Speech by SMS Koh Poh Koon at the Opening Ceremony of the Supply Chain and Logistics Innovation Playground (SCLIP)

​SPEECH BY DR KOH POH KOON, SENIOR MINISTER OF STATE, MINISTRY OF TRADE AND INDUSTRY & MINISTRY OF NATIONAL DEVELOPMENT, AT THE OPENING CEREMONY OF THE SUPPLY CHAIN & LOGISTICS INNOVATION PLAYGROUND (SCLIP) AT SUPPLY CHAIN CITY, ON 30 AUGUST 2017, 10:30AM

​Dr Robert Yap, Founding Chairman of Supply Chain Asia

Mr Paul Lim, Founder and President, Supply Chain Asia

Advisory Board and Executive Committee Members of Supply Chain Asia

Distinguished guests

Ladies and gentlemen

Introduction

1.            Good morning.  I am glad to join you at Supply Chain Asia’s official opening of the Supply Chain & Logistics Innovation Playground, or SCLIP for short.  I would like to congratulate Supply Chain Asia on setting up SCLIP, which will incubate startups, as well as pilot and deploy innovative logistics solutions to help transform the industry.

2.            The supply chain and logistics industry has undergone major transformation over the last few years.  We are seeing local and global startups disrupt traditional practices through smart warehousing, smart trading and smart transportation.  This trend of disruption and constructive transformation must continue. 

3.            For Singapore to stay relevant, we will need to build a collaborative ecosystem for large companies and startups alike, to develop and adopt innovative supply chain solutions.  This enabling of enterprises through innovation, productivity, and talent is very much in the spirit of the Logistics Industry Transformation Map (ITM) that was launched in November last year.

4.            SCLIP was designed to meet this objective and will help strengthen Singapore’s position as Southeast Asia’s leading logistics hub.  To support this initiative, SPRING Singapore and Workforce Singapore (WSG) have committed $2.8 million to (i) groom the next generation of startups, and (ii) develop supply chain talent and capabilities in SMEs, through SCLIP.

Nurturing an Innovative Startup Eco-System for Logistics

5.            Let me first speak about what we are doing for startups.  Earlier this year, we launched Startup SG, led by SPRING Singapore, to unify all support schemes for startups.  Startup SG provides startups and other players in the ecosystem assistance on various fronts – from mentorship for first-time entrepreneurs, to grant support for fast-track commercialisation of technology solutions; from Government co-investment to catalyse private equity, to resources for incubators and accelerators to expedite the growth of startups.  SCLIP is supported under the Startup SG Accelerator scheme as an industry-specific incubator to groom innovative startups for logistics.  Through SCLIP, startups can access supply chain expertise, client networks, potential investors, as well as the sharing of knowledge and resources among partners.

6.            SCLIP will groom 12 startups over the next 18 months and support them in piloting solutions for the logistics industry.  One such company that will benefit from this is Cosmiqo International Pte Ltd (Cosmiqo).  Founded in August 2013, Cosmiqo is a supply chain and operational analytics company specialising in sectors such as logistics and manufacturing.  Through SCLIP, Cosmiqo has partnered Infolog Pte Ltd (Infolog), a software solutions company specialising in the distribution, logistics and supply chain industries, and the National University of Singapore (NUS) to develop and pilot autonomous robots.  If successful, these robots can be deployed in warehouses to support picking processes to enhance the productivity of warehouse operations.

Fostering Collaboration in the Supply Chain and Logistics Industry

7.            SCLIP also exemplifies a key strategy of the Committee on the Future Economy – robust partnerships to enable innovation and growth.  While we mark SCLIP’s official opening today, I am pleased to share that this platform is already home to 27 partners specialising in supply chain and logistics innovation solutions.  Close to half of these partners are startups, while the rest comprise shippers, logistics service providers, solution vendors, as well as academic and research institutions.  By bringing these partners together, SCLIP will continue to foster collaboration and aim to generate more than S$50 million[1] in business ventures over the next 18 months.

8.            The collaboration between HUB Distributors Services Pte Ltd (HUB Distributors) and Infolog Pte Ltd (Infolog) is one example.  HUB Distributors, a local SME that specialises in warehousing, haulage, freight and distribution services, has partnered Infolog, a local startup focusing on supply chain and logistics software solutions, to design and pilot an integrated vision and voice picking application.  This project aims to improve the productivity of HUB Distributors by 20%.  When ready, the prototype by Hub Distributors and Infolog will also be showcased in SCLIP and visitors will be able to have a hands-on experience and try out this technology.

9.            SCLIP will continue to focus on curating innovative solutions that our SMEs can deploy to upgrade capabilities and stay relevant.  I strongly encourage the supply chain community to continue to support and engage SCLIP to test-bed new technology and innovative solutions. 

Learning Hub for Innovation and Development of Supply Chain Talents

10.         Let me now turn to talent and capability development.  As announced during the launch of the ITM, the logistics industry is expected to introduce 2,000 new PMET jobs by 2020.  Parts of the industry are also evolving due to the growth of e-commerce, and Singapore’s e-commerce market, while just a fraction of the global market, is still set to grow from a market value of US$1 billion in 2015 to US$5.4 billion by 2025.[2]  To keep up with evolving customer expectations in this digital arena, there is an increasing need to develop a pool of e-commerce supply chain professionals to ensure the competitiveness of Singapore as an e-commerce hub.

11.         It is my pleasure to announce that WSG, together with SCA, is rolling out the Professional Conversion Programme (or PCP in short) for e-Commerce Supply Chain Professionals, which will help develop a pipeline of local professionals to support the growing e-commerce sector.  This PCP is one of WSG’s Adapt and Grow suite of programmes which encourages employers to hire and up-skill mid-career individuals to stay relevant in a high growth industry, such as logistics.  Through this PCP, up to 60 mid-career individuals, over the next two years, will acquire new skill sets in areas such as merchandising, sourcing, procurement, and account management to take on job roles in the e-commerce supply chain.

12.         One such beneficiary is 62-year-old Jennifer Pong, who recently joined logistics technology startup Fresh Turf through the PCP.  During her job search, Jennifer was unsure about job opportunities especially with her age being a major consideration, but Mr Kevin Lim, founder of Fresh Turf, believed that the team would find her project management and leadership experience in the construction sector valuable, and he was confident that the PCP training support would help Jennifer adapt to her new job.  I am heartened to see that Jennifer was given the opportunity to make the career switch into this growing sector as a mature individual, despite not having prior technical skills.  I am also very happy to share that Jennifer is doing well and will soon be taking on the role of Project Lead, in charge of some of the company’s key inventory management systems.  

13.         The PCP will continue to benefit more individuals, such as Jennifer, by supporting companies in their hiring needs, and this is just one example of how the transformation in logistics is not just about companies adapting their processes to new business needs, but also an accompanying change in logistics jobs, from the days of laborious and manual work in storerooms and warehouses, to technology- and office- based work which rely on deep skills.  I urge more companies to tap on the PCP and consider mature workers with complementary work experience to strengthen your business operations.   

14.         In addition, to help supply chain professionals keep up with current and future trends, WSG is also working with SCA to deliver a series of workshops focusing on robotics, automation, digital technologies, and business intelligence through SCLIP.  I understand that the first two workshops were fully subscribed and have benefitted over 40 PMETs from over 30 companies.  I strongly encourage companies who have plans to adopt such new processes, to contact SCA or WSG and embark on your transformation journey.

Conclusion

15.         In conclusion, I would like to encourage the supply chain community to deepen partnerships with SCLIP and tap on their expertise and resources to transform and innovate.  The Government is committed to working with all logistics stakeholders to achieve a successful industry transformation and continue to create good jobs for Singaporeans.  On this note, let me once again congratulate Supply Chain Asia on this SCLIP initiative.  I wish you every success.  Thank you.

[1] SCLIP projects S$50mil in business ventures based on the project spending through the collaboration of its partners and the companies in the logistics industry.
[2]  Channel NewsAsia, Singapore e-commerce market to be worth US$5.4b by 2025, according to a report by Temasek and Google released on 24 May 2016, http://www.channelnewsasia.com/news/singapore/singapore-e-commerce-market-to-exceed-s7b-in-2025-report-8008460, accessed 24 Aug 2017.

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