The Sale of Food (Amendment) Bill 2017 2nd Reading Speech by SMS Dr Koh Poh Koon

Nov 7, 2017

Mr Speaker, on behalf of the Minister for National Development, I beg to move, “That the Bill be now read a Second time.”

Overview

The Agri-Food and Veterinary Authority (AVA) administers the Sale of Food Act as part of our comprehensive food safety regime to ensure that food sold in Singapore is safe and suitable for consumption. The Sale of Food Act (SOFA) was last amended in 2002.  

Besides ensuring food safety, we also need to better regulate food labelling and advertising to promote public health and ensure that consumers get the right information to make informed choices. Today, we are seeing more innovative products entering the market, some of which are purported to give health benefits.  Therefore, it is important for consumers to be provided with adequate and accurate information about the products that they are consuming.  

In addition, the Competition Commission of Singapore (or CCS)’s market inquiry into formula milk concluded that companies competed mainly on building a premium brand image for their products through aggressive marketing.  CCS also found that an insufficient understanding of the nutritional benefits of formula milk and the dietary requirements of infants and young children could have led some parents to perceive that the more expensive products were of higher quality. In May 2017, the Government formed a Taskforce – which I Chair, to address some of the issues that were raised by CCS.  The Taskforce has facilitated the entry of more affordable options, strengthened public education efforts, and encouraged hospitals to provide more support for breastfeeding as the preferred option.  Parents have welcomed the positive impact of such measures.

To further strengthen consumer protection, we intend to tighten regulations on labelling and advertising of formula milk.  Certain claims and images on tins create the impression, even when scientific evidence is weak, that these products can somehow do more for children. In this context, we are expanding the scope of the Sale of Food Act to regulate food labelling and the provision of information relating to food to help consumers make more informed choices.  Coupled with education campaigns, we want to facilitate better understanding of products so that consumers do not, for example, always end up equating price or marketing claims with quality.  Mr Speaker, allow me to elaborate.

Expanding SOFA to enable consumers to make informed choices

First, Clause 2 of the Amendment Bill will expand the scope of the Act from securing the wholesomeness, purity, and safety of food, to ensuring that companies provide adequate and accurate information, and preventing them from providing misleading information.  This will strengthen consumer protection, help consumers make more informed choices, and promote public health. 

Second, Clauses 9 and 19 provide a framework to better regulate the provision of information on food.  Currently, AVA regulates false labelling and advertising of food to prevent misleading claims. In the event that a case is brought to court, the prosecution has to provide evidence of falsity to assert a breach. The amendments will require now the defendant to produce evidence to show that the content of the advertisement or label is truthful.  I should highlight that there is no presumption of guilt as cases still need to be argued before the courts.  Companies that can defend their claims will therefore not be unduly affected.  

Beyond false advertising, we need to do more to safeguard consumer interest and promote public health. In this regard, Clause 19 clarifies the scope of regulations pertaining to the provision of information on food, for instance, specifying what can or must be contained in labels, promotions, and advertisements, as well as how this content is being presented.  This will allow regulations to be enacted to ensure that promotional information is provided in a suitable manner that help consumers make informed choices, instead of confusing or misleading consumers. This amendment also allows us to require infant formula companies to place statements encouraging breastfeeding on their labels.  

Setting up clear and gradated approach for food recalls for better clarity and governance

We already have a robust system that contributes to our reputation as a trusted and reliable jurisdiction when it comes to food safety.  However, we are amending the Act to further enhance food safety, by allowing AVA to act more quickly on food recalls. 

Currently, AVA stops the sale of food when it has been found, through testing, to be contaminated by food safety hazards. However, food supply chains are becoming increasingly complex, given multiple sources, players, and products.  It now takes more time to confirm the precise source and the nature of any contamination. Instead of waiting for the outcome of such an investigation and testing, Clause 8 allows AVA to effect food recalls when the safety and suitability of the food, or the food contact article is in doubt, or contamination is suspected.  This will prevent or reduce the possibility of serious danger to the public while investigations are still ongoing.   So far, our industry players have been responsible in taking quick remedial action when there are suspected cases, and we are grateful for their cooperation.  For example, in February 2016, some chocolate confectionery products were suspected to have been contaminated with pieces of plastic. AVA was alerted to the incident via its scanning, and worked with the importers to effect a recall.  But this amendment will address future instances when there might be less responsible or cooperative industry players.

The Amendment Bill also provides a recall framework that provides more clarity and certainty to the industry.  Let me describe this in further detail. Clause 8 introduces a clear and gradated set of directions that AVA may issue to identified persons and entities, for the purposes of food safety.  If there is potential serious danger to public health, AVA may issue directions to recall food and food contact articles.  In less serious cases, directions can be given for general corrective actions or to control product movements.  AVA may also issue additional directions for follow-up actions such as disposal, storage, or publishing statements to the public.  Failure to comply with any of these directions will be an offence.

We recognise that food recalls can cause reputational harm and disrupt business processes.  Decisions to effect recalls are based on rigorous assessment.  AVA will also work with the industry to address situations before a food recall is announced.   In the unlikely event of a false alarm, the Bill puts in place an appeal and compensation mechanism that the affected person or entity can use to seek redress. 

Enhancing licensing for premises used for commercial storage of food

The Bill also strengthens AVA’s regulation of non-retail food businesses. Clauses 10 and 11 will empower AVA to license all non-retail food businesses such as warehouses, wholesalers, and distributors.  The advent of new business practices makes this important.  For example, third party logistics players are now providing space for businesses to store food, and the storage conditions in some food warehouses are not ideal.  So AVA has assessed that licensing food warehouses is a necessary measure to protect public health.  AVA has already started engaging the industry, and over 1,000 food warehouses have registered on a voluntary basis.  AVA will progressively license these food warehouses starting with the ones storing high-risk items like infant or baby food and products that require proper temperature control like ice cream and yoghurt.  Licensing fees will be pegged to the size of the warehouse, and will not exceed SGD$600 per year.  As for the other non-retail food establishments, AVA will study need for licensing.

Improving administration of the Act

Finally, Deputy Speaker sir, the Bill updates some existing provisions and provides operational flexibility to AVA.  Clause 6 makes clear the circumstances when the power to require information may be exercised by an authorised officer appointed by AVA.  For example, during investigations into food poisoning cases, officers may ask for records like invoices, certificates issued by competent authorities or organisations, production records etc.  The amendment states clearly the circumstances under which authorised officers may exercise such powers.

Clause 18 enables the Director-General of AVA to grant administrative exemptions for a specified period from any provisions of the Act or its subsidiary legislation.  These exemptions are governed by strict criteria to safeguard public health and can only be granted to avoid unnecessary restrictions on trade.  For example, this will allow AVA the flexibility to allow new brands or parallel imports even if they do not meet certain labelling requirements.  However, AVA will continue to ensure that these products still meet all the standards and are safe for consumption.  

Engaging stakeholders to ensure smooth transition

In conclusion, the proposed amendments will benefit consumers and enhance public health as well as food safety.  We have already started consulting the food industry, and will continue to engage and partner them throughout this transition.

Mr Deputy Speaker sir, I beg to move.