These three factors will boost Singapore's furniture industry

Over half of productivity plan budget assisted 63 companies within 2 years.

Speaking at the Official Opening of the International Furniture Fair Singapore, Mr Lee Yi Shyan, Senior Minister of State, Ministry of Trade & Industry and National Development said that amidst rising business costs and a tight labour market, furniture companies in Singapore have managed to take positive steps and face challenges head on.

He adds that since the launch of the S$17 million Furniture Productivity Plan in 2011, the government has committed $9.6 million to support 63 companies to raise productivity (as of December, 2012).

Mr Lee Yi Shyan further elaborated that Design & Innovation, Process Optimisation, and New Market Exploration & Internationalisation are key factors in driving growth and boosting the industry's competitive advantage.

Here are some excerpts from Lee Yi Shyan's speech:

First, design and Innovation. Furniture companies are increasingly aware of the value of design as a strategic differentiator and competitive advantage in order to drive growth.

By tapping on talented local designers, companies like STAR Furniture were able to create beautiful collections for both existing markets and new customer segments – thus driving innovation through design and product lines.

Productivity is also about efficiency from streamlined processes. I am pleased to note that a number of furniture companies have deployed Enterprise Resource Planning (ERP) systems to integrate and streamline operations for more effective decision making, and acquiring robotic manufacturing capabilities to better respond to customers in time-sensitive contract projects.

Furniture companies in Singapore have always been regional players. Many have established presence in regional markets such as China, Indonesia and Malaysia. Some have also ventured into untapped territories like Sri Lanka, India and even Mongolia.

Besides Asia, there are other bright sparks in the world. Ewins, an established supplier of furniture components and fittings, is an example of a company that has ventured beyond traditional markets into Brazil, India and Nigeria.

Ewins has widened its business network through active participation in global component fairs. Today, it is also seeking to expand its value chain both upstream and downstream by contract manufacturing furniture products for end users.