Mr Teo Ser Luck at the Supply Chain and Productivity Cluster Technology Day 2011, 7 Oct 2011

SPEECH BY MR TEO SER LUCK, MINISTER OF STATE FOR TRADE AND INDUSTRY AT THE SUPPLY CHAIN AND PRODUCTIVITY CLUSTER TECHNOLOGY DAY 2011 ON FRIDAY, 7 OCTOBER 2011, 9.40AM AT REPUBLIC POLYTECHNIC

President of Singapore Manufacturers' Federation, Mr George Huang

Principal and CEO of Republic Polytechnic, Mr Yeo Li Pheow

Distinguished guests,

Ladies and Gentlemen,

Good morning. I am very pleased to join you today at Republic Polytechnic’s Supply Chain and Productivity Cluster Technology Day 2011.I would like to start by commending Republic Polytechnic or RP and the Singapore Manufacturers’ Federation or SMa for organising today’s event.

Tackling the productivity challenge

The challenge that most companies face in increasing productivity is not the lack of will to do so, but rather not knowing where to start. That is why this seminar is timely—it provides an opportunity for businesses to gain insights and hear different perspectives on strategies for increasing productivity, as well as to meet like-minded potential partners and identify opportunities for collaboration.

Today, you will hear fromindustry experts on supply chain productivity. An effective supply chain can become a competitive advantage for companies. Well-planned supply chainswill increase a company’s credibility as a reliable supplier and in turn deepen customer loyaltyand help the companyto increase its market share.

We see many opportunities for manufacturers to improve the productivity of their logistics and supply chain operations. Take warehousing of products as an example. Productivity can be enhanced in a very cost-effective manner through workflow redesign, ensuring that all staff are able to complete their designated tasks with the shortest amount of time and the least effort. These processes can be further enhanced with the use of IT platforms, handheld devices or automated material handling systems.

Productivity and Singapore’s ageing workforce

While productivity is a key focus of today’s event and will be addressed by various speakers throughout the day, one aspect that I would like to highlight is the connection between productivity and Singapore’s ageing workforce.

As companies work towards boosting productivity through improvements in technology, processes and strategies, an important factor that they must also take into consideration is Singapore’s ageing workforce.

Between 1999 and 2010, the median age of the resident labour force rose from 38 years to 41 years. By 2020, about one in six Singapore residents will be 65 years or older, compared to one in nine in 2010. In addition to this greying phenomenon, employers will also be impacted by the new re-employment legislation.

Currently, the statutory retirement age is set at 62 years. The Retirement and Re-employment Act (RRA) which will come into effect January next year, provides an option for older employees to work past the statutory retirement age till they are at least 65. This will later be increased to the age of 67.The legislation provides workers with the opportunity to work longer so that they can continue to contribute to their organisation. At the same time, it provides employers with the flexibility to continue tapping on the expertise and experience of their older employees.

In light of our ageing workforce and the re-employment legislation, the Government has been assisting companies to enhance their HR systems, working environment and business processes in order to facilitate the recruitment, retention and re-employment of older workers.

As a champion of the local manufacturing community, the SMa is taking the lead in encouraging local manufacturers to adopt innovative strategies that both address their business needs as well as realise the mature workers’ potential for positive contributions.

Silver Productivity

To encourage companies to tap into the value offered by the silver workforce, SMa has developed the “Silver Productivity” concept that seeks to raise the productivity of mature workers by addressing age-related challenges in the workplace.

This concept will be delivered through the “Silver Productivity” courseware, which is conceptualised by SMa, and jointly developed with various institutions. It is also Singapore’s first known training programme that aims to raise the productivity of mature workers by training line managers and human resource practitioners to redesign work processes and enhance workplace environment with old-age-friendly practices and policies. In addition, under the programme, productivity managers will be attached to the companies to provide coaching support as these companies implement these improvement projects.

I understand that SMa is currently using the same training model in two other productivity courses and has been very successful so far. The WSQ Certified Productivity and Innovation Manager programme for example, which was launched last year, has seen an average of 15 per cent productivity growth in 16 MNCs and SMEs. With this success as testimony, I also hope the new Silver Productivity training programme, will also be well-received.

Working together towards long-term solutions

Having said that, it is very difficult for one organisation to deal with the challenges of an ageing population effectively on its own. However, when we come together to tackle the problem as a business community and as a society, we become much better positioned to develop long-term, sustainable solutions. Collaboration therefore serves as a springboard for organisations to drive productivity and optimise operations through the adoption of best practices in order to adapt to the realities of an ageing workforce. 

RP and SMa complement each other in their collaboration. RP offers extensive expertise in Human Factor Engineering, which highlights the various human capabilities and limits relating to mature workers, and educates managers to redesign systems and processes appropriately for mature workers. SMa can help link companies to RP with their extensive network in the manufacturing industry. Such collaborations will benefit the companies, boost the productivity of their mature workers, and has the potential to encourage society to embrace and value the contributions of the ageing population.

Faced with the many opportunities and challenges posed by a dynamic global economy, I would like to encourage greater synergies and more partnerships among agencies, institutions and industry associations. Through these partnerships and collaboration, we can build the necessary capabilities to enter world markets and develop cutting-edge competencies to take businesses to the next level.

Conclusion

In closing, I am encouraged by the aim of today’s event and the good turnout, as this shows that there is both keen interest in boosting productivity in Singapore and the impetus to achieve it through collaboration, learning and sharing of best practices. Companies in Singapore should also recognise the value of embracing the ageing workforce and find new ways to benefit from the experience of their older workers. I wish you all a productive and enjoyable day ahead. Thank you.