Global manufacturers will be able to tap a network of industrial parks in Singapore and the region under a new programme that aims to help them expand their business in South-east Asia and diversify their supply chain.
The South-east Asia Manufacturing Alliance (SMA) will also see small and medium-sized enterprises (SMEs) and suppliers in Singapore gain access to opportunities to work with these manufacturers. This will help SMEs and suppliers expand in the region.
The programme - an agreement between the Economic Development Board (EDB), Enterprise Singapore (ESG) and private sector partners to promote the network of industrial parks to manufacturers interested in investing in Singapore and the region - was launched yesterday.
The SMA's first three strategic partners from the private sector are real estate and development players CapitaLand, Sembcorp Development and Gallant Venture, which together operate more than 10 industrial parks across Indonesia, Malaysia and Vietnam.
Speaking at the launch, Trade and Industry Minister Chan Chun Sing said the alliance will be key in Singapore's vision to become a global business, innovation and talent hub for advanced manufacturing by 2030.
He said the SMA will enable local and global companies to tap Singapore's ecosystem, capabilities and networks to move into the region, especially in the areas of financial capital mobilisation, talent aggregation and protecting intellectual property.
"Ultimately, we will enable and offer global companies an effective and decentralised model that harnesses the best of what Singapore and South-east Asia can offer."
Singapore, as part of the South-east Asian region, is well positioned to capture a significant share of global shifts as more companies look to diversify their production base and supply chains amid the Covid-19 crisis, Mr Chan said at the event held at CapitaLand's co-working space Bridge+ in Robinson Road.
He noted that the coronavirus pandemic has exposed the vulnerabilities of depending on a few markets for supply and demand, and that firms have moved to reshore and diversify to hedge against trade and travel restrictions.
Singapore must situate itself at critical nodes in different global entities to preserve and strengthen its relevance, he said.
The Asean region's strong fundamentals and global economic connectivity, among other factors, stand it in good stead to seize the opportunities arising as a result of the global shifts, said the minister.
EDB chairman Beh Swan Gin said that South-east Asia is an ideal manufacturing location for companies looking to strengthen the resilience of their supply chains and reduce reliance on a single source.
"The SMA will make it easier for manufacturers to learn about the advantages and strengths of the participating industrial parks and their respective ecosystems, and simplify the process for companies to establish their operations there," he said.
Opportunities For Firms
Eligible companies intending to invest in Singapore and the CapitaLand-owned Nusajaya Tech Park in Iskandar Malaysia will also be able to tap support provided by the EDB, ESG and their strategic partners, under a separate agreement formalised yesterday.
It covers differentiated tiers of logistics prices, grants for setting up innovative activities in Singapore and support to identify potential Singapore suppliers for a company's industrial activities.
CapitaLand Group senior executive director Manohar Khiatani said that, given the 210ha Nusajaya Tech Park's proximity to Singapore and its offerings, the industrial park serves as an ideal base for companies seeking to enjoy the complementary strengths of both the Republic and Malaysia.
ESG chief executive Png Cheong Boon said that the SMA will offer local firms a platform to partner global manufacturers looking to grow their presence in the region.
"It creates growth opportunities for Singapore companies to offer their products and services to these global manufacturers and work with them in areas such as co-innovation, joint product development and joint investments."
© 2021 Singapore Press Holdings
This article was written by Yun Choo from The Straits Times and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to legal@industrydive.com.
