Speech by MOS Alvin Tan at the Productivity Improvement Forum 2022

Members of the Singapore Chemical Industry Council (SCIC) and the Association of Process Industry (ASPRI)

Ladies and Gentlemen,

Distinguished guests,

1. A very good morning to everyone and my apologies for not being able to join you at the Trade Association Hub today.

2. The annual Productivity Improvement Forum brings together the best productivity tools and practices to help companies tackle challenges and capitalise on opportunities. In 2019’s edition, we launched the Productivity Certification Framework (PCF). This year, we celebrate the early progress of PCF, and recognise Process, Construction and Maintenance (PCM) companies certified under this framework.

Productivity Certification Framework

3. The PCF is a little like sending a car for maintenance. The technician typically uses a checklist to assess the condition of different aspects of the car, be it the engine, tyres, brakes, or other components. By going through the standardised checklist, the technician can identify which parts fall short of the standard benchmarks and may require upgrading.

4. Similarly, the PCF serves as an important benchmarking framework for the PCM sector. It provides a standardised yardstick for productivity measurement and improvements. By adopting a data-driven approach, PCM companies can quickly identify gaps and make targeted changes to achieve sustainable productivity improvements, both for themselves and their clients.

5. Today, we would like to recognise the efforts of four PCM partners who have been officially certified under this framework. Congratulations and a job well done to

a. PEC Ltd;

b. Rotary IMC Pte Ltd;

c. Mun Siong Engineering Limited; and

d. Hai Leck Engineering (Pte) Ltd.

6. I understand that these four companies have seen about 10% improvement in productivity. These four PCM companies also shared that the PCF has helped to shape a strong data culture within their organisations. These productivity savings should eventually translate to improved bottom lines and competitiveness. Energy and Chemical (E&C) plant owners also stand to enjoy more efficient service delivery by their PCM partners. So it is a win for the company, their employees, and their customers too!

7. I trust that the four PCM partners will share their experience widely to inspire more companies to come onboard the PCF.

A must to improve productivity amidst changes in the operating environment

8. As the industry moves forward from the pandemic, it is fitting to come together to brainstorm innovative ways to collaborate on how we can improve productivity. Many PCM companies were challenged by border restrictions and supply chain disruptions, but you all remained nimble and adapted quickly. I hope that this same enterprising spirit will continue to drive the sector as we respond to further changes to the operating environment.

9. The Government is committed to working closely with the industry and trade associations, including SCIC and ASPRI, to support you in your productivity transformation. For example, the Productivity Council’s Mechanisation Workgroup worked with EnterpriseSG and member companies to identify key operational areas for productivity improvement and mechanised tools for field deployment.

10. Drawing reference from the workgroup’s recommendations and using the Productivity Safe Restart Scheme (PSRS), many plant owners took the initiative to work with their community of contractors to review their work processes. The ecosystem also came together to facilitate an enabling environment for the deployment of mechanised and digital tools. To date, 20 in-house contractors have been offered PSRS support to embark on productivity improvement projects with their plant owner partners.

Partnership with ITE to train workers and drive productivity

11. Beyond the adoption of mechanised tools and equipment, workers will need to be equipped with relevant skills. The Workers Capability Workgroup under the Productivity Council has worked with the Ministry of Manpower (MOM) and the Economic Development Board (EDB) to develop a new capability building framework which places greater emphasis on training and upgrading so that our workers remain competitive with the relevant skillsets. To support this effort, the Productivity Council has embarked on a partnership with ITE to design and develop training, assessment, and certification initiatives. The partnership with ITE is set to equip approximately 10,000 workers in 13 skillsets, ranging from welding, scaffolding to rotating equipment fitting and pipefitting. It will also provide a pathway to attract ITE students to the PCM sector.

Conclusion

12. Let me conclude by thanking the Productivity Council and organisers for making today’s event possible. While there is much work ahead of us, I am confident that we will successfully adapt to the changes, seize new opportunities, and keep the PCM and Energy and Chemicals industries competitive for many more years to come.

13. I wish you all every success. Thank you.