Oral Reply to Parliamentary Questions on 30-by-30

Oral Reply to Parliamentary Questions on 30-by-30 by Dr Koh Poh Koon, Senior Minister of State for Sustainability and the Environment

Mr Melvin Yong Yik Chye: To ask the Minister for Sustainability and the Environment (a) whether the Ministry can provide an update on the progress of Singapore’s "30 by 30" goal that aims to produce 30% of Singapore's nutritional needs by 2030; and (b) whether the recent spate of local farm closures will result in a delay of reaching this goal by 2030.

Mr Zhulkarnain Abdul Rahim: To ask the Minister for Sustainability and the Environment (a) whether the Singapore Food Agency is studying the reasons behind the recent liquidation or scaling down of the operations of high-tech farms in Lim Chu Kang and Tuas despite the governmental grants and support provided; and (b) what is the impact on the "30 by 30" goal that aims to produce 30% of Singapore’s nutritional needs by 2030 under the Singapore Green Plan.

Mr Dennis Tan Lip Fong: To ask the Minister for Sustainability and the Environment (a) how will the "30 by 30" plan on local food production be revised to move the local farming sector back on track; and (b) how will the Government better assist business operators to cope with business costs challenges such as land leasing and energy costs so that business operators can continue to support the "30 by 30" goal that aims to produce 30% of Singapore’s nutritional needs by 2030.

Mr Don Wee: To ask the Minister for Sustainability and the Environment following a series of delays, failures or re-configurations of high-tech farms (a) whether the goal of producing 30% of Singapore’s nutritional needs locally by 2030 is a realistic one; and (b) whether there are plans to delay the implementation of the Lim Chu Kang Masterplan.

Ms Hazel Poa: To ask the Minister for Sustainability and the Environment (a) what is the Government's assessment of the impact of rising interest rates and operating costs, such as electricity and water costs, on Singapore’s high-tech farming sector; and (b) whether open farm style traditional agriculture can be equally supported to meet the goal of local farms producing 30% of Singapore’s nutritional needs locally by 2030.

Answer:

1 Mr Speaker, Sir, my response to Mr Melvin Yong’s PQ will also address related “30 by 30” PQs filed by Mr Dennis Tan, Mr Don Wee, Ms Hazel Poa, and Mr Zhulkarnain Abdul Rahim.

2 Last month, my Ministry responded to PQs from several Members regarding the “30 by 30” vision. As the PQs for this sitting are related, let me first provide a brief recap.

3 Since its formation, the Singapore Food Agency (SFA) has been undertaking efforts to grow our local agri-food sector, alongside import source diversification and stockpiling. Local production adds to Singapore’s food security by helping to buffer the impact of supply disruptions.

4 The “30 by 30” vision was conceived in 2019 as an ambitious aspiration ofbuilding the capability and capacity to locally produce 30% of our nutritional needs by 2030. At that time, there was strong investor interest in the global agri-food sector, a low interest rate environment, and lower global energy prices. Since then, the business climate has become less favourable due to factors such as the COVID-19 pandemic, geopolitical tensions and inflation. Ms Hazel Poa asked about the impact of rising business costs on the farming sector. During the COVID-19 pandemic and initial phase of reopening, our farms faced a shortage of foreign workers and construction delays. Since then, in the post-pandemic period, inflation and electricity price hikes exacerbated by geopolitical tensions, as well as a more challenging financial environment, have added to their challenges. Some farms have taken a pause in development works, to re-evaluate and finetune their business models. Global agri-tech companies have also not been spared from the headwinds. That said, while there have been some farm closures, we are also seeing existing players looking to expand their operations, as well as new players entering the agri-food sector. Overall, the total number of land- and sea-based farms has remained relatively stable at about 250 since 2019.

5 Given the nascency of our agri-food sector and the challenging environment, SFA has provided our farms with support in various areas, including – i) availing land and infrastructure for farming, ii) improving energy efficiency and productivity, and iii) increasing demand offtake for their produce.

6 First, we are making land and infrastructure available for farming by regularly launching land and sea space tenders. In 2022, we also introduced the option for the typical 20-year land and sea-space leases to be extended for a further 10 years to give more certainty to farms when planning and seeking investors. To Mr Don Wee’s question, we will continue to press on with the Lim Chu Kang Masterplan and co-develop the Singapore Aquaculture Plan with our stakeholders, including other government agencies, nature groups, academics, the industry players, and offtakers.

7 Second, we have increased support to farms to improve their energy-efficiency and productivity so as to reduce their cost and increase revenue. To Mr Dennis Tan’s query on how the Government will assist businesses in coping with business cost challenges, SFA ensures that the Agri-Food Cluster Transformation (ACT) Fund remains relevant in meeting farms’ business and growth needs. In 2022, the ACT Fund was enhanced to extend the higher co-funding quantum of 70% or up to $6 million per project, to a wider range of food types such as fruited vegetables, mushrooms, and shrimps, allowing more farms to benefit from higher co-funding. The ACT Fund encourages farms to invest in productive and resource efficient technologies that can help to manage resource use and consequently, operating costs In 2023, SFA introduced the Energy Efficiency Programme (EEP) under the ACT Fund to co-fund energy efficiency audits and the adoption of energy-efficient equipment and technologies to help farms better manage their energy costs for the longer-term.

8 Ms Hazel Poa asked about the Government’s support for traditional open farm style agriculture. Given the reality of our limited land, manpower and natural resources, farms that adopt more productive, climate-resilient and resource-efficient farming methods will have greater commercial viability potential. Regardless, SFA assesses all farm applications for the ACT Fund, and considers the merits of each and every proposal and its ability to contribute to our food security.

9 Third, we are working to increase demand for local produce. SFA is supporting the industry through the Singapore Agro-Food Enterprises Federation Limited (SAFEF). SAFEF has taken on the role of an industry level supply and demand aggregator that partners farmers, traders and food processing companies to better match demand and supply. Through the efforts of SAFEF and all its partners, locally grown vegetables and fish are now sold under the brand names “The Straits Fish” and “The SG Farmers’ Market” respectively at FairPrice supermarkets under a six-month trial. Consumer response to these products have been encouraging.

10 Consumers too can play a role in strengthening our national food security. They can choose to purchase local produce which can be easily recognised by the red SG Fresh Produce logo, or dine at food establishments using local produce under the Farm-to-Table Recognition Programme. Together, we can continue to safeguard Singapore’s food security.

11 Members have asked about the progress for “30 by 30” and if we remain on track despite the recent news on farm closures. To Mr Zhulkarnain’s question on the reasons for the farm closures, these are commercial decisions that are farm-specific in nature. As with any nascent sector, our agri-food sector will need time to grow and prove their business models.

12 The “30 by 30” vision has always been an aspiration, which seeks to rally our efforts around the important task of enhancing Singapore’s food security. As my Ministry shared in our reply to PQs on this matter last month, we have achieved some results in a few areas. For example, our local egg production now contributes more than 30% of local consumption, an increase from 26% in 2019. Local beansprout production has also come in at more than 50% of local consumption. We have seen both new and existing farms harnessing technology and innovation to scale up production and operate productive, viable models. Some have expanded their operations to higher value products that better cater to consumers’ evolving demands. SFA will continue to anchor more of such farms and help them scale up over time.