SPEECH BY MR. THARMAN SHANMUGARATNAM, MINISTER FOR EDUCATION, AT KIKKOMAN SINGAPORE 20TH ANNIVERSARY DINNER ON 6 OCTOBER 2005, AT 7 PM AT SHANGRI-LA HOTEL

SPEECH BY MR. THARMAN SHANMUGARATNAM, MINISTER FOR EDUCATION, AT KIKKOMAN SINGAPORE 20TH ANNIVERSARY DINNER ON 6 OCTOBER 2005, AT 7 PM AT SHANGRI-LA HOTEL

1. It is with great pleasure that I join you this evening for the 20th anniversary celebrations of Kikkoman Singapore. Kikkoman has grown to be a household brand name in Asia and across the globe. I congratulate the leaders, management and staff of Kikkoman for attaining this position of global leadership.

2. Kikkoman has been a committed friend of Singapore. Kikkoman Singapore, set up in 1983, was the group’s second overseas plant after its plant in the US. Since then, Kikkoman Singapore has been instrumental in expanding the group’s presence in the Asia Pacific soy sauce market. It also brought valuable expertise in fermentation technology into Singapore.

3. Kikkoman exemplifies the enduring strengths of a traditional company, in a traditional industry, that has not only survived but thrived. It has done so by diversifying into new areas and moving upstream, while retaining a clear focus on its core competencies. It has moved well beyond a saturated home market for its traditional products, by moving into higher value products like organic soy sauce and high value wines, venturing into new flavourings using soy derivatives (like tsuyu and tare) , customizing its products to break into new foreign markets, and investing in biotechnology in order to create new products and processes. It has also moved into services related to food and health. It is now, as it prides itself, a global company with a Japanese soul.

4. A Harvard Business School professor, John Davis, highlighted Kikkoman as one of the few family firms in the world which have not succumbed to the old rule that wealth is destroyed in three generations. He attributed this to Kikkoman’s boldness in moving into new areas rather than seeking to survive in traditional fields, as well as its reliance on a strong core competency - Kikkoman knows a lot about yeast, which is a common factor in most of its activities.

5. Kikkoman’s blend of tradition with the boldness to keep looking ahead is also exemplified by Mr Mogi himself, whose roots go back to the founding family in the 17th century. I know he is known as a leader with the confidence to take risks and embrace the future. I also learnt today however that Mr Mogi is not just a leader in Japanese industry, but also has a deep interest in education, as Deputy Chairman of the Central Education Commission in Japan.

6. Kikkoman has done well in its Singapore operations. It is upsizing its manufacturing operations in Singapore, not downsizing. The Singapore plant recently expanded its operations with the aim of doubling its production capacity by 2007. I understand the Singapore plant’s success in manufacturing has a lot to do with the strict quality standards that Kikkoman has upheld globally. When EDB staff were taken on a tour of the Kikkoman plant earlier this year, they were impressed with Kikkoman's dedication to continue with the traditional process of brewing soya sauce naturally over six months, despite the practices adopted by several of their competitors abroad who use chemical products to produce soya sauce more quickly. Singapore’s high safety and quality standards and efficient operating environment have been well aligned with Kikkoman's philosophy and objectives in manufacturing production.

7. However, operating efficiency and standards are usually the outcome rather than the source of the firm’s strengths. Kikkoman’s strength has been in its ability to keep motivating and upgrading its employees. It has continually striven to maintain the commitment of all its employees, within the tight-knit Kikkoman family.

8. Kikkoman’s growing investment in Singapore is also testimony to the strong prospects for Singapore’s food industry. I elaborated earlier this afternoon at the opening of the Kikkoman-NUS R&D laboratory on why we are going about developing the food industry in Singapore, and how we are doing so based on the four cornerstones of trust, science, innovation and connectivity. Our international reputation for trusted manufacturing practices and food certification, our efforts to groom manpower with the skills required by the food industry, our R&D capabilities and openness to talent from all over the world, and our connectivity to regional and global markets, will help position Singapore amongst the leading players in the rapidly growing Asian market for health and nutrition.

9. We will work continuously on all these fronts to stake our position amongst the leaders in food and nutrition. We are committed to keeping Singapore competitive so that companies like Kikkoman can stay ahead of their competitors.

10. The opening of the Kikkoman-NUS R&D lab this afternoon further strengthens Kikkoman’s presence in Singapore. I am very pleased that Kikkoman sees great value in collaborative and parallel research with NUS, bridging basic science and applied research.

11. I am confident that Kikkoman’s partnership with Singapore, in manufacturing as well as R&D, will grow from strength to strength in the years ahead. Again, my heartiest congratulations to the management and staff of Kikkoman Singapore, and to Kikkoman’s leadership in Japan for its willingness to engage in a long term relationship with us in Singapore.