His Excellency, Mr Teppo Tauraiainen, Ambassador of Sweden,

Mr Terry O’Connor, Managing Director, Courts (Singapore) Limited,

Mr Michael Kok, Regional Director, Dairy Farm South Asia,

Mr Tom Huzell, Managing Director, IKANO Private Limited,

Distinguished guests,

Ladies and Gentlemen

Good morning,

1. I’m pleased to be here today to join you in laying the foundations of Singapore’s first three projects under the Warehouse Retail Scheme (or WRS).

Objectives of WRS

2. The WRS was launched in April last year with several economic objectives in mind. Changes in industrial trends require greater flexibility in industrial land use. The WRS provides this flexibility by allowing companies to co-locate their integrated business models with regional headquarters, retail, warehousing and industrial activities. The WRS is an important investment tool in the attraction of regional operations and new activities into Singapore.

3. The pilot projects by Courts, Dairy Farm and IKANO, collectively an investment of S$200 million, stand as examples of what we aim to achieve through the WRS. The scheme benefits the companies, the community as well as Singapore on the whole. Let me explain how.

New Phase of Development for the Companies

4. Firstly, these WRS projects mark a new phase of development for these three companies in Singapore. Courts, Giant Hypermarket by the Dairy Farm, and IKEA Singapore by IKANO are familiar names to us. Each with their unique selling points, they have drawn countless Singaporeans to their outlets over the years.

5. However, this is the first time the three companies are collaborating on a development of this scale and nature. They are enhancing their capabilities and sophistication of operations to develop from domestic retail, to regional and industrial activities. By synergistically co-locating their regional operations in warehousing, procurement, logistics, distribution and corporate training in Singapore, the three companies will reap substantial operational and cost efficiencies from their WRS projects.

6. In addition, Courts, Dairy Farm South Asia and IKANO will site their regional headquarters in Singapore to oversee strategic management and business development in the region. From Singapore, these companies can reach out to tap on the fast-growing Asian economies easily. In recognition of their commitment to Singapore, these companies will be receiving EDB’s International Headquarters Award today.

Larger Benefits to Singapore

7. The contributions of the three WRS projects to the Singapore economy will be sizeable. When fully implemented, the three facilities on this 9.3 ha site will provide jobs for 1,700 staff and generate an annual business spending of S$160 million. A significant economic multiplier also comes from the activities that will go on “behind the scenes” from the operations.

8. For example, the WRS facilities will act as hubs for distribution, logistics and warehousing, taking full advantage of Singapore’s connectivity and physical infrastructure, including our air, sea and land logistics capabilities. An example of a spin-off “beneficiary” will be third-party logistics service providers.

9. Regional training activities will also take place here, with around 600 trainees expected annually at steady state. Trainees traveling here from outside Singapore will generate business for our hotels, F&B outlets and shops.

10. The WRS facilities also provide platforms for innovation in the development of new warehouse-retail concepts. This presents invaluable opportunities for Singapore to be the hub for best warehouse-retail practices and to spearhead the roll-out of new concepts in the region. The emphasis will be on business products that are innovative, multi-faceted and that will draw not only local, but also regional shoppers.

Community Gains

11. The WRS cluster can also bring about benefits to its immediate surroundings.

12. The three companies have committed to work closely with the Tampines and Pasir Ris business community and merchant associations to boost the area as a whole. These efforts will include joint organization of training workshops, promotional events, and job fairs to boost retailing standards, overall demand and job opportunities for the people in the area.

13. Already, Tampines is known as a retail hub in Singapore, with Tampines Mall and Century Square attracting thousands of people every weekend. With the WRS projects promoting new and innovative retail concepts that are different from those offered by the shopping malls and neighbourhood shops, we can look forward to more variety in shopping experience and new vibrancy in this part of Singapore. This in turn can draw an even larger number of people to the area, including international visitors.

Strategic Focus of the Scheme

14. The WRS will thus bring about overall benefits, not only to the companies involved, but also the community and Singapore overall. Companies can make use of the scheme to create new opportunities through integrated business models, using Singapore as both a gateway to the region as well as a destination in itself. At the same time, Singapore can reap the gains from new investments, jobs, and the “buzz” and excitement created by the presence of WRS in the area.

15. There are stringent criteria to ensure that companies given approval for the scheme can actually fulfill the economic objectives of the scheme. The majority of operations within the WRS facility will remain industrial or warehousing in nature. Companies will also need to pay the full commercial land value for the retail use of the site. All these seek to ensure a level playing field between the WRS operators and other retailers in the vicinity.

Conclusion

16. Today’s groundbreaking ceremony is a significant milestone in the development of the WRS as a strategic platform that creates new value for Singapore.

17. I would like to congratulate all three companies today and wish you success.

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