“Singaporeans may be much better off, and spend more on higher-quality products and the finer things in life, but the cost-of-living remains a concern to many households. And one can never predict when the supply of essentials may be disrupted” due to unforeseen circumstances.
Prime Minister Lee Hsien Loong gave this reminder in his speech at NTUC FairPrice’s 40th anniversary dinner on 16 April 2013. FairPrice was set up on 22 July 1973 as NTUC Welcome Consumers’ Cooperative Limited Supermarket with basic foodstuffs and 30 workers at Block 192 Toa Payoh Lorong 4.
Its aim was to fight inflation and hoarding of essential foodstuffs, control prices and curb profiteering.
PM Lee recalled: “The union movement and the Government chipped in. Unions provided seed capital, and members volunteered to help out in the stores after work. They also campaigned to sign up members for Welcome, to give the co-op a solid and loyal base of customers.
“The Government assured Welcome of a reliable supply of essential goods and countered the threat of wholesalers who tried to reserve goods for their favoured provision shops. The Government also provided important advice.
Then-Minister Lim Kim San gave Welcome’s first Chairman and CEO Dr Baey Lian Peck $250,000 and said `keep prices low, fight inflation, but don’t lose money doing it!’”
Since then, PM Lee said FairPrice has risen to the occasion time and again to offer daily essentials at affordable prices no matter what the external circumstances, man-made or otherwise. Infrastructure-wise and in terms of sheer scale of operations, FairPrice has also grown by leaps and bounds.
This is possible because “FairPrice would not have succeeded for 40 years without competent management, devoted employees and trusted, reliable suppliers.”
Going forward, however, it’s a new ball game as “in 40 years, the retail landscape has completely changed. FairPrice is no longer an upstart competing against provision shops or trimming inefficient supply chains. Today, FairPrice is a major player in a far more competitive and diverse market.”
To meet greater affluence and rising expectations of Singaporeans, PM Lee said “FairPrice has responded to these changes by expanding its distribution networks and product offerings. FairPrice stores offer much better shopping experiences.”
Because of its resilience and ability to respond to extreme situations, “FairPrice provides an important assurance to Singaporeans that they will always have somewhere to turn to for their basic needs.
“By freezing prices of essential goods at critical moments, like during the global financial crisis or the Thai floods two years ago, FairPrice gives people comfort that they will not be victims of profiteering.
“That is why FairPrice remains a co-operative after 40 years instead of having being sold or listed, so as to uphold its social mission and links with the community.
PM Lee also reiterated that FairPrice’s continued social mission of giving back to its members and the wider community is “one critical reason why it has become a valued part of our social landscape” and that “this strengthens the social compact between FairPrice and the public, and sets the bar for social enterprises in Singapore. It is also an important draw for younger employees who want to work in an organisation that is a responsible corporate citizen.”
While stressing that FairPrice is not a charity or a food bank and “has to stand on its own feet and compete fairly with other commercial entities,” he also acknowledged that “this makes FairPrice’s social mission particularly challenging, and its success that much more remarkable. That is why FairPrice must always be managed professionally, with strict financial discipline and sound business practices.
Ever wondered what it was like on the first day NTUC FairPrice started operations back in 1973? Check out these related articles we found in our archives:
