Speech by Parl Sec Low Yen Ling on Growing Industries with Economic and Non-Economic Benefits

​SPEECH BY PARL SEC MS LOW YEN LING IN RESPONSE TO NON-CONSTITUENCY MEMBER MR LEON PERERA’S MOTION ON "GROWING NEW INDUSTRIES THAT PROMISE ECONOMIC AND NON-ECONOMIC BENEFITS"

1. Madam Speaker, I would like to thank Mr Leon Perera for introducing this motion. 

Singapore has successfully undergone various phases of economic transformation 

2. Today’s uncertain global economy holds challenges that require us to be flexible yet steadfast, nimble and adept, and far-sighted in our approach. Since the early days of our nation, the Government has made it a top priority to grow our economy and create good jobs for Singaporeans. We have to keep this dynamic DNA of – being adriot, always looking for opportunities, and having a “can do” spirit even in the face of difficulties. That was how new ideas and possibilities were born and painstakingly nurtured into industries and reality. 

3. We had to stay nimble and adapt to this changing global environment while meeting the needs of Singaporeans. With this approach, Singapore successfully grew through various phases of economic transformation. For example, we moved from the labour intensive manufacturing era of the 60s, into skills and capital-intensive industries by developing the Electronics, Chemicals and Precision Engineering clusters during the 1970s and the 80s. By the 1990s and 2000s, we had made a strong push into knowledge and innovation-intensive activities. Now if you recall our first five-year national science and technology plan was put in place in 1991. More recently the Research Innovation Enterprise 2020 Plan (RIE2020), recently announced by PM, is the sixth science and technology plan for Singapore. 

Manufacturing will remain a key pillar of Singapore’s economy 

4. Today, we have a competitive manufacturing base with key clusters in Chemicals, Precision Engineering, Biomedical Manufacturing, Electronics and Transport Engineering. Last year, manufacturing accounted for 20% of our economy and employed more than 500,000 workers. Manufacturing remains a key pillar of Singapore’s economy and opportunities continue to be found. 

Target high value niche segments and move into adjacencies 

5. Having said that we are not standing still but moving forward into new and exciting areas of manufacturing. We continue to target high value niche segments and entering adjacent areas to capitalise on our existing strengths, our locals’ capabilities and our companies. For example, biologics manufacturing in the Biomedical Sciences cluster is showing early fruits of success. Today, we have anchored 9 biologics manufacturing plants from leading companies such as GlaxoSmithKline (GSK), Novartis, Roche and Amgen. 

6. Likewise, we are building on the strengths of our Precision Engineering and Electronics clusters to develop Space Engineering as a promising sector. Last December, ST Electronics launched its very own self-developed first commercial earth observation satellite TeLEOS-1. Local SME Addvalue Innovation Pte Ltd has also developed a proprietary Inter-satellite Data Relay System (IDRS) which is being tested on board NTU’s VELOX-II satellite that was launched in December. There are currently more than 150 researchers working on satellites, and over 30 companies creating high value jobs for more than 1,000 professionals in this very nascent sector. 

Focus on advanced manufacturing and manufacturing-related services 

7. We will also continue to invest in research & development, innovation and capability development to position our manufacturing sector for the advancement of new manufacturing technologies such as robotics, industrial data analytics and additive manufacturing. To this end, $3.3 billion has been set aside for the Advanced Manufacturing and Engineering domain under RIE2020. 

8. As the nature of manufacturing continues to evolve, companies are incorporating more manufacturing-related services into their business models. For example, aerospace original equipment manufacturers (OEMs) are moving beyond manufacturing to provide total support packages (TSPs), where the sale of aircraft or aircraft systems is bundled with a full range of support services such as engine maintenance and field support services. This trend presents opportunities for Singapore and our companies to anchor more high value manufacturing-related services such as R&D, engineering, logistics and maintenance. These activities will in turn add to the vibrancy of our manufacturing ecosystem and further strengthen our innovative capabilities. 

Singapore as a “Living Lab” 

9. To stay relevant and competitive, we are constantly on the look-out for new areas and opportunities to grow and evolve our economy. One of the ideas is to grow the concept of Singapore as a “living lab” - where companies co-develop, test-bed and export new solutions that not only address our country’s domestic needs but also generate economic outcomes. 

10. A familiar example is our nation’s water success. Our motivation to be self-reliant and develop water treatment technologies such as desalination and water reclamation has spurred the development of a vibrant water industry. There are now about 180 water companies and 26 private research centres in Singapore. Opportunities like these can still be captured, if we keep our can-do spirit, our inventiveness and relentless pursuit of innovation. 

11. For instance, we have the chance to turn the challenges of an aging population into creative energy and solutions in healthcare. Changi General Hospital’s Centre for Healthcare Assistive and Robotics Technology (CHART) is exploring how to provide accessible, affordable and high quality healthcare even as the workforce and population ages. To this end, it has set up a collaborative platform for healthcare professionals to work closely with academia, industry and research institutions to develop impactful healthcare solutions using robotics and assistive technologies. The solutions developed could then be exported to other countries facing similar challenges with an ageing population and workforce. 

12. We are also nurturing emerging industries in the area of lifestyle products and 4 services like sports, the visual and performing arts, design and consumer research and development. These sectors involving creativity and design have a significant non-monetary value that could contribute to social development, quality of life and the overall well-being of our community. From international sporting events brought in by the World Sports Group, to the presence of top-notch art houses – these players enhance the vibrant Singapore city life. Procter & Gamble Company’s independent innovation research centre located in Singapore Polytechnic is focused on creating product design and development for consumers aged 50 and above in Asia. Called the Live Well Collaborative, its work is relevant to rising baby boomer Singaporeans whose sophisticated tastes could spurn a new elderly industry. 

13. Singapore is a sunny place and we can make that work harder for us. There are ample opportunities to tap solar energy and spread the sunshine into new areas of growth. In fact, government-lead demand is helping to grow the nascent solar industry. For instance, SolarNova is a government-led programme, spearheaded by the EDB, which encourages government agencies to come together to harness solar energy for their electricity needs. So it’s really taking a whole of government approach to create sophisticated demand. With HDB acting as the government’s central procurement agency for solar panels, agencies with a smaller demand can benefit from economies of scale and enjoy solar energy at a lower cost. At the same time, by aggregating and catalysing solar demand in Singapore, we seek to spur the growth of our solar industry. The increasing adoption of solar energy will certainly generate and attract innovation around smart grids and energy management. 

14. The benefits from the examples I have cited extend beyond direct economic impact and present exciting potential with room to grow. They not only address the needs of Singaporeans, but represent participation and efforts from the public sector, businesses, academia and the broader community. 

15. MND and AVA have been engaging, since a few years ago, and encouraging the farming community to adopt technologies and farming techniques that intensify our land use while optimising productivity to enhance our food security. Vertical farming technology is something that is being encouraged. Development of the underground space could present cost issues and we need to look at the cost-benefit analysis. 

Equip Singaporeans to take on future job opportunities 

16. Amidst our efforts to develop the economy, whether moving into new industries or building on existing strengths, the top-most priority is creating good job opportunities for Singaporeans. 

17. So even as we nurture new sectors, we are mindful of Singaporeans with new skillsets to benefit from future job opportunities. With SkillsFuture, Singaporeans have the chance of embracing lifelong learning as a way of life so as to stay relevant in today’s fast-changing world. To achieve this vision, we need the support of all Singaporeans, education and training providers, and employers. For example, firms that move into new industries play an important role as early adopters not only in the job creation, but in the learning they can facilitate through internships and professional attachments, as well as the partnerships they form with our schools, Institutes of Higher Learning and Research Institutions. 

18. The advanced manufacturing sector sets a good example. Four of its key players – the Advanced Remanufacturing and Technology Centre (ARTC), Institute of High Performance Computing (IHPC), the Centre of Optical and Laser Engineering (COLE) and the Singapore Centre for 3D Printing (SC3DP), together with Nanyang Polytechnic (NYP) and WDA, have signed an MOU (memorandum of understanding) to build the industry’s workforce capability and skills through a series of masterclasses, workshops and conferences. 

19. The same approach of working together to upskill Singaporeans also holds true for our domestic and social sectors. In fact, the SkillsFuture effort also extends to sectors, including Retail, Built Environment and Healthcare. Sectoral Tripartite Committees, comprising employers, unions and sectoral champion agencies, work together to map out Sectoral Manpower Plans (SMPs) covering skills-based career progression pathways, job re-design, as well as efforts to improve the attraction and retention of local workers as these industries evolve. These plans will help to improve productivity and develop a strong Singaporean core within our domestic sectors. 

Conclusion 

20. We thank Member Leon Perera for his suggestions. MTI has been working with agencies to catalyse opportunities in these areas. The opportunities presented by new and emerging industries are also on the agenda of review by the Committee on the Future Economy (CFE). In today’s dynamic and changing environment, it is crucial that we constantly renew and revitalise our economy. The CFE is spearheading a national effort to identify new sectors and it will recommend strategies to position Singapore ahead. The Committee is consulting widely and seeking ideas and proposals from a range of stakeholders including the industry, academics, associations and chambers. On the drawing board will be critical success factors to forge new pathways for a better, brighter Singapore.

​​​