Speech by MOS Alvin Tan at the Manufacturing Productivity Technology Centre (MPTC) Conference 2022

Ms Elise Hong, Chairman, Singapore Precision Engineering and Technology Association (SPETA),

Distinguished guests,

Ladies and gentlemen,

Introduction

1. Good morning. Thank you for inviting me to join you at the Manufacturing Productivity Technology Centre (MPTC) Conference 2022.

2. I am happy to join you today for the 10^th edition of the MPTC Conference hosted by A*STAR’s Singapore Institute of Manufacturing Technology (SIMTech). It is always encouraging to see our local manufacturing industry progress, and you have done so by spurring efforts from both the public and private sectors, and leadership from trade associations such as the Singapore Precision Engineering and Technology Association (SPETA).

3. Over the conference’s decade-long history, our businesses have come together to learn from one another and be inspired by the showcases of successful implementation of technologies. They have seen how technology and digital innovations can help them become more productive, more efficient, and more resilient.

Singapore as an innovation and talent hub for Advanced Manufacturing

4. The COVID-19 pandemic has caused unimaginable disruptions to many industries. Our manufacturing companies were not spared but have proved yourselves to be resilient. Despite the challenges, the manufacturing industry performed well to grow by 13% in 2021. Today, it contributes over 22% to Singapore’s GDP.

5. The future of Manufacturing, as we emerge from the pandemic, will be driven by the next wave of digital technologies, such as Additive Manufacturing (AM) and the Industrial Internet of Things (IIoT). These new technologies will transform how we design, manufacture, and deliver products in the future.

6. As we move towards a post-COVID-19 future, Singapore remains committed to supporting advanced manufacturing and leveraging R&D and innovation to capture new growth opportunities in the global manufacturing value chain. To chart our way forward, we announced our Singapore’s ‘Manufacturing 2030’ strategy last year, to be a global business, innovation and talent hub for Advanced Manufacturing.

7. Through extensive public-private partnerships, Singapore attracts Advanced Manufacturing companies with specialised capabilities to call Singapore home. This, in turn, helps our local enterprises, such as suppliers and system integrators, to establish niches in the manufacturing value chain and strengthen their resilience in the new normal.

8. We will also continue to grow the Manufacturing ecosystem, build up its research capabilities and promote Industry 4.0 adoption.

9. The Precision Engineering (PE) industry, in particular, has done remarkably well over the years by investing in automation to remain competitive. However, disruptive technologies are challenging existing business models. PE companies will therefore need to embrace new capabilities and advanced digital solutions to move towards higher value-added activities. It is a constant race.

10. The Government is actively working with local companies and trade associations to support the PE industry’s next bound of transformation.

11. In 2021, the Singapore Precision Engineering & Technology Association (SPETA) started collaborating with SIMTech’s MPTC to drive adoption of Industry 4.0 digital technologies in the PE industry, and to engage more system integrators to transfer digital technologies to PE companies.

12. A*STAR’s efforts are facilitated through the pilot Innovation Factory, set up in 2020 with Enterprise Singapore’s support. The Innovation Factory is a co-creation space that accelerates the design thinking and innovation process. With this support, our companies can better translate their ideas into well designed, commercially viable products, which they can then use to venture into higher value markets.

a. One company that improved its productivity with a newly developed product is Flexmech Engineering. Flexmech worked with the Innovation Factory and local industry partners to develop a sensor module that helped them reduce their 3D printers’ downtime from three weeks to just three hours. This helped them and their customers save time and costs in additive manufacturing processes.

13. The benefits of digitalisation and Industry 4.0 extend well beyond the PE industry. I am pleased to see many Singaporean companies across industries actively investing in technology to transform their business models. Some of these companies will be receiving recognition awards later.

a. One award winner is CBM, which joined MPTC’s Operations Management Innovation Programme. By implementing closed loop reporting and a technology-based security system, CBM improved the reliability of its parking and security business units by 20%.

14. With Industry 4.0, many new job roles will be created in the Manufacturing sector. We are developing our talent to ensure that our workers have the right skills and expertise to benefit from the upcoming opportunities and support the sector’s growth.

15. Through the partnerships involving institutes of higher learning, trade associations and public sector agencies, we are raising the knowledge base in our local workforce and helping our workers upskill and reskill.

a. To give a few examples – SIMTech, with guidance from the Advanced Manufacturing Training Academy (AMTA), will be introducing 8 new Continuing Education and Training (CET) programmes, to better equip Singaporeans for new opportunities in manufacturing.

b. SIMTech’s Knowledge Transfer Office (KTO) has trained over 7,000 PMETs in emerging skills. These has helped to raise the capabilities of more than 1,800 companies in the Advanced Manufacturing sector.

16. The Government cannot do this alone – I encourage all our manufacturers to make full use of such initiatives to build your capabilities, improve your competitiveness and enter new markets.

Making Manufacturing more sustainable

17. Sustainability is another national imperative for Singapore. To reinforce our commitment to sustainability, the Government launched the Singapore Green Plan 2030 last year. It has sparked a national movement on sustainability across many industries. Because of its large contribution to Singapore’s economy and its position in the value chain, the Manufacturing sector plays a critical role in Singapore’s green transformation.

18. The green transformation also presents exciting economic opportunities for companies in the Manufacturing sector. By embedding sustainability into the core of their business, they can become more efficient, reduce their costs, and better meet their customers’ expectations.

19. As an industry, we must work together to take decisive steps and concerted efforts to drive innovation within the sustainability sector. The Government will support companies on this journey toward more sustainable practices.

20. A*STAR is working with public and private sector partners to develop new sustainability solutions for Manufacturing and other sectors. For example, A*STAR, JTC and TÜV SÜD (pronounced: toof suit) launched the Green Compass initiative to offer a set of assessment tools that will help companies assess their environmental sustainability and develop road maps. You are not alone in this journey. Many of the industries are working with TACs and businesses to chart roadmaps.

21. I hope that companies will continue working with us to make manufacturing more sustainable to boost their competitiveness, and collectively reduce our impact on the environment. So please work with us on this journey.

Closing

22. Let me conclude by reiterating that we must focus our collective efforts on digital innovation and sustainability. We are now in a position to compete. We have always been in the position to compete, but the crisis has affected us. We did not rest on our laurels. As the world opens up, Singapore must remain open to the world.

23. The Government affirms our commitment to growing our Manufacturing sector together with. As PM Lee said, we will continue learning from you and we hope that we can chart this digitalisation and sustainability journey with you.

24. Congratulations to MPTC 2022, and I wish you a fruitful conference ahead. Thank you.