Mr Lim Hng Kiang at the Launch of the We Can Movement by Singapore Logistics Association (SLA), 6 Sep 2010

OPENING REMARKS BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE LAUNCH OF THE WE CAN MOVEMENT BY SINGAPORE LOGISTICS ASSOCIATION (SLA) ON MONDAY 6 SEPTEMBER 2010, 6.00PM

Mr Quek Keng Liang, Chairman, SLA,

Mr Dennis Quek, Second Deputy Chairman, SLA,

Ladies and Gentlemen,

Introduction

A very good evening to all of you. I am happy to be here at the launch of the “We Can” movement.

Singapore’s Logistics Industry – A Key Enabler of Singapore’s Economy

With its strategic location, good market connectivity, efficient 24/7 operations and sound infrastructure, Singapore has developed its supply chain capabilities to become a world-leader in the global logistics industry. In the 2009 World Bank study on logistics services, Singapore was ranked second out of 155 countries.

The logistics industry is a key enabler of the Singapore economy. Despite the global economic slowdown in 2009, Singapore’s logistics sector has held steady, attracting some S$481 million in business spending, making up about 9 per cent of Singapore’s GDP. The logistics sector also attracted more than 1,200 skilled jobs last year, an increase of 50 per cent from 2008.

Companies across the globe continue to hold a positive outlook for business activity for the next year.[1] This can only mean more business opportunities for the logistics industry, as companies from all over the world source for reliable logistics capabilities and supply chain management services to capitalise on Asia’s growth.

For instance, Borouge, an Abu Dhabi-based provider of innovative plastic solutions, has partnered home-grown company – CWT to serve its network of customers in Southeast Asia. CWT will provide Borouge with integrated logistics services from the regional distribution centre housed in the CWT Commodity Hub in Singapore. And in India, YCH is Dell’s logistics partner supporting the latter’s expansion in India.

During my Ministry’s Committee of Supply debate earlier in March this year, I highlighted that one of the key growth strategies that Singapore will pursue is to deepen and expand the capabilities of our existing industries. The logistics industry is one key sector.

Our operational efficiency and excellent infrastructure has served us well over the years. However, the logistics industry is facing a changing landscape. Just take for instance, trade within Asia. It is expected to outpace other regions and this will mean new challenges in supply chain management. Manufacturers and consumers will demand more innovative and customized solutions to develop extensive integrated supply chains. To maintain our competitive edge, the logistics industry must explore new areas for improvement and build on its existing capabilities to become a leader in innovative logistics and supply chain management solutions.

I am pleased to note that Singapore is fast becoming a hub for cold chain logistics, fine art and high-value products. Let me share with you two examples. Last year, SATS announced its plans to build the S$12 million Coolport@Changi, Singapore’s first on-airport perishables goods centre. This dedicated facility will have rooms with variable temperatures for different kinds of goods such as fresh and live food and biomedical products. It is expected to open up new trade routes for Singapore and will position Singapore as a reliable node for the perishables market in Asia.

Another example is the recent launch of Christie’s Fine Art Storage Service at the S$80 million Singapore FreePort. Leading art business Christie’s International, provider of customized storage solutions for fine art, antiques and collectibles, has chosen to open its new ultra-high security facility at the Singapore FreePort earlier in January this year. The Singapore FreePort, supported by EDB, is the largest freeport dedicated to the storage of fine art and high value collectibles in the world, and it is the first in Asia. These examples reaffirm our thought leadership in such niche capabilities.

Challenge in Attracting and Retaining Talent

Despite Singapore’s reputation as a leading logistics hub, local logistics companies have found it difficult to attract new and young talents to join this growing industry. Recognising the need to build a pool of new talents and retain existing professionals in the industry, the SLA formed a branding committee comprising of representatives from government agencies, academic institutions, local companies and MNCs.

I understand that the branding committee conducted an in-depth perception study of the logistics industry over the past year. Based on the study, it was recommended that the industry had to do more to leverage on the Singapore brand, correct misperceptions and raise awareness of the industry’s value to attract new blood while retaining existing talent.

Singapore is known for its efficiency, reliability and trustworthiness. These are qualities which underpin the Singapore brand and are often associated with our Singapore logistics players, such as Keppel Logistics and Freight Links Logistics, who have a made a mark for themselves in the international stage. These are value propositions that our logistic companies can leverage upon.

There are also smaller players who have excelled and proved that a career in the logistics industry can be an exciting and challenging one. Logistics professionals today are a forward-looking, dynamic group of quick-thinking knowledge workers. They develop effective solutions to meet the ever-changing needs of customers in a global economy. Let me cite you two examples. The first is Ms. Anndelyn Oh from Sin Chew 888 Logistics. She completed the challenging task of delivering 25,000 audience interaction kits forboth the Singapore 2010 Youth Olympic Games opening and closing ceremonies within a short span of 2 hours. A task like this requires someone who can react fast and creative enough to handle last minute changes while executing the job professionally.

Another example is Mr. Dave Ng, from Bok Seng Logistics who recently transported and installed a 60-tonne cable drum along a steep and narrow road up Mount Faber within seven hours to support the construction of a brand new cableway system. I am sure these are only two of the many examples and growth opportunities that the logistics industry can offer to ambitious mid-career professionals and fresh graduates eager to stretch their abilities and develop global careers.

Conclusion

Ladies and gentlemen, in closing, let me just say that the “We Can” Movement is a timely initiative for this growing industry to embark on its next stage of growth. Today’s event marks the launch of a new platform for Singapore-based players to showcase their capabilities to the world, and attract new talents to enhance the logistics industry sector’s competitive advantage. By working together, We Can Make Everything Possible.

Once again, I would like to congratulate the Singapore Logistics Association on this important industry movement launch and wish all present today an exciting growth ahead.

On this note, I am happy to announce the launch of the “We Can – Singapore Logistics Makes Everything Possible” movement. Thank you.

[1] KPMG, “Global Business Outlook Survey”, July 2010, http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Documents/Global-Business-Outlook-July-10.pdf