Mr Lee Yi Shyan at the Grand Opening of Yang Kee Chemical Logistics Hub

SPEECH BY MR LEE YI SHYAN, SENIOR MINISTER OF STATE FOR TRADE & INDUSTRY AND NATIONAL DEVELOPMENT AT GRAND OPENING OF YANG KEE CHEMICAL LOGISTICS HUB AT YANG KEE LOGISTICS PTE LTD ON WEDNESDAY, 12 DECEMBER 2012, 12.45PM

Mr Koh Yang Kee, Managing Director of Yang Kee Group,

Mr Ken Koh, Deputy Managing Director of Yang Kee Group,

Ladies and Gentlemen

Good Afternoon. I am pleased to join you today at the opening of the Yang Kee’s Chemical Logistics Hub at the doorstep of Jurong Island.

The Singapore Logistics Sector

The Singapore logistics industry has progressed with time. Beyond freight, warehousing and transportation, many of them are acquiring new capabilities. Others are offering specialised logistics services for the marine, pharmaceuticals, chemicals and perishables sectors.  According to the World Bank, Singapore has been ranked the No. 1 Logistics Hub among 155 countries in its 2012 Logistics Performance Index.

As an important pillar of our economy, the logistics and transportation sector contributes about 8 per cent to our GDP and employs more than 200,000 workers.  Local SMEs account for 80 per cent of companies and employ 40 per cent of the sector’s workforce.

Upgrading Key Logistics Capabilities for Growth

To ensure that our logistics sector maintain its edge, the Economic Development Board (EDB) and SPRING Singapore introduced a S$42 million, 5-year productivity roadmap for our logistics and transportation industry.

Essentially, the roadmap contains a suite of capability building initiatives to help companies embrace innovation, boost their productivity and optimise their resources so as to improve overall competitiveness. To date, more than 50 logistics companies have already benefitted from the productivity roadmap since its launch in March 2012.

Yang Kee makes full use of governmental support

Yang Kee is a good example of a logistics company that has made full use of the above productivity roadmap.  It has transformed itself from a traditional and general logistic company to one offering specialised services.

Tapping on assistance from SPRING, Yang Kee acquired new capabilities and strengthened its operations to become one of the top logistics and warehousing companies in Singapore. Over time, it has also expanded its services to include international freight forwarding, warehousing, distribution and project management for its clients.

In terms of specialisation, Yang Kee has sharpened its service offerings to serve the chemicals and oil & gas sectors. Its new chemical logistics hub we see here today will complement the integrated facilities on Jurong Island, which houses many of the world’s leading energy and chemical companies.

By embracing technology, training its workforce and re-inventing its business model, Yang Kee is now able to do more to serve its customers. Yang Kee’s upgrading efforts have added sophistication to Singapore’s status as an international logistics hub.

Conclusion

I congratulate Yang Kee’s management and staff for their achievements, vision and drive to seize new growth opportunities. I hope other SMEs in the industry would emulate Yang Kee’s pursuit of excellence.  Thank you.