Singapore must build nuclear energy capabilities: Tan See Leng
Dr Tan See Leng, Singapore's Minister-in-charge of Energy and Science & Technology, said in an interview on July 21 that the country needs to acquire technical expertise in this area to ensure its safety.
"Our neighbours, the Philippines, Indonesia, have publicly signalled that they intend to build nuclear plants. So, regardless of whether we have made the decision, our neighbours have made the decision," he said in his first interview in the new portfolio.
Dr Tan was previously overseeing energy issues as Second Minister for Trade and Industry.
Five Asean countries - Vietnam, Indonesia, the Philippines, Malaysia and Thailand - have said they are either studying the feasibility of advanced nuclear technology to meet their growing energy needs, or already have plans to build new reactors in the coming decades.
As Singapore continues to evaluate the viability of nuclear energy for the country, local talents have to be trained so they can determine whether advanced nuclear technologies are safe and suitable for the Republic when these come onto the market, Dr Tan said.
On July 11, the Singapore Nuclear Research and Safety Institute was launched with an aim to train 100 nuclear experts by 2030 - up from the 50 today.
Singapore also renewed the Third Country Training Programme Memorandum of Understanding with the International Atomic Energy Agency (IAEA) on July 25.
Under the agreement, Singapore will develop training programmes with the UN nuclear watchdog to support developing IAEA member states with fellowships, scientific visits and training courses.
Topics covered will include human health, industrial radiography, environmental radioactivity monitoring and analysis, and accelerator science.
Singapore's approach to nuclear energy has changed over the years, as new technologies come online.
In 2012, the Republic had initially considered atomic power nuclear technologies of that time unsuitable for deployment in the small city-state.
Dr Tan noted that conventional nuclear plants are large, and require exclusive buffer zones. "Categorically, let me tell you that they will not be suitable for us," he said.
But nuclear technologies have evolved since.
Small modular reactors (SMRs) are thought to be more suitable for land-scarce, population-dense Singapore, as they have a lower power capacity, enhanced safety standards and require much smaller buffer zones, compared with conventional reactors.
Dr Tan said: "We have not excluded that... because there is a lot of promise for some of the advanced modular reactors - the physics, the engineering, the technical feasibility, all point to the fact that they are possible, but it is just that commercially, they are still not viable yet."
He also stressed that ensuring the safety of nuclear technologies is of "paramount importance" to the Government.
While Dr Tan acknowledged that Singaporeans may still have certain perceptions about nuclear energy, he said the country still needs to press ahead in this area given the interest from some of its neighbours.
Singapore has bilateral agreements with the United States and France to pursue cooperation on nuclear energy, which could better help in the country's evaluation of the viability.
In July 2024, the Republic inked the 123 Agreement on Nuclear Cooperation with the US, which will allow Singapore to learn more about nuclear technologies and scientific research from American organisations.
For example, local research institutes could work with US national laboratories and technology companies to perform safety simulations and modelling of SMRs.
In May, Singapore and France signed agreements on nuclear energy to facilitate cooperation on safety, workforce development, research, environmental protection, the protection of public health, and emergency preparedness and response, among others.
Dr Tan said that these partnerships will enable Singapore to learn more about the regulatory approvals, safety protocols, operations and engineering designs, among other things.
The US tariffs are not likely to affect these agreements, he said.
Dr Tan said that the learnings from the partnerships will help Singapore eventually make the assessment on whether to "jump in, or just stay at the capacity- and capability-building level".
He added that Singapore is also open to exploring partnerships with other countries that have nuclear expertise, such as the United Arab Emirates, China and South Korea.
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Business Times
30 minutes ago
- Business Times
‘Who's going to buy a S$9 croissant?': Singapore's artisanal bakeries crumble under cost pressures, softening demand
[SINGAPORE] The pie is shrinking for artisanal bakeries in Singapore as they battle a triple threat: rising ingredient and rental costs, labour shortages, and weakening demand for baked goods. With hopes of a post-pandemic dining revival fading, the pressure on operators is reaching a boiling point, forcing many to lay their cards on the table by pivoting offerings, consolidating, or closing outlets altogether. Among them is Keong Saik Bakery, a home-grown brand known for its nostalgic yet modernised local bakes. 'We went from profitable to not profitable. The last two years have been very challenging for us,' says its founder and chief executive Tan Yuzhong. 'A lot of people thought business would be good after Covid, including us, so we expanded,' he adds. 'But it turned out the opposite… We definitely suffered because we expanded too fast and didn't expect the headwinds to hit this much.' Keong Saik Bakery opened its second outlet at Chip Bee Gardens in 2022. Foot traffic at the store – located in the Holland Village area – was 'decent' at the time, Tan recalls. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up But just a year later, as borders reopened and outbound travel increased, visitorship fell by 10 per cent. The launch of One Holland Village later in 2023 further diverted crowds, causing footfall to decline another 25 per cent. Tan adds that a stronger Singapore dollar in 2024 prompted further outbound spending, which likely contributed to an additional 20 per cent dip. The Chip Bee outlet is now Keong Saik Bakery's worst-performing store. It also operates two other outlets in Bendemeer and Jewel Changi Airport. 'From 2022, it was just down, down and down,' says Tan. 'There was no recovery, and it is very challenging for us at Chip Bee as there's no natural traffic to the space,' he adds, pointing out that, in total, sales at the outlet dropped 50 per cent from 2022 to end-2024, with takings in some months insufficient to cover expenses. At its peak, Keong Saik Bakery produced around 600 pastries daily across its three outlets. Today, output has halved. 'Margins for bakeries are very, very low,' says Tan. 'If you don't have the volume, it's very hard to survive, and you can't price bakes too high. Who's going to buy a S$9 croissant?' Across the island, similar stories are playing out. Data from the Department of Statistics shows that food and alcohol sales fell 4.5 per cent in May 2025 from a year earlier. As demand for baked goods softens, bakeries are seeing slower sales, with some throwing in the towel. L'eclair Patisserie, known for its artisanal French-style eclairs, experienced thinning traffic and falling sales at its Jewel Changi boutique store after opening in 2019. The outlet closed earlier this year. 'We noticed a slump after the half-year mark and footfall wasn't as great as what was estimated,' says founder Michelle Looi. When it was still operating, the store sometimes saw as few as 10 to 15 transactions a day. 'Jewel is more a destination spot – people come to take photos and leave,' Looi observes. 'At best, they'll dine at one outlet, so despite the crowds, conversion to sales remains low.' L'eclair Patisserie's Jewel Changi Airport boutique store sometimes saw as few as 10 to 15 transactions a day. Founder Michelle Looi cites dwindling footfall and high operational costs as reasons for its closure this year. PHOTO: L'ECLAIR PATISSERIE Since the Jewel store's closure, L'eclair's operations have continued at its other outlet in Singapore Shopping Centre, as well as online. Looi says the business needs about S$100,000 monthly revenue to break even – a steep target given tepid sales and high overheads. Even now, though, it remains in the red, with monthly revenue down 10 to 20 per cent. Online sales, which represent over half of the bakery's monthly revenue, have fallen 35 to 50 per cent over the last two years. 'It's just been a whole year of bleeding,' says Looi. 'We took out a working capital loan earlier this year, and we are just trying to survive.' Other casualties of the slump include Madu Bakery, which started as a home-based business in 2021 and shuttered its physical store in June last year after just two years. Tigerlily Patisserie, by former Les Amis chef Maxine Ngooi, closed last April after three years in Joo Chiat. Even more-established home-grown brands are feeling the heat. Cheryl Koh, founder of Les Amis spinoff Tarte, says business in the first half of 2025 has been slow, aside from a few bright spots during festive periods and major events. Tiong Bahru Bakery, meanwhile, recently shuttered its Funan Mall and Scotts Square outlets. The chain now operates 20 stores, having expanded in the past two years into heartland malls such as Jem and Tampines 1, as well as The Centrepoint in Orchard. Though the Funan outlet had loyal customers, business dynamics have changed since 2020, says Tiong Bahru Bakery's general manager Matthew McLauchlan. 'We had come to this decision after reviewing priorities and digesting observations on the current food and beverage (F&B) landscape.' International heavyweights, too, face challenges. French patissier Pierre Herme, meanwhile, told The Business Times in July that he is aware of global economic shifts, changing consumer habits, and rising competition in the high-end segment, but he remains undeterred. Pierre Herme Paris will open its largest flagship in the world on Aug 1 at the Weave, Resorts World Sentosa's new dining and lifestyle enclave. Pierre Herme Paris will open its largest flagship in the world on Aug 1 at the Weave in Resorts World Sentosa, even as patissier Pierre Herme acknowledges the challenges facing the F&B industry. PHOTO: ST Cedric Grolet's eponymous patisserie-cafe in Singapore opened in 2023 with long queues at Como Orchard. The initial hype has since tapered off. 'Since our opening nearly two years ago, we have actually maintained a steady and healthy performance with the daily footfall and revenue,' a Como spokesperson tells BT. 'While the initial buzz has naturally evolved, we have maintained a healthy and consistent volume of business from both walk-ins and online orders.' The cost crunch At the heart of the crisis is a rising cost structure, but falling revenue. 'Even with a healthy footfall, margins in F&B are always tight,' Tiong Bahru Bakery's McLauchlan points out. Operating expenditure in Singapore's F&B sector hit a record S$12.3 billion in 2023, up 8.8 per cent from 2022 and 37.3 per cent since 2020, Knight Frank Singapore reported on Jul 16. Operating revenue was slightly lower at S$12.2 billion. ' 'When I started the business (10 years ago), butter cost S$8 to S$10 per kg; now it's up to S$25. Chocolate was S$12 to S$15 per kg; now it's S$30 to S$50 due to logistics disruptions and weather – things consumers don't see.' ' — Michelle Looi, founder, L'eclair Patisserie L'eclair's Looi notes that ingredients in particular have become more expensive. 'When I started the business (10 years ago), butter cost S$8 to S$10 per kg; now it's up to S$25. Chocolate was S$12 to S$15 per kg; now it's S$30 to S$50 due to logistics disruptions and weather – things consumers don't see.' Manpower costs and availability add to woes. Ervin Yeo, CapitaLand's commercial management chief executive and group chief strategy officer, noted in a Jun 9 LinkedIn post that bakeries 'typically have higher manpower costs relative to ingredients because the magic is in the skilled baker turning flour and eggs into a S$12.50 tiramisu millecrepe'. In Singapore, F&B businesses have a foreign worker quota of 35 per cent of their total workforce. 'The challenge then is that the local pool is shrinking,' wrote Yeo. With birth rates going down, the number of Singaporeans willing and able to work in the service sector will continue to dwindle, especially as older staff retire. 'The blanket policy does not work,' says Keong Saik Bakery's Tan. 'Unfortunately, the fact of the matter is, not many Singaporeans are clamouring for F&B jobs and most of them only work it part-time.' The Chip Bee outlet, he adds, had no full-time employee in April and May. It currently runs weekday shifts with just two to three staff. Rent's a crust too high Rents have also become a heavy burden. Flor Patisserie, which serves Japanese-inspired French cakes, closed its Siglap Drive outlet on Jul 13, after a 57 per cent rent hike to S$8,500 per month, from S$5,400 previously. 'We have been around for 15 years, so we have quite a customer base. Even though the market is slow, we could sustain operations at Siglap,' says Flor's founder Heidi Tan. 'Really, the nail in the coffin is (the) rent hike… There's just no way we can continue with such an increase.' Flor Patisserie closed its final outlet at Siglap Drive on Jul 13, after rents rose by 57 per cent to S$8,500 per month. PHOTO: FLOR PATISSERIE Flor had already shut its Duxton and East Coast outlets in 2024, citing dwindling footfall and high rents. Monthly rents were about S$9,000 for a 1,200 square foot (sq ft) space in Duxton, and S$8,500 for a 2,200 sq ft unit in East Coast. Footfall and order sizes fell about 50 per cent post-pandemic, as office crowds stayed home and travel resumed. 'Cakes are not essential goods. It's a niche market, and we don't serve the masses,' says Tan. 'The sales didn't justify the high rents in Duxton and East Coast.' Rents have been rising across the board – not just for shophouses, but for mall spaces as well. Prime monthly rent for the Orchard area is now back to pre-pandemic levels; it was S$35.77 per sq ft (psf) in 2019 and S$35.83 psf in 2024, Cushman & Wakefield data shows. In suburban areas, prime monthly rent rose to S$32.90 psf last year, from S$31.76 psf in 2019. Rents of retail space increased by 0.9 per cent in Q2 2025 , reversing from the 0.5 per cent decrease in the previous quarter, latest data from the Urban Redevelopment Authority showed. L'eclair paid S$40 to S$50 psf for a ground-floor space in Jewel that was smaller than 300 sq ft. Looi says that on lease renewal, the mall operator – a joint venture between Changi Airport Group and CapitaLand – requested renovations and a 30 per cent rent hike. Amid all this, competition is getting stiffer as more home-based F&B businesses, including bakeries and cafes, are added to the mix. While there is no official data, there are reportedly over 150 listings of such operations. Keong Saik's Tan notes that the playing field may not be level, as home-based businesses are not subject to the same compliance costs, such as licensing and renovation fees, which can run into the thousands. ' 'People don't usually associate Keong Saik Bakery with lunches, but market shifts left us no choice.' ' — Tan Yuzhong, founder and chief executive, Keong Saik Bakery Baking up new strategies Faced with thinning margins, some bakeries are exploring new strategies to stay afloat. Keong Saik Bakery, for instance, introduced lunch items such as rendang chicken stew and Nonya curry chicken this year. It also rolled out a new range of eclair-shaped croissants called the Clairssant Collection. Keong Saik Bakery has rolled out a new range of pastries, as well as lunch items; these have helped boost the bakery's top line. PHOTO: KEONG SAIK BAKERY 'People don't usually associate Keong Saik Bakery with lunches, but market shifts left us no choice,' says Tan. The new offerings helped boost sales by 20 per cent, though the business remains in the red. 'The goal for this year is to at least achieve parity, and that will be a win for me,' says Tan. L'eclair has also diversified into pasta, croissants and sandwiches to appeal to different tastes. Looi plans to partner more with other brands for pop-up events, noting that the exclusive nature of such experiences tends to attract greater attention and engagement. Flor's Tan, meanwhile, has exited the F&B industry. 'The Siglap outlet is my only kitchen, so when that closes, there's no cakes. It's a full closure.' She now runs baking tours, bringing Singaporeans to Japan to learn from professional chefs. Some bakeries are also broadening their reach through increased business-to-business sales. CakeInspiration, a decade-old home-grown bakery specialising in custom cakes, pivoted from consumer sales – which dropped to near zero during Covid – to brands and corporate clients. Corporate orders now form half of CakeInspiration's revenue, providing steadier though slimmer margins, says chief executive Chan Kai Yang. They handle three to four corporate orders monthly, such as 1,000 to 2,000 cupcakes retailing at S$5 to S$8 each, depending on design and ingredients. Corporate orders provide steadier though slimmer margins for CakeInspiration. PHOTO: CAKEINSPIRATION Still, diversification plans may only go so far, unless structural issues are addressed. Lee Siew Ling, JLL Singapore's executive director of retail, has observed strategic partnerships where bakeries team up with complementary retailers or food operators to share operational costs. She cites as examples Bynd Artisan, which shares a space with Patisserie Woo at Ion Orchard, and coffee chain Alchemist, which shares its space in Funan Mall with Arcade Clothing. Guy Llewellyn, assistant professor at EHL Hospitality Business School's Singapore campus, says such co-sharing arrangements are one way to manage costs. 'This helps small F&B businesses mitigate rental risks… You're kind of hedging your bets,' he adds. Location matters Others may find more resilience in strategically located storefronts. Lee says bakeries need a strategic balance between visibility and manageable rent. Bakeries in prime high-footfall locations, such as MRT stations or street-facing units, can benefit from both destination traffic drawn to their specific offerings and the natural footfall generated by surrounding complementary uses, she notes. Tarte's Koh contrasts her Shaw Centre and Raffles City outlets, noting that the latter, which opened in 2020, attracts more walk-ins and natural footfall; Shaw Centre sees a more measured crowd, mainly customers already familiar with the brand. On average, Tarte fulfils between 300 and 400 orders daily, with weekends seeing higher volumes. Takeaways and deliveries make up about 70 per cent of sales, while dine-ins account for the remaining 30 per cent. 'Between the two outlets, Shaw Centre contributes more significantly to our overall sales, especially through dine-in and online channels,' says Koh, adding that the differing dynamics of the two locations complement each other and have helped with business. Joan Chen, CBRE's head of retail, says that success hinges on 'clearly defining the bakery's concept and matching it with its ideal consumer profile and consumption patterns'. Local or Asian-style bakeries are typically volume-driven and work best in high-traffic environments with a mass-market appeal, she adds. Conversely, European-style artisanal bakeries with premium pricing do better in shophouse enclaves that complement the ambience and encourage dining in. 'While foot traffic is low, store traffic once built through word-of-mouth recommendations… (and) memorable customer experiences will ensure regular visits.' JLL's Lee also notes that successful bakeries adopt hybrid models: central production kitchens supplying multiple smaller retail outlets, gaining production economies of scale and minimising rental frontage. ' What lies ahead is whether landlords are prepared to share their tenant's plate of cost challenges and take a cut in their rent revenue to support a tenant… and contribute to a healthy business cost model. ' — Joan Chen, head of retail, CBRE On the policy front, Prof Llewellyn suggests taxing unrented commercial units to motivate landlords to lease instead of waiting for 'perfect tenants'. 'Rental costs are staggeringly high and unfortunately, spending has remained flat. There's just less money going around and costs continue to rise,' he says. 'If nothing changes, the closures are going to keep happening.' CBRE's Chen, meanwhile, says improving small F&B survival needs flexible leasing, such as shorter leases and turnover rent. She also calls for inclusive licensing policies for temporary formats and opening underused public spaces for pop-ups. 'What lies ahead is whether landlords are prepared to share their tenant's plate of cost challenges and take a cut in their rent revenue to support a tenant, whether it is to trade off the brand name or to support a tenant's business initiatives and contribute to a healthy business cost model.'
CNA
5 hours ago
- CNA
Southeast Asia's home-grown specialty coffee businesses making their mark
Southeast Asia's modern coffee market is enjoying robust growth, driven by rising disposable incomes and consumer preferences. Both local and multinational coffee chains are expanding rapidly in the region to tap the multi-billion dollar market. CNA's Melissa Goh looks at some home-grown specialty coffee businesses, with their own unique ASEAN blend.
CNA
5 hours ago
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CEO Tim Cook says Apple ready to open its wallet to catch up in AI
SAN FRANCISCO :Apple CEO Tim Cook signaled on Thursday the iPhone maker was ready to spend more to catch up to rivals in artificial intelligence by building more data centers or buying a larger player in the segment, a departure from a long practice of fiscal frugality. Apple has struggled to keep pace with rivals such as Microsoft and Alphabet's Google, both of which have attracted hundreds of millions of users to their AI-powered chatbots and assistants. That growth has come at a steep cost, however, with Google planning to spend $85 billion over the next year and Microsoft on track to spend more than $100 billion, mostly on data centers. Apple, in contrast, has leaned on outside data center providers to handle some of its cloud computing work, and despite a high-profile partnership with ChatGPT creator OpenAI for certain iPhone features, has tried to grow much of its AI technology in-house, including improvements to its Siri virtual assistant. The results have been rocky, with the company delaying its Siri improvements until next year. During a conference call after Apple's fiscal third-quarter results, analysts noted that Apple has historically not done large deals and asked whether it might take a different approach to pursue its AI ambitions. CEO Cook responded that the company had already acquired seven smaller companies this year and is open to buying larger ones. "We're very open to M&A that accelerates our roadmap. We are not stuck on a certain size company, although the ones that we have acquired thus far this year are small in nature," Cook said. "We basically ask ourselves whether a company can help us accelerate a roadmap, and if they do, then we're interested." Apple has tended to buy smaller firms with highly specialized technical teams to build out specific products. Its largest deal ever was its purchase of Beats Electronics for $3 billion in 2014, followed by a $1 billion deal to buy a modem chip business from Intel. But now Apple is at a unique crossroads for its business. The tens of billions of dollars per year it receives from Google as payment to be the default search engine on iPhones could be undone by U.S. courts in Google's antitrust trial, while startups like Perplexity are in discussions with handset makers to try to dislodge Google with an AI-powered browser that would handle many search functions. Apple executives have said in court they are considering reshaping the firm's Safari browser with AI-powered search functions, and Bloomberg News has reported that Apple executives have discussed buying Perplexity, which Reuters has not independently confirmed. Apple also said on Thursday it plans to spend more on data centers, an area where it typically spends only a few billion dollars per year. Apple is currently using its own chip designs to handle AI requests with privacy controls that are compatible with the privacy features on its devices. Kevan Parekh, Apple's chief financial officer, did not give specific spending targets but said outlays would rise. "It's not going to be exponential growth, but it is going to grow substantially," Parekh said during the conference call.
