Mr S Chandra Das, FairPrice Chairman
Mr Tan Kian Chew, FairPrice CEO
Friends and Colleagues
I am very happy to join you here at your annual dinner and dance.
NTUC FairPrice is one of the largest cooperatives in Singapore. Within a short span of 31 years, FairPrice has grown to become Singapore’s leading supermarket chain. As a member of the NTUC family, I am very proud of your achievement.
Your journey was not plain sailing. In the early 70’s, the world was hit by the oil crisis. We were hit by rising prices caused by inflation. NTUC then launched a supermarket co-operative called NTUC Welcome. The first Welcome supermarket was opened in Toa Payoh in 1973 to help keep the prices of daily essentials affordable.
10 years later, NTUC Welcome and Singapore Employees Co-operative merged to form NTUC FairPrice. The rest is history. FairPrice stabilized the prices of essential consumer products and went on to become the people’s supermarket, with over 80 outlets islandwide.
FairPrice plays a major social role in the Singapore economy and community.
One classic example is the role you played in the face of the recent bird flu outbreak in the region. In response to AVA’s call, FairPrice was the first to bring in table eggs from outside the region. You brought in 120,000 eggs from Australia in a trial shipment in February. When the import ban was imposed on Malaysian poultry and eggs in August, 17 companies brought in eggs from Australia and New Zealand to help meet the shortfall in supply. Among them, FairPrice brought in the largest quantity – 22% of the total number imported.
When the import ban was lifted and supply returned to normal, prices of eggs were sticky and stayed high. Again, FairPrice came to the rescue. Among the large supermarket chains, FairPrice was the first to reduce the price of eggs from $2.10 to $1.50 for 10 eggs on 22 Oct, thereby helping to bring the price back to pre-ban level for the benefit of the mass consumers.
Another example still fresh in our mind was when Singapore was hit by SARS last year. When Pasir Panjang Wholesale Centre was closed for 15 days, vegetable supply was severely disrupted. As FairPrice imported vegetables directly, you were not affected by the closure of PPWC and were able to help maintain supply to serve the public. What is worth mentioning is that FairPrice did not increase the price. This helped keep the prices of vegetables stable during the time of short supply.
Tonight, on behalf of the mass consumers, I say – Thank you, FairPrice!
FairPrice also helps to better the lives of our workers and people. FairPrice is owned by almost half a million individuals – the average man or woman in the street. Any surplus it makes is shared with its shareholders, members, staff, and the community in which it operates. Over the last 20 years, the total amount of rebates and dividends was more than 500 million dollars!
On top of this, FairPrice also contributed $130 million to the SLF to improve the well-being of Singapore workers. This is not all. FairPrice also donated millions of dollars each year to the community by supporting a whole host of charity, social and community projects. More than $6 million worth of social benefits were given out last year, not counting the $7 million of GST that it absorbed.
It is no coincidence that FairPrice was named the supermarket chain with a social conscience by a business magazine. Among the many community projects undertaken, the Used Textbooks Project is now in its 22nd year. I am told that the distribution of textbooks to the needy students will take place next week. I congratulate FairPrice for running this evergreen project that has helped over 100,000 students save more than $6 million, since it started in 1983.
Another community project that caught my attention is the launch of Care and Share Charity Fund in August this year. I understand that the fund has accumulated almost $500,000. The money raised will go towards helping beneficiaries of the Community Chest.
Charity is not just about giving money. These charitable undertakings are certainly notable, but it is your spirit of volunteerism, to be directly involved in doing something meaningful for charity, that tugs at my heartstrings. Just last week, FairPrice launched Club V, a pool of staff volunteers to undertake projects such as charity car wash, sale of charity chicken rice and the sale of cookies, to help raise funds for the needy.
The act of volunteerism, giving your time, your efforts and your love for a good cause, gives a deeper meaning to charity. In doing this, FairPrice has not only touched our hearts, but more importantly, the lives of the beneficiaries.
FairPrice will not be what it is today without its most valuable resource – its 5,000 staff. FairPrice acknowledges the contribution and dedication of the staff, some of whom have steadfastly grown alongside FairPrice over the past 3 decades. I am told that the bonus payout for the last financial year ranged between 2.7 to 4.7 months. This is on top of the 1-month Annual Wage Supplement (AWS). Congratulations and keep up the good performance.
Please remember, no matter what role you play in FairPrice, no role is too small. Everyone can make a difference in helping FairPrice achieve continual growth and sustained success.
You have done well, but do not slow down. Consumers have become more discerning. Their tastes and preferences will shift, and their expectation will only get higher. Being cheaper is no longer good enough. We must strive to be cheaper and better, both at the same time. I encourage you to continue to improve, to get better, and introduce new products and innovative ideas to create a pleasant shopping environment and experience for the customers
The road ahead will be full of challenges and excitement, but FairPrice has gone through much tougher circumstances in the 70’s and succeeded with flying colours. I am confident that with the firm support of the shareholders, members, staff, business partners, customers and community at large, FairPrice will continue to thrive as Singapore’s very own supermarket for many more years to come.
Thank you.
