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Minister of State for the Ministry of Trade and Industry (MTI) Low Yen Ling announced a S$70 million food services and retail business revitalisation package in Parliament on Friday, March 4.

Low noted that the two sectors have been especially hard hit in the last two years, battling "waves of disruption time and time again."

This includes restrictions, closures, changing consumer preference, pressures to digitalise, as well as manpower shortages, she added.

"We want to help them recover"

To enable businesses in the food and retail sectors to transform themselves and overcome these challenges, the government will be introducing the S$70 million revitalisation package.

Low shared that the package would for one, extend "crucial support" for businesses in both sectors to improve their productivity, and enable them to "pivot and transform" to stay competitive and relevant.

In addition, the package would also allow for food services and retail companies to "beef up their manpower" in the hiring and training of locals.

"Hence, we will extend the 80 per cent support level of EDG (Enterprise Development Grant), and relevant solutions under PSG (Productivity Solutions Grant), for the food services and retail sectors till 31st March 2023."

Low noted that she hoped this extension under the revitalisation package would give F&B and retail businesses "more scope" to adapt and transform, and better position themselves for the future.

Dian Xiao Er as example

Low went on to give an example of an F&B company that had successfully transformed its business by using the EDG.

Dian Xiao Er is a Chinese restaurant with 15 outlets in Singapore, famed for its herbal roast duck dishes.

Low shared that since 2020, Dian Xiao Er had tapped on the EDG for three projects, to enhance their central kitchen.

"One of the projects involves the development of [a] first-of-its-kind automated duck conveyor system, which then helps to cut the preparation time for 1,500 ducks by about one third."

She even joked: "I note that it's 12 noon, and for me to talk about 1,500 ducks, I think it's very tempting to the members in the chamber."

Low pointed out that by cutting back the manual work required for the duck preparation process, Dian Xiao Er was able to retrain their staff to take on other roles, such as those in the manufacturing central kitchen.

"The company estimates that these three EDG project[s] has saved them at least S$60,000 per month on operating costs," Low said.

She encouraged more food services and retail companies to follow Dian Xiao Er's example, to make full use of the new S$70 million revitalisation package, and "continue pursuing business transformation efforts so as to stay competitive, and future ready."

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Top image via Dian Xiao Er's Facebook page