Launch of the Southeast Asia Manufacturing Alliance (SMA)
1. The Singapore Economic Development Board (EDB) and Enterprise Singapore (ESG) today announced the formation of the Southeast Asia Manufacturing Alliance (SMA). Launched by Mr Chan Chun Sing, Minister for Trade and Industry, the SMA is a tripartite agreement between EDB, ESG and private sector partners to promote a network of industrial parks to manufacturers who are interested to invest in both Singapore and the region.
2. The SMA brings together the complementary advantages of different locations in the region and Singapore to help businesses grow their manufacturing footprint in Southeast Asia and diversify their supply chain.
3. For Singapore small and medium-sized enterprises (SMEs) and suppliers based in Singapore, the SMA will also offer connections to manufacturers in the participating industrial parks. This will help the SMEs and suppliers to strengthen their value propositions and expand their business in the region.
4. Dr Beh Swan Gin, Chairman, EDB, said: “Southeast 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 Southeast Asia Manufacturing Alliance 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.”
5. Mr Png Cheong Boon, Chief Executive Officer, ESG, said: “The Southeast Asia Manufacturing Alliance offers a platform for Singapore companies to partner global manufacturers seeking to grow their footprint 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.”
6. The SMA’s first three Strategic Partner companies are CapitaLand, Sembcorp Development and Gallant Venture. Collectively, these companies operate over 10 industrial parks across Malaysia, Vietnam and Indonesia.
7. In addition, under a Collaboration Agreement formalised at the launch, companies which intend to invest in both Singapore and the CapitaLand-owned Nusajaya Technology Park in Iskandar Malaysia will be eligible for benefits provided by CapitaLand, EDB and ESG, including:
- Differentiated tier of pricing for logistics services;
- Complimentary services, such as consultation on business set-up in Malaysia;
- Supplier identification and matching services;
- Facilitation and support for Industry 4.0 pilot implementation with Singapore solution providers; and
- Support for eligible innovation activities undertaken in Singapore.
8. Mr Manohar Khiatani, Senior Executive Director, CapitaLand Group and Chairman, Nusajaya Tech Park Sdn Bhd, said: “CapitaLand is delighted to be the first SMA Strategic Partner to formalise its Collaboration Agreement with EDB and ESG. Given its close proximity to Singapore as well as its quality offerings, Nusajaya Tech Park serves as an ideal base for companies seeking to enjoy the complementary strengths of Singapore and Malaysia. Today, over 85% of Nusajaya Tech Park’s tenants already have a presence in both countries. Under the auspices of the SMA, we are confident that the Park will be even better placed to support the needs of more manufacturing companies looking to twin their business operations in Singapore and Malaysia.”
9. Mr Kelvin Teo, Chief Executive Officer, Sembcorp Development Ltd, said: “With over three decades of experience, Sembcorp has a large portfolio of industrial parks in Southeast Asia, offering a wide range of building types and prepared land in domestic/export processing zones and special economic zones. We have guided over 1,000 manufacturers in their investment cycle. This alliance is an opportunity for Singapore-based manufacturers to leverage the twin offerings of Singapore industrial developers and Singapore agencies for more strategic positioning in Southeast Asia.”
10. Mr Eugene Park, Executive Director and CEO, Gallant Venture, said: “Batamindo Industrial Park and Bintan Industrial Estate offer a conducive manufacturing environment that has benefitted numerous companies since their inception. Through this Southeast Asia Manufacturing Alliance, we are able to further strengthen and leverage each of our natural competitive advantages to create a compelling environment for businesses' long-term success while strengthening the attractiveness of the Singapore-Batam & Bintan twinning model.”
11. Companies that are interested to expand their businesses in both Singapore and the broader Southeast Asia region through the SMA programme can contact client_services@edb.gov.sg for more details. Concurrently, EDB and ESG also welcome applications by companies that are interested to participate in the SMA as a Strategic Partner.
