Greetings – Secretary-General of NTUC, Brother Lim Swee Say
Hospitality and Consumer Business Cluster Chairman, Brother Tan Hock Soon
Chief Executive of SPRING Singapore, Mr Png Cheong Boon
Managing Director of Jay Gee, Mr Dhinakaran
We are all familiar with the game of Snakes and Ladders. The goal of every player in the game is to get to Square Number 100 as soon as possible, faster than the other players.
Some may eventually make it to 100 just by taking the number of steps diligently that show up with each roll of the die.
The luckier ones may come across a ladder during the journey, and that allows them to move up to a higher level on the game board, doing better faster.
Those less fortunate may instead step on the head of a snake, and see their hard earned gains evaporate as they slide down the reptile to a lower level to start all over again.
I think these are aspects of the situation faced by Singapore’s Food Services and Retail sectors that remind us of this Snakes and Ladders game.
Quote Lim Hng Kiang:
The Business Times
Retail, F&B profits lag sales growth (21 Sep 2011)
SINGAPORE'S retail and food services industries are on a par with other major international cities in terms of sales per employee and sales per square foot, but when it comes to profits, they may be falling behind.
Quoting a study by the Boston Consulting Group commissioned by Spring Singapore, Minister for Trade and Industry Lim Hng Kiang said that higher sales generated by Singapore's retail and food services companies have not translated correspondingly into higher value and profits, possibly because they have not paid as much attention to streamline their business processes.
'The study reveals that companies in Singapore tend to focus on quick solutions to drive their toplines (the ladders), such as opening more outlets or offering discounts,' said Mr Lim. 'But they have not paid enough attention on improving their business operations, identifying critical bottlenecks and developing capabilities for long-term sustainable growth. These (snakes) include leadership, operational efficiency, workforce development and customer management.'
Quote S. Iswaran:
SPEECH BY MR S ISWARAN, MINISTER, PRIME MINISTER’S OFFICE & SECOND MINISTER FOR HOME AFFAIRS AND TRADE & INDUSTRY AT THE SINGAPORE RETAILERS ASSOCIATION BALL 2012 ON 30 AUGUST 2012 AT 7.20PM, RAFFLES CITY CONVENTION CENTRE
We are well aware that the SMEs, especially those in the manpower-intensive sectors such as food services and retail, face manpower challenges due to the tightening supply of foreign manpower (snake). I do believe that our businesses understand the context and the need for such measures, especially as an indefinite reliance on low-cost foreign manpower is unsustainable. Equally, I believe that our businesses have the perseverance and commitment to explore new pathways for sustainable growth (ladders). The government agencies will be your resolute partner in this effort.
In other words, for the food services and retail sectors to do better now and in the future, they have to improve productivity and refrain from using labour growth as a means to grow their businesses. Companies which can successfully add the right ladders to the game board will quickly climb them and move past others who are stuck or sliding down the snakes.
Yes, this challenge is not unique to the food services and retail sectors. Other sectors face similar challenges and are actively innovating solutions and breakthroughs. So it is important for the sectors to know that the earlier you start on this journey, the better placed you will be.
Progressive Wage Model – Ladders to a Better Future
The Labour Movement fully understands the needs of local enterprises looking for capable manpower and competitiveness. At the same time, we also feel deeply and strongly that there remains substantial potential for Singaporeans to be tapped, trained, attracted and retained in key sectors, so as to form the industry cores and to progress in their jobs.
It is for this reason that the Labour Movement is advocating the Progressive Wage Model to help industries upgrade manpower, enhance their Singaporean Core and enable their workers to earn more, through improved performance at current and higher levels. In our mind, the best symbol for the Progressive Wage Model is indeed the Ladder.
On a ladder are different rungs, representing different levels and different types of jobs in an industry. It is not a one-size-fits-all number. It is progressive in two senses – one can climb up the rungs and make progress. At the same time, through job redesign, skills upgrading and productivity improvements – employees can earn more at each rung. With a good core in place, companies will also be more productive and reap more profits.
Progressive Wage Model – Enhancing Singaporean Core for Food Services and Retail Sectors via Core Executive Programme (CEP)
I am therefore delighted that the food services and retail sectors have decided to partner SPRING Singapore and the Labour Movement’s Hospitality and Consumer Business Cluster to launch the Core Executive Programme (CEP).
The CEP aims to strengthen the entry, retention and development of Singaporean executives into both sectors. This CEP strengthens the middle part of the Ladder of Progress for these sectors, and help make this level of jobs within these 2 industries more attractive and accessible to Singaporeans. Over time, this will strengthen the Singapore Core.
The Programme will complement and link up with ongoing improvement initiatives, such as the Inclusive Growth Programme (IGP) to together form the Ladder of Progress for each of them. Besides this, there are other programmes promoted by SPRING Singapore that help companies, especially SMEs, hone their human resource, operations and leadership capabilities.
As a start, SPRING Singapore has set aside resources to support 50 participating SMEs in the Food Services and Retail Sectors for this programme. This will bring in 500 Singaporeans into these companies, which is an appreciable number given that many of these companies are SMEs.
I am happy to note that more than 20 companies have already decided to take part in the CEP. This is a very encouraging start, and it shows that there is no shortage of alert, fast-moving local enterprises with leaders who know when and how to adapt and thrive, and at the same time, create hope and a future for their employees. The programme will certainly scale up substantially as more companies step up their game and sign up.
My colleague Mr. Yeo Guat Kwang will elaborate on the details of the CEP shortly.
I commend SPRING Singapore, the participating SMEs, and the unions of the Hospitality and Consumer Business Cluster, viz. SMMWU, FDAWU, AREU, SISEU, for your far-sightedness and support for the Progressive Wage Model and for this CEP.
Conclusion
With these ladders, both companies and Singaporean workers can get to Square 100 faster. It is all up to us. Let’s get going.
Thank you.
