Mr S Iswaran at the launch of Metalasia 2007 (The 17th International Precision Engineering, Machine Tools And Metalworking Exhibition & Conference)

OPENING ADDRESS BY MR S ISWARAN, MINISTER OF STATE, MINISTRY OF TRADE AND INDUSTRY, AT THE LAUNCH OF MetalAsia 2007 (The 17th International Precision Engineering, Machine Tools and Metalworking Exhibition & Conference) ON 28 MARCH 2007, 9:20AM AT SINGAPORE EXPO HALLS 5 & 6

Good morning distinguished guests, ladies and gentlemen.

Introduction

It gives me great pleasure to join you today to launch MetalAsia 2007. I am delighted that some 880 key exhibiting companies from 33 countries are participating in this event. Since its launch in 1980, MTA has grown from strength to strength. It has established itself as a platform for leading local and international suppliers and service providers to showcase high precision capabilities, as well as technology-intensive manufacturing equipment, from around the world.

Manufacturing as Key Pillar of Singapore’s Economy

Manufacturing has played a pivotal role in the development of Singapore’s economy and it now accounts for more than a quarter of our GDP. Singapore aims to double our total manufacturing output to $300 billion by 2018.

Today, the manufacturing sector is moving towards ever more sophisticated and higher value-added activities. This is critical if Singapore is to take on the challenges posed by global competition. We must persevere with restructuring to ensure a robust and viable manufacturing sector.

The Precision Engineering Industry

The Precision Engineering industry is a critical cluster within our manufacturing sector. In 2006, the PE industry contributed about $21.8 billion or 9.6% of our total manufacturing output and employed about 25% of the total manufacturing workforce in Singapore.

Singapore's fast-growing PE industry currently supports key industry verticals such as electronics, aerospace, medical technology, automotive and other manufacturing sectors, and it is poised to meet the escalating demand for electronic equipment in Asia. Allow me to share with you how some of our PE companies have capitalised on these growth opportunities.

Growth Opportunities in Medical Technology

Leading medical device manufacturers are increasingly outsourcing their production to PE companies in Singapore. Suppliers such as Nypro, Meiban, Kato Spring and First Engineering have made significant headway in capturing these outsourcing opportunities by investing in clean room infrastructure and embracing stringent quality standards and certification processes. These suppliers are now manufacturing inhaler components, surgical lenses and special medical closures for key players such as Schering Plough, Baxter as well as Becton, Dickinson and Company.

Growth Opportunities in Aerospace Industry

There are also growing opportunities in the aerospace industry for PE companies. Earlier this year, UMS Norelco announced its plans to set up a US$20 million facility in Singapore to manufacture aerospace parts and components. Other PE suppliers are also in the process of acquiring new capabilities such as five-axis machining and composite materials machining whilst, at the same time, attaining the necessary qualifications and certifications to capture more opportunities in the market.

Growth Opportunities in Electronics

Similarly in the field of electronics, PE suppliers have expanded from mobile phone casing and plastic gear production, to manufacturing higher-value components such as light guides and plastic camera lens modules. Some suppliers have also diversified their productions to manufacture in fully-automated clean-room environments.

For our local PE industry to ride on these new opportunities, it must continue to upgrade, acquire niche capabilities and offer a full range of solutions to the customer.

The Precision Engineering Centre of Innovation at SIMTech

To help our PE companies, in particular, the small & medium-sized enterprises (SMEs) take full advantage of these growth opportunities, I am pleased to announce that a Precision Engineering Centre of Innovation (COI) will be set up at SIMTech, a research institute of A*STAR. This PE Centre of Innovation is a collaborative effort between SIMTech and SPRING Singapore.SIMTech is a strong R&D partner for the manufacturing sector, particularly the precision engineering industry, and it provides the technology content.SPRING Singapore, in turn, is funding this new PE Centre of Innovation through its Technology Innovation Programme (or TIP) in order to create a one-stop technology assistance centre for Singapore-based PE SMEs.

With this COI, PE SMEs will be able to leverage on the technology, knowledge & R&D infrastructure available in SIMTech, other A*STAR research institutes and the institutes of higher learning to accelerate the development of new products and processes. Customers and partners of SMEs, many of whom are leading international companies, will also benefit from a technologically-savvy, and more competitive supporting industry base in Singapore.

Singapore-The Global Exchange Capital

Singapore’s well-established R&D infrastructure and robust intellectual property framework, coupled with our strong manufacturing base, provides the impetus for key players in the international manufacturing and PE industry to establish their regional headquarters and conduct R&D activities here. This rewarding exchange of research expertise and knowledge spurs industry-wide innovation and also enhances Singapore’s position as a global intellectual exchange capital where people, technology and ideas converge to create value.

Experience Uniquely Singapore

While you actively participate in MTA 2007, I would like to encourage you to take some time off to experience Singapore’s unique blend of tourism offerings, including our many attractions, exciting nightlife and colourful ethnic districts. You will be pleased to know that the Singapore Fashion Festival is being held in timely conjunction with MTA 2007.Also, if you are visiting Sentosa, do catch the new “Songs of the Sea” light and water show, which just started its run this week.

Conclusion

On this note, I wish all participating exhibitors, visitors and companies at MTA 2007 an enriching and rewarding experience. Thank you.