Business Potential for Agricultural Biotechnology - Asian Productivity ...

Business Potential for Agricultural Biotechnology in Singapore
such as the European Commission Joint Research Center and the International Life Science Institute.
A GM food testing laboratory has been established in the AVA as part of the
SGD30 million Veterinary Public Health Center.
CURRENT ISSUES AND CHALLENGES
There is rising regional competition from neigboring agricultural countries that have lowcost
land and labor, especially China and India, who are now also the leading Asian players in
agri-biotechnology. China, for example, has intensified its investment in biotechnology research
and can leverage on Hong Kong’s financing capabilities. Singapore has the capacity and infrastructure
to undertake advanced R&D in agri-biotechnology. The challenge is to move into cutting-edge
and novel agri-biotechnologies that will impact not only Singapore but also tropical
agri-biotechnology, especially in the area of food safety, where it has a good reputation. There is
also the constant challenge to develop its own talent as well as attract and retain talent in Singapore
to sustain the newly developing agri-biotech sector.
The domestic market for agri-biotech products is small. Local agri-biotech developers will
have to adopt sound marketing tactics for overseas markets to ensure full exploitation of the
agri-biotech product’s potential. To facilitate the commercialization and marketing of agri-biotech
products in the global market, the government will need to harmonize its regulations beyond
ASEAN. At this juncture, there is still a lack of global agreement, mainly between EU and
U.S. markets, on the labeling of biotech ingredients in food besides the stringent requirement for
product traceability imposed by the EU. The threshold limits of the different markets in the U.S.,
Japan, and the EU have yet to be harmonized, while Singapore is still waiting to take its cue on
labeling requirements from recommendations of the CODEX Alimentarius International Committee.
The outcome of the labeling issue will have implications for the cost of agri-biotech
business and trade in the region. While domestic consumers generally will want their food to be
labeled, the challenge is to also ensure consumer confidence in the food through education,
transparency, and easy access to GM information.
Commercial release of China’s biotech (Bt) rice is awaiting regulatory approval, likely in
2005, and its adoption will provide a significant stimulus to global acceptance of biotech food,
feed, and fibre crops. Since rice is a staple in the Asian diet, there is an urgent need to further
improve Singapore’s biosafety system and testing capability to better regulate the rice supply
and the GM rice trade within the region.
CONCLUSION
Singapore has the potential to become an attractive and vibrant center for global business
and technological activities involving agri-biotechnology in Asia, which consists primarily of
agricultural countries. Agri-biotech products’ potential can be realized with enhanced market
demand and marketing strategies and mechanisms. The market’s receptivity to agri-biotech
products will depend largely on its maturity, and this will require extensive consumer education
to address biosafety concerns. Locally, the government, through GMAC, has been actively involved
in public awareness programs such as a Public Forum on Bioengineered Foods (www.
gmac.gov.sg/news/2005_01_25.html) and the distribution of educational brochures about GM
foods (www.gmac.gov.sg/news/2004_11_22.html). Market demand is also boosted by confidence
in Singapore’s strong leadership role in harmonizing biosafety regulations within ASEAN
(i.e., under ASEAN GM initiatives) in the context of food safety assurance.
Beside Singapore’s strategic geographical location, it has an extensive business network
supported by efficient logistics to facilitate food and agri-trade distribution. Singapore has good
accessibility to global markets and can be positioned as a regional headquarters, exporting biotechnological
services to the entire Asian market. When free trade agreements with countries
such as the U.S., Japan, Australia, and New Zealand and the European Free Trade Association
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