Written Reply to Parliamentary Questions on the 30 by 30 Vision

Written Reply to Parliamentary Questions on the 30-by-30 Vision by Ms Grace Fu, Minister for Sustainability and the Environment

Mr Yip Hon Weng: To ask the Minister for Sustainability and the Environment in light of recent closures of high-tech farming companies, including vegetable farms and cultured meat companies (a) how does the Singapore Food Agency conduct due diligence, including financial viability assessments, on companies before awarding grants to such farms and companies; (b) what measures are in place to ensure that grant funds are used effectively; and (c) whether the 30-by-30 goal of achieving 30% local food production by 2030 is still achievable in light of the developments.

Mr Dennis Tan Lip Fong: To ask the Minister for Sustainability and the Environment (a) how will the "30 by 30" plan on local food production be revised to move the local farming sector back on track; and (b) how will the Government better assist business operators to cope with business costs challenges such as land leasing and energy costs so that business operators can continue to support the "30 by 30" goal that aims to produce 30% of Singapore's nutritional needs by 2030.

Mr Chua Kheng Wee Louis: To ask the Minister for Sustainability and the Environment (a) whether the Government remains committed to the "30 by 30" goal that aims to produce 30% of Singapore's nutritional needs by 2030 locally; and (b) whether there are plans to (i) further boost local demand for locally produced food and (ii) address the price differential between locally produced food and imported food in order to promote the market viability of domestic food production.

Mr Melvin Yong Yik Chye: To ask the Minister for Sustainability and the Environment (a) whether the Ministry can provide an update on the progress of Singapore's "30 by 30" goal that aims to produce 30% of Singapore's nutritional needs by 2030; and (b) whether the recent spate of local farm closures will result in a delay of reaching this goal by 2030.

Mr Don Wee: To ask the Minister for Sustainability and the Environment following a series of delays, failures or re-configurations of high-tech farms (a) whether the goal of producing 30% of Singapore's nutritional needs locally by 2030 is a realistic one; and (b) whether there are plans to delay the implementation of the Lim Chu Kang Masterplan.

Ms Hazel Poa: To ask the Minister for Sustainability and the Environment (a) what is the Government's assessment of the impact of rising interest rates and operating costs, such as electricity and water costs, on Singapore's high-tech farming sector; and (b) whether open farm style traditional agriculture can be equally supported to meet the goal of local farms producing 30% of Singapore's nutritional needs locally by 2030.

Ms Hany Soh: To ask the Minister for Sustainability and the Environment in light of the recent closures in the farming sector, whether Singapore's "30 by 30" goal to produce 30% of our local nutritional needs by 2030 locally is on track to be attained.

Ms Hany Soh: To ask the Minister for Sustainability and the Environment what is the aggregate amount of grant funding disbursed to date, for the purposes of Singapore's "30 by 30" goal to produce 30% of our local nutritional needs by 2030 locally.

Mr Zhulkarnain Abdul Rahim: To ask the Minister for Sustainability and the Environment (a) whether the Singapore Food Agency is studying the reasons behind the recent liquidation or scaling down of the operations of high-tech farms in Lim Chu Kang and Tuas despite the governmental grants and support provided; and (b) what is the impact on the "30 by 30" goal that aims to produce 30% of Singapore's nutritional needs by 2030 under the Singapore Green Plan.

Answer:

1 Mr Speaker, Sir, may I have your permission to answer Parliamentary Questions (PQ) 83, 84, and 85 together? My response will also address oral PQs *6300 and *6305, as well as written PQs 5898, 5899, 5876, and 5942, filed by Mr Melvin Yong Yik Chye, Mr Don Wee, Ms Hany Soh, Ms Hazel Poa, and Mr Zhulkarnain Abdul Rahim respectively, due for reading either today or at subsequent sittings.

Background

2 Since its formation, the Singapore Food Agency (SFA) has been stepping up efforts to grow our local agri-food sector, alongside our efforts in import source diversification and stockpiling. Local production can help to buffer any impact of supply disruptions and add to Singapore's food security. We set "30 by 30'' as an ambitious vision of building the capability and capacity to locally produce 30% of our nutritional needs by 2030.

3 When the "30 by 30" vision was first conceived in 2019, there was strong investor interest in the global agri-food sector, a low interest rate environment, and lower global energy prices. Since then, the business climate has become less favourable due to factors such as the COVID-19 pandemic, geopolitical tensions and inflation. Ms Hazel Poa asked about the impact of rising business costs on the farming sector. During the COVID-19 pandemic and initial phase of reopening, our farms faced a shortage of foreign workers and construction delays. Since then, inflation and electricity price hikes exacerbated by geopolitical tensions, as well as a more challenging financial environment, have added to the challenges. Some farms have taken a pause in development works, to re-evaluate and finetune their business models. Global agri-tech companies have also not been spared from similar headwinds. That said, while there have been farm closures, we are also seeing new players enter the agri-food sector. Overall, the total number of land- and sea-based farms has remained relatively stable at about 250 since 2019.

Support for the Agri-Food Sector

4 Given the nascency of our agri-food sector and the challenging environment, SFA has provided our farms with support in various areas, including - i) accessing land and infrastructure for farming, ii) improving energy efficiency and productivity, and iii) increasing demand offtake for their produce. Let me elaborate.

5 First, we are making land and infrastructure available for farming by regularly launching land and sea space tenders. In 2022, we also introduced the option for the typical 20-year land- and sea-space leases to be extended for a further 10 years to give more certainty to farms when planning and seeking investors. To Mr Don Wee's question, we will continue to press on in developing the Lim Chu Kang Masterplan (LCKMP) and co-developing the Singapore Aquaculture Plan (SAP) with stakeholders including other government agencies, nature groups, academics, the industry, and offtakers.

6 Second, we have increased support to farms for energy-efficiency and productivity transformation. To Mr Dennis Tan's query on how the Government will assist businesses in coping with business cost challenges, SFA ensures that the Agri-Food Cluster Transformation (ACT) Fund remains relevant in meeting farms' business and growth needs. In 2022, the ACT Fund was enhanced to extend the higher co-funding quantum of 70% or up to $6 million, to a wider range of food types such as fruited vegetables, mushrooms, and shrimps, allowing more farms to benefit from higher co-funding. The ACT Fund encourages farms to invest in productive and resource efficient technologies that can help to manage resource use and consequently, operating costs. In 2023, SFA introduced the Energy Efficiency Programme (EEP) under the ACT Fund to co-fund energy efficiency audits and the adoption of energy-efficient equipment and technologies to help farms better manage their electricity costs. To Ms Hany Soh's question on how much funding has been disbursed for the "30 by 30" vision, SFA has awarded $25.7 million to support 68 projects under the ACT Fund projects as of 30 Apr 2024.

7 To Mr Yip Hon Weng's question on how SFA ensures due diligence to ensure grant funds are used effectively, the grant is allocated only after considering the farms' financial statements, key personnel involved in farming, relevant track record, the merits and reasonableness of the project proposal, projected costs and whether the outcome supports Singapore's food security. To ensure the funds are well-utilised, SFA requires funding recipients to meet Key Performance Indicators (KPIs) in areas such as production output, energy and manpower savings. Farms are also required to submit half-yearly progress reports to document progress in the project. The funds are disbursed through reimbursement and in tranches, ensuring that project milestones are achieved before additional funds are released.

8 Ms Hazel Poa asked about the Government's support for traditional open farm style agriculture. Given the reality of our limited land, manpower and natural resources, farms that adopt more productive and resource-efficient farming methods have greater commercial viability potential. We would also like our farms to be more climate resilient. Regardless, SFA assesses all farm applications for the ACT Fund, and considers the merits of each proposal and its ability to contribute to our "30 by 30" vision.

9 Third, we are working to increase demand for local produce. Mr Louis Chua asked about the Government's plans to boost demand and address the price differential between local produce and imported food. The price of food reflects a combination of factors. Aside from costs of production, higher prices may also reflect better quality and value, such as freshness or being pesticide-free, which are value-added attributes that consumers might be willing to pay for.

10 SFA is supporting the industry through the Singapore Agro-Food Enterprises Federation Limited (SAFEF), which has spearheaded the formation of an industry level supply and demand aggregator that partners farmers, traders and food processing companies to better match demand and supply. Through the efforts of SAFEF and its partners, locally grown vegetables and fish are now sold at Fairprice supermarkets under a six-month trial under the brand names "The Straits Fish" and "The SG Farmers' Market". I am heartened to hear that the consumer response to the products has been positive.

11 Consumers can play a part in ensuring our national food resiliency by choosing to purchase local produce that are labelled with the red SG Fresh Produce logo, or dining at food businesses under the Farm-to-Table Recognition Programme which recognises food businesses that feature local produce on their menus. Together, we can continue to safeguard Singapore's food security.

Outlook for "30 by 30" Vision

12 Mr Melvin Yong asked about the progress for "30 by 30" while other Members have also asked if we remain on track for the "30 by 30" vision in spite of the recent news on farm closures. To Mr Zhulkarnain's question on the reasons for the farm closures, these are commercial decisions that are largely farm-specific in nature. As with any nascent sector, our agri-food sector will need time to develop and for business models to be proven.

13 The "30 by 30" vision has always been an aspiration, which seeks to rally our efforts around the important task of enhancing Singapore's food security. We have achieved some results in a few areas. For example, our local egg production now contributes more than 30% of local consumption from 26% in 2019. Local beansprout production has also come in at more than 50% of consumption. We have also seen both new and existing farms harnessing technology and innovation to scale up production and operate productive, viable models. Some have expanded their operations to higher value products that better cater to consumers' evolving demands. SFA will continue to anchor more of such farms and help them scale up over time.

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