hong Kong and Japan steal their thunder.

    Others point out that retailers here have a lot to grapple with – a slowing economy, falling tourism spending, a labour crunch, the rise of e-commerce as well as high operational costs.

    But, across the board, all agree on one thing: Singapore is simply not the shopping paradise it once was.

    Can the island recover its shine?

    SIX WAYS TO BEAT THE RETAIL BLUES

    1. Loosen up, mall owners

    Malls’ uniform appearance and short-term leases make them unappealing to set up business in, says Mr Loh Lik Peng

    If hotelier-restaurateur Loh Lik Peng could say one thing to mall landlords, it would be this: Please stop your obsession with the polished, corporate look.

    And please, please, give longer-term leases.

    This will breathe new life into Singapore’s cookie- cutter retail scene, dominated by shopping malls all too similar to one another, he says.

    Drawing from past experience, the director of Unlisted Collection, which runs a stable of restaurants including Salted & Hung, Pollen and Esquina, says malls typically tell prospective tenants to submit a design of their restaurant or shop that is “subject to approval from mall management”.

    “I think this is unfortunate because malls here are obsessed about how they look in terms of their facade. You do not encourage innovation when you do that,” says the 44-year-old, who also manages hotels including New Majestic in Bukit Pasoh Road and Wanderlust in Little India.

    “You are ‘strongly encouraged’ to have that very sort of, frankly, that very polished look. So you don’t find interesting shop fronts,” says the father of two.

    “All the malls want that shiny kind of look with the double storey and huge branding. This uniformity is driven by the malls.”

    The Republic has more than 100 malls across the island. Along Orchard Road – the country’s famous retail belt – there are at least 40 shopping centres, with many standing side by side along the 2.2km boulevard.

    Despite numerous requests, Mr Loh has yet to open a restaurant in a mall.

    “It never reached the stage of us giving them a rendering, we just could not be bothered. Most malls want a cookie-cutter thing. They want the retail experience to be very uniform as the customer walks through. That is just not us,” says Mr Loh, who was one of the first movers in the heritage boutique hotel segment here – he opened Hotel 1929 in Keong Saik Road in 2003.

    Non-mall landlords, he says, give tenants free rein and “nobody dictates how you must look, how wide your door is”.

    Mr Loh, who is drawn to the quaint vintage shops in Notting Hill in London, as well as the “small-tailoring” shops in the nearby Spitalfields district, says: “You can never get this kind of store here.”

    The short lease terms and requirement that tenants put down a large rental deposit, he says, are too prohibitive.

    In Singapore, landlords typically offer a “three plus three” retail lease agreement, which is fixed for the initial three years, but leaves room for rental adjustments and a reassessment thereafter.

    “If you go to England or Australia, your minimum lease is 15 years. Here, even if you build a successful outlet, chances are, the next round, the landlord will raise the rent because he sees you doing well,” he says.

    “It is a landlord’s market in Singapore. Three plus three, it’s crazy, it does not encourage people to take risks.”


    2. Know the shopper

    Retailers should identify their consumer and build their concept on their target group’s lifestyle and needs, says Ms Patrina Tan

    Bigger and better do not cut it anymore – not if you want shoppers to bite.

    To get them to stick, businesses must study what makes them tick, says Ms Patrina Tan, senior vice-president for retail, marketing and leasing at property developer OUE.

    “Find out what their lifestyle is now, so that you can put forth a proposition that relates to them, that will make them sit up and want to part with their time, attention and money. Then, evolve with them,” says Ms Tan, speaking to The Straits Times at a cafe in Mandarin Gallery, which OUE manages.

    This, says the 48-year-old, must be the approach taken to revamp retail here – shops cannot simply import concepts from overseas or hire a good interior designer to create “just another pretty place”.

    Adding that many retailers here take this short-cut, she says: “Who can do better in terms of interior design, how sustainable is that?”

    “The question to ask is, really, what is it that is holding the customer?”

    Downtown Gallery, OUE’s bold retail concept in the Central Business District to open by the first quarter of next year, is the property developer’s attempt to answer that question. But it is not for every shopper, of course – specifically, it targets working adults who value fitness and want to live well.

    This market, says Ms Tan, includes the highly sought-after consumer segment, Middle-Aged Men In Lycra or Mamils – cycling enthusiast fathers aged between 35 and 45 who ride expensive racing bicycles for leisure and wear spandex for comfort.

    Retail is ancillary at the 145,000 sq ft compound. Instead, it is dominated by services – gyms, chiropractors and a 4,000 sq ft “social kitchen” where shoppers can book slots and bring their own ingredients to cook.

    “In this space, they can work out, get themselves cleaned up, have a meal that supports their lifestyle of eating clean, then pick up things they need – like a yoga top – or do their hair,” says the mother of four, adding that OUE works with tenants to pull out specific products to appeal to this target market.

    There will also be a trend gallery on the ground floor with the latest “in eating well, keeping well and looking well”.

    This laser-beam precision is sorely lacking among retailers here, she says, describing them as “jittery”.

    “Halfway through things, they get kiasu and start widening their nets to try and catch a little bit here, a little bit there for fear of losing out. When you do that, everything gets diluted and you end up being nothing to anyone.”

    Orchard Road, she says, is still known for its luxury brands, as suburban malls are unable to bait them for now. But the challenge, she says, is for such brands to reach out to the millennials.

    “Your Louis Vuitton, Prada, Bottega Veneta – these may not be luxury to them. The definition of luxury is changing. For some, living well is a badge of luxury; for others, it is being able to mix and match different classes of things at different price points to form a statement. Luxury is not confined to brands anymore.”

    Shoppers, she says, are now exposed to a cornucopia of brands worldwide – bespoke ones, streetwear and independent labels – many of them more statement- making as far as the individual is concerned.

    Retail in Singapore now, “it is boring, it is dead”.

    She adds: “Most of the retailers here, sadly, you try to sell them a concept and they just throw up their hands and complain that consumers are jaded and not spending, that online is cannibalising their business, all these excuses.

    “But the truth is, what are you doing about it in your own space?”


    3. Set up brand temples

    The future of retail is to create brand temples where consumers can experience the brand, says creative director Chris Lee.PHOTO: YANG TAN

    Brand bombing – where businesses flood the market with outlets, one in every mall – is passe.

    Retailers should instead have one or two “brand temples” for shoppers to visit to “breathe in the brand”, says Mr Chris Lee, founder and creative director of design agency Asylum. The bulk of sales can then be conducted online.

    Such temples, says the 46-year-old, let retailers introduce themselves and paint a narrative.

    “Such temples are a way to get buy-in, to reel consumers in to become advocates,” says Mr Lee, whose firm is behind the branding of National Gallery Singapore.

    “People now want to be connected to what they are buying and they want to know the story behind everything – where the fabric is from, how is it made.”

    Take, for instance, an Asylum project in Beijing – a four-storey Johnnie Walker House opened in 2013, one of the whisky label’s “brand temples”.

    Its reception area is a modern take on a grocery store, as the label’s founder John Walker started as a grocer in Scotland.

    From there, you enter a room adorned with the primary ingredients of whisky, with walls of barley, peat and a flowing water wall.

    Old Johnnie Walker advertisements from Hong Kong and China in the early 1900s, around the time the brand started reaching out to the China market, are fashioned into lamp shades and wallpaper.

    Bottles are tagged with radio frequency identification chips. Place one on the table and it turns into a screen with information of what ingredients are in that particular bottle and how to appreciate it.

    The public is allowed into the bar in the basement, but the other floors are open only to invited guests.

    Visitors can buy limited-edition bottles that cannot be found anywhere else or customise a barrel.

    Such houses, says Mr Lee, helped create an edge for Johnnie Walker in the saturated whisky market.

    Other brands are starting to catch on, he says, pointing out Uniqlo’s new flagship store in Orchard Central which boasts curated spaces co-created with home-grown production houses, brands and musicians. When the store opened on Sept 2, consumers queued up to attend workshops and snag limitededition totes.

    “People always want a reason to go to a store. I would make the retail space as entertaining as the shopping,” he says, throwing out a suggestion to retailers.

    “Why not, instead of selling me clothes, sell me mood. Are you thinking party or a weekend away in Phuket? Then direct me to specially curated areas.

    “Shops here just don’t do enough.”


    4. Make service staff love the job

    Having happy employees gives an edge to a retail store or restaurant, says chef Bjorn Shen.

    Give chef Bjorn Shen the chance and he would kill this oft-uttered phrase: The customer is always right.

    This mentality, he says, turns away self-respecting individuals who want to work in the service sector – and puts retail in Singapore at a disadvantage.

    “This has been my biggest beef with the industry, this phrase, that the customer is always right. It needs to have been dead 10 years ago,” says the 34-year-old, who owns restaurants Artichoke Cafe & Bar in Middle Road and Bird Bird in Tanjong Pagar.

    “When business owners have this mentality, staff feel powerless and servile. They will never love their job, they will never see it as something for the long term.”

    This is one reason Singapore cannot compete with competition overseas, he says.

    “It’s not like in other countries where you walk into a shop and someone says, ‘Hi, how are you? Can I help you with anything? All right I will be here if you need any help.’

    “In Singapore, the sales staff say a very scripted thing or tail you wherever you go. A lot of that natural warmth is missing,” he says.

    “Ask me what my name is or how my day has been. Don’t just say, ‘What size you want?’ Or, “This one also got this colour.’” he quips, with a chuckle.

    The change, says the father-to-be, has to come from the top.

    Take, for example, an incident at Artichoke, when a customer demanded to change an order that she claimed was put in “a minute ago”.

    Chef Shen quickly checked the restaurant’s CCTV camera and found that the order had been placed eight minutes ago. The diner was told, but left happy after she was served the dish she asked for free of charge.

    “My staff, they felt we did the right thing. If I had given them a hard time, they’d have felt a great sense of injustice,” he says, adding that one thing he asks of his staff is to make an emotional connection with every table.

    At fried chicken eatery Bird Bird, employees are given a stack of shot glasses and told to hand out free shooters on busy Friday nights.

    “What we are trying to create is an atmosphere of generosity. It’s not like we are going to strip you of every dollar you have. In fact, here is something free,” he says, describing the move.

    “When you do that, people become better friends. It’s much more than the product, it’s the delivery, the atmosphere, the energy – everything else.”

    Having happy staff is what he hopes will give him an edge – which is crucial now, a time he calls “the breaking point” in the service industry.

    “We have pushed ourselves to the point that the bubble has burst. How many shops and restaurants can Singapore sustain? How much can someone eat and buy? I think we have gone beyond the breaking point,” he says, adding that businesses have definitely been affected.

    “We cannot reverse the fact that we just have too many shops and restaurants. Now, the only way to survive is to find a way to take someone else’s piece of the pie.”


    5. Support home-grown shops

    Singaporeans can help the retail scene by giving new brands and styles a chance, says artist Woon Tien Wei.ST PHOTO: MARCUS TAN

    What ails Singapore’s retail scene is that it is just “too safe”, says home-grown artist Woon Tien Wei.

    The curator of Post-Museum, an independent cultural and social space in Rowell Road, says he sees this on all fronts – consumers are too cautious and so are retailers and landlords.

    The result is a bland retail destination flooded with duplicate stores from major brands, with sparing content from home-grown designers and few unique offerings.

    “We are too safe. Shoppers shy away from exploring new styles, new brands,” says the 41-year-old.

    “They stick to the tried-and-tested, the mainstream brands. People should go to a different neighbourhood, see what others are doing.

    “It’s like in the arts, people go to big, loud, mainstream events such as the Night Festival. But in such a space, you won’t get to experience the more quiet works. Give them a chance too. Are we watching only blockbuster movies? These are of a cookie-cutter format. What about alternatives? The same can be said about fashion.”

    Being nationalistic, he says, should not be just about putting up your flag once a year.

    He points out, for instance, that Singapore niche retailers in the books industry – such as Books Actually, Grassroots Book Room and Select Books – would find it hard-pressed to grow.

    “I would like to see them grow and become good, big bookstores, like retail bookstore chain Eslite in Taiwan, which has become an institution, a purveyor of culture,” he says.

    “I don’t see that happening here. Consumers think of book stores as a sunset business.”

    He adds: “There are genuine people out there doing good, honest, solid business and we should get to know them and support them for what they do.”

    When consumers shy away from the new and different, it affects retailers, he says.

    “They stick to what they know will work and will ensure their survival. They stop imagining,” says Woon, pointing out that even hipster stores in Haji Lane are starting to follow a formula, offering similar clothing and the same bare-essentials decor.

    “They will always have the Kinfolk magazine and the Flying Pigeon bicycle,” he says, referring to the hip indie magazine and the retro bicycle brand.

    Landlords, too, have this mindset, preferring to take the easy way out by bringing in brands with a good track record: flagship stores of major brand names and luxury maisons.

    Rents are also high, a huge challenge for fledgling brands.

    “Malls think, I bring an H&M in here, a Uniqlo there – it will work,” he says, adding that prominent spaces in malls tend to be leased to tenants who can pay the most.

    “Singapore brands go to less prominent spaces because they cannot afford the rent.

    “And with a population that may not seek them out and having no money to advertise, well, it’s just a vicious circle.”


    6. Help shoppers hone their style

    Fashion stores should curate accessories that complement their products to enhance the shopping experience, says Ms Neo Lirong.

    Shoppers these days want to make a statement.

    “Retailers should help us do that,” says Ms Neo Lirong, 29.

    The freelance fashion stylist mostly shops overseas, at second-hand stores in Omotesando, Japan, or at the wholesale centres in Dongdaemun, South Korea.

    These areas, she says, “speak” to her – a feeling that she does not get here.

    “Over there, I go from shop to shop and I find something I want in every one. It’s almost like the items have been curated to suit my style,” she says, adding that each area attracts certain shops based on the district’s personality.

    Shopping in Singapore, on the other hand, is just “not here, not there”, she says.

    “Every mall is so formulaic. It wants to appeal to everyone – there is a movie theatre, something for kids, a supermarket, a foodcourt,” she says, adding that she turns to online fashion stores such as Asos for “the basics”.

    “It’s boring in Singapore, there is no vibe. Why would I take the time to go out and shop when I can get everything I want so conveniently online?”

    She describes her style as street and rock chic, an image she feels projects her carefree and relaxed personality.

    To achieve her look, she picks mostly monochrome colours spiced up with a statement piece – a pair of Gucci fur-lined loafers, for instance, or a studded leather jacket, or a vintage bag.

    Occasionally, she throws on a hat or her favourite item, a pair of Adidas sneakers.

    “Shoppers like me, we want to stand out from our peers. Dressing up, to me, is about mixing items and making a statement,” she says. “It’s not really about specific brands anymore.”

    The bachelorette, who styles Mediacorp artists such as Chen Liping and Rui En, hopes retailers here can help her hone her style.

    She suggests they curate accessories or shoes that may complement items in their collection, or have a stylist on site to give tips to shoppers.

    Subscription boxes – where shoppers pay a fixed amount each month for a bumper box of fashion items – may also be a good way for businesses to snag her as a loyal customer.

    “I may not like every item in the box, but you are giving me new ideas,” she says. “And that’s a real bonus.”

     

  • Changi Airport registers 0.6% August passenger fall to 4.9m

    Changi Airport registers 0.6% August passenger fall to 4.9m

    The Changi Airport Group (CAG) reports that passenger traffic on Chinese and Korean routes proved to be ‘particularly strong’, with plus-7% in both instances.

    CAG also described traffic numbers more generally as ‘relatively steady’, while pointing out that that this comparison with the same period least year obviously factored in Singapore’s Golden Jubilee celebration and its many activities. This included a four-day extended weekend with a registered traffic increase in August 2015 of +6.6%.

    Meanwhile, CAG reports that August was still the second busiest month for Changi Airport so far this year in second place behind July’s passenger total of 5.18m..

    MORE REPRESENTATIVE INDICATOR?

    Perhaps the more representative traffic figure for the airport, considering the single month August 2015 ‘distortion’ was the first eight month period this year, however. As such, Changi registered 6.5% more passenger movements, with growth underpinned by Southeast Asia (+8.9%) and Northeast Asia (+10.5%) traffic.

    CAG added: “As at 1 September 2016, more than 100 airlines operate at Changi Airport, connecting Singapore to some 330 cities in about 80 countries and territories worldwide. With more than 6,800 weekly scheduled flights, an aircraft takes off or lands at Changi roughly once every 90 seconds.”

    On the retail side, CAG is also still running its Shop and be a Millionaire promotion, offering passengers who spend S$50 ($37) at the airport – or with iShopChang.com a chance to win the S$1,000,000 ($734,000) grand prize. This continues to be the single most successful promotional event ever run by the Changi Airport Group.

  • Here’s why Singapore can depend on F&B industry for economic growth

    Here’s why Singapore can depend on F&B industry for economic growth

    It contributes $14.4b to the city-state’s GDP.

    The food industry has done more than relieving hunger as it has also made huge impact in the overall economic growth of Singapore, contributing a bulk to the city-state’s GDP.

    According to the Food Industry Asia report by the Oxford Economics, F&B industry contributes an estimated $14.4 billion to GDP and employs nearly 300,000 people.

    The study revealed that overall impact of the food industry is dominated by food distribution.

    “The wholesale and retail of food, along with activities linked to Singapore’s 6,700 food service locations (which include restaurants, coffee shops and street hawker stands) account for two-thirds of the food industry’s GDP contribution, and four-fifths of the employment it supports,” the study said.

    Meanwhile, the food manufacturing industry has also made a huge impact on Singapore’s GDP, with its direct support for 38,800 jobs.

    In 2014, the food manufacturing industry earned S$9.8 billion from sales in Singapore.

    More so, food manufacturers’ supply chain spending within Singapore supported $1.6 billion of domestic procurement, $610 million of GDP, 6,100 jobs, $31 million in tax revenues, and S$37 million in Central Provident Fund contributions in the same year.

    “Based on the report’s findings, the food manufacturing industry is equivalent in size to Singapore’s aerospace industry, and larger than industries such as speciality chemicals, petrochemicals, medical technology and land transport engineering,” the study noted.