The Food and Beverage (F&B) sector plays an important role in growing Singapore’s economy. The industry contributed as much as S$14.4 billion (US$10.6 billion) to the city’s Gross Domestic Product (GDP) in 20161.
Based on the study by the Food Industry Asia Report, the food distribution sector plays an important role in the F&B industry1. Activities governing Singapore’s 6,700 food service locations that include restaurants, hawker stalls and coffee shops, along with retail and wholesale of food, form a small but significant contribution to Singapore’s GDP1. In 2011, there were a total of 6,464 establishments in the F&B industry. The figure grew to 7,679 in 20163. This figure included coffee shops (52.6 per cent), restaurants (35.3 per cent), fast food outlets (6.2 per cent), and food caterers (5.9 per cent) 3. These establishments offer a variety of options in their menu to patrons using chicken, beef, duck and seafood.
The Singapore government has invested S$12 million (US$8.85 million) under the Capabilities Development Program (CDP) since 20074. The objective of this initiative is to enhance capabilities of local F&B entities. As there are high costs involved in running an F&B enterprise, the government aims to provide assistance through grants and financial aids to encourage local business to open and expand in Singapore. Through the CDP scheme, F&B businesses can save up to 70 per cent of costs with subsidies4.
The F&B industry accounts for an average of 14 per cent of tourists’ expenditures during their stay in Singapore4. The Singapore government has taken numerous efforts to boost the country’s reputation as the gastronomical capital in Asia by actively supporting various culinary events such as Singapore Food Festival, World Gourmet Summit and Epicurean Market4. Each of these events showcase foods from around the region, gourmet and local cuisines such as chicken rice, dumpling noodles, roasted duck rice and many more.
References:
1. Singapore Business Review. (2016). Here’s why Singapore can depend on F&B industry for economic growth. [online] Available at: http://sbr.com.sg/food-beverage/news/heres-why-singapore-can-depend-fb-industry-economic-growth
2. SPRING Singapore. (2017). Statistics: Food and Beverage Services. [online] Available at: https://www.spring.gov.sg/Developing-Industries/FBS/Pages/statistics-food-beverage-services.aspx
3. SingStat. (2017). Food and Beverage Industry in Singapore in 2016. [online] Available at: http://www.singstat.gov.sg/statistics/visualising-data/infographics/food-and-beverage
4. Guide Me Singapore. (2017). Guide to Incentives for Food Industry in Singapore. [online] Available at: https://www.guidemesingapore.com/business-guides/industry-guides/restaurant-and-food-industry/guide-to-incentives-for-food-industry-in-singapore