Mr S Iswaran at the Launch of the Sustainable Manufacturing Programme

SPEECH BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE AND INDUSTRY AND EDUCATION AT THE LAUNCH OF THE SUSTAINABLE MANUFACTURING PROGRAMME AT 2.00PM ON THURSDAY, 30 April 2009 AT INTERCONTINENTALSINGAPORE BALLROOM 3

Mr Renny Yeo, President, Singapore Manufacturers’ Federation;

Ms Isabella Loh, Chairman, Singapore Environment Council;

Dr Lim Ser Yong, Executive Director, Singapore Institute of Manufacturing Technology;

Distinguished Guests;

Good afternoon.

Introduction

I am pleased to join you today for the Launch of the Sustainable Manufacturing Programme. Earlier this week, the government launched a blueprint for Sustainable Development in Singapore.It maps out our vision of Singapore as a lively and liveable cosmopolitan city, and the roles that can be played by individuals, households, communities and industry.I would, therefore, like to commend the three partners - Singapore Manufacturers’ Federation, the Singapore Environment Council (SEC) and the Singapore Institute of Manufacturing Technology (SIMTech) - for this timely pilot collaboration to implement a Sustainable Manufacturing Programme.

Sustainable Manufacturing is not just another slogan. Companies worldwide are realising that measures to conserve our resources and environment are not mere cost items but actually in their long term interest.It can enhance a company’s competitiveness as there will be lower operating costs through less waste and better energy efficiency. Sustainable Manufacturing efforts can also strengthen a company’s image and positioning in a crowded global market.

CollaborationOpportunities between Manufacturing and Environmental companies

With the increasing global focus on climate change and environmental issues, manufacturing companies face a constant challenge to meet stringent criteria to be more environmentally sustainable. The commercial and cost pressures associated with meeting these higher standards are exacerbated in an economic downturn, when consumer demand declines.

This presents opportunities for collaboration between environmental services companies and manufacturing companies to use environmental technology solutions to alleviate cost pressures.

Singapore has some 280 companies in the environmental sector which contributed a value-add of $980 million in 2007[1]. These companies have the capability to develop innovative solutions in energy efficiency, waste minimisation and the conversion of waste into useful products.

I would like to highlight two examples of successful collaborations in sustainable manufacturing in Singapore.The first is between Winrigo and Nanyang Optical. Winrigo is an environmental solutions provider and plastic recycler.It developed a special polymer formula that allows recycled plastics to be made into spectacle frames for Nanyang Optical. Winrigo also recycles the used disposable contact lens packaging into spectacle cases.

The second is between waste oil recycler, Alpha Synovate and curry-puff retailer, Old Chang Kee. Instead of disposing its used cooking oil, Old Chang Kee now sends it to Alpha Synovate who then convert it to biodiesel, which in turn is used to power Old Chang Kee’s mobile shops.

Impact of the Sustainable Manufacturing Programme

Sustainable Manufacturing will indeed have a global impact and it is important that our manufacturers understand how to leverage on it.The benefits of the Sustainable Manufacturing Programme are three-fold.

First, companies will be able to reduce operating costs, such as utilities cost, through efficiency and recycling. The cost of utilities ranges from $120,000 to $200,000 per month, depending on the size of the factory – so the scope for savings is significant.

Secondly, the environmental technologies developed will be a showcase and reference site for export to overseas markets. As early adopters of environment friendly solutions, the manufacturers and environmental companies can also explore how these measures can also be adapted for use by other sectors.

Thirdly, the programme can help reduce energy intensity and carbon emissions for Singapore. With the emphasis on reducing energy consumption and carbon emissions, this programme will enable carbon credits aggregation through the Singapore Manufacturers Federation (SMa).

Conclusion

The Sustainable Manufacturing Programme will kick off with a pilot project in the food manufacturing sector. It will bring together all players in the food manufacturing value chain.They include the food manufacturers, packaging companies, F&B retailers, environmental technologists and waste management providers. The successful implementation of the project will further enhance the competitiveness and branding of our food manufacturers in the regional and global arena.

I would like to congratulate SMa, SEC and SIMTech for taking the lead in launching the Sustainable Manufacturing Programme with the food manufacturing sector. Beyond food manufacturing, I urge other sectors such as electronics, precision engineering, chemicals and logistics to collectively examine their needs and actively participate in the programme.

I wish all of you a fruitful and engaging session today.

Thank you.

[1] Source: Singapore Department of Statistics, 2007. value-add figures are updated every two years.