1

Overseas Market Introduction Service

Sea Fish Industry Authority

Produced by:

Valsa Panicker, Senior Trade & Investment Attaché

Amanda Leong, Trade & Investment Officer

Singapore

Date of Report: 31 January 2013

2

CONTENTS PAGE

Page(s)

I. Executive Summary 3

Summary of the Enquiry 3 Methodology 3

II. Market Research 4-38

Matching Profile 4-25

The Trade Environment 4-6

The Seafood Sector 7-15 Consumer Trends 16-17

UK Share and Export Opportunities 18-25

Doing Business Profile 26-38 The Supply Structure 26-27 The Retail Channel 28-30

The Foodservice Channel 31-33 Key Regulations and Tariffs 34-37

Tips and Useful Links 38

III. UKTI Headstart 39-40

IV. Contributors 41

3

I. EXECUTIVE SUMMARY

Summary of Enquiry

As overseas market intelligence is one of their service offerings, Seafish

commissioned an OMIS on 10 October 2012 for us to update the market report on Singapore that is currently on their website.

The research brief involves the following components:

Matching Profile The Trade Environment

The Seafood Sector Consumer Trends UK Share and Export Opportunities

Doing Business Profile

The Supply Structure The Retail Channel

The Foodservice Channel Key Regulations and Tariffs Tips and Useful Links

Methodology UK Trade & Investment undertook the following to deliver the service:

The required research was put together from various sources including the official websites of various Government bodies such as the Singapore Department of Statistics, the Agri-Food and Veterinary Authority of

Singapore, and Customs Singapore, as well as trade publications from the International Enterprise Singapore.

4

II. MARKET RESEARCH

Matching Profile A. The Trade Environment

Fast Facts

Population (as of 2012)

Total Population* (‘000): 5, 312.4 Singapore Residents* (‘000): 3,818.2

Singapore Citizens (‘000):3,285.1 Singapore Permanent Residents (‘000): 533.1

* Total population comprises Singapore residents and non-residents. The

resident population comprises Singapore citizens and permanent residents.

Land Area (as of 2011)

Land Area (Sq km): 714.3 Population Density/Inhabitants per sq km: 7, 257

Households (as of 2011)

Number of Resident Households (‘000): 1, 146.2 Home Ownership Rate (%): 88.6

Economic Indicators (as of 2011)

GDP at Current Market Prices (S$m) : 326,832.4 (£166,194.28 m) GDP per Capita (S$) : 63,050.00 (£32,060.93)

Annual Growth (%) : 4.9 Annual Inflation Rate (%) : 5.2 Unemployment Rate

(Seasonally Adjusted as of Sept 2012) (%) : 1.9

Total Trade (S$m) : 974,396.4 (£495,480.57) Exports (S$m) : 514, 741.2 (£261,745.90) Domestic Exports (S$m) : 281,349.7 (£143,066.32)

Imports (S$m) : 459, 655.1 (£233,734.62)

5

Food Import and Export Figures

Total food imports in 2011 totalled S$10,295.70m (£5,235.36m), reflecting a 22.1% year-on-year increase.

Total food exports in 2011 totalled S$6,663.2m (£3,388.24m), reflecting a 10.8% year-on-year increase.

Trading Partners

Top 5 trading partners in 2011 include Malaysia, China, Indonesia, the

United States, and Hong Kong.

The top five countries Singapore imported from in 2011 include Malaysia, the United States, China, Japan and Taiwan.

The top five countries Singapore exported to in 2011 include Malaysia, Hong Kong, Indonesia, China, and the United States.

Source: Singapore Department of Statistics

Capital : Singapore Other main cities : nil Languages : English, Chinese Mandarin, Malay, Tamil

Religions : Buddhism, Christianity, Islam, Hinduism, Taoism, Sikhism

Currency : Singapore dollar (S$) Exchange rate : £ 1 = S$ 1.9666 / S$1 = £0.50850 International status Member of ASEAN and APEC

Government type Republic with parliamentary democracy

Singapore is one of the wealthiest consumer markets in Asia with a GDP

per capita of approximately £32,020 in 2011. Unfortunately, Singapore is

also known to have one of the highest levels of income inequality in East and South-East Asia, with its Gini coefficient having increased slightly

from 0.472 in 2010 to 0.473 in 2011. After adjusting for Government transfers and taxes however, the Gini coefficient in 2011 was reduced from 0.473 to 0.452.

The export-driven economy, though small, is very open and home to a

thriving environment of foreign investment and talent. Singapore’s total trade is generally close to three times its GDP. In 2011, total trade reached £487.15 billion, while its GDP was worth £163.4 billion.

The top three performing sectors that contributed to the country’s GDP

are manufacturing (20.9%), wholesale and retail trade (17.4%), and business services (14.1%).

6

For the whole of 2011, Singapore’s economy grew by 4.9%, which though represented a significant decline from the 14.8% growth rate in 2010, was

predictable as its exports-led growth was affected by the dampened demand from the US and EU markets.

The manufacturing sector expanded by 7.6% in 2011, helped by the surge

in biomedical manufacturing output which offset the contraction in the

electronics cluster and slower growth in the precision engineering and chemicals clusters. The construction sector grew by a modest pace of 2.6

per cent, supported by public sector building activities.

The service industry grew by 4.4% in 2011, anchored primarily by growth

in the finance & insurance and tourism-related sectors. The finance and insurance sector grew by 9.1% on account of continued growth in

domestic and offshore lending activities, even as stock trading activities fell. The accommodation & food services and other services industries grew by 5.8% and 6.7% respectively on the back of healthy visitor

inflows.

Singapore’s population which as of June 2012 stood at 5.31 million, comprises a significant middle class and a growing foreign expatriate

base. Consumers are generally well-informed, well-travelled and have a sophisticated and comfortable lifestyle, quite similar that seen in the developed world countries.

As a small city-state, Singapore is highly dependent on imports for its

food supply, including seafood. The growing affluence and exposure of younger and middle aged consumers has resulted in an increased demand for premium products and more sophisticated dining options. Five

Singapore restaurants are featured among the top 12 Asian restaurants in the Miele Guide 2013.

Source: Singapore Department of Statistics

7

B. The Seafood Sector

This segment will contain the following parts:

i. Fish, Seafood, & Preparations Import and Export Figures

ii. Fish Supply, Trade and Wholesale

iii. Imports of Fish and Seafood to Singapore in 2011(broad category)

iv. Exports of Fish and Seafood to Singapore in 2011 (broad category)

v. Fisheries

vi. Aquaculture

vii. Post Harvest Technology

Please note that all calculated figures are based on the following exchange rate: £ 1 = S$ 1.9666 / S$1 = £ 0.50850

8

i) Fish, Seafood (excl marine mammals) & Preparations Import and

Export Figures (in £ million)

2001 2006 2007 2008 2009 2010 2011

Import 430.65 594.23 608.67 647.42 594.95 658.86 730.10

Export 340.39 304.54 279.68 276.88 226.94 255.62 256.84

Figure 1

As Figure 1 shows, total fish, seafood (excl marine mammals) &

preparations imports in 2011 totalled £730.10 million, reflecting a 10.8 % year-on-year increase. In general, imports have increased from 2001 to 2011.

Total fish, seafood (excl marine mammals) & preparations exports in 2011

totalled £256.84 million, reflecting a 0.48% year-on-year increase. In general, exports have however declined from 2001 to 2011.

Singapore has long been and still is a net importer of fish, seafood and preparations, with imports worth nearly thrice that of exports.

Source: International Enterprise Singapore

9

ii) Fish Supply, Trade and Wholesale (in tonnes)

2001 2006 2007 2008 2009 2010 2011

Fish Supply

Local

Production

7,785 11,6741 8,025 5,141 5,689 4,826 5,947

Imports 107,074 152,860 145,413 138,898 134,756 134,546 132,937

Exports 76,638 61,085 50,496 44,416 39,083 40,215 32,311

Fish Wholesale 75,603 72,526 73,102 67,288 65,332 58,744 65,333

Figure 2

As Figure 2 shows, more than 3/4 (77.66%) of Singapore’s fish supply were imported in 2011. About 1/5 (18.88%) of the supply were exported, and

3.48% locally produced.

The proportion of our fish supply that was imported in 2011 (77.66%) was

much higher as compared to that of 2001, which was slightly more than half, at 55.92%.

On the other hand, the proportion of our fish supply that was exported in

2011 (18.88%) was much lower as compared to that of 2001, which was

valued at 40.02%.

The proportion of our fish supply that was locally produced in 2011(3.48%) was slightly lower than that of 2001, which was valued at 4.07%.

While fish wholesale has increased 11.22% from 2010 to 2011, it has seen a decline of 13.6% from 2001 to 2011.

Sources: Fish Supply (Local Production) and Fish Wholesale: Agri-Food & Veterinary

Authority Fish Supply (Imports and Exports): International Enterprise Singapore

http://www.singstat.gov.sg/pubn/reference/yos12/yos2012b.pdf

10

iii) Imports of Fish and Seafood to Singapore (broad category) in

2011

As shown in the previous segment, a huge proportion of our fish supply is

imported, as compared to that which is locally produced.

Fresh fish and seafood, including processed products, can be imported

from any country unless the products are noted as high-risk. Currently, chilled shucked oysters, cockle meat, cooked prawns and crab meat, and live oysters are not permitted for import.

Type of Fish and

Seafood

Volume (in tonnes) Value (in £’000s CIF)

Live 15,353.56 70,836.08

Fresh or Chilled 48,830.00 98,758.33

Frozen 74,623.37 258,983.12

Dried, Salted, in Brine, or

Smoked

8,212.41 68,931.75

Figure 3

Based on Figure 3, frozen fish and seafood were the largest import category in terms of both volume and value in 2011. Fresh or chilled

products were the second largest category, followed by live, and lastly, dried, salted, in brine, or smoked.

Source: International Enterprise Singapore (Singapore Trade Statistics, Import,

Volume 15/ No.12-I, Dec 2011)

11

iv) Exports of Fish and Seafood to Singapore (broad category) in

2011 Type of Fish and

Seafood

Volume (in tonnes) Value (in £’000s CIF)

Live 68.76 1,057.17

Fresh or Chilled 5,257.61 8,878.92

Frozen 27,339.83 121,635.74

Dried, Salted, in Brine, or

Smoked

1,585.80 31,986.68

Figure 4

Based on Figure 4, frozen fish and seafood were the largest export category in terms of volume in 2011. Fresh or chilled products were the second largest category, followed by dried, salted, in brine, or smoked,

and lastly, live.

In terms of value, frozen fish and seafood were also the largest export category in 2011. Dried, salted, in brine, or smoked products were the second largest category, followed by fresh or chilled, and lastly, live.

Source: International Enterprise Singapore (Singapore Trade Statistics, Export,

Volume 15/ No.12-I, Dec 2011)

12

v) Fisheries

Singapore has two fishery ports: the Jurong Fishery Port (JFP) and the

Senoko Fishery Port (SFP).

Opened in 1969, the JFP functions both as a dock for foreign fishing

vessels and Singapore’s largest wholesale centre for fresh fish. Every evening, the port receives an average of 200 to 250 tonnes of seafood

from fishing boats that come from Malaysia, Indonesia and further afield such as China, Taiwan and Australia among others.

The JFP handled about 57,185 tonnes of fish in 2011, the bulk of which comprised fresh fish landed by foreign vessels as well as those imported

by air and road. An average of 2000 to 3000 purchasers, made up of local distributors, hawkers and market traders are in action between the auction hours of 2 to 6am every morning, except Mondays when the

centre is closed. More information about the JFP can be found at: http://www.ava.gov.sg/AgricultureFisheriesSector/FisheryPorts/JurongFish

eryPort/

The SFP began its operations in September 1997. A homebase for local fishing vessels, the port handled locally-produced and imported fish totalling about 9,294 tonnes in 2011. More information about the SFP can

be found at: http://www.ava.gov.sg/AgricultureFisheriesSector/FisheryPorts/SenokoFis

heryPort/ Rank Port Volume of Fish

Handled in 2006

(tonnes)

Volume of Fish

Handled in 2011

(tonnes)

1 Jurong Fishery Port 68,000 57,185

2 Senoko Fishery Port 12,000 9,294

Figure 5

13

As Figure 5 shows, the Jurong Fishery Port handled slightly over 6 times

the volume of fish as compared to the Senoko Fishery Port in 2011. The former handled about 5.6 times the volume of fish as compared to the

latter in 2006. In both years, the Jurong Fishery Port proved superior in terms of fish handling capacity.

It is evident however, that the volume of fish handled by both ports have decreased in 2011 as compared to 2006.

There are 113 seafood processing establishments licensed to manufacture

fishery products in Singapore.

Sources: Singapore Department of Statistics

http://www.singstat.gov.sg/pubn/reference/yos12/yos2012b.pdf

Appetite Publication Jan 2013

14

vi) Aquaculture in Singapore

Foodfish farming

Despite its limited available sea space, Singapore does have foodfish

aquaculture which accounts for about 5% of the country’s fish consumption.

This is mainly from coastal fish farms, which produce marine foodfish

species like groupers, seabass, snappers and milkfish as well as green mussels and crustacean. There are also freshwater foodfish farms

producing snakeheads, tilapia, catfishes and carps and other cyprinids, as well as laboratories that breed fast-growing fish.

While imported fish take three to five days to reach a customer from

the time they are caught, it takes about 12 hours to move them from a local farm to the supermarket shelf. More importantly, foodfish farming

enables Singapore to be less dependent on foreign supply which can easily be affected in the event of an outbreak.

As of 2010, there were 106 fish farms, with plans by the AVA to boost local fish supplies from 4% to 15% by 2015.

Swee Chioh Aquaculture Holding Pte Ltd is a well established foodfish

farming company, having successfully bred 16 different species of foodfish in captivity. Swee Chioh works closely with the Marine

Aquaculture Centre (MAC) of the Agri-Food & Veterinary Authority in its R & D efforts on fish spawning and culture techniques of different foodfish species.

Source: Agri-Food and Veterinary Authority of Singapore

Ornamental fish farming

Singapore is the top exporter of ornamental fish in the world, and is

known not only as the "Ornamental Fish Capital of the World" but also

as a "One-Stop Shop" for global ornamental fish business.

Exporters deal with 500 species of ornamental fish, buying from the

local farms, which account for about 40% of the sales, as well as from farms in the region for re-exporting.

Qian Hu Corporation Limited is a leading "one-stop" ornamental fish

service provider. Their services include breeding of Dragon fish, farming, importing, exporting and distribution of ornamental fish, as well as manufacturing and distribution of aquarium accessories.

Source: Agri-Food and Veterinary Authority of Singapore

15

vii) Post Harvest Technology for Fish

Strategically positioned in the midst of the major fishing countries in Southeast Asia, Singapore has long recognized the opportunity to develop and expand its seafood processing industry.

Since the late 1970s, AVA has been instrumental in turning the fish

processing industry from a predominantly labour intensive, backyard industry into a highly automated and high capacity fish product manufacturing business, catering for both domestic demand and export to

huge seafood markets like the US, EU and Australia.

Notable among the contributions of AVA to the industry was the introduction of the ‘Hazard Analysis and Critical Control Points’ (HACCP) concept to the seafood processing industry, and assisting individual

manufacturers to develop their own HACCP programmes. AVA also played a key role in setting up the Seafood Industries Association, Singapore

(SIAS), which brings together the seafood processing, manufacturing and trading companies in Singapore.

Other areas under AVA’s purview include managing the Marine Fisheries

Research Department (MFRD), carrying out R&D in fisheries post-harvest

technology, organizing of study trips and workshops to upgrade skills and build contacts, and providing consultancy on HACCP, fish processing and

product development.

Source: Agri-Food and Veterinary Authority of Singapore

16

C. Consumer Trends

Singapore has one of the highest rates of fish consumption per capita in Asia, second only to Japan, with fish and meat accounting for around 40 per cent of a typical Singaporean food bill. In general, Singapore's seafood

consumption is approximately 100,000 tonnes per year.

It is notable that the consumption of frozen fish has risen significantly in Singapore, increasing from 17,150 tonnes in 2002 to 34,297 tonnes in 2010, corresponding to the data earlier mentioned that frozen fish were the largest

import category in 2011, compared to fresh/chilled, live, and dried, salted, in brine, or smoked seafood. Demand for fresh/chilled fish has on the other

hand, fallen in the same period between 2002 and 2010.

Reasons behind this trend include 1) advances in freezing technology

whereby the freshness and quality of frozen fish are almost similar to that of fresh and chilled seafood, 2) the increasingly fast-paced Singaporean

lifestyles that make frozen fish a more convenient option, and 3) the lower costs of frozen products.

Seafood is widely available in the Singapore food scene, whether local

hawker stalls, food courts, and restaurants, or the many international dining

places that set up here. Fish, prawns and crabs are among the favourite types of seafood that Singaporeans love to indulge at home or outside on a

fairly regular basis. Salmon, lobsters, and abalone are also well liked, though generally served at high-end restaurants.

Some very well-received seafood imports in the Singapore market include fresh/chilled Malaysian shrimps and prawns, frozen Indonesian shrimps and

prawns, live Indonesian crabs, fresh/chilled Sri Lankan crabs, Norwegian salmon, Indonesian mackerel, frozen Chinese cuttle fish and squid, Australian frozen scallops, frozen Indonesian swordfish.

Singaporeans generally buy fresh/chilled or frozen fish from wet markets or

supermarkets as far as the retail channel is concerned. The former is usually the preferred choice for older Singaporeans, while the latter is more popular among the young and middle aged Singaporeans, who see supermarkets as

offering a quicker and cleaner shopping experience.

As a food and shopping paradise both in terms of local and international brands, Singapore is home to consumers who are generally well exposed and informed. They are mostly price and/or quality conscious.

17

The foodservice channels have demand for live, fresh/chilled, and/or frozen

seafood. Demand varies with the target market and the type of outlet. High-end Asian outlets prefer live, if not fresh/chilled fish and shellfish. Western

fine dining establishments aim to offer fresh/chilled seafood as much as possible, while mid priced outlets are more likely to use frozen products.

Dried, salted and smoked fish and seafood are available at a range of channels, from high end outlets with demand for smoked wild salmon to low

end food stalls with demand for dried anchovies (known as Ikan Bilis locally).

18

D. UK Share and Export Opportunities

This segment will contain the following parts:

i. Imports of Fish and Seafood to Singapore in 2011

ii. Imports of UK Fish and Seafood to Singapore in 2011

iii. Imports of UK Fish and Seafood to Singapore in 2011 (Fresh/Chilled

Only)

iv. Imports of UK Fish and Seafood to Singapore in 2011 (Frozen Only)

v. Imports of UK Fish and Seafood to Singapore in 2011 (Live Only)

vi. Imports of UK Fish and Seafood to Singapore in 2011 (Smoked Only)

vii. Potential for UK Export Opportunities by Species

19

i) Imports of Fish and Seafood to Singapore in 2011

Country Volume (in tonnes)

Rank Value (in £’000s

CIF)

Rank

Indonesia 83,391.63 1 72,284.55 1

Malaysia 38,191.58 2 65,748.03 2

Vietnam 18,216.49 3 43,221.48 3

Thailand 12,993.76 4 20,043.54 8

Taiwan 8,486.79 5 23,944.76 7

China 7,592.90 6 24,253.92 6

Norway 6,587.38 7 32,885.71 4

India 6,231.37 8 17,888.52 9

Myanmar

(Burma)

3,599.85 9 7,200.87 14

Japan 1,800.30 10 26,356.06 5

USA 1,516.47 11 13,282.53 11

Australia 1,468.34 12 17,464.94 10

Chile 1,162.54 13 6,536.77 15

Philippines 1,124.02 14 8,373.98 12

New Zealand 1,056.36 15 4,703.63 16

South Korea 1,037.17 16 8,020.57 13

United Kingdom 343.41 17 2,502.29 17

Figure 6

As Figure 6 shows, the top 3 countries that Singapore imported seafood from

in terms of volume and value in 2011 were Indonesia, Malaysia and Vietnam.

The 4th and 5th countries that Singapore imported seafood from in terms of

volume in 2011 were Thailand and Taiwan respectively, thriving emerging economies that are situated relatively near to Singapore.

In terms of value however, the 4th and 5th countries that Singapore imported seafood from in 2011 were Norway and Japan, both of which are developed

economies and situated further away from Singapore than Thailand and Taiwan.

Source: International Enterprise Singapore (Singapore Trade Statistics, Import, Volume

15/ No.12-I, Dec 2011)

20

ii) Imports of UK Fish and Seafood to Singapore in 2011

HS Code Item Volume (in tonnes) Value (in £’000s

CIF)

03021200 Salmon of the

Pacific Atlantic &

Danube Species

Fresh or Chilled Excl

Livers & Roes

0.60 7.63

03021900 Other Salmon Fresh

or Chilled Excl Livers

& Roes

12.33 99.67

03022200 Plaice Fresh or

Chilled Excl Livers &

Roes

0.02 0.51

03022300 Sole Fresh or Chilled

Excl Livers & Roes

0.03 1.02

03026400 Mackerel Fresh or

Chilled Excl Livers &

Roes

0.05 0.51

03026910 Other Marine Fish

Fresh or Chilled Excl

Livers & Roes

0.06 1.53

03031900 Other Pacific Salmon

Frozen Excl Livers &

Roes

11.90 135.26

03036200 Toothfish Frozen

Excl Livers & Roes

53.67 864.45

03037400 Mackerel Frozen

Excl Livers & Roes

75.10 155.60

03037500 Dogfish & Other

Sharks Frozen Excl

Livers & Roes

6.02 39.15

03041900 Other Fillet Fresh or

Chilled

0.03 0.51

03042900 Other Frozen Fillets

& Fish Meat

14.35 148.48

03049900 Other Fish Meat

Frozen

0.89 7.63

03054100 Salmon of the

Pacific Atlantic &

Danube Species

Smoked

17.93 220.18

03054900 Other Smoked Fish

Incl Fillets

0.48 3.56

03061200 Lobsters Excl Rock

Lobsters Frozen

0.01 0.51

03061300 Shrimps & Prawns

Frozen

0.01 0.00

03061900 Other Crustaceans

Incl Flours Meals &

Pellets Frozen Fit for

Human

Consumption

0.54 9.15

03062220 Other Lobsters Live 3.91 65.60

21

Excl Breeding

03062320 Other Shrimps &

Prawns Live Excl

Breeding

0.06 1.53

03062410 Crabs Live 3.25 19.32

03071010 Oysters Live 1.65 14.24

03071020 Oysters Fresh

Chilled or Frozen

0.00 0.00

03072110 Scallops Incl Queen

Scallops Live

2.24 17.80

03072120 Scallops Incl Queen

Scallops Fresh or

Chilled

0.29 3.56

03072910 Scallops Incl Queen

Scallops Frozen

10.01 139.84

03079110 Other Molluscs Incl

Aquatic

Invertebrates Live

Fit for Human

Consumption

127.97 1,026.67

03079910 Other Molluscs Incl

Aquatic

Invertebrates Fit for

Human

Consumption Frozen

0.01 0.00

TOTAL 343.41 2,502.29

Figure 7

As Figure 7 shows, the top three seafood products from the UK in terms of

volume in 2011 were 1) Other Molluscs including aquatic invertebrates live fit for human consumption, 2) Mackerel frozen excluding livers and roes,

and 3) Toothfish frozen excl livers & roes.

In terms of value, the top three seafood products from the UK in 2011

were 1) Other Molluscs including aquatic invertebrates live fit for human consumption, 2) Toothfish frozen excl livers & roes, and 3) Salmon of the

Pacific Atlantic & Danube species smoked.

Source: International Enterprise Singapore (Singapore Trade Statistics, Import,

Volume 15/ No.12-I, Dec 2011)

22

iii) Imports of UK Fish and Seafood to Singapore in 2011 (Fresh/Chilled Only)

HS Code Item Volume (in

tonnes)

Rank Value (£’000s)

Rank

03021900

Other Salmon Fresh

or Chilled Excl Livers

& Roes

12.33 1 99.67 1

03021200

Salmon of the Pacific

Atlantic & Danube

Species Fresh or

Chilled Excl Livers &

Roes

0.60 2 7.63 2

03072120 Scallops Incl Queen

Scallops Fresh or

Chilled

0.29 3 3.56 3

03026910 Other Marine Fish

Fresh or Chilled Excl

Livers & Roes

0.06 4 1.53 4

03026400 Mackerel Fresh or

Chilled Excl Livers &

Roes

0.05 5 0.51 6

03022300 Sole Fresh or Chilled

Excl Livers & Roes

0.03 5 1.02 5

03041900 Other Fillet Fresh or

Chilled

0.03 5 0.51 6

03022200 Plaice Fresh or Chilled

Excl Livers & Roes

0.02 6 0.51 6

03071020 Oysters Fresh Chilled

or Frozen

0.00 7 0.00 7

Figure 8

As Figure 8 shows, salmon were ranked the first in terms of fresh/chilled

seafood products from the UK in 2011, as compared to other categories

such as scallops, mackerel, plaice and oysters.

Source: International Enterprise Singapore (Singapore Trade Statistics, Import, Volume 15/ No.12-I, Dec 2011)

23

iv) Imports of UK Fish and Seafood to Singapore in 2011 (Frozen Only)

HS Code Item Volume

(in tonnes)

Rank Value

(£’000s)

Rank

03037400 Mackerel Frozen Excl

Livers & Roes

75.10 1 155.60 2

03036200 Toothfish Frozen Excl

Livers & Roes

53.67 2 864.45 1

03042900 Other Frozen Fillets &

Fish Meat

14.35 3 148.48 3

03031900 Other Pacific Salmon

Frozen Excl Livers &

Roes

11.90 4 135.26 5

03072910

Scallops Incl Queen

Scallops Frozen

10.01 5 139.84 4

03037500 Dogfish & Other

Sharks Frozen Excl

Livers & Roes

6.02 6 39.15 6

03049900 Other Fish Meat

Frozen

0.89 7 7.63 8

03061900 Other Crustaceans

Incl Flours Meals &

Pellets Frozen Fit for

Human Consumption

0.54 8 9.15 7

03061200 Lobsters Excl Rock

Lobsters Frozen

0.01 9 0.51 9

03061300 Shrimps & Prawns

Frozen

0.01 10 0.00 10

03079910 Other Molluscs Incl

Aquatic Invertebrates

Fit for Human

Consumption Frozen

0.01 10 0.00 10

Figure 9

As Figure 9 shows, mackerels were ranked the first volume wise in terms

of frozen seafood products from the UK in 2011. Toothfish on the other

hand, were ranked the first in terms of value. This was compared to other

categories such as salmon, scallops, dogfish, lobsters, shrimps and

prawns.

Source: International Enterprise Singapore (Singapore Trade Statistics, Import, Volume

15/ No.12-I, Dec 2011)

24

v) Imports of UK Fish and Seafood to Singapore in 2011 (Live Only)

HS Code Item Volume

(in tonnes)

Rank Value

(£’000s)

Rank

03079110 Other Molluscs Incl

Aquatic Invertebrates

Live Fit for Human

Consumption

127.97 1 1,026.67 1

03062220 Other Lobsters Live

Excl Breeding

3.91 2 65.60 2

03062410 Crabs Live 3.25 3 19.32 3

03072110 Scallops Incl Queen

Scallops Live

2.24 4 17.80 4

03071010 Oysters Live 1.65 5 14.24 5

03062320 Other Shrimps &

Prawns Live Excl

Breeding

0.06 6 1.53 6

Figure 10

As figure 10 shows, molluscs were ranked the first in terms of live seafood

products from the UK in 2011, as compared to other categories such as

lobsters, crabs, scallops, oysters, shrimps and prawns.

Source: International Enterprise Singapore (Singapore Trade Statistics, Import, Volume

15/ No.12-I, Dec 2011)

25

vi) Imports of UK Fish and Seafood to Singapore in 2011

(Smoked Only)

HS Code Item Volume (in

tonnes)

Rank Value (£’000s)

Rank

03054100 Salmon of the Pacific

Atlantic & Danube

Species Smoked

17.93 1 220.18 1

03054900 Other Smoked Fish

Incl Fillets

0.48 2 3.56 2

Figure 11

As figure 11 shows, salmon were ranked first in terms of smoked seafood

products from the UK in 2011, as compared to other smoked fish including

fillets.

Source: International Enterprise Singapore (Singapore Trade Statistics, Import, Volume

15/ No.12-I, Dec 2011)

vii) Potential for UK Export Opportunities by Species

Based on the above data of this segment, we gather that the potential for

UK Export Opportunities is high for the following products:

- Molluscs (live) - Mackerel (frozen)

- Toothfish (frozen) - Salmon (smoked and fresh/chilled)

26

Doing Business Profile

E. The Supply Structure

27

Singapore has about 130 licensed fish merchants based at its two fishery ports. At the Jurong Fishery Port (JFP), there are approximately 103 fish

merchants licensed by the AVA conducting wholesale fish business. On average 2,000 to 3,000 fish retailers, fish processors and institutional buyers come to JFP's wholesale fish market daily to buy fish. Fish are displayed for

sale in the market lots and their freshness is maintained by the crushed ice in the fish box. Fish are sold by wholesale in bulk at a negotiated price. An

average of 200-250 tonnes of fresh fish is handled each day. Peak hours of sale are from 0200 hrs to 0600 hrs, except on Monday mornings when the market is closed.

At the Senoko Fishery Port (SFP), there are 25 AVA-licensed fish merchants.

About half of the fish handled at SFP are supply landed by local fish trawlers, in-shore vessels, kelongs and fish farms, while the rest of the fish are imported. Some 700 to 1000 fish retailers, fish processors and institutional

buyers come daily to purchase fish. Business transactions take place daily from 0200 hrs to 0600 hrs, except on Monday mornings when the market is

closed.

In addition, there are 5 processing establishments, 1 coldstore and 1factory vessel that are approved to export seafood products to the EU countries.

There are also 119 floating fish farms covering 93 hectares of coastal waters, culturing high-valued fish like groupers and sea bass for the live fish market

and supermarkets.

Sources:

Agri-Food and Veterinary Authority of Singapore Appetite Publication Jan 2013

28

F. The Retail Channel

The retail channel in Singapore’s context comprises of supermarkets, wet markets, specialty stores, mini marts and petrol kiosks.

Households with higher incomes tend to purchase their groceries from

premium supermarkets (Fairprice Finest, Dairy Farm’s Cold Storage or Market

Place) and specialty stores, while lower income households generally buy from wet markets, the more affordable supermarkets (Fairprice Supermarket,

Dairy Farm’s Shop ‘N’ Save or Giant, Sheng Siong), or mini marts. As Singapore is a very small country and supermarkets are well spread out

and easily accessed, Singaporean consumers are more likely to purchase their groceries in person rather than online, especially fresh produce. NTUC

Fairprice and Cold Storage do however, offer online shopping. Older consumers still prefer to purchase seafood (mainly fish and prawns for

home cooking) products from wet markets as they perceive them to be fresher; however, an increasing number of consumers are going to

supermarkets for greater convenience.

With almost 50% market share, the largest supermarket chain in Singapore is NTUC FairPrice, followed by Cold Storage (part of the Dairy Farm Group), Sheng Siong Supermarket and lastly, Prime Supermarket. Carrefour closed

its operations and its two outlets in Singapore in 2012.

NTUC Fairprice

NTUC Fairprice Co-operative Ltd was founded by the labour movement in 1973 with a social mission to moderate the cost of living in Singapore.

They are the largest supermarket chain in Singapore, with a total Group Revenue of £1.32 billion in FY 2011/2012.

As of July 2012, NTUC FairPrice had a network of 254 outlets. This network comprised 94 FairPrice supermarkets, 9 FairPrice Finest

(speciality stores), 5 FairPrice Xtra (hypermarkets), 24 FairPrice Xpress and 123 Cheers convenience stores. Fairprice Xpress and Cheers stores operate in all Esso and Mobil petrol stations in Singapore.

NTUC Fairprice are looking to open their sixth hypermarket in the western

part of Singapore and also their first hypermarket in Vietnam in 2013.

29

Cold Storage

Cold Storage are managed by Dairy Farm, leading pan-Asian retailer that operate supermarkets, hypermarkets, health and beauty stores,

convenience stores, home furnishings stores and restaurants under well-known brands.

Established in 1903, Cold Storage are the second largest supermarket chain in Singapore. They are also the country’s oldest established

supermarket operator with over 100 years of experience, setting numerous industry standards.

In October 2011, Cold Storage joined the World Wide Fund (WWF) Singapore Sustainable Seafood Group, which provides businesses with the

guidance they need to source and promote sustainable seafood, without endangering the marine environment. As the first supermarket in Singapore to implement a “no shark fins policy,” they are also the nation’s

first retail food chain to source and offer WWF-recommended sustainable seafood and offer Marine Stewardship Council (MSC)-certified seafood

such as the hake fillet from South Africa.

As of 2012, Dairy Farm’s presence included the following banners:

- 48 Cold Storage supermarkets - 7 Market Place specialty supermarkets

- 60 Shop N Save supermarkets - 7 Giant hypermarkets

- 147 Guardian Pharmacy stores - 561 ‘7 Eleven’ convenience stores (Of these 561, 57 are located at

Shell petrol stations)

Sheng Siong Supermarket

Established in 1985, Sheng Siong Supermarket, though capturing the

smallest market share vis-à-vis NTUC Fairprice and Cold Storage, is a fast growing retailer with over £294.12m in revenue for FY 2011.

As of today, Sheng Siong own 33 stores in Singapore, primarily located in

the heartlands of Singapore. They further plan to open at least 50 stores

in Malaysia.

Prime Supermarket

There are currently 17 Prime Supermarket outlets in Singapore. Like Sheng Siong, these stores are primarily located in the heartlands of

Singapore.

30

Revenue

growth of

the top

three

retailers

(£m)

2006 2007 2008 2009 2010

NTUC

Fairprice

673.10 727.16 801.55 888.91 945.35

Dairy Farm 749.07 772.61 801.55 865.52 920.49

Sheng Siong 195.42 279.32 310.29 317.97 319.54

Figure 12

Source: Sheng Siong’s IPO Prospectus

As Figure 12 shows, NTUC Fairprice reflected a revenue growth of 40.45%

from 2006 to 2010. Cold Storage’s revenue growth in the same time frame

was 22.89%, while that of Sheng Siong was 63.52%, the highest among all 3

retailers. While Sheng Siong has the smallest market share compared to the

other two players, it showed the highest revenue growth, boding well for its

continued presence in the local supermarket scene.

Sources:

Cold Storage Supermarket http://www.coldstorage.com.sg

Fairprice Supermarket

http://www.fairprice.com.sg Prime Supermarket

http://www.primesupermarket.com

Sheng Siong Supermarket http://www.shengsiong.com.sg

31

G. The Foodservice Channel

Food & Beverage services comprise establishments engaged in the sale of prepared food and drinks for immediate consumption. The various types of food and beverage services in Singapore are:

Restaurants

Fast food restaurants

Food caterers

Others - Cafes, coffee houses and snack bars - Food courts, coffee shops and eating houses (with mainly food &

beverage income) - Pubs (including bars)

- Other restaurants, cafes and bars - Canteens

Hawkers and stall-holders which are not registered with the Accounting & Corporate Regulatory Authority (ACRA) are excluded. Also excluded from

the group are eating and drinking places which operate in connection with the provision of lodging.

As Singapore is largely known as a food paradise, dining out is very popular

among the locals, whether in hawker centres, coffee shops, food courts, fast

food chains, casual or premium restaurants.

As figure 13 below shows, the foodservice industry is large, with approximately 6,500 establishments and an employment base of around 101,600 workers in 2011. This represented an average of about 16 workers

per establishment.

Restaurants numbered 2,137 outlets in 2011 as compared to 2,272 in 2010, reflecting a 1.98% year-on-year increase. The higher end restaurants generally have demand for imported temperate/subtropical fish and shellfish.

Most restaurants procure their supplies from wholesalers that deliver their

live or fresh/chilled seafood on a daily basis. There are traditional Chinese restaurants such as Jumbo Seafood, Long Beach Seafood, and Tung Lok Seafood, local western diners like Fish and Co, as well as franchised chains

such as Manhattan Fish Market from the USA and Smiths Fish and Chips from the UK.

32

• Singapore also has a sizeable catering industry comprising 328 establishments in 2011, as shown in figure 12. This is compared to the 299

establishments in 2010, reflecting about 9.70% year-on-year increase. The catering industry also revealed an operating surplus of £77.29m in 2011.

Some well-established companies include Four Seasons Catering, Stamford Catering and Neo Garden Catering.

Key Indicators of Food & Beverage Services, 2009-2011

F&B Services Establishments (Number) Employment (Number)

Operating Receipts (£ Million)

2009 2010 2011 2009 2010 2011 2009 2010 2011

Total F&B Services

5,969 6,174 6,453 89,572 92,425 101,581 2,868.45 3,224.40 3,614.93

Restaurants 2,091 2,272 2,317 36,910 37,603 43,483 1,058.70 1,211.76 1,350.07

Fast Food Outlets

335 374 400 12,930 13,139 13,684 367.65 411.89 455.11

Food Caterers 289 299 328 5,186 5,728 6,193 319.85 359.00 402.22

Others 3,254 3,229 3,408 34,456 35,955 38,221 1,122.26 1,242.27 1,407.02

F&B Services Operating Expenditure (£ Million)

Operating Surplus (£ Million)

Value Added (£ Million)

2009 2010 2011 2009 2010 2011 2009 2010 2011

Total F&B Services

2,731.66 3,063.71 3,447.63 226.79 254.25 269.51 1,009.37 1,132.43 1,265.15

Restaurants 1,031.75 1,182.26 1,321.59 62.55 69.66 67.12 399.68 450.02 512.57

Fast Food Outlets

351.88 397.14 441.38 28.48 27.46 29.49 113.40 125.09 138.82

Food Caterers 272.56 297.98 333.07 54.92 69.16 77.29 139.84 152.55 167.30

Others 1,075.48 1,186.33 1,352.10 80.85 87.46 96.11 356.97 404.77 445.95

Figure 13

Total operating receipts generated by the F&B services industry was

£3,614.93 million in 2011, a rise of 12.1 %over the previous year. On a per establishment basis, operating receipts also increased 7.3% to £0.56 million in

2011. Total operating expenditure incurred amounted to £3,447.63 million in 2011,

12.5% higher than the total of £3,063.71 million in 2010. Operating expenditure per establishment also rose 7.7% to £0.56 million in 2011.

Total operating surplus of the F&B services industry stood at £269.51 million

in 2011, a growth of 6.0% compared to 2010. On a per establishment basis,

operating surplus went up 1.5% to £41,798.70 in 2011.

Total value added recorded by the industry increased 11.7% to £1265.15 million in 2011. Value added per establishment rose 6.9% to £196,026.75 in 2011.

33

Definition of Terms

‘Establishment’ refers to a business or organisation unit engaged in one activity and

operating in a single location.

‘Employment’ refers to paid employees, working directors, working proprietors/partners

and unpaid family workers. It includes those temporarily away on medical or casual

leave.

‘Operating Receipts’ includes those arising from services rendered, commission charges,

sale of goods and rental of premises, machinery and equipment.

‘Operating Expenditure’ refers to all current expenses connected to the business

operations such as purchases of goods and services, remuneration, utilities and

professional services. It includes depreciation and adjustment for changes in inventory.

‘Operating Surplus’ refers to the amount of operating receipts less operating expenditure

plus depreciation of fixed assets.

‘Value Added’ (At Basic Price) comprises operating surplus, remuneration and taxes (less

subsidies) on production.

Source: Singapore Department of Statistics

34

H. Key Regulations and Tariffs

The Agri-Food and Veterinary Authority of Singapore (AVA) is the government organization that oversees and regulates the import, export and transhipment of all food products. The AVA classifies food products into seven groups: meat, fish,

fresh fruit, fresh vegetables, fresh eggs, processed eggs, and processed food. The imported food products are regulated and administered under relevant food

safety acts and regulations.

AVA Definition of ‘Fish’

Fish products include any of the varieties of marine, brackish water or fresh water fishes, crustacea, aquatic mollusca, marine sponges, trepang and any other form of aquatic life and their young and eggs. Fish products here do not

include the ornamental varieties. Fish products may be in chilled, frozen, processed or canned forms.

Relevant Legislations There are 3 legislations that relate to fish. They are:

The Wholesome Meat and Fish Act

The Sale of Food Act The Fisheries Act

i. The Wholesome Meat and Fish Act

The Wholesome Meat and Fish Act is an Act to regulate the slaughtering of animals and the processing, packing, inspection, import, distribution, sale,

transhipment and export of meat products and fish products and for matters connected therewith.

Subsidiary Legislation include:

Wholesome Meat and Fish (Fees) Rules 2006

Wholesome Meat and Fish (Import, Export and Transhipment) Rules Wholesome Meat and Fish (Processing Establishments And Cold Stores)

Rules

Wholesome Meat and Fish (Slaughter-Houses) Rules Wholesome Meat and Fish (Transportation Of Meat Products) Rules

Wholesome Meat and Fish (Wholesale Market) Rules

35

ii. The Sale of Food Act

The Sale of Food Act is an Act for securing wholesomeness and purity of

food and fixing standards for the same; for preventing the sale or other disposition, or the use of articles dangerous or injurious to health; to

provide for the regulation of food establishments. Subsidiary Legislation

Food Regulations

Sale of Food (Prohibition of Chewing Gum) Regulations

Sale of Food (Composition of Offences) Regulations

Sale of Food (Fees) Regulations Sale of Food (Food Establishments) Regulations

iii. The Fisheries Act The Fisheries Act is an Act for the protection and conservation of fisheries,

and to make provision for the control of fishing, the control of the marketing and distribution of fish and the use and control of fishing ports

and harbours, for measures pertaining to the general welfare and improvement of the fishing industry in Singapore and for purposes incidental thereto.

Subsidiary Legislation Fisheries (Fishing Vessels) Rules

Fisheries (Piranha) Rules

Fisheries (Fishing Harbour) Rules

Fisheries (Fishing Gear) Rules

Fisheries (Fish Culture Farms) Rules

Fisheries (Composition of Offences) Rules Exemption from Rule 14(1)(f) of Fisheries (Fishing Harbour) Rules

36

Regulatory Information

Importers and exporters of fish & fish products are required to apply for

an AVA licence for Import/Export and Transhipment of Meat Products and Fish Products. The licence fee is about £42.70 per annum.

In addition, an import permit issued by AVA is required for every consignment of fish products. The cargo clearance permit approved by

AVA (Seafood) in the TradeNet® system serves an AVA import/export permit.

i. When declaring a cargo clearance permit in the TradeNet® system, the product description must be clearly indicated and the product code,

product quantity and product unit of measurement must be keyed into the following relevant fields: a. CA/SC Product Code field - e.g. FFL0GP2R for live

red Grouper b. CA/SC Product Quantity field - e.g. 1.00

c. CA/SC Product Unit of Quantity field - e.g. TNE d. CA/SC Code 1 e.g. ID99999 (establishment/prefectural code)

Fish & fish products may be imported from any country, subject to the

following restrictions:

a. The import of chilled shucked raw oyster, chilled blood cockle meat, chilled cooked prawn/shrimp

and chilled crabmeat is prohibited for food safety reasons. b. Live oysters may only be imported from countries,

which meet AVA's requirements for a shellfish sanitation programme. The countries currently

approved for such exports are Australia, Canada, France, Ireland, the Netherlands, New Zealand, United Kingdom and USA.

Each consignment of live/frozen oysters, frozen blood cockle meat, frozen cooked prawns or frozen raw/cooked crab meat, must be accompanied by a health certificate issued by the relevant authority of the exporting

country, certifying the requirements as required by AVA.

Import of the following fish species, including their parts or derivatives must be accompanied by a CITES permit from the importing and exporting countries because these species are listed under CITES.

37

i) CITES Appendix II:

a. Sturgeon (Acipenseriformes species) b. Whale Shark (Rhincodon typus)

c. Basking Shark (Cetorrhinus maximus) d. Seahorses (Hippocampus species) e. Great White Shark (Carcharodon carcharias)

f. Humphead Wrasse (Cheilinus undulates) g. Mediterranean Date Mussel

(Lithophaga lithophaga)

ii) CITES Appendix III h. Rock Sea Cucumber (sotichopus fuscus) from Ecuador.

Upon import, AVA reserves the right to inspect any imported consignment

of fish and fish products. High-risk products such as frozen blood cockle meat, frozen cooked prawns and frozen raw/cooked crabmeat and frozen

oysters will be subjected to mandatory inspection by AVA before sale. These products will be placed on "hold and test" pending the outcome of

the laboratory analysis.

Please visit AVA’s website for more details on the import/export

requirements of fish and fish products under import, export and transhipment of food and the list of product codes under resources.

Refer to link for list of AVA (Seafood) product codes.

Source: Customs Singapore

38

I. Tips and Useful Links

Government Bodies:

Agri-food and Veterinary Authority of Singapore http://www.ava.gov.sg

Accounting and Corporate Regulatory Authority Singapore

http://www.acra.gov.sg/ Customs Singapore

http://www.customs.gov.sg

International Enterprise Singapore www.iesingapore.gov.sg/

Singapore Department of Statistics www.singstat.gov.sg/

Fish-related Associations Seafood Industry Association, Singapore

http://www.seafoodsingapore.org/

Singapore Fish Merchant’s General Association http://www.fishmerchant.org.sg/

Marine Stewardship Council

www.msc.org

The Marine Stewardship Council (MSC) are an international non-profit standards

programme set up in 1999 to help transform the seafood market to a sustainable basis. The MSC run the only certification and ecolabelling programme for wild-capture fisheries consistent with the ISEAL Code of Good

Practice for Setting Social and Environmental Standards and the United Nations Food and Agricultural Organisation Guidelines for the Eco-labelling of Fish and

Fishery Products from Marine Capture Fisheries. Worldwide, more than 15,000 seafood products, which can be traced back to the certified sustainable fisheries, bear the blue MSC ecolabel. Headquartered in the UK, they have an office

in Singapore that oversees the Asia Pacific region.

Others

World Wide Fund (WWF) Singapore – The Singapore Seafood Guide

http://www.wwf.sg/take_action/sustainable_seafood/seafood_guide/

39

III. UKTI HEADSTART

Should you now be at the stage here you wish to consider an initial, exploratory

presence in Southeast Asia, you may be interested in our Headstart initiative.

What is Headstart?

The scheme offers:

facilitated access to local business networks and social events;

introductions with established local UK companies; the opportunity to meet with the Executive Director of the local Chamber;

ongoing access to Chamber staff; access to office space in the local British Chamber of Commerce and

signposting to longer-term office space in the market.

What are the benefits of the scheme?

Practical on-the-ground assistance to new entrants, those unfamiliar with the market can benefit from the expertise and contacts of companies or key individuals who have experience of the local issues.

Which markets?

Currently:

Singapore Thailand Indonesia

Following this initial pilot scheme, Headstart could be rolled out to other markets in the region.

Who is organising the scheme?

The scheme is offered by the local British Chambers of Commerce in association

with UKTI.

How much will it cost?

Prices will vary according to the offer by the local Chamber, but will range from between £220 to £500 for up to a year of support.

How do I qualify?

The scheme is only open to UK SMEs – that is companies with a maximum of

250 staff and maximum annual turnover of up to £25million.

40

The facilities offered in-country by each Chamber are on the basis of receiving at least 2 weeks’ advance notice and availability of Chamber resource. Separate

terms and charges may apply under certain circumstances.

For further information, kindly visit:

http://www.ukti.gov.uk/pt_pt/uktihome/item/374640.html?null

41

V. CONTRIBUTORS

Listed below are the trade officers that contributed to this activity:

Valsa Panicker, Senior Trade & Investment Attaché DID: +65 64244311

E-mail: valsa.panicker@fco.gov.uk

Amanda Leong, Trade & Investment Officer DID: +65 64244307 E-mail: amanda.leong@fco.gov.uk

Address: UK Trade & Investment British High Commission

100 Tanglin Road Singapore 247919

Tel: +65 6424 4200

Fax: +65 6424 4356 Website: www.ukinsingapore.fco.gov.uk