Speech by MOS Gan at Singapore Manufacturing Federation (SMF) Manufacturing Day Summit 2026

His Excellency, Bapak Faisol Riza, Vice Minister of Industry, Indonesia 

Mr Lennon Tan, President, Singapore Manufacturing Federation,

Your Excellencies,

Students from polytechnics and ITE,

Ladies and gentlemen,

Introduction

1.              Good morning everyone. I am very privileged to be here and inspired by the presence and support, not just by our industry but also from our overseas partners. I think this is the way it should be. It is about how we can prosper together as a region through global partnerships. 

2.              Singapore’s GDP expanded by 4.8% in 2025. This exceeded our earlier forecasts. I was very happy that the manufacturing sector played a big part in the better-than-expected growth last year, expanding 8.7% year-on-year. These figures illustrate the strength of a sector that is the backbone of our economy, contributing to about 20% of our GDP and creating jobs for 12% of our workforce. Looking at the students at the back, there are many opportunities and much room for growth. I hope you, as the future workforce of our manufacturing sector, will share this excitement and be part of this journey. 

Co-Invention for the Future — A Vision for Industry 5.0

3.              To understand Industry 5.0, we must first recognise what Industry 4.0 has achieved. I fully agree with the presentations by Mr Lennon Tan and Bapak Faisol on Industry 5.0. Industry 4.0, marked by digitalisation and automation, revolutionised manufacturing through robotics, AI and additive manufacturing, and we’ve seen its impact and power. Some might say that last year, despite many uncertainties in the global economy and trade, there was still growth- and a large part of it was driven by Industry 4.0. Now, Industry 5.0 builds on these strong foundations, and is centred on people and how technology can augment human capability for better outcomes. At the same time, Industry 5.0 integrates sustainability into every stage of the process. 

a.     What might  this look like in practice? We can expect robots working alongside humans at more workplaces than before. While humans focus on quality control and problem solving, the robots handle repetitive or strenuous work, adjusting speed, force and tasks in real time. These robots can be programmed to optimise energy usage, reduce waste, and even adapt their operations to improve sustainability outcomes. When I was visiting the booths earlier, I saw some very interesting and promising ideas of how robots can transform lives, not just at work but also in play and learning. 

b.     This can help improve business competitiveness while overcoming our manpower challenges in the future. 

4.              For Singapore’s manufacturing sector to fully embrace Industry 5.0, we need to focus on three critical pillars: first, building strong regional partnerships; second, embedding sustainability into our operations; and third, most importantly, nurturing talent. 

Building Strong Regional Partnerships

5.              First, let me start by explaining why building strong regional partnerships is more important than ever. The world is changing at a rapid pace. Supply chain disruptions, geopolitical tensions, tariffs and climate challenges – these are very real.  The companies that will thrive in today’s world are those that have sustainability, adaptability and resilience woven into their DNA. 

6.              Against this backdrop, working together with our regional partners becomes essential to unlock new opportunities for growth, and strengthen resilience.   

a.     For instance, our longstanding economic cooperation and business links with Batam, Bintan and Karimun, as well as with Johor offer valuable opportunities for manufacturing companies looking to anchor their activities in the region, while also driving growth in local economies. 

b.     Today, I am glad to witness the MOU between SMF and the Industrial Estate Association of Indonesia to deepen our collaboration in industrial estate development and  cross-border business facilitation. We are taking another step toward advancing collective growth in the region. 

c.     I am also happy to witness the launch of the Johor-Singapore Special Economic Zone or JS-SEZ playbook. It outlines key benefits, incentives, sector opportunities, and digital enablers, supported by a framework to guide companies on setting up in the JS-SEZ. Through this playbook, companies will have access to information on regulations, talent mobility, infrastructure developments, and support channels to plan and operate confidently across both markets.

Embedding Sustainability into our Operations

7.              Our second pillar is sustainability, which is key to business growth in Singapore and around the world. A 2025 SMF survey found that 91% of manufacturers identified sustainability as critical to their global competitiveness. As global markets increasingly demand low-carbon solutions in a climate-impaired world, adopting sustainable practices has become vital for companies to stay competitive. 

a.     For our emissions-intensive manufacturing sector, greening operations is particularly urgent. To support companies on their decarbonisation journey, Singapore has launched initiatives such as the Resource Efficiency Grant for Emissions to help companies adopt more energy-efficient technologies. 

b.     With the right strategies, support and partnerships, manufacturers of all sizes can build operations that are both environmentally responsible and economically competitive. 

c.     On that note, I am heartened by the MOU signed between SMF and DBS last year, which aims to support 500 small and mid-sized manufacturers in their decarbonisation efforts. I look forward to hearing success stories from this initiative. 

8.               While these sustainable practices and regional partnerships are designed to help businesses thrive in a global environment, let’s not forget the most critical element of all: our people.

Nurturing Talent

9.              With AI, advanced robotics, and digitalisation reshaping manufacturing, the factories of the future will require a very different workforce from those of the past. Therefore, to remain globally competitive, we must continually upskill and empower our workforce, exactly as Bapak Faisol mentioned earlier.   

10.           To this end, I would like to acknowledge SMF’s Advanced Manufacturing Training Academy (or AMTA), which aims to future-proof our local manufacturing workforce through upskilling and reskilling. By working closely with Trade Associations and Chambers, Institutes of Higher Learning, and industry partners, AMTA identifies emerging job roles and bridges capability gaps through targeted, industry-relevant training. To date, AMTA has curated over 80 company-oriented training programmes and trained over 2,000 participants. I hope this will continue to grow. 

11.           These programmes embody a fundamental principle I want to emphasise- people remain at the heart of every transformation.

Conclusion

12.           All of us present here today are the architects of the future manufacturing landscape. I urge you to take this opportunity to connect, collaborate, and co-create the future of manufacturing, together. 

13.           Singapore's manufacturing community has always demonstrated remarkable resilience, creativity, and adaptability. I am confident that we are well-positioned to continue thriving in this next phase of our journey despite the uncertainties we face this year.  It will not be an easy year ahead, but looking at the passion, heart and commitment in this room, I am confident that through collaboration, we will navigate this Industry 5.0 journey together. 

14.             All the best, and thank you, everyone.