Mr Lee Yi Shyan at the CWT’s Launch of its Commodity Hub, 11 May 2010

SPEECH BY MR. LEE YI SHYAN, MINISTER OF STATE FOR TRADE & INDUSTRY AND MANPOWER AT CWT’S LAUNCH OF ITS COMMODITY HUB ON TUESDAY 11 MAY 2010 AT 5.00 PM 24 PENJURU ROAD 

Mr. Loi Kai Meng

Chairman of CWT Limited

Mr. Rashed Saud Al Shamsi

Chairman of Borouge Pte Ltd

Distinguished guests,

Good evening.

I am pleased to join you in celebrating the launch of CWT’s Commodity Hub the largest warehouse in Singapore.

Helping Local Companies Become Globally Competitive

As a pioneer in Singapore’s logistics sector, CWT has successfully navigated a highly competitive logistics landscape, to become one of Singapore’s largest third party logistics service providers (3PLs).It now operates from more than 20 countries offering integrated supply chain logistics solutions to worldwide customers. Indeed, as a home grown company, CWT has done us proud.

Today, CWT is the largest collateral management service provider and steel logistics operator in the region. I also understand that CWT is one of the top Non Vessel Operating Common Carrier globally.

CWT is an excellent example of how our local players should strive to become globally competitive. With the world economy now on recovery path and for Asia in particular, our local companies must seize this opportunity to build on their core strengths and expand their presence in the emerging markets. Government agencies such as Spring Singapore, International Enterprise Singapore and the Singapore Economic Development Board (EDB) stand ready to help our local players grow into globally-competitive companies. Programmes available in these agencies include capability development, internationalization and financing.

I am pleased to note that as part of these efforts, EDB Investments (EDBI) has made a strategic investment in CWT earlier this year. We hope efforts such as these will help to nurture more world class local logistics players.

As Singapore companies seek to expand internationally, it would serve them well if they band together to take on larger projects. For instance, in today’s context, they could consider using CWT as their partner for international supply chain solutions. IE Singapore also offers an International Partners Programme (iPartners) that facilitates consortium-forming amongst like-minded Singapore-based companies when venturing overseas. I don’t think I need to emphasize that unity is strength for companies venturing abroad together, amongst many other benefits.

As Co-chairman of the Abu Dhabi-Singapore Joint Forum, I am also particularly pleased to note that this CWT facility has been chosen by Borouge Pte Ltd from Abu Dhabi, to be its logistics hub for its Asian operations. I welcome this strategic partnership, and would like to encourage more Singapore companies making themselves ideal partners for many Middle Eastern companies which are seeking the most effective ways to tap on the growth opportunities in Asia Pacific. Singapore can be a gateway for Middle Eastern companies to access Asia, and East-Asian companies that are moving westward into India and the Middle East.

Productivity and Global Competitiveness

Back home, Singapore companies must continue to upgrade their headquarters’ operations. They must continue to innovate, streamline, invest in capital equipment and the training of their workforce to raise productivity. Consider CWT’s new facility here. It has developed a simple yet innovative concept of using gravity to load plastic resins from containers into packaging lines installed below the loading bay. This simple innovation in workflow design helps CWT save some $20 to 25 million in capital expenditure. It also reduces the processing time taken to switch between products from 2 hours to just 30 minutes.

I encourage more of our logistics companies to undertake new initiatives to raise productivity, reduce costs and create more value for your customers and yourselves. The newly introduced Productivity and Innovation Credit is precisely designed to encourage companies to raise productivity by automation and training of their workforce.

To champion national productivity initiatives, the National Productivity and Continuing Education Council (NPCEC), chaired by Deputy Prime Minister Teo Chee Hean was recently formed. The council has identified logistics and storage as one of twelve key priority sectors to focus on. In the coming months, key government agencies such as EDB, SPRING and IE Singapore and WDA will be working closely with companies to study and develop new strategies to enhance the productivity in the logistics sector.

Equally important is the transformational impact that the logistics sector can have on the competitiveness of other industry verticals. As an enabler for other industry sectors, boosting productivity in the logistics sector could in turn lead to a positive impact on productivity for other sectors. I therefore urge the logistics industry to stay at the forefront in leading our national Productivity drive. As an industry, you should be playing the leadership roles in innovation and adoption of international best practices.

Conclusion

In closing, let me extend my heartiest congratulations to the management and staff of CWT.I wish you continued success in your future endeavors.

Thank you.