Simply called the NTUC FairPrice Foundation, it aims to help the poor, boost workers' welfare, and fund community bonding and nation building projects.

The supermarket chain has pledged to donate $50 million to the foundation's kitty in the next 10 years.

NTUC FairPrice is not new to philanthropy: It has donated about $15 million in the last five years to various charitable causes. For example, it gave $1 million worth of food vouchers to help poor Singaporeans cope with the 2 percentage point hike in the goods and services tax last year.

But it now wants to be more focused and structured in its giving, said the foundation's chairman, Mr Ng Ser Miang.

Yesterday, the foundation gave out its first donations, totalling $1 million, to four beneficiaries at a ceremony:

The Community Chest, the fund-raising arm of the National Council of Social Service.

Food from the Heart, which distributes food to the poor.

NTUC Childcare Bright Horizons Fund, which helps children from poor families attend NTUC childcare centres.

Eldercare Trust, which raises funds for the NTUC Eldercare Co-operative that runs daycare centres for the elderly.

Labour chief Lim Swee Say, who was the guest of honour at the ceremony, called the NTUC FairPrice Foundation a very important milestone for the supermarket chain and the labour movement as it signifies a commitment to 'do good' for the community.

Mr Lim, the secretary-general of the National Trades Union Congress (NTUC), added: 'There's no guarantee that FairPrice will always do well, yet it is prepared to make a commitment to do good.'

FairPrice was begun in the 1970s by the NTUC to combat profiteering by small-time businessmen.

Since then, it has grown into Singapore's biggest supermarket chain, with 80 FairPrice supermarkets and 120 Cheers convenience stores, among other outlets.

In its last financial year ended March 2007, the chain's revenue hit a record $1.6 billion, with a net profit of $100 million.

With the foundation, NTUC FairPrice joins a number of big local companies with philanthropic arms, including Temasek Holdings, CapitaLand and Singapore Press Holdings.

theresat@sph.com.sg