Speech by MOS Alvin Tan at the Singapore Logistics Association Lunar New Year Lunch

Mr Dave Ng, Chairman of the Singapore Logistics Association

Mr Lee Pak Sing, Assistant Managing Director, Enterprise Singapore

Council members of the Singapore Logistics Association

Distinguished Guests, Ladies and Gentlemen

1. Thank you for inviting me to join you again at the Singapore Logistic Association’s (SLA) Lunar New Year lunch.

2. I was here last year but it is now a very different global landscape. The global environment has become more turbulent since we spoke last year.

   1. Global supply chains are being reshaped amidst deepening US-China contestation and US trade policies.

   2. International climate cooperation has taken a hit, with US pulling out of Paris Climate Accord, and it has done so before. 

3. The role of our logistics sector in navigating these different uncertainties is key because it is a key pillar in Singapore’s economy. The logistics sector supports key economic sectors such as transport, manufacturing and trade. 

4. All six Memoranda of Understanding (MoU) which SLA is signing today involve close collaboration with firms and associations in other sectors. These illustrate how our entire supply chain has to work closely together so that we can uplift and upgrade our capabilities.

5. The question is: as the global climate continues to be uncertain, what can our logistics sector do, and what can we do with our partners? 

LEARNING FROM THE SNAKE

6. Perhaps we can learn from the snake. In Chinese culture, the snake in the zodiac has a few characteristics. 

   1. First, it is intelligent. If you look at snakes carefully, they are strategic, tactical and very deliberate. If you look at how the snake approaches its prey, you will see that it makes calculated moves. It strikes with patience and precision.

   2. Second, snakes are very adaptable. Many of you know that snakes always shed their skin. The skin renews and transforms itself. 

   3. Third, female snakes are collaborative. They share nesting sites and come together to care for their young. 

7. But first, when we think of a snake, we associate it most with the colour green. It is very suitable for what we have been doing together for the logistics sector. Therefore, my remarks will focus on the green transition. Not just because it is the colour of the snake, but also because going green is important. If we do not go green, future generations will suffer.

8. The logistics sector can play a big part in this green transition and transformation. The global logistics industry accounts for 11% of the world’s emissions. Locally, our logistics industry, together with our transport industry, are the third largest emitters of CO2 equivalents in Singapore. 

9. As local and international companies continue to decarbonise their operations and address their Scope 2 and 3 emissions, this will impact how your customers make supply chains decisions and how our logistics firms remain the service provider of choice. 

10. How do we be competitive? We need to learn from the snake and be intelligent, deliberate, strategic and strike with precision. We need to create opportunities, zoom in and strike very quickly.

11. The Government will support you in this endeavour to maintain your global competitiveness amidst these shifts. We will continue to work with SLA to:

    1. Digitalise and automate the industry for greater productivity;

    2. Win global business by competing internationally;  and   

    3. Green supply chains. 

12. We are also reviewing all the different regulations that will affect the industry through our Inter-Ministerial Committee for Pro-Enterprise Rules Review. Our objective is to improve regulatory efficiency for our businesses to be even more competitive. 

13. Snakes are also adaptive and transformative, shedding their skin for new ones. We need to renew ourselves continuously, adapt, grow and transit to new and dynamic conditions. Our logistics industry is well-positioned to adapt to the green transition. We all know the importance of sustainability for Singapore businesses. That is why the Government continues to becommitted to a low carbon economy and will help you navigate this green transition, to realise our collective potential as an industry.

14. The global green logistics market is expected to reach more than US$2.12 trillion by 2030. Businesses globally will be challenged to start tracking their emissions, including Scope 3 emissions of their suppliers, and are gradually committing to net-zero targets. 

15. To support them, our industry must start tracking and transforming its operations to meet the demands for carbon accounting and decarbonisation.

16. Last year, SLA launched the Green Supply Chain initiative which comprises Knowledge Hub and the Logistics Sustainability Playbook that SLA jointly developed with Enterprise Singapore. 

17. We introduced these resources to help logistics companies understand and take advantage of emerging sustainability trends in the sector. 

18. Let me highlight one particular company that has used these to good effect.

    1. Logistics Sustainability Playbook has helped Call Lade Enterprises Pte Ltd, a homegrown logistics service provider, totransform its operations. By following the playbook’s structured approach, Call Lade integrated sustainability into its core operations, reducing emissions by electrifying its fleet and optimising its processes. 

    2. It also successfully published its first sustainability report and trained its workforce on how to be sustainable. Call Lade won industry recognition, including Sustainable Business (SME) award at the 2024 Singapore APEX Corporate Sustainability Awards. This enhanced Call Lade’s credibility and helped it secure new clients.

Commitment to re-skilling and developing our workers

19. As our businesses shed their skin, and renew and transform to a new form, our people within these businesses must also shed their own skins and upgrade themselves. That is why I am pleased to announce the Logistics Sustainability Professionals Programme, developed by SLA in collaboration with Enterprise Singapore and Workforce Singapore.

20. This programme targets industry professionals and supports SLA’s goal of cultivating 500 sustainability officers for the logistics industry by 2027. These sustainability officers will champion sustainability efforts within their organisation.

21. They will be embedded in your companies and focus on logistics-specific sustainability practices, going well beyond generic green training. The programme is sector-specific, and it comprises both theoretical learning and practical application. Participants can undergo in-class and on-the-job training as well as complete a capstone project to gain hands-on experience. Once they graduate, they will lead and champion sustainability efforts within their organisation. We will release more details of the programme in the second quarter of 2025.

22. Finally, even as we enjoy our brand-new skin through this transformation process, it is important to collaborate with others. We must learn from the female snakes in being collaborative. SLA is proactively growing its partnership with other sectors in a more accelerated fashion, bringing in expertise to help logistics players go green. 

    1. For instance, SLA partnered the Waste Management and Recycling Association of Singapore (WMRAS) to develop a Waste Management Programme. Supported by Enterprise Singapore, this initiative is designed to equip our Logistics companies with waste management practices as they embark on their sustainability journey.

23. As sustainability is a long-term journey, we will also regularly engage our logistics players to onboard and stay updated on latest sustainability trends and tech, such as through events and circulars, and seminars on carbon tracking and resource management to design new projects like Green Warehouses. Please use these resources to strengthen your sustainability practices and contribute to a greener logistics sector. 

Realise the potential of the logistics industry

24. Finally, while sustainability is a critical focus, we encourage businesses to also consider other emerging growth areas. There are six MoUs which SLA is signing with organisations such as startups, major corporates and trade associations. This is a good step. 

25. These MoUs demonstrate our industry’s commitment to continuously upgrade and pursue opportunities in sustainability, adopt tech solutions, internationalise and promote trade flows.

26. They also demonstrate the value that TACs like SLA can play, by demonstrating best practices, aggregating demand and driving training and adoption throughout our industry. It can also help members to work together to capture more business inside and outside Singapore. So make the best use of your membership with SLA! 

Conclusion

27. Thank you, Dave, council members and all SLA members. SLA has played a central role in helping our logistics industry be a global benchmark for resilience and excellence. 

28. Lastly, the snake is also a symbol of good health, and I wish you all good health. 身体健康，步步高升， 生意兴隆，蛇年行大运！Thank you very much.