Not perfect, but still a role model

By Tom Davenport

WE OFTEN talk about judgment with regard to individuals, but organisations and countries can have good and bad judgment as well. I was recently in Singapore. Every time I visit, it has struck me as a country with good judgment.

Singapore has just celebrated its 44th birthday as an independent country, and it deserves to congratulate itself (although it rarely engages in self-congratulation - another aspect of good judgment). In fact, I would argue that in many ways, Singapore is a great example for the United States. Why? Here are a few reasons:

Singapore is a hardworking, disciplined country. It decides what it needs to do, and then does it. Every year for National Day, for example, the Government publishes a list of challenges it needs to overcome. This year's list included such bracing issues as: 'How to maintain high economic growth and improve living standards?' and 'How to stamp out new diseases and keep health-care costs down?' There is also the lighter but sociologically problematic challenge of 'How to get younger Singaporeans to marry and have children?' The list of challenges is enormously appealing in its clarity and directness.

Singapore is obsessed with education - not just for children, but throughout life. Another of its declared challenges is: 'How to design job-training programmes and wage supplement schemes for low-income older workers?' The country regularly tops the ranks of educational achievement. While it was once justifiably criticised for emphasising rote learning, it has introduced programmes that encourage creativity.

Singapore is a highly capitalist society, but its Government plays a strong guiding role. Some of the country's smartest citizens go into government. The Government creates industrial policy and actively facilitates growth and capability-building in certain areas. It did a masterful job emphasising information technology (IT) and building up that industry, and now it's actively pushing biotech and services.

For example, in services, the Government wanted to build on organisations with great service like Singapore Airlines and Raffles Hotel. So it encouraged the Singapore Management University to start an Institute for Service Excellence, and stimulated the development of a Customer Satisfaction Index of Singapore that would be applied to all service industries.

Like the US, Singapore is a highly diverse society, with lots of citizens with Chinese, Malay, Indian and Arab backgrounds. Yet they all seem to get along pretty well, and the country's culture is greatly enriched by the diversity. Public housing is ethnically and religiously integrated. Other countries could probably use a version of Singapore's Maintenance of Religious Harmony Act, which prohibits religious rabble-rousing.

Singapore invests heavily in infrastructure - housing, roads, IT, airport (only one, but Changi Airport is a very impressive facility). About 83 per cent of its citizens live in public housing, but the estates are clean and well-maintained. The country is rolling out a new high-bandwidth fibre-optic network. Buses and subways are clean and run on time.

Singapore's economy is doing pretty well. It does anticipate a decline in gross domestic product of about 5 per cent this year, but there are signs of a strong recovery. Its stock market is booming. Its banks didn't go crazy with sub-prime lending or bizarre derivatives. One economist told me that the Asian financial crisis of 1997 was worse than the current recession for Singapore.

Okay, it's not a Utopian society. The Government is a bit authoritarian for my tastes, but not as much as it was in the days of Mr Lee Kuan Yew, the country's first prime minister from 1959 to 1990. The prohibitions against spitting and selling chewing gum are a little much - though I really like the clean streets.

Yes, you may be caned if you misbehave, but that might be better than locking up the world's highest proportion of citizens in jails. I feel that Singapore destroyed much of its interesting architecture in the headlong rush to modernise. And it seems to me that too many of its citizens are obsessed with luxury brands and conspicuous consumption.

These are relatively minor concerns, however, compared to the country's strengths. And many of the seemingly autocratic regulations might be justified by the ethnic diversity and high population density of the country.

Singapore is tiny compared to the US - and most other countries, for that matter. But that doesn't mean it can't be a model. US President Barack Obama keeps saying that we need to buckle down and work hard to build an economy based on real production, not hollow financial chicanery. We need a little more social order, and a little less individualism. Singapore has already pulled off both objectives, and continues to provide a good example of good judgment for the US and the rest of the world.

The writer holds the President's Chair in Information Technology and Management at Babson College, where he also leads the Process Management and Working Knowledge Research Centres. Reprinted with permission from Harvard Business Review.

1. According to the author, in which aspects are Singapore a role model to other countries and in which areas are we 'not perfect' yet?

Water down the drain

By Michael Richardson, For The Straits Times

SINGAPORE has done an excellent job in stretching its limited fresh water supplies by recycling. But improved urban water management can for now contribute in only a small way to alleviating Asia's looming water crisis, although the advanced techniques being pioneered here for distributing water and controlling its consumption in cities will become more important as the continent urbanises.

In terms of water consumption, the dominant force in Asia is agriculture. Of the estimated 319 billion cubic metres of water used in South-east Asia each year, 86 per cent goes to agriculture, 8 per cent to industry and just 6 per cent to towns and cities. Agriculture's share is even higher in South Asia (90 per cent) and Central Asia (95 per cent). It is a bit lower (69 per cent) in North-east Asia.

The world's demand for water, chiefly to grow food, has been rising sharply for over a century as the population increases and material living standards improve. In 2000, half a billion people lived in countries that were chronically short of water, out of a global population of around six billion. By 2050, the number of people living in conditions of water shortage is projected to grow to four billion, in a population of about nine billion.

To continue to thrive - or perhaps just to survive - as the demand for water intensifies while climate change brings erratic rainfall, Asia and its farmers will have to use less water to produce more food. This is a major challenge.

Irrigated agriculture and other improvements in farm productivity since the Green Revolution of the 1960s have boosted food output and cut poverty, providing a basis for political order and economic modernisation. Indeed, rural resilience has been the foundation of Asia's growth. This is often forgotten today. Instead, there is massive under-investment in agriculture.

Though only 17 per cent of the world's arable land is irrigated, it produces over one-third of the world's food supply. A reliable supply of water allows farmers to grow two or even three crops a year.

As a recent report by the International Water Management Institute (IWMI) and the United Nations Food and Agriculture Organisation (FAO) shows, Asia is the heartland of global irrigation. It contains 70 per cent of the world's 277 million hectares of irrigated land. While accounting for only 34 per cent of Asian arable land, the irrigated zone produces 60 per cent of the continent's rice, wheat and other staple food grains.

However, there is a dangerous downside. As currently practised, irrigated farming is water-intensive, especially for growing rice. Asia uses some 73 per cent of the 2,664 cubic kilometres of water the world uses annually for agriculture.

There is massive wastage of water. Many of the canals, channels and other parts of the irrigation system are old and inefficient. So millions of small-holders have bought pumps and drilled bore holes to extract water from rivers, lakes, underground aquifers and their own storage ponds whenever they choose.

Surface water is being sucked dry in major river basins in India, China and Indonesia. Recent surveys show that water tables and aquifer levels below ground are also falling, as water is being withdrawn faster than it can be replenished.

Yet the demand for food, and the water to grow it, is rising as more and more Asians migrate from the countryside to cities. By 2025, 52 per cent of South-east and North-east Asians are predicted to be living in urban centres. For South and Central Asia, the ratio is expected to be 45 per cent.

As people join the urban middle classes and become richer, they tend to eat less cereal. Instead, they will consume more fruit, vegetables, milk and meat. Meat consumption in China has more than doubled in the past 20 years and is expected to double again by 2030.

For Asian farmers on irrigated land, these trends have generally been good. However, growing more profitable niche crops (including food for animals) to satisfy urban consumers, especially those on increasingly meat-based diets, often takes much more water.

A kilogram of potatoes requires just 500 litres of water to produce. The same amount of rice needs 1,900 litres. But 1kg of poultry absorbs 3,500 litres, while beef gulps 15,000 litres.

An estimated five billion people will live in Asia by 2050, 1.5 billion more than now. The continent has three broad options to meet its food needs: Import large quantities of cereals from abroad, improve and expand rain-fed agriculture, or focus on irrigated farmlands.

Many governments attach a high priority to food security. So there is an understandable reluctance to rely on foreign supplies. Of course, small countries like Singapore will continue to depend on imports for the bulk of their food.

However, South-east Asia as a whole is better placed than other parts of Asia to expand irrigated land. There is a large gap between the potential area of 44 million hectares of land considered suitable for irrigation and the currently irrigated area of 17 million hectares.

For the rest of Asia, the IWMI-FAO report suggests that the main thrust of future investment in agriculture should be directed towards improving irrigation systems.

The writer is a visiting senior research fellow at the Institute of Southeast Asian Studies.

Geneva of the East, Venice of 21st century

By Tommy Koh

THIS year, Singapore celebrates 50 years of self-government and 44 years of independence. We can be proud of what we have achieved. We should, however, never be complacent. We must continue to strive to build a more perfect Singapore. In that spirit, I would like to share some of my aspirations for Singapore and Singaporeans.

First, I wish we would be less obsessed with money.

I have always heeded my mentor S. Rajaratnam's warning that we should not become a people who know the price of everything and the value of nothing. I think we are in such danger.

We seem to calculate everything in terms of money. We think that a person's worth is measured by the amount of money he or she makes. We have imitated one of the worst aspects of American capitalism, by paying our senior executives inflated salaries while, at the same time, stagnating the salaries of our middle and lower strata. As a result, Singapore has become a more unequal society than the United States.

I am glad that President SR Nathan recognises annually outstanding members of the professions that do not pay well but contribute enormously to our society - such as teaching, nursing and social work. I also thank the media for showcasing selfless Singaporeans who help the poor and the disadvantaged.

Money is important. We all need enough of it to live in reasonable comfort. But money cannot buy you a happy family, good friends, good health, peace of mind and joy. We should not allow the greed for money to weaken the moral fabric of our nation and to undermine the integrity of some professions, such as law and medicine.

Second, I would like Singaporeans to be kinder and more gracious.

Are we a kind people? I am inclined to say 'yes' when I remember the generosity with which we responded to the victims of the Boxing Day tsunami, Cyclone Nargis and the Sichuan earthquake. I am impressed by the letters in this newspaper thanking Singaporeans for the kindness they have shown strangers.

At the same time, I am shocked by the unkindness of some Singaporeans towards foreign domestic workers and foreign workers generally. As for the reports of wanton cruelty towards animals, I wonder who are these monsters. And as for graciousness, there is much room for improvement in our driving manners and in the way we conduct ourselves in trains, buses and elevators.

Third, I would like Singapore to become the Geneva of the East and the Venice of the 21st century.

Singapore can become a diplomatic centre like Geneva. It is a comfortable, efficient and secure venue.

Venice existed as a city state for nearly 800 years. One of the reasons for its longevity was that it welcomed talented people from different countries and civilisations. In the same way, Singapore should continue to welcome the talented from all nations. It can also act as a facilitator of inter-faith and inter-civilisational dialogue.

Fourth, Singapore can be the cultural hub of South-east Asia.

It has the best cultural infrastructure in the region. Because of its small size and short history, it has no choice but to collect, research and display the heritage of the region. As a result, we have the best collection of the visual arts of South-east Asia, of the 19th and 20th centuries. When the new National Art Gallery opens, it will showcase this collection.

Singapore can also serve a larger region. It can bring together the civilisations of South-east Asia, North-east Asia, South Asia and West Asia. The Asian Civilisations Museum is a symbol of our aspiration to be an exemplar of the Asian cultural renaissance.

Fifth, Singapore can be Asia's greenest city.

It is already Asia's greenest in the physical sense. It is green too in its policies on water, sanitation, air pollution, land use and transportation. But Singapore can and should do even better.

There is room for improvement in the efficient use of energy. We should progressively phase out incandescent light bulbs in favour of energy-saving bulbs. We should emulate the examples of Japan and the US to encourage car-owners to switch to hybrid vehicles. We should follow the example of Japan, South Korea and Taiwan to require commercial establishments to separate food waste from other waste for recycling.

We could be more energetic in promoting renewable energy. We should consider adopting Hong Kong's rule that no building below the age of 50 can be the object of an en bloc sale. We should develop Singapore as a centre for the financing of green business and technology.

Sixth, I would like Singapore to become an intellectual centre.

We are making progress. The National University of Singapore and Nanyang Technological University are already recognised as world-class universities. I am confident the Singapore Management University will soon join them.

Our schools, polytechnics and arts colleges are much admired. As a result, Singapore is attracting many foreign students. Our think-tanks are expanding in quantity and quality. There has been a quantum leap in the percentage of our GDP that is invested in research and development. Our respect for learning is growing. What more can we do?

I would suggest three things: more funds for research in the social sciences and humanities; greater willingness on the part of the Government to release official data to and de-classify documents for researchers; and a stronger culture of tolerance for alternative and dissenting views.

Those of us who attended this year's National Day Parade were inspired and moved. Sitting at Marina Bay, I could feel the spirit of our people - their unity, resilience and optimism.

Majulah Singapura!

The writer is chairman of the Institute of Policy Studies. Think-Tank is a weekly column rotated among eight leading figures in Singapore's tertiary and research institutions. An earlier version of the above essay was part of an address to Raffles Institution on the occasion of its 186th Founder's Day.

Snorkel rice could survive floods and feed millions

TOKYO: A team of Japanese scientists has discovered genes that enable rice plant to grow 'snorkels' to survive high water, providing hope for better rice production in lowland areas that are affected by flooding.

The genes, called 'snorkel' genes, help the plant to elongate rapidly in response to being submerged.

The findings by the team, primarily from the University of Nagoya, were reported in Thursday's issue of science magazine Nature.

In it, Professor Laurentius Voesenek at Utrecht University describes how the Japanese scientists discovered the 'snorkel' genes in flood-tolerant rice - which generally produces lower-yield rice plants - and introduced them to more sensitive high-yield rice. As water levels rise, accumulation of the plant hormone ethylene activates 'snorkel' genes, hastening stem growth. 'Snorkels' grow as hollow tubes from parts of the plant called internodes, preventing it from drowning.

When the floods arrive, the super rice plants can grow up to 25 cm per day, the BBC reported.

Professor Motoyuki Ashikari, who headed the project, said his team is hoping to use the gene on long-grain rice, widely used in South-east Asia, to help stabilise production in flood-prone areas. 'Scientifically, the gene that we found is rare but clear proof of a biological ability to adapt to a harsh environment,' he said.

He said the team has successfully tested the gene on a Japanese 'Japonica' rice, and now plans to create a flood-resistant long-grain rice in three to four years for use in countries such as Vietnam, Thailand, Myanmar, Bangladesh and Cambodia.

Rice is a staple food for billions, and yields must be doubled to meet projected requirements by 2050.

ASSOCIATED PRESS

This is the new addition to the HYVs that we are learning. Why do you think this HYV is called the 'Snorkel rice'? 

The Cove

Drought threatens rural life in India

Shortage of drinking water and loss of crops likely as monsoon fails to bring rains

Village women collecting water from a tube well at Bhamasar village, west of Ahmedabad, on Thursday. This monsoon season may be India's driest in seven years. -- PHOTO: ASSOCIATED PRESS

NEW DELHI: India's Farm Minister has warned that the severe shortage of monsoon rains in India has created a critical situation for rural livelihood, drinking water and crops.

The government expects early sowing of winter-sown crops over a larger area this year to offset some of the crop loss, but the farm situation remains disturbing,

'The situation is grim, not just for crop sowing and crop health, but also for sustaining animal health, providing drinking water, livelihood and food, particularly for the small and marginal farmers and landless labourers,' Mr Sharad Pawar told a conference of state farm ministers yesterday.

He said the authorities must help farmers plant alternative crops and provide food, fodder, drinking water and employment to people, particularly in the drought-hit districts.

'At this critical stage, we need to assess the current situation correctly,' he said.

Mr Pawar said efficient use of irrigation and judicious use of ground water and reservoirs were necessary.

Official data shows that India's main reservoirs rose barely one percentage point last week and stood at 38 per cent of total capacity, down from 58 per cent a year ago.

The rains improved in the past week, recording the highest rainfall in a month, but the rains were not evenly spread out.

Rainfall in cane-growing Uttar Pradesh state was 58 per cent to 89 per cent higher than normal in the week to Wednesday, while the soya bean-growing Madhya Pradesh state saw a deficit of 24 per cent to 31 per cent, the weather office said.

The monsoon season, which brings about three-quarters of the nation's annual rainfall, may be the driest in seven years, with more than a third of the nation's 626 districts declaring drought, the weather bureau said last week.

Inadequate rainfall has affected oilseeds and cane crops, potentially making the country an even bigger importer of sugar and edible oils next year.

Sugar prices have risen sharply in India as output has fallen and the cane crop has declined for two consecutive years, helping raw sugar futures surge to the highest in nearly three decades.

A sugar trade body said millers have contracted 4 million tonnes of raw sugar imports to meet demand, particularly in the festival season starting next month. High prices and fears of scarcity have led to hoarding in the world's largest consumer of sugar.

'Higher prices are not dampening demand. Media reports have created panic among consumers. People who used to buy 5kg of sugar every month, they are now buying 10kg,' said Bombay Sugar Merchants Association secretary Mukesh Kuvadia.

Mr Pawar said India's monsoon-sown rice production will drop by 10 million tonnes from last year's record as inadequate rains forced farmers to plant fewer hectares of the crop.

Rice was sown to 24.7 million hectares as of Aug 12, compared with 30.4 million hectares a year earlier, the farm ministry said last week.

Home Minister Palaniappan Chidambaram said the Cabinet had approved a higher price for rice purchased by government agencies to ensure adequate supplies and to help farmers lift their incomes after drought damaged other crops.

Prime Minister Manmohan Singh said this week that the government is planning a crackdown on the hoarding of farm commodities and imposing limits on what stock traders can keep.

'Effective enforcement actions and other steps would be taken to ensure that the prices of commodities do not rise abnormally,' Mr Pawar said.

REUTERS, BLOOMBERG

How did the unpredictable weather affect rural life in India?

UNMDG Report 2008

Can you still remember the 8 UNMDGs? This is the 2008 report to assess how far we are from achieving the goals.

The Mighty Mekong

An estimated 61 million people depend on the Mekong for their livelihood. The river is also a focus of trade and commerce. -- ST FILE PHOTOS

ABOUT 4,500km long, the river passes through more countries than any other river in Asia - China, Myanmar, Laos, Vietnam, Thailand and Cambodia.

An estimated 61 million people, especially fishermen and farmers, depend on the river for their livelihood.

Rich in biodiversity, it is also a focus of substantial trade and commerce. Recent estimates put the annual value of the river's wild capture fisheries at US$3 billion (S$4.3 billion).

Mainstream dams, which disrupt the free flow of the river, have contributed to the endangerment of the giant Mekong catfish, which can grow up to 3m in length. The catfish population is reckoned to have fallen by about 80 per cent in the past 20 years or so.

In June, a petition signed by about 12,000 citizens of Mekong countries urged Thailand and other Mekong countries to keep the river flowing freely and pursue electricity options that are less damaging than dams.

Dams disrupt lives of millions

By Nirmal Ghosh, Thailand Correspondent

Aug 8, 2009

WATER WOES ALONG MEKONG

BANGKOK: The mighty Mekong, meandering from China through Myanmar, Laos, Thailand, Cambodia and Vietnam, is the lifeblood of tens of millions of people.

As many as 53 dams have been built, are under construction, or are being planned... Another 66 are at various stages of study.

But the huge volume of water coursing down half a continent through Indochina is a wounded creature.

As many as 53 dams have been built, are under construction or are being planned along the 4,500km river. Another 66 are at various stages of study.

Dams produce electricity and supply water for irrigation.

But they also disrupt the free flow of water, change the course and patterns of rivers and floods, and restrict the range and breeding of fish. They alter the subsistence livelihood base of millions of people, creating social and political tension.

One recent study estimates that the volume of migratory fish catch put at risk by dams on the Mekong is between 700,000 and 1.6 million tonnes a year. That is about five times the annual fish catch of a country such as Finland.

Civil society groups have for years been blowing the whistle on over-exploitation of the Mekong.

Now, environmental groups are waiting to see what the United States will bring to the table under a 'sister river' partnership between the Mekong River Commission and the Mississippi River Commission. The partnership came with the renewed engagement of the US in the lower Mekong region.

Last month, US Secretary of State Hillary Clinton met for the first time ministers from Laos, Vietnam, Cambodia and Thailand. At the meeting, held on the sidelines of the Asean Regional Forum in Phuket, she pledged a greater US role in issues such as the environment, health and education.

The ministers discussed collaboration on climate change, infectious diseases, the use of technology for education and development, and infrastructure at the talks.

Renewed American interest in the lower Mekong countries has largely been welcomed.

With Cambodia and, to some extent, Laos dependent on aid from donors, their governments are seen as welcoming enhanced US assistance, which also serves as a hedge against China.

This year, the US will spend more than US$7 million (S$10 million) on environmental programmes, US$138 million on health and US$16 million on education in the lower Mekong countries.

Washington's foot in the door, however, has drawn a less than enthusiastic response from Chinese analysts.

Professor Guo Xiangang, a scholar at the China Institute of International Studies, told the official Xinhua news agency on the day Mrs Clinton met the ministers that increased US presence in South-east Asia would complicate and bring uncertainties to regional issues.

For those who depend on the Mekong and are affected by water and rainfall disruption caused by global warming, the key issue is ecological security.

'We hope the increased presence of the US will be backed with a genuine commitment towards... sustainable development,' Mr Sam Ath, executive director of the NGO Forum on Cambodia, wrote to The Straits Times in an e-mail.

The 'sister river' partnership aims to share expertise and best practices in climate change adaptation, flood and drought management, hydropower and impact assessment, and water resource management.

But the Mississippi River is not exactly a shining example of good management.

A recent study by Louisiana State University concluded that marshland loss in the Mississippi Delta was being exacerbated beyond repair by dams.

'By learning more about what has happened along the Mississippi, the lower Mekong region can avoid making the same mistakes,' wrote Mr Ath.

1. Give evidence of the international organisation giving help to the LDCs.

2. Describe what form of help is being given.

Farmers' fears grow over poor rainfall

Aug 8, 2009

WATER WOES IN INDIA

The rains have been delayed in Indian states like northern Uttar Pradesh, which grows rice. -- PHOTO: ASSOCIATED PRESS

NEW DELHI: Most years, Ms Urvasi Kumari, a landowner in the Himalayan valley of Dehradun, would finish sowing her rice fields by mid-July.

This year, the sowing of fine basmati and other grains was delayed by two weeks because rain was scanty.

'Now, my fear is that low water supply will affect the yield. Besides, even if the rains pick up, we may have to harvest early because the cold season will start by the end of October,' she told The Straits Times.

Across India, farmers are hoarding diesel for irrigation pump-sets. Jewellery merchants who bought gold at high prices are now worried about losses in anticipation that weddings may be less ostentatious this year.

Unease over poor rainfall is turning into a mild panic in India as the life-giving monsoons play truant, raising the prospects of a drought just as the economy is emerging from the impact of the global slump and its own cyclical downturn.

The Indian government has ordered the civil service head of every state to turn up for a meeting in the national capital today. The day-long meeting will discuss the rain situation, the rising prices of vegetables and essential commodities, as well as an action plan to tackle the looming drought.

'The overall price situation, including that for pulses and sugar, is very serious,' Agriculture Minister Sharad Pawar told Parliament this week. 'If the rains in August and September turn out to be normal, then the price situation may improve.'

Those prospects look less likely by the day.

India's resurgent stock markets swooned on Thursday as the Meteorological Department published data showing that rains were two-thirds below normal over the seven days to Aug 5. This followed the driest June in more than 80 years, although the monsoon recovered somewhat in the following month.

'Rainfall was excess or normal in 11, and deficient or scanty in 25 out of 36 meteorological sub-divisions,' the Met office said. Overall monsoon deficiency, it added, was 25 per cent.

The annual south-west monsoon, the main source of moisture for the country, typically crosses the southern Indian coastline around June 1. It then works its way northwards up the peninsula before spreading eastwards. It retreats by the end of September.

The monsoons are critical to the Indian economy because only about 42 per cent of the area with major crops has the benefit of irrigation.

Although farm output now accounts for just 18 per cent of the national economic pie - half of what it was 30 years ago - agriculture and allied activity account for about two-thirds of total employment.

For that reason, a failed monsoon can translate into instant misery for millions of Indians and revive the spectre of food shortages.

With the rising Indian economy's thirst for foreign-made goods and the increasing number of Indians travelling the world, retail and tourist businesses from Singapore to South Africa could feel the impact of inadequate rains in India.

'If rainfall fails to improve more significantly, we fear a supply shock and a drop in agricultural output,' UBS economist Philip Wyatt said in a note to clients this week. 'Even a re-run of the 2002-2003 drought is now something we must consider.'

Mr Wyatt's current projection is that the Indian economy will expand 7 per cent in the year to March 2010. That forecast, he suggested, may be at risk if the monsoon stays weak.

A poor monsoon is also bad news for incumbent governments, both at the state and federal levels. Prime Minister Manmohan Singh's government benefited from normal rains throughout his first term, no doubt helping him retain power in the national elections held this year.

velloor@sph.com.sg

More land for growing food

More farms like the Yili Vegetation and trading Pte Ltd in Chu Kang can be expected to grow under the new proposal to create a local strategic food stockpile to safeguard against turbulent world food prices. -- TNP FILE PHOTO

More farm area, funds to be set aside to guard against global shortages

MORE land will be set aside for growing food while companies will be encouraged to work with farms overseas to ensure that Singapore has a ready and stable supply of produce.

With the turbulence in food prices in recent years exposing the island state's vulnerability, these moves should mitigate supply shortages and sharp price increases in the long term.

'Local farming can serve as a strategic stockpile, like Newater,' said National Development Minister Mah Bow Tan in a speech at the Agri-Food and Veterinary Authority's food safety awards last night.

More space for farms will be obtained by expanding existing farms or setting aside unused land parcels.

It has been projected that over the next five years, the local supply of eggs should rise from 23 per cent to 30 per cent, fish from 4 per cent to 15 per cent and leafy vegetables from 7 per cent to 10 per cent.

A fund, the amount of which is not yet known, will be available for farmers to tap for upgrading and expansion. It can also be used by companies, such as those involved in import and distribution, to explore if food zones identified overseas are suitable for investment of capital.

Singapore now imports more than 90 per cent of its food, and the zones will be identified for six key imports - chicken, pork, fish, eggs, leafy vegetables and rice.

Companies will be encouraged to work with growers to farm specifically for Singapore, in addition to their local communities. 'We want to encourage our companies to increase their participation in the entire value chain from food production to distribution, to better secure supplies,' said Mr Mah.

Importers now cast a wide net, working with suppliers from over 30 countries. But these growers also supply to the rest of the world, so when there is a shortage, such as that just last year, a bidding war ensues. Singapore hopes to bypass such a scrap with its own assured supply.

'As Singapore imports most of its food, we are vulnerable to sharp changes in food supply and prices,' added Mr Mah. 'More needs to be done as we prepare ourselves to face the longer-term challenges affecting global food supply and demand.'

The situation is still volatile, he said, citing factors such as: the world population is still increasing and supply will be affected by rapid urbanisation on top of years of underinvestment in agricultural development.

It is hoped that these new measures will prevent a repeat of the price inflation for food items that hit Singapore around this time last year. The situation sent the authorities scrambling to secure new lines of supply. An inter-agency committee was set up to study and review food supply policies. The new recommendations have sprung from that.

Manufacturers have welcomed the proposals. Mr Thomas Pek, managing director of home-grown soya sauce manufacturer Tai Hua, which imports up to 2,000 tonnes of soybeans a year, said his product went up in price last year following a shortage of the main ingredient.

'There was a shortage of soybeans the whole of last year and everyone rushed to secure supplies from Canada, which is the main supplier of soybeans here,' said Mr Pek. 'If we have a stable supply just for Singapore, prices will stay low and I don't have to worry.'

Some importers have already expressed interest in working with the Government to create overseas food zones.

Mr Lim Hock Chee, Sheng Siong's managing director, said his company - which imports rice and seafood - is 'seriously looking into it' and is assessing its capability to implement such a concept.

'We believe such a concept may add to the stability and consistency of food supply,' he said.

limjess@sph.com.sg