Mr Lee Yi Shyan at the Official Opening of the Precision Engineering Centre of Innovation (PE COI)

SPEECH BY MR LEE YI SHYAN MINISTER OF STATE FOR TRADE AND INDUSTRY AT THE OFFICIAL OPENING OF THE precision engineering center of innovation (pe coi) AT THE SINGAPORE INSTITUTE OF MANUFACTURING TECHNOLOGY AT 10:00AM ON FRIDAY, 23 MAY 2008

Dr Lim Ser Yong, Executive Director, SIMTech

Ladies and Gentlemen,

Good morning

Introduction

I am pleased to be here today to officiate at the opening of the Precision Engineering Centre of Innovation.

Growth of the PE Industry in Singapore

The PE industry has come a long way. In the 1980s, the industry grew together with the influx of electronics MNCs like Seagate, AT&T, Philips and Panasonic setting up manufacturing operations here. As process and quality management know-how flowed from these MNCs to our local companies, our local companies in turn attracted even more MNCs from other industries to Singapore. These include the Aerospace, Medical Devices, Oil and Gas Equipment, and Semiconductor Machinery industries. Many of the local companies that are now large players in the PE industry, like Seksun and MMI, started during that period.

Since then, the industry has grown into a bedrock for our manufacturing sector. Last year, it generated $22 billion or 10% of our total manufacturing output. It employed close to 100,000 staff, or one quarter of the total employment in the manufacturing sector.

Future of PE SMEs

Going forward, our companies have to continue upgrading their capabilities to sustain profitable growth. The Precision Engineering Centre of Innovation will be a useful partner in this regard. A $30-million collaboration between SPRING Singapore and A*STAR, the Centre provides our companies with a suite of services such as technology and manpower development, facility and equipment sharing as well as consultancy for company and industry-wide needs. By co-locating with SIMTech (Singapore Institute of Manufacturing Technology), the Centre will be able to leverage SIMTech’s 300 researchers’ expertise in advanced manufacturing technologies.

In addition, the Centre is a conduit for SIMTech to train PE workers in new and innovative technologies that support the industry’s move towards higher-end manufacturing. This is offered under the Singapore Workforce Skills Qualifications System’s Specialist PE Diploma.

I am pleased to note that the industry’s response to the Centre has been very encouraging. Since it began operation in June 2007, it already has 42 on-going or completed projects with companies. Of these, 34 projects are with 22 SMEs. These are developmental projects in the areas of processes, automation and manufacturing IT, resulting in high value-added growth to the companies. The Centre expects to complete a total of 75 projects in its first three years.

One SME that has benefited from the Centre is Alignment Tool, a local cutting tool manufacturer. The development and manufacture of cutters used to be a time-consuming process, with many trials and customer validations. Alignment Tool worked with the Centre to develop new methods in designing cutting tools. As a result, it has significantly reduced the amount of time required, and is now supplying high-value cutters to aerospace manufacturing companies. The innovation has led to new business opportunities for the company in industries where tooling reliability is a critical factor.

The Centre also worked with Delta Optics Technologies, an optical mold inserts manufacturer, to develop an innovative ultrasonic-assisted machining process to speed up their manufacturing of high-precision mold inserts. The process trims production time from six weeks to one day and improved the molding tool life by six times. This enabled Delta Optics to successfully compete with companies in the US, Europe and Japan to supply high-precision mold inserts for the manufacture of plastic optical components.

Conclusion

Just as our PE industry has evolved in the past 20+ years, our PE companies must continue to innovate, upgrade and acquire new capabilities and venture into new market segments to enter the next growth phase. This newly-opened Centre, I hope, will be a useful partner for your journey to excellence.

Thank you.