Investments in Singapore's logistics sector amounted close to S$500 million in 2009.

As a top logistics hub in Asia, global companies and Asian enterprises in the logistics and supply chain management (SCM) sector are expanding their innovative and specialised activities in Singapore.

Despite a challenging year in 2009, Singapore's logistics and SCM sector continues to grow with new investments amounting to S$481 million (US$346.8 million) in total business spending. When fully implemented, these investments are expected to contribute S$207 million (US$149.2 million) in value-added per annum.

"As global logistics and SCM companies seek to capitalise on Asia's growth, Singapore's world-class logistics capabilities and sophisticated lead market presents a strategic site for them to identify and respond to rising opportunities in Asia. We are delighted that many global and local companies are developing and implementing innovative and thought-leading SCM solutions from Singapore," said Julian Ho, Assistant Managing Director, Singapore Economic Development Board (EDB).

Today, both global companies and Asian enterprises in the logistics and SCM sector have located strategic regional headquarters function, alongside manufacturers' supply chain control towers and regional distribution centres. This co-location further helps to nurture a vibrant eco-system that accelerates the development and implementation of SCM solutions for the future in Singapore.

Home-Base for Strategic Regional Functions
In 2009, global logistics and SCM companies located strategic functions in Singapore that include regional headquarters, global business units and shared services. Key developments include Zuellig Pharma's Specialty Solutions Group's global headquarters for its new biologistics services in Singapore, and TNT's new Regional Air Hub that offers innovative supply chain options by connecting the company’s air networks with its Asia Road Network. More recently, DKSH opened its Global Centres for Finance and Executive Training in Singapore.

Growing Base of Specialised Services
In addition, leading logistics companies also leveraged Singapore's sophisticated lead market to develop specialised services that address their clients' complex needs in Asia. In 2009, Zuellig Pharma and DHL launched specialised units to develop customised supply chain solutions for the growing biomedical industry in Singapore and Asia. More recently, World Courier broke ground for its new 135,000-square-foot regional distribution facility in Singapore. Complementing this development, Singapore Airport Terminal Services' dedicated on-airport CoolPort @ Changi facility will address temperature-sensitive cold-chain needs. In chemical logistics, Horizon Terminals, and more recently, CWT and Stolt-Nielsen, expanded their specialised storage facilities. In addition, Singapore FreePort was launched with Christie's Fine Art Storage Services and Helutrans Group offering customised services to fine art and collectible companies. In August this year, Panalpina inaugurated its first dedicated oil and gas logistics facility in Singapore.

Developing Sustainable Solutions for the Future
Building on a world-class logistics sector and sophisticated lead market that controls key supply chains in Asia, Singapore facilitates the development of innovative sustainable solutions for the future today. A notable example is DHL's recent collaboration with The Logistics Institute - Asia Pacific to set up the Sustainable Supply Chain Centre of Asia Pacific. TNT and Yamato Transport are also optimising their road networks to reduce carbon footprint via the Asia Road Network and TA-Q-BIN service respectively.

Commitment to Enhance SCM Excellence
The logistics and SCM sector is an important component of the Singapore economy. As Singapore moves towards becoming a distinctive, global city founded on an innovative economy and highly-skilled people, it remains committed to partner companies to drive innovation and develop talent, thereby accelerating the development of solutions for the future in Singapore.