Speech by SMS Koh Poh Koon at the Container, Logistics and Transport Business Forum 2017

​SPEECH BY DR KOH POH KOON, SENIOR MINISTER OF STATE, MINISTRY OF TRADE AND INDUSTRY & MINISTRY OF NATIONAL DEVELOPMENT, AT THE CONTAINER, LOGISTICS AND TRANSPORT BUSINESS FORUM 2017 ON THURSDAY, 9 NOVEMBER 2017, 9.10AM AT GENTING HOTEL JURONG

Mr Peter Ho, President, Container Depot and Logistics Association (Singapore)

Distinguished Guests

Ladies and Gentlemen

1.         Good morning. I am pleased to join you for the Container, Logistics and Transport Business Forum organised by the Container Depot and Logistics Association (Singapore) (CDAS).

2.         Centred on the theme of “Strengthening the Industry Transportation Ecosystem”, the forum will explore how companies can effectively ride the wave of technological advancement. It is heartening that so many members of the logistics community are gathered here today to discuss ideas and learn from one another.

FUTURE OF THE LOGISTICS SECTOR

3.         The logistics sector is an important pillar of Singapore’s economy. In 2016, it employed over 200,000 workers and accounted for more than 7% of our GDP. Singapore has been consistently ranked the top-performing logistics hub in Asia[1]. A strong logistics backbone is critical to the functioning of many other sectors, particularly manufacturing, trade, and retail. It is thus critical that we ensure that our logistics companies continue to adapt to a rapidly changing landscape to maintain our competitiveness.

4.         Within Asia, the growth of the logistics sector will be propelled by the booming middle class, enhanced physical and digital connectivity, and an expanding network of trade agreements in the region. Disruptive technologies will also continue to have a profound influence on existing systems and processes. The Internet of Things, predictive analytics, and blockchain are just some examples of technologies that may potentially revolutionise the logistics industry. At the same time, with the advent of omni-channel retail, same-day delivery and circular economy models, supply chains have had to evolve in terms of complexity and agility to keep up with customer demands.

5.         Against this backdrop, the Logistics Industry Transformation Map (ITM) was launched in November 2016 to chart the way forward for Singapore’s logistics sector. The ITM articulates the vision for Singapore to reinforce its position as a globally leading logistics hub through operations excellence, innovation and a strong Singaporean core. By 2020, the transformation of the sector is expected to generate a value-add of $8.3 billion for the economy and create 2,000 new PMET jobs.

TRADE ASSOCIATIONS AND CHAMBERS ARE KEY MULTIPLIERS IN INDUSTRY TRANSFORMATION

6.         A central tenet of the Logistics ITM is the need for all stakeholders to forge and deepen partnerships. In particular, with their business networks and industry insights, Trade Associations and Chambers (TACs) are key multipliers to catalyse upgrading and transformation. The Local Enterprise and Association Development (LEAD) programme co-administered by SPRING and IE Singapore supports TACs in implementing impactful industry initiatives. Earlier this year, the maximum funding support for LEAD was raised from 70% to 90% for high-impact projects involving collaboration among TACs. This is aimed at encouraging TACs to pool their resources and synergise their efforts to do more for their members. 

7.         I am therefore glad to note that in July this year, CDAS, SAAA@Singapore, Singapore Logistics Association (SLA), and Singapore Transport Association (STA) came together with SPRING and the Centre of Innovation for Supply Chain Management (COI-SCM) at Republic Polytechnic to form the Logistics Alliance. The formalisation of such a TAC grouping is unprecedented, and this demonstration of joint leadership to steer the industry towards common objectives is highly commendable.

LAUNCH OF TRANSPORT INTEGRATED PLATFORM (TRIP)

8.         The Logistics Alliance achieves another first with the launch of the Transport Integrated Platform today. Known as TRIP, this is the first multi-TAC project spearheaded by the Land Transport Productivity Workgroup of the Logistics Alliance. It is supported by SPRING under LEAD, and Workforce Singapore (WSG) under the Lean Enterprise Development (LED) scheme. TRIP is a technology-based solution that addresses a genuine need on the ground: Numerous players across the supply chain, such as shipping lines, container depots, cargo owners, port authorities and freight forwarders, have to constantly exchange information to coordinate the deployment of assets and movement of cargo. However, communication is often hampered by existing manual processes and the use of disparate systems that are not interoperable. TRIP overcomes this challenge by linking up all the nodes via a common platform, allowing seamless end-to-end tracking and minimising unproductive trips and delays.

9.         I would like to take this opportunity to applaud CDAS for its sustained push towards digitalisation over the last decade, which has culminated in the launch of TRIP. CDAS also implemented the Container Management System (CMS) in 2014 and the Electronic Container Trucking System (eCTS) in 2016 with funding from SPRING. Close to 1,900 trucks are already plugged into CMS and eCTS and enjoying efficiency gains from the digitalisation of transactions and 30% reduction in waiting time. By extending connections to even more supply chain players, TRIP has the potential to bring about significant productivity improvements through network-wide optimisation. 25 companies in the container and trucking sub-sector have already started using TRIP. With the experience gained from this pilot phase, I am optimistic that the system will be refined and eventually rolled out on a much larger scale.

10.      I understand that the Logistics Alliance is also conceptualising projects to accelerate innovation and technology adoption, develop a talent pipeline and level up the workforce in the logistics industry. There are many exciting events and initiatives in store, and I encourage all companies to participate actively and offer your fullest support.

LOGISTICS INDUSTRY DIGITAL PLAN

11.      The Government is also committed to helping SMEs leverage technology and deepen their digital capabilities. Just last week, the Logistics Industry Digital Plan (IDP) was launched under the SMEs Go Digital programme. Developed by IMDA with support from EDB and SPRING, the Logistics IDP is targeted at SMEs operating in the areas of freight forwarding, warehousing and storage, and land transportation. It comprises a few components. First, an industry digital guide will be published later this month. This will provide SMEs with a self-assessment checklist to help them to understand their digital readiness, and guide them on the solutions that are relevant at different stages of their growth, based on their specific business and operational needs. Second, SMEs can visit the Tech Depot, hosted on the SME Portal, to select from a curated list of ready-to-go solutions which can be easily adopted. Third, IMDA will co-create projects with large logistics companies to uplift the whole sector, and increase the adoption of digital solutions by their SME clients and partners. For instance, IMDA has partnered Bollore Logistics, Dimerco, and LCH to bring freight forwarders or shippers on-board VCargo Cloud’s eCargo Consolidation Platform. The platform helps SMEs to digitalise their manual processes, and also aggregates demand for cargo space and freight insurance across companies.

12.      Later in the programme, you hear more about digitalisation and automation from other speakers including Mr Kenneth Lim, Chief Technology Officer of the Maritime and Port Authority of Singapore (MPA), and Mr Dennis Quek, Director of the Centre of Innovation for Supply Chain Management (COI-SCM). Through their sharing on real-world applications, I hope you will see the value of technology in empowering companies to seize new growth opportunities.

MANPOWER DEVELOPMENT FOR LOGISTICS INDUSTRY

13.      As technology in the logistics industry becomes more sophisticated, we will also need to prepare our workforce to take on the new jobs that are created. The Skills Framework for Logistics, which was launched in September, outlines the possible career progression pathways and requisite skillsets for individuals working in this sector. WSG has also set aside an additional 200 training places through the Adapt & Grow Professional Conversion Programmes (PCP) for Logistics Officers and Executives, as well as 40 additional training places for the PCP Attach and Train (AnT) to cater to the rise in demand for manpower.

CONCLUSION

14.      The Government is also transforming in response to the dynamic economic environment. The formation of Enterprise Singapore next year through the merger of SPRING and IE Singapore will combine the networks and expertise of these two entities. SMEs in the logistics industry can look forward to more comprehensive assistance to build strong capabilities, innovate and internationalise.

15.      In closing, let me congratulate the Logistics Alliance on the successful launch of TRIP. I believe that this initiative will continue the positive momentum for the long-term transformation of Singapore’s logistics sector. I also wish all of you a fruitful discussion at today’s forum, and hope that it will ignite many new business possibilities.

16.      Thank you.

[1] According to the last 5 editions of the World Bank’s Logistics Performance Index (LPI) in 2007, 2010, 2012, 2014 and 2016.  

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