Speech by MOS Teo Ser Luck at the Singapore Plastic Industry Association (SPIA) 25th Anniversary Gala Dinner

Mr. Ronald Lim, President of Singapore Plastic Industry Association and Secretary-General of the ASEAN Federation of Plastic Industries

Distinguished guests

Ladies and gentlemen

Good evening.

It gives me great pleasure to be here at the gala dinner to celebrate the 25th anniversary of the Singapore Plastics Industry Association.

Positive Growth outlook for the plastics industry

The plastics industry is a key supplier for many industries, ranging from consumer products, electronics, medical devices and automobiles. With increasing urbanisation and growth of the middle class in emerging markets, global consumption of products which utilise thermoplastics¹ is expected to accelerate, with annual growth projected at 4.5 per cent from 2013 – 2017, compared to an annual growth of 3.2 per cent from 2005 - 2012².

Asia, in particular, is expected to see strong demand growth. At present, consumption of plastics is relatively low in developing Asian countries. For example, India, Indonesia, and the Philippines’ per capita consumption of plastics is between 8 to 11 kg in 2013, far below the global average of 28 kg. Moreover, the middle-class population is projected to rise from 525 million (in 2009) to 3.3 billion by 2030 in Asia³.This will be a strong driver of increased demand for goods which utilise thermoplastics as an intermediate component.

Importance of plastics industry to Singapore’s economy

The plastics industry has a long history in Singapore. It was one of Singapore’s pioneer industries, with PVC production first starting in 1969. Since its early beginnings, the plastics industry has transformed from a cottage industry into a high-tech and capital intensive industry serving both local and overseas markets, with corresponding growth in production. Singapore’s thermoplastics production is expected to be over 5,340 metric tons in 2014⁴ compared to 560 metric tons in 1989, which is almost a tenfold increase over 25 years. As of 2013, the industry also employs more than 11,000 people.

SPIA helps companies to upgrade their capabilities and access overseas markets

Given the importance of the plastics industry to Singapore, it is important that the industry undergoes continuous upgrading to remain globally competitive. I am glad to note that SPIA has been active in helping its members to do so.

Since its founding in 1989, SPIA has actively helped its members to keep up with international advances. This has included linking up with international partners such as the ASEAN Federation of Plastic Industries or AFPI to do so. I understand from the Association that it will be attending next month’s Annual AFPI Conference in Bangkok with 10 of its members. The conference will provide an excellent platform to learn about the latest market trends and technological developments, as well as provide good networking opportunities.

In addition, to help members internationalise, SPIA has brought together 159 members to participate in 16 overseas tradeshows since 2004. This was made possible through IE Singapore’s International Marketing Activities Programme (iMAP). Encouragingly, more than half of the participants are repeat exhibitors, a fact which attests to the value of these tradeshows.

Government support for industry upgrading

Besides supporting internationalisation, the Government has been facilitating innovation and research to support the upgrading of Singapore’s plastics industry. 

For example, A*STAR engages in research collaborations with global companies, such as Mitsui Chemicals, which have cutting-edge capabilities, to build knowledge capital holistically for our plastics industry to advance up the technology ladder. A*STAR’s partnership with Mitsui Chemicals began in 2004, when A*STAR’s Institute of Chemical & Engineering Sciences’ (ICES) hosted Mitsui Chemicals’ corporate R&D activities within its premises. Mitsui Chemicals has since established a $7 million R&D centre in Science Park II which currently employs about 20 researchers, with plans to grow to 30. The R&D centre focuses on the development of advanced polymer-based materials and continues to collaborate with A*STAR’s Institute of Materials Research & Engineering (IMRE) and ICES.

The government also provides support to local companies to enhance their capabilities through in-house innovation. For instance, A*STAR’s and SPRING’s GET-Up programme provides SMEs with technical advisory and roadmapping services. It also supports the secondment of A*STAR researchers to the SMEs to undertake innovation projects. Inkjet Systems Pte Ltd, a global supplier of ink for inkjet printing, is one of 465 SMEs which have benefitted from the GET-Up programme. A seconded researcher from A*STAR helped Inkjet Systems to develop a new latex emulsion that enabled ink formulations to better withstand heat, light and scratches, and to have high transparency and clarity. These formulations have helped Inkjet Systems to access new market segments such as printing stick-on posters for vehicles and buildings.

The government has also helped SMEs to deploy ready technology solutions. Through the $51 million Technology Adoption Programme or TAP, technology intermediaries support companies with their technological needs by matching companies with solutions providers from the private and public sectors. Since its launch in 2013, A*STAR’s TAP team has engaged 4,370 companies and helped more than 700 SMEs adopt new technologies.

Development Grant

Conclusion

I wish SPIA continued success in your mission to assist your members to access new opportunities. I look forward to you playing an important and leading role in enabling your members to reach new heights.

I wish everyone an enjoyable evening. Thank you.

¹ This covers nine major thermoplastics: LDPE, LLDPE, HDPE, PP, PVC, PS, EPS, ABS and SAN. Thermoplastics are regarded as more versatile plastic products. Singapore’s thermoplastics exports are estimated at $13 billion in 2014 by SPIA.

² ICIS World Polymers Outlook, Mar 2014

³ Hitting the sweet spot, The growth of the middle class in emerging markets, Ernst & Young, Apr 2013

⁴ Source: SPIA estimate