Mr Lee Yi Shyan at the Opening of Global-Asia Trade Exchange 2007

Opening speech by Mr Lee Yi Shyan, Minister of State for Trade and Industry at the Opening of Global-Asia Trade Exchange 2007 on Wednesday, 10 October 2007 at 9.15 am at Pan Pacific Singapore

Distinguished guests,

Ladies and Gentlemen,

Introduction

Good morning. It is my pleasure to be with you at GATE07.

Singapore EPE industry

The Electronics and Precision Engineering (EPE) cluster is an important cluster and it accounts for 46 per cent of our manufacturing output, and 54 per cent of our export. Last year, the sector also attracted an estimated $4.8 billion in manufacturing fixed assets investments. According to Manufacturing Market Insider, the worldwide EPE outsourcing market stands at US$140 billion, and the EPE market is projected to grow at 9.6 per cent through 2011[1]. Therefore, the EPE sector in Singapore is also poised for further growth particularly if our industry players are able to offer relevant products and cater to the faster-growing segments of the industry.

Staying relevant by constant upgrading

Capacity building on a continual basis is the best way to ensure our firms are able to stay ahead of competition, and stay relevant.There are many examples of firm acquiring new capability. Consider Innovalues: It upgraded its precision machining capability to diversify beyond the office automation industry.Innovalues is currently one of the few manufacturers globally qualified by both Sensata and Siemens VDO for braking and occupant weight sensors used in automotive safety systems.

To support our companies in capability building, we have various programmes to facilitate setting up of infrastructure, knowledge sharing and skills development. Businesses can tap on the Precision Engineering Centre of Innovation at SimTech to develop new processes and products. By the end of the year, SMEs can also have access to facilities at A*STAR Research Institutes to conduct R&D activities, under the new Facility Sharing Programme. Besides these, we also support secondment of research scientists and engineers, and Operational Technology Roadmapping. SME suppliers in the medical technology sector can also tap on SPRING Singapore’s MedTech Capability Development Programme when developing new medical equipment and consumables.

Capturing new market, riding on new growth opportunities

Our companies must be quick to capitalize on new market opportunities and the industry trends. To help companies in the market, IE Singapore organises targeted business missions for our EPE suppliers, such as the three recent missions to the US and Europe to engage the design engineers of targeted MNCs.

For the automotive sector, I am glad to note that our support has boosted Singapore’s suppliers’ success.Auto IGNITE, a multi agency initiative to grow the automotive component industry in Singapore, is on track to achieve the targeted S$1 billion of annual industry revenue by 2008.

This morning, I am pleased to announce that two groups of Singapore-based suppliers will be signing memoranda of understanding (MOU) later to jointly penetrate the automotive Door-Closure-Systems and Automotive Sensors businesses. Sanwa Plastics Industry, Hybrionic, Swiss Precision Industries, Armstrong Industrial Corporation, Miyoshi Precision, Innovalues Limited and John While Springs will bring together their complementary expertise to pursue partnerships with the world’s top automotive Tier One suppliers. The groups are also currently in discussion with IE Singapore to obtain support under the iPartners programme.

Conclusion

In conclusion, Singapore suppliers are well-positioned to capture regional and sectoral growth opportunities. GATE facilitates exploration of partnership opportunities between global buyers and Asian suppliers. I am glad to note that this year’s event has attracted first-time participation from industrial equipment buyers such as Honeywell Automation and OCE, as well as more buyers from medical system manufacturers.We are constantly seeking to improve the platform with your inputs to make it relevant for industry’s needs.I wish everyone a fruitful time, and success in your meetings.

Thank you.

[1]Electronics.ca Publications