1 In preparation of today’s speech, I read up on Prima Limited. I found that it has been in existence for 50 years, and has a rich and interesting history, which is somewhat reflective of the story of Singapore.
2 It was founded in 1961, by a young immigrant entrepreneur from Fujian, China. The founder came to Southeast Asia with nothing much, but managed to build and grow a successful business over the years.
3 The growth of Prima Ltd is made possible through regional and global expansion. Singapore’s market was just too small. So in 1970, the company made its first overseas investment in Ujung Pandang, Makassar, Indonesia, which it later divested. Later, it set up then the world’s largest flour milling complex in Sri Lanka, where it also established a bakery and an integrated feed milling facility. In the 80’s, the Group expanded to China, which included a flour milling facility in Shandong, and later a restaurant in Shanghai. Today, 40% of total sales is exports.
4 Throughout its growth process, the company continued to invest in its capability in its home base, Singapore. This included efforts to computerise its local operations, broaden its products and services to include restaurants, a franchise, and ready-mix products under the brand of Prima Tastes. The company attained ISO9002, invested in research and development, and established the Bakery Industry Training Centre to upgrade and impart relevant vocational skills in workers.
5 Currently, the company is working with NTUC to upgrade its productivity. For example, the loading and unloading of confectionery products into its Prima Deli Division's trucks for delivery to customers' outlets is currently done manually. The process requires intense physical effort and is especially taxing for the aging workforce. Such manual jobs further adds as further obstacle for hiring of new drivers. To improve productivity and efficiency in this loading and unloading process, Prima food is planning to install retractable tailgates at the back of the delivery trucks. The tailgates will facilitate the handling of goods from ground level to the loading dock platform with the ease of mechanised elevation.
6 Prima Limited has also automated its packing section to ease the manual work of the packing operators, who now are just required to learn and operate the programmed equipment. Besides making work easier, productivity has also taken a quantum leap. In one of the manual lines, operators could pack 2,000 bags in half a day. With equipment, they can now pack up to 3,100 bags in the same time.
7 I find the story of Prima Group resembling that of Singapore because of a few reasons. First, it is about building up a profitable and successful business from almost nothing. The ingredients you start with are not much. Some capital, and perhaps a few helpers. But the most important ingredient is grit and hard work.
8 Second, like Singapore, the company has to make a living by venturing beyond Singapore’s shores. Singapore does not produce wheat, so raw materials all have to be imported. At the same time, the company grew external wings in regional markets. If Singapore is isolated from the rest of the world, there will be no Prima Ltd. And Prima’s situation is no different from the tens of thousands of companies in Singapore. But being connected to the world I am sure creates significant challenges to the companies too. There will be cultural differences in operating in a foreign land, unfamiliar rules and regulations, fluctuations in market conditions, movement in exchange rates. And while you export overseas to conquer foreign markets, foreign companies are exporting into Singapore to take a slice of our local market. But as in most things in life, we take the upsides and downsides as a package because isolation is not a viable option. Singapore too faces the same reality. We are too small to survive as an island by ourselves. But as an island city connected to the rest of the world, we can earn a living. But it comes with significant challenges and dilemmas which we have to understand and address as a society.
9 Third, while expanding overseas, the company never neglects its home base. The home is still its priority. This is evident from the various efforts invested in the local business, and raising its local capabilities. This is where the boss and many of its best people are located. And most importantly, throughout the years, the
company, in a family like environment, took care of its workers here in Singapore. The Group was able to give workers consistently good bonuses, even during economic downturns. I am sure many families, grew up together with the company.
10 The Labour Management relations have been strong and healthy. Cheng Yen, the Union leader in the company, and Mr Primus Cheng, CEO and Chairman, discuss problems openly and address them constructively. It is not an adversarial relationship where one side try to tear the other side down. Because if they do that, the company will not do well and everyone suffers. Instead, they work together, solve problems together, to ensure the company do well, and there is more to share between management and workers.
11 As Singapore celebrates its 46th birthday, let us all once again reaffirm this win-win spirit. May management and workers continue to work together in unity for many more years to come, so that lives improve for everyone.
