Speech by Senior Minister of State Dr Koh Poh Koon - Strengthening our Climate Resilience

Speech by Dr Koh Poh Koon, Senior Minister of State for Sustainability and the Environment, at Ministry of Sustainability and the Environment's Committee of Supply (COS) Debate 2024, 4 March 2024

Strengthening our Climate Resilience

Introduction

1 Mr Chairman, the effects of climate change are already upon us. I will speak on our approach in enhancing coastal protection and food security.

Climate Resilience: Enhancing Coastal Protection

Strengthening our coastal defences

2 The Third National Climate Change Study, or V3, by the Centre for Climate Research Singapore released in January this year showed that extreme rainfall is projected to increase. Mean sea levels around Singapore are projected to rise higher than previously projected under the V2 study, up to 1.15 metres by 2100 and up to around 2 metres by 2150.

3 Ms Nadia Samdin and Ms Poh Li San asked how the V3 study will be used. We will progressively share V3 data with regional and local partners. We will also incorporate V3 data into our research, such as the Climate Impact Science Research and the work of the Coastal Protection and Flood Resilience Institute (CFI) Singapore. We have begun preparations for coastal protection with site-specific studies of Singapore’s coastlines since 2021. With the commencement of the latest study along the coastlines of Lim Chu Kang and Sungei Kadut in August 2023, our site-specific studies now cover the entire north-west coast from Tuas to Woodlands, as well as Jurong Island and the City-East Coast.

Lim Chu Kang Master Plan

4 Mr Louis Chua, Ms Nadia Samdin and Ms Poh Li San asked about the progress of the Lim Chu Kang Master Plan (LCKMP). The comprehensive masterplanning effort is underway. We aim to harness synergies between land- and sea farms in the Western Johor Strait so farms can grow with greater resource efficiency.

5 The detailed plan will optimise land use and put in place the necessary transport infrastructure.

6 To Mr Louis Chua’s suggestion that clustering would not give economies of scale and that decentralisation is better, I would like to share that a key feedback from our engagements with stakeholders, including farmers and industry players, since 2021, is that it would not be commercially viable, nor an effective use of space and resources if farms were to build individual, smaller scale infrastructure for their own needs. Following his suggestion would mean that we are back to status quo and would miss the opportunity for the Lim Chu Kang Masterplan to create better efficiencies and new opportunities to take our agri-food sector to a new high level.

7 We are in fact studying the viability of shared facilities, such as centralised processing facilities for better economies of scale. We are also exploring innovative solutions that could intensify land use while guarding against sea level rise, such as growing in a “stacked farm approach”.

8 Farms affected by the redevelopment have been given time to transit and can bid in land tenders launched by SFA.

9 PUB will be extending Our Coastal Conversation in the first half of 2025 to discuss the possibilities for the north-west coast and this will include development plans for the LCKMP.

Coastal protection legislation

10 To ensure effective implementation of coastal protection plans along more than 300km of our varied coastline, we are working towards enacting coastal protection legislation. This would delineate the roles and responsibilities of various stakeholders, safeguard land for coastal protection measures and future upgrades to cater for uncertainties in climate projections; and regulate and enforce against activities that could pose a risk to coastal protection measures and ensure that PUB’s coastal protection standards are met.

11 We intend to kickstart consultations with stakeholders later this year. Concurrently, PUB has started on a two-year study, from November 2023, to develop a new Code of Practice. This will guide and standardise the design, implementation, as well as the operation and maintenance of coastal protection measures.

Strengthening Food Security

12 Let me now talk about strengthening our food security. As we import more than 90% of our food, Singapore is particularly vulnerable to global food supply chain disruptions. Recent examples include disease outbreaks, policy decisions by foreign governments, and of course, geopolitical tensions.

Diversifying import sources

13 To Ms Samdin’s and Ms Poh’s questions on ensuring food resilience, import source diversification will remain the cornerstone of our food security strategy.

14 We will continue to facilitate food imports from new sources, by working closely with industry, and governments globally. For example, we approved the export of eggs and live chickens from Indonesia to Singapore in April and May 2023 respectively, and Türkiye for eggs in September 2023.

15 SFA also works closely with industry players to put in place robust business continuity plans (BCP).

Growing local

16 Ms Poh asked about the progress of our “30 by 30” vision, and support for the agri-food industry. The volatility of global food supply chains underscores the importance of having a buffer – a form of insurance by being able to grow some of our own food locally.

17 This is the driving force behind our aspirational “30 by 30” vision, to build our agri-food industry’s capability and capacity to sustainably produce 30% of our nutritional needs locally by the year 2030. This goal is very ambitious – but it signifies our determination to make progress.

18 It has not been easy for our farms, especially due to developmental delays during the COVID-19 pandemic and strong headwinds due to inflationary pressures and higher costs. Global agri-tech companies have also not been spared from near-term investment headwinds. Even as we deal with these challenges, we will still forge ahead to strengthen our food supply resilience.

19 To help our farms cope with the higher energy costs, SFA, in April last year, enhanced the Agri-Food Cluster Transformation (ACT) Fund and introduced the Energy Efficiency Programme (EEP), providing farms with co-funding to adopt energy-efficient technologies.

20 As at the end of last year, SFA has committed over S$23 million to fund 60 ACT Fund projects. We will also continue to upskill and build the pipeline of agri-workforce to meet the sector’s needs.

Singapore Aquaculture Plan

21 Ms Samdin and Ms Poh asked about the progress of the Singapore Aquaculture Plan (or SAP). We have been working with agencies to increase and optimise aquaculture spaces, encourage better farming practices, and invest in R&D through the AquaPolis programme.

22 Optimising our limited sea spaces for aquaculture will require us to balance competing priorities, including maritime activities and biodiversity.

23 How can we come to a consensus on the right balance to strike? How can we achieve win-win outcomes to help Singapore responsibly manage our sea space for our present and future needs while preserving biodiversity? In October 2023, we brought together key stakeholders from industry, academia, nature groups and government agencies to envision the answers to these key questions, to guide the development of productive and sustainable aquaculture for Singapore.

24 We are midway into our discussion, but we have started to converge on some key principles to develop the sector in a manner that is suited for our local context.

25 First, we will support industry to scale up through enabling regulation, technology, and infrastructure. Agencies will proactively review legislation and regulations to guide resilient and sustainable aquaculture production. Before new sites are tendered, SFA works with agencies to conduct environmental studies to assess the potential impact of aquaculture developments and identify proper mitigating measures. We will help farmers to adopt more sustainable farming practices and technologies, including closed containment aquaculture systems (CCAS). We will also facilitate the necessary supporting infrastructure.

26 Second, we will consider competing sea space uses and ecological sensitivity upfront, when identifying aquaculture sites.

27 Thirdly, we will be outcome-based and science-based in ensuring sustainable production. Farming need not be at the expense of the health of our waters.

28 Lastly, we will take a collaborative approach with various stakeholders to co-create solutions for sustainability and growth.

29 These principles will be consolidated in an updated version of the SAP by the second half of this year and will embody our collective vision and serve as a roadmap for aquaculture development here in Singapore.

Demand offtake for local produce

30 Ultimately, for the agri-food sector to thrive, our farmers will need sufficient consumer demand to be commercially viable. Some farms are ready to ramp up production, but our farmers need to know that it will be met with a corresponding increase in demand. Food security is therefore a joint responsibility. As consumers, we all have a part to play in strengthening Singapore’s Food Story.

31 Last year, as part of the ForwardSG conversation, we launched the Alliance for Action (AfA) that brought together various industry stakeholders to encourage increased offtake of local produce.

32 I am happy to update that the AfA’s efforts has led to the formation of an industry-level supply and demand aggregator, spearheaded by the Singapore Agro-Food Enterprises Federation (SAFEF).

33 SAFEF will partner traders and food processing companies via longer-term commercial aggregator contracts to better match supply and demand. This gives certainty to both producers and buyers and allows better price negotiations. For example, SAFEF aggregated locally farmed marine tilapia from several fish farmers at the Western Johor Strait and marketed it as “The Straits Fish”.

34 With additional support from Hai Sia Seafood, a food processing and distributor company, as well as Chang Cheng Group, a food services company, “The Straits Fish” dishes were officially launched on 17 February 2024 across the Group’s zichar chain, Ming Kitchen Seafood.

35 Initially they were uncertain how consumers would respond, so the partnership commenced with a modest launch of 200 kg of fish. The dishes were well received and sold out within the day. SAFEF now plans to sell approximately 50 tonnes of “The Straits Fish” within the next six months and further develop it into value-added processed food products for sale at retail outlets and potentially for export.

36 SAFEF, Hai Sea Seafood as well as retailers such as FairPrice supermarket, are also intending to pilot dedicated retail shelves for local produce by the second half of this year, so it will be easier for consumers to purchase and support local produce.

37 The AfA also supported the Farm-to-Table Recognition Programme (FTTRP), launched in March last year, which recognizes food businesses that procure locally produced ingredients. To Ms Samdin’s question, I am pleased to share that there are 50 businesses onboard to date. SFA plans to onboard at least another 100 food establishments over the next year.

38 The Government has also taken the lead to support the FTTRP. Since October 2023, government procurement has incorporated a weighted criterion for sustainability into our catering contract. This allows FTTRP-recognised food caterers, which uses sustainably sourced local produce, to receive additional points that increase their chances of securing government catering contracts. As of 1 February 2024, there are 11 FTTRP caterers, up from 2 previously.

39 I believe that more caterers will start using local produce if more Singaporeans, businesses, and community groups support our local farms by asking for catering to use local ingredients and local produce.

40 At today’s tea break, Members would have sampled an array of local dishes, using locally sourced food ingredients. From the savory delights of Nyonya Laksa prepared with local prawn, egg, and beansprouts, to Tandoori fish made with our local harvest, and sweets such as peach croissant with basil cream, made with locally farmed basil. I would like to urge Members to support our local farms too and to incorporate local produce from our farms in the events that you organise or host.

41 Ms Samdin also asked about the SG Fresh Produce (SGFP) logo and if wet market stallholders that supply local produce could be better recognised. To date, over 100 farmers, distributors and retailers have used the logo on produce packaging and in marketing channels. SFA has also developed marketing materials featuring the SGFP logo for wet market stallholders to help generate higher sales. SFA will also work with and partners like the Singapore Chefs’ Association on programmes such as cooking classes to promote SGFP and FTTRP.

42 Ms Poh asked how the public can do their part to support Singapore’s food resiliency. Consumers like you and I must recognise our vulnerability to food supply disruptions and be flexible in our food choices in the event of a disruption.

43 This awareness should be inculcated from young. Hence as part of Total Defence 40th Anniversary, SFA in collaboration with MOE and SATS, conducted a pilot Food Resilience Preparedness Project (FRPP) involving an estimated 50,000 students from 40 secondary schools.

44 This involved the distribution of retort meal packs made with locally sourced ingredients and educated the students on the importance of food security, the benefits of local produce and how we can all jointly strengthen Singapore’s food supply resilience.

Progress update on Food Safety and Security Bill

45 To better protect consumers and safeguard Singapore's food supply resilience, we will strengthen SFA’s legislative powers through the introduction of a new Food Safety and Security Bill (FSSB).

46 FSSB will consolidate all food safety and security legislation from eight existing Acts into one Act and provide an overarching framework to ensure coherence across the entire food value chain.

47 Since August last year, SFA has been engaging with industry associations and key stakeholders on the proposed enhancements. Relevant feedback has been incorporated into the draft Bill. We will begin public consultation this month.

Update on hawker centres

48 Let me now address questions from Mr Edward Chia, Mr Gan Thiam Poh, Mr Chua, and Ms Mariam Jaafar on measures to help our hawkers.

49 NEA provides a conducive environment for hawkers to operate, enabling them to strike a balance between pricing their food affordably and sustaining their livelihood. NEA lets out hawker stalls through monthly tender exercises, which are transparent and fair.

50 There is no minimum bid and subletting is not allowed. Individuals can bid for a stall at a monthly rental as low as $1, while others may choose to submit higher bids to secure stalls at popular locations, as they factor in considerations such as footfall and expected patronage. Some popular hawker centres such as Newton Food Centre attract additional clientele such as tourists and enjoy better footfall over longer business hours.

51 Rent will be adjusted towards the assessed market rent, after the first three years. In fact, only about 4% of cooked food stalls in hawker centres today are paying rent at above the assessed market rent. These stalls would be in their initial 3-year tenancy, and their rental would be based on their tender bid. When they renew their tenancy at the end of the three years, it will be adjusted to the assessed market rent. Median rental across non-subsidised cooked food stalls has remained constant at about $1,250 since 2015.

52 For Socially-conscious Enterprise Hawker Centres (SEHCs), NEA will consider proposals from prospective operators with lower rental and operating costs to hawkers. Operators are not allowed to vary the charges to hawkers over the term of tenancy and are to stagger stall rental prices for the first 3 years.

53 To help hawkers enhance their operations and productivity, NEA has also implemented measures such as the Productive Hawker Centre (PHC) programme and Hawkers’ Productivity Grant (HPG).

54 On hawker food affordability, NEA does not regulate hawker food prices to avoid distorting the true cost of hawker food. Our hawkers should be given the autonomy to price their food based on multiple considerations, such as operating costs and market conditions.

55 Mr Chia asked if the Ministry had conducted a study on hawkers’ average earnings. While we do not collect this data from hawkers, NEA conducts regular surveys on hawker food prices and their cost components and will continue to ensure a conducive business environment for our hawkers.

56 Today, patrons can continue to find affordable options in all hawker centres, including at SEHCs where operators have committed that all stalls will provide at least one budget meal option. The public can also utilise CDC vouchers provided under the Assurance Package at hawker centres and coffeeshops.

57 Mr Gan would be glad to know that NEA has implemented various programmes to encourage aspiring hawkers to enter the trade. NEA’s Hawkers’ Development Programme (HDP) and Incubation Stall Programme (ISP) provide holistic training to equip aspiring hawkers with skills needed to run a successful hawker business. Over 60 hawkers have joined the trade through these programmes.

58 NEA will also continue to build new hawker centres, to ensure that Singaporeans will continue to have access to affordable and tasty hawker food. I am pleased to share that three new SEHC hawker centres will be opening this year, namely Woodleigh Village, Anchorvale Village, and Punggol Coast Hawker Centres.

59 The three new hawker centres, each with about 40 cooked food stalls and 700 seats, will be connected to local amenities and transport nodes, ensuring ease of access for residents. They have also been designed to offer a pleasant dining environment, with spacious, family-friendly, and inclusive seating, centralised dishwashing, and high ceilings for improved ventilation. Patrons will also be able to find affordable food options at these new centres.

Conclusion

60 Mr Chairman, as a small nation constrained by land and resources, the road ahead to strengthen our coastal resilience and food security may seem challenging and daunting, but it is a path that we will navigate together, to transform our limitations into opportunities for growth. Through our collective efforts, we will pave the way for a thriving and secure future for generations to come.