Tracking Overseas Food and Beverage and Retail Business Market Presence in Singapore, and Addressing Risks to Homegrown Enterprises
Ministry of Trade and IndustrySpeakers
Summary
This question concerns Mr Alex Yeo’s inquiry into whether the Government tracks the market presence of overseas food and beverage and retail businesses and if their economies of scale risk displacing homegrown enterprises. Deputy Prime Minister Gan Kim Yong responded that locally-owned enterprises comprise approximately 90% of these sectors and emphasized that the Government monitors market developments to prevent anti-competitive practices. He noted that businesses can utilize the Enterprise Development Grant, the Productivity Solutions Grant, and the Enhanced Visual Merchandising Programme to enhance productivity and transform heartland operations. Innovation is further supported through the Retail Maverick Challenge, involving Enterprise Singapore and CapitaLand Investment, and engagement with trade associations like the Singapore Retailers Association. These measures aim to strengthen the competitiveness of homegrown small and medium enterprises to ensure they offer differentiated products within a diverse and efficient market.
Transcript
4 Mr Alex Yeo asked the Deputy Prime Minister and Minister for Trade and Industry (a) whether the Government tracks the market presence of overseas food and beverage and retail businesses by the number of outlets to understand the competitive footprint of such entities; (b) whether such entities with economies of scale advantages to lower cost and price in market penetration, risk displacing homegrown SMEs in heartland communities; and (c) whether there are plans to address this trend.
Mr Gan Kim Yong: Singapore maintains a competitive market so that the food and beverage (F&B) and retail operators can compete and grow. This also provides more and better options for consumers.
The Government monitors market developments to ensure the efficient functioning of markets in Singapore and we will not hesitate to take action against anti-competitive or unfair trading practices.
Local-owned enterprises continue to account for the majority in the F&B and retail sectors, making up about 90% of enterprises. Their share reflects the strong presence of local businesses in Singapore's F&B and retail landscape.
At the same time, we support local businesses to remain competitive through strengthening their capabilities, innovating and offering differentiated products. Local enterprises can tap on schemes, such as the Enterprise Development Grant and Productivity Solutions Grant, to enhance productivity and transform their businesses. We also have targeted support, such as the Enhanced Visual Merchandising Programme, for our heartland enterprises and have put in place initiatives, such as the Retail Maverick Challenge launched by Enterprise Singapore and CapitaLand Investment, to support local retailers in piloting innovative and experiential retail concepts.
The Government will continue to work with industry stakeholders and engage key trade associations, such as the Singapore Retailers Association, to support the growth and competitiveness of local enterprises.