Speech at Singapore Institute of Retail Studies’ National CET Institute Conferment and 10th Graduation Ceremony

Mr Lee Yi Shyan, Minister of State for Trade , Industry and Manpower, Singapore Institute of Retail Studies

1. Thank you for inviting me to this happy occasion. I am particularly glad to share the joy of the 147 graduates who have completed milestone courses specially designed for the retail sector. The graduates are joining more men and women in the retail sector seeking a higher level of professionalism and satisfaction in their careers. I commend you on your passion and commitment to life-long learning.
   
   National CET Institute
2. There is another reason for celebration. I am also pleased to formally announce that Singapore Institute of Retail Studies (SIRS) has been conferred the National CET Institute (NCI) status. With this newly acquired status, SIRS will become the fourth National-level Continuing Education and Training (CET) centre that is capable of providing the most comprehensive suites of Singapore Workforce Skills Qualifications (WSQ) training.
3. This marks a milestone for you and our national CET system.
4. I believe that it is important that Singapore has a robust and nationally-recognised CET system. Since its formation in 2003, WDA has been systematically building up the key elements of the CET system. The success of it depends on not just the government. But on the industry which identifies the skills needed and the standards they should be set at as well as the training community which delivers effective training and develops curriculum that meets the industry’s needs.
5. As at the end of 2010, WDA has a total of 26 frameworks, 50 CET centres, more than 500,000 workers having gone through WSQ training and two new CET Campuses are underway. This is in no small part due to the support of the many chairpersons and members of the Industry Skills and Training Councils (ISTC) and our training providers. To further build on this, we need excellent CET centres to deliver the programme in the WSQ system effectively.
6. The NCI status was established to aid WDA in setting the bar for CET centres in terms of training delivery excellence and the amount of commitment towards workforce development. NCIs would have to deploy innovative methods of adult training and have the ability to respond promptly to the changing skills needs of their industry. Currently, out of the 50 CET centres there are only four CET centres which have achieved this milestone.
7. SIRS is a prime example of what an NCI should be. They had been instrumental in establishing the skills and progression pathways for the retail sector and enhancing its professionalism through its wide range of course offerings. Since its inception in 2006, SIRS has spearheaded the curriculum development, training development and assessments of the Retail WSQ framework. It has trained more than 27,000 people and provided 60,000 training places. SIRS has consistently met their training targets each year and had helped placed over 2,000 workers into jobs in the retail sector through the career services it offers. The newly conferred NCI status is a further recognition of SIRS’ excellent work.
8. In time, I am optimistic that, as other CET centres aspire towards those very same standards and even surpass them; it would bring the CET system to the next level.
   
   Growth Opportunities in the Retail Sector
9. With tourist arrivals continuing to rise, and tourists’ spending increasing, the growth prospect of the retail sector is reasonably positive.
10. Recent commercial properties development has led to a projected growth of 41.3 million sq feet by 2013. New retail projects such as the Shoppes at Marina Bay Sands, Knightsbridge, and two new heartland malls, Clementi Mall and the upcoming 112 Katong. All these development will mean more specialisations and innovations needed in the sector. At the same time, it will also create more jobs in the sector.
11. Today, total employment of the retail sector stands at 143,300. It is a growing sector requiring many skilled workers in customer-facing and non-customer facing positions such as IT, finance and logistics professionals.
    
    Productivity Improvement
12. However, the retail sector’s rosy growth prospect is not without its challenges. Consider this. In 2009, the retail sector registered some $26 billion in operating receipts but generated only $3.8 billion in value-added (VA). The average VA per retail worker is S$37,000, which is only 40% of the national average. Of course, some of our top tier retailers could achieve VA per worker of $60,000. Even then, Singapore’s retail sector as a whole lags behind other international cities such as Hong Kong and New York. Our retail productivity is only about 66% and 44% that of the above mentioned cities respectively.
13. There is thus an urgent need for the industry to raise its productivity to stay competitive. This is why SIRS is also launching a series of productivity programmes today. They are the Retail WSQ modules, Manage Retail Productivity, Lead and Facilitate Productivity Improvement, Cultivate Productivity and Innovative Mindset for the frontline workforce and the Productivity Manager Programme (Retail) for appointed productivity managers. Through them, SIRS hopes to advise business owners and management on productivity strategy, and supervisors and workers on skills upgrading. We hope to improve the retail industry’s VA per worker by 25% by 2015.
14. Having eight companies joining the pilot run is a good start. Challenger, one of eight companies participating in the pilot programme is beginning to roll out company-wide productivity training and systems improvement to increase sales. Hopefully, it will also lead to higher customer satisfaction and better income for their sales staff.
15. WDA is partnering SPRING Singapore to train 25,000 workers over five years, to boost the overall productivity of the retail sector through these productivity programmes.
    
    Conclusion
16. In closing, let me congratulate all the graduates once again, for taking steps to raise the professionalism of the sector. Out there, you will be a role model of service and product knowledge. Through you, many more colleagues can be inspired to transform the service level and customer centricity of the sector. You can make a difference from the day you return to work. Thank you.