$50m boost from Govt to help firms meet global standards

Part of money to go to a technical assistance centre to aid exporters.

KEEPING milk cold from cow to consumer seems like a no-brainer, but lapses in the process here a few years ago showed that Singapore can sometimes fall short in meeting international standards.

The milk problem was fixed by the introduction of an Australian-inspired code of practice in 2002, but the wider issue of meeting quality benchmarks was addressed directly yesterday with the launch of a $50 million government initiative.

Its aim is to raise the game of manufacturing and service industries and enhance the made-in-Singapore brand, which could do with a polish despite the country's reputation as an export powerhouse.

The cash, to be spent over the next five years, will be directed at encouraging firms to adopt internationally recognised standards.

These could include anything from hygiene standards for food products to technical compliance requirements for electrical and electronics firms.

The money will also be used to set up a technical assistance centre to help exporters clear the hurdles of doing business overseas.

The immediate payoff will be to boost the confidence of global consumers in the country's goods and services.

Or as Minister for Trade and Industry Lim Hng Kiang said at the launch yesterday, it will lay the 'critical groundwork' to make Singapore a 'global brand'.

But huge savings could also be in store for small and medium-sized enterprises.

Once they adopt internationally recognised standards, their products will no longer have to be retested in overseas markets - a costly and time-consuming process. Entry to export markets should be considerably quicker.

The initiative - Quality and Standards 2006 - is a step in the right direction, said shoe retailer Charles Wong.

'If the government is willing to help, we're open to raising standards to a higher level,' said Mr Wong, the director of Charles and Keith.

He also pointed out that complying with the standards and technical regulations of overseas markets can be daunting for many businesses.

The payoff has already registered for Mr Douglas Foo, chief executive of Apex-Pal, which runs the Sakae Sushi chain of Japanese restaurants.

He told The Straits Times that revenues rose after the firm secured a critical international hygiene certification about three years ago.

It is a lesson firms and individuals should heed, said Spring Singapore's director for standardisation, Ms Susan Chong, who cited the case of the not-so-fresh milk.

Supermarkets used to remove milk products from their shelves after a short expiry period. This expiry date is usually set based on the assumption that the milk would be refrigerated throughout the journey from the farm to the dairy to supermarket shelves.

'But this wasn't the case, as there were points during the transportation when the temperature wasn't maintained,' said Ms Chong.

But a code of practice was introduced which all major supermarkets here and overseas suppliers had to adopt.

This meant that milk was kept chilled at 4 deg C throughout the process, ensuring it stayed fresh and so reducing wastage.

Branding expert Dominic Mason noted that Spring Singapore is raising the bar on the quality and reliability of Singapore products and services.

'If this results in more companies being able to penetrate export markets with what are perceived to be high quality, high value propositions, then this will reflect positively on the Singapore brand.