Speech by Minister S Iswaran at the Opening of Feinmetall Singapore's Digital Manufacturing Facility

​SPEECH BY MR S ISWARAN, MINISTER FOR TRADE AND INDUSTRY (INDUSTRY), AT THE OFFICIAL OPENING OF FEINMETALL SINGAPORE’S DIGITAL MANUFACTURING FACILITY ON 28 JUNE 2017

Mr Wolfgang Bürkle, President and CEO, Feinmetall GmbH

Mr Sam Chee Wah, General Manager, Feinmetall Singapore

Distinguished Guests,

Ladies and Gentlemen,

Introduction

1.            A very good morning. It gives me great pleasure to join you today at the opening of Feinmetall Singapore’s new Digital Manufacturing Facility. Two years ago, Feinmetall Singapore opened a manufacturing facility in Marsiling, and I am happy to see the company’s continuing growth, and how the spirit of innovation has played an instrumental role in its success.

The manufacturing sector is an important pillar of our economy, and digital manufacturing is a key enabler to ensure competitiveness of the sector.

2.            The Committee on the Future Economy (CFE), in its recommendations released earlier this year, highlighted the importance of a globally competitive manufacturing sector for Singapore. The manufacturing sector is a key pillar of our economy. It contributes 20 percent of our GDP and 14 percent of total employment in 2016, with over 60 percent of workers employed in skilled jobs, which is higher than 54  percent for the overall economy.

3.            However, we recognise that Manufacturing is a highly globalised, dynamic and competitive sector. The digitalisation of manufacturing – which some refer to as Industry 4.0 – is fundamentally transforming the sector. Advanced manufacturing technologies such as robotics and automation, Industrial Internet-of-Things (IIoT), manufacturing data analytics and business-intelligence capabilities are disrupting the sector and business models.

4.            In recognition of these developments, the Government has set aside S$3.2 billion over five years, under the Research, Innovation and Enterprise (RIE2020) plan, to develop technological capabilities in the Advanced Manufacturing and Engineering (AME) domain. This includes cross-cutting technology areas such as Digital Manufacturing, Robotics and Automation, Additive Manufacturing, and Advanced Materials.

5.            The efforts under RIE2020 dovetail with the development of the Industry Transformation Maps (ITMs) announced at Budget 2016. The Precision Engineering (PE) ITM, launched in October last year, includes plans to help our local enterprises build capabilities to leverage opportunities from digital manufacturing, with the aim of growing the industry’s value-added from S$8.8 billion in 2014 to S$14 billion by 2020, and to create 3,000 PMET jobs.

6.            One of the key initiatives that supports the PE ITM is the Model Factories, which A*STAR is developing and hosting in the Singapore Institute of Manufacturing Technology (SIMTech) and Advanced Remanufacturing and Technology Centre (ARTC). These model factories help manufacturing companies, including SMEs, build capabilities to develop digital manufacturing technologies and solutions.

The Government is committed to support SMEs in their transformation to adopt digitalisation and advanced manufacturing technologies. Feinmetall Singapore’s digital manufacturing facility is an excellent example of how our SMEs are stepping up to build capabilities, through digitalisation, to seize new growth opportunities, and serves as a positive success story and role model for other SMEs.

7.            Feinmetall is an excellent example of how an SME can benefit from open innovation and partnerships. The company’s Digital Manufacturing Facility will drive its transformation into a leading precision engineering factory, enabled by digital manufacturing technologies such as those piloted in A*STAR’s Model Factory, including SIMTech’s Overall Equipment Effectiveness Monitoring System (OEEMS) and Maintenance Management System (MMS). These technologies allow Feinmetall to analyse machine data, develop measures to minimise stoppage, and plan machine maintenance schedules effectively. With this plan as the foundation for Feinmetall’s future efforts, the company expects to increase its revenue by up to 115 percent, and to create 38 high-value jobs in Singapore, in the next four years.

8.            With access and control over data from its manufacturing process, Feinmetall is also seeking to develop new business models, one of which is to provide inspection and quality control services to its customers to improve their overall machine up-time and production throughput.

9.            Beyond supporting Feinmetall to be a lead adopter of advanced digital manufacturing technologies, A*STAR also helps Feinmetall undertake innovation projects through the secondment of Research Scientists and Engineers (RSEs) under the Technology for Enterprise Capability Upgrading (T-Up) scheme.

10.          For example, the Feinmetall Application Maintenance E-Portal (FAME) was developed with the support of Xu Ying, an engineer seconded from A*STAR’s Institute for Infocomm Research. FAME helps Feinmetall’s clients troubleshoot and maintain products remotely using instructional videos, reducing the need for Feinmetall’s service engineers to make overseas trips to client’s offices to solve common issues. As a result, Feinmetall expects an improvement in productivity of up to 30 percent.

11.         In May 2016, Feinmetall began working with A*STAR to develop a strategic Operation and Technology Roadmap (OTR) aligned with its business goals to guide them in their R&D and innovation approach. The flip chip market was identified as one with great potential, and Feinmetall has decided to develop capabilities in that field.

12.         SPRING has also assisted Feinmetall to develop capabilities through grant support, including the development of its epoxy probe card manufacturing capability in 2008, modular space vertical probe card in 2012, and productivity enhancement on vertical card manufacturing process in 2013.

13.         Undergirding its innovation and capability development efforts, Feinmetall Singapore’s emphasis on talent and training remains critical to its success. Feinmetall has worked with the Employment and Employability Institute (e2i) on a Masterclass Initiative in Wafer Probe Card and Maintenance. This skills-upgrading course is open to existing workers in SMEs, and also serves as a preparatory course for job-seekers seeking to enter the Precision Engineering industry.

Conclusion

14.         As manufacturing becomes more globalised, it is essential that our local SMEs continue innovating to remain competitive and tap new opportunities for growth. The government is committed to help SMEs, with the passion to transform, to reap the benefits of digital manufacturing.

15.         My heartiest congratulations to the team at Feinmetall on the launch of your Digital Manufacturing Facility. I wish you every success in your innovation and growth journey. Thank you.

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