S Iswaran
Singapore
“The Maritime and Port Authority of Singapore (MPA) has incorporated the requirements of the International Maritime Organization (IMO) 2020 regulation in its Prevention of Pollution of the Sea (Air) Regulations 2022. The Regulations are applicable to Singapore-registered ships and all other ships while they are in Singapore waters.”
“The Maritime and Port Authority of Singapore (MPA) plans to progressively roll out the charging infrastructure for electric harbour craft operations in the Port of Singapore from 2025.”
“Since 2018, the Land Transport Authority (LTA) has imposed minimum bicycle parking provisions covering different types of developments. The requirements are determined by multiple factors, including the developments’ use, location and gross floor area (GFA).”
“I had addressed similar Parliamentary Questions by Mr Gerald Giam on 29 November 2022 and 10 January 2023, as well as in my Ministerial Statement on 8 May 2023. The Member can refer to these past answers and statement as there has been no material change in the allocation of Certificates of Entitlement.”
“To encourage the uptake of electric cars, the Government has rolled out the Electric Vehicle Early Adoption Incentive and enhanced Vehicular Emissions Scheme. When taken together, it provides up to $45,000 off the Additional Registration Fee of an electric car upon registration.”
“The Land Transport Authority studies all potential changes to the Certificate of Entitlement (COE) system carefully, including conducting sensitivity analysis where appropriate.”
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“At the firm level, our agencies work closely together on initiatives to better support our SMEs to address their immediate needs, such as in financing, as well as capability development and internationalisation, to position them for growth. In Budget 2016, we launched the SME Working Capital Loan (WCL) to help local enterprises access unsecured working capital financing during this period of slower economic growth. Under the WCL, enterprises can access a loan quantum of up to $300,000 for their daily operations. There has been a strong take-up for the WCL, and over $400 million in loans have been given to SMEs to date. The 12 SME Centres provide first-stop assistance through one-to-one advice and guidance to SMEs, spanning immediate needs as well as business plans for the medium term. From 2016 onwards, the SME Centres will focus on enhancing business capabilities and driving the adoption of solutions to ensure that the assistance provided translates to tangible business outcomes for the SMEs. Through the SME Centres, SMEs have access to support schemes across Government agencies. These include support for capability development and internationalisation. To help more companies with capability development, SPRING introduced a simplified Capability Development Grant (CDG) application process for grants below $30,000 in 2015 to encourage more companies to take the first step to upgrade their capabilities in areas, such as productivity, financial management and human capital development. The response to this move has been positive. As of October 2016, more than 2,000 CDG projects have been approved. Our TACs also play an important role as partners in providing assistance to SMEs.”
“Singapore is facing a period of slow growth. Some sectors have been more adversely affected, such as wholesale trade and marine and offshore engineering. We are also seeing weakness in industries like food services and real estate, though there remain bright spots, such as in the information and communications, education and health and social services sectors. Against this backdrop, the Government is committed to supporting our small and medium enterprises (SMEs) in their growth and restructuring efforts. Our agencies have been working closely with industry partners, such as our trade associations and chambers (TACs), Centres of Innovation, SME Centres and financial institutions to reach out and provide assistance to our SMEs. Our agencies have coordinated their efforts to address needs at the industry and firm level. At the industry level, we have embarked on a $4.5 billion Industry Transformation Programme where Industry Transformation Maps (ITMs) are being developed for more than 20 key industries. This involves a coordinated whole-of-Government effort in partnership with key industry partners and multipliers. Each ITM will be tailored to the needs of the industry. In developing the ITMs, the Government will examine the industry landscape, the future trends and needs to set out a suite of initiatives to systematically raise productivity, develop skills, drive innovation and promote internationalisation, so as to catalyse transformation and achieve the stated vision of each industry. The ITMs are focused on providing more integrated assistance for companies across domains to ensure our industries can stay competitive in the medium term and our workers get to secure and retain good jobs.”
“These include appointing SPRING Singapore (SPRING) as the administering agency with investigation and enforcement powers, and additional measures that the Courts may impose on errant retailers, such as requiring them to publicise injunction orders and notify SPRING of changes to their employment status and business entities. This enables SPRING to monitor businesses and individuals who are under injunction orders to ensure that they comply with the orders and SPRING will take timely action against them if they do not. The changes will come into effect by end 2016.”
“Renovation disputes may pertain to unfair practices. The Consumer Protection (Fair Trading) Act (CPFTA) protects consumers against unfair practices by retailers of goods and services, including renovation contractors. The Consumers Association of Singapore (CASE) received consumer feedback on about 400 renovation contractors annually from 2013 to September 2016, or about 6% of renovation businesses in Singapore. CASE successfully helped the majority of these consumers to resolve the disputes through negotiation and mediation. CASE did not file any injunction application with the Courts against renovation contractors over disputes related to unfair practices under CPFTA. Separately, about 160 consumer cases filed with the Small Claims Tribunal (SCT) each year were disputes on renovations. CASE has worked with the Singapore Renovation Contractors and Material Suppliers Association (RCMA) on the CaseTrust-RCMA accreditation scheme. Renovation contractors who are CaseTrust-RCMA-accredited provide prepayment protection and offer consumers a CaseTrust standard renovation contract which provides consumers with cost transparency and accountability on deliverables. The Ministry of Trade and Industry regularly reviews CPFTA to ensure that it remains relevant and offers appropriate protection for consumers. The CPFTA Bill was passed in Parliament on 13 September 2016. The amendments strengthen the measures that may be taken against errant retailers, including renovation contractors, who persist in unfair practices.”
“The Member raises an important point. First, the Industry Transformation Maps are being developed for 23 sectors which we have talked about. It is a process. We have already announced a couple of them. One is in food services and another is for retail. There will be progressively more of these programmes that will be announced and shared. These programmes go into a great deal of detail in terms of the productivity, innovation, internationalisation and manpower aspects. Many of the programmes that we have are being, at the backend, integrated and channelled along these lines. For the businesses, in order to understand and navigate the space, the first thing I would say is we will definitely be communicating this not just through major announcements but Page: 33 it will be percolated down through the industry associations and various other channels. Second, even if the larger transformation plan may not be entirely relevant for a particular business, what they need to do – I am talking about the SMEs in particular – is to get in touch with one of our SME Centres, quite a number of which are now on the ground, through our various chambers and trade associations, or through the trade association and industry association members, or directly with SPRINGSingapore. Then, the dialogue can start on what is appropriate in terms of the companies' own plans and strategies, and how some of the programmes that we have can assist them.”
“It is not so much about having a broad-brush general programme or strategy because that is just going to be wasteful and some would argue that the natural business cycle should be allowed to take its course so that there is some appropriate consolidation and re-channelling of resources at the economy level. We are mindful there are certain sectors or industries where we do need to be very careful, that we do not, in the process, lose core capabilities that have been built up over a long period of time. Therefore, in those sorts of very specific areas, we are tracking it and we are working on ideas as to how we can do this in a way that does not become so interventionist that it distorts the market, but it minimises the loss of capabilities, which we need to preserve in order to sustain the competitiveness of our companies in those sectors, especially when the situation improves.”
“I thank the Member for the questions. Let me first clarify, I think the earlier question was working off data provided by ACRA. And I think the data the Member looked at was Page: 32 for September. I understand, because I did a check. ACRA has actually updated the data. In fact, in the first and second quarters of this year, there was net enterprise formation, positive. It was actually not an insignificant number, it was 2,001 for the first quarter and 9,000 in the second quarter. And I think this has got something also to do and there is some explanation there about some technical treatment. So, I would urge Members to check it out and maybe file a PQ to get further clarification. But the first point I am making is that in the first two quarters of this year, rather than negative, there has actually been positive enterprise formation, at least based on the data we get from ACRA. I think the more important point the Member is raising is really whether we have a concern in terms of what is happening on the ground, in terms of companies. Enterprise formation, we know some companies form SPVs, there is restructuring, these things happen all the time. They do not necessarily reflect or affect what is happening on the ground in terms of actual business and jobs. So, I would say that, if I go back to the point I made earlier, there is a diversity; if you look at the landscape, it is variegated. Some sectors are doing well or reasonably well, others are having a hard time. Even within the sectors that are challenged, there are companies that are thriving because they have been able to adapt, or they have been able to find a niche and they are doing well. The fact of the matter is that it is an uneven terrain.”
“The second is to work upstream with our Universities and Institutions of Higher Learning to make sure that the skillsets that are needed are being provided, not just through three-year degree programmes or diploma programmes but even, if necessary, doing some targeted modular programmes which is what we do collectively between MTI and MOM, and our agencies like EDB working with WDA, MOE and the institutions. That is on the one side; this is more pre-employment for new entrants. But on the other side is really for the mature workers who are looking to switch careers. Harder to do, but it is something that is very important and that is why I have made the point that many of the jobs can actually be taken up by mature workers. But they need to make the move, adapt, take up the relevant skills training and adjustment in order to be able to participate in the new business. And we have seen examples of people doing that. In the bio-pharmaceutical company that I visited, I saw an individual who was in his late 40s, worked in China in the electronics sector and came back because the company terminated his employment. He came back, he decided he wanted to make a switch, he got into the biopharmaceutical space, he got the training through WDA – and I think it is the Professional Conversion Programme – and now heads the unit there or certain aspects of production. It is a good example. Individual stories, but demonstrating that the larger strategy can work and we need the individuals to step up and benefit fully from our programmes.”
“First, I want to just restate the point I made earlier, Mdm Speaker, which is that EDB's efforts continue to generate jobs. There are some sectors, other sectors where also there are jobs being created, for example, in education and healthcare. There are also sectors which are Page: 31 taking a bit of a hit because of external headwinds and, therefore, there is job decline there. So, you have to look at the economy as a whole. It is uneven, there are pockets where the opportunities exist for companies, for individuals. There are pockets where the environment and the circumstances are more challenging. The point about whether we are able to find appropriate people, Singaporeans, to take up the jobs, this continues to be the key challenge because we are seeing major changes in the way various industries are running, because there is a lot more emphasis, and if I can just take one or two cases in point. In the whole digital economy space, the importance of site security and having people who understand digital space and are able to work with data and do analytics and inform a company's business and marketing strategies, these are very essential skillsets in the new economy. There is a global shortage of people in this sort of space. We are not unique in this. So, we are creating opportunities and there are other sectors I can talk about. There is always this issue of a skills mismatch, which is why we need to work on this on a few levels. The first is securing the investments and the opportunities so that we actually have a pipeline that Singaporeans can benefit from.”
“If I may clarify, the Member's question is whether we have been able to find appropriate manpower to fill the jobs, is that correct? Assoc Prof Randolph Tan: That is right.”
“The real challenge for us is in ensuring that Singaporeans have the right skillsets in order to be able to take those jobs and run with it and develop new careers with it, in the case of those who are switching careers. So, that is really a summary of the situation, and the Minister for Manpower will be able to give a far more detailed explanation. Assoc Prof Randolph Tan (Nominated Member): Madam, I thank the Minister for this very good news, which is that job creation is actually increasing. But I think that is a challenge because we all know about the slack in the labour market. My question, if I may, goes back to the last point that the Minister made, which is, with increasing job creation and the slack in the labour market, what are the challenges? Have we seen what had happened in the last five years, for instance, where we had either been able to or not able to find a match between supply and demand of certain types of skilled manpower?”
“Madam, I thank the Member for her questions. I think she is referring to the announcement about Novartis moving out their tropical disease research facility. I do not want to go into the details of a specific company or what drives their decisions, but let me make a more general point. First of all, one should not read too much into individual cases because individual companies make decisions for a variety of reasons. It could be because of internal restructuring; sometimes, it could be something as prosaic as a person in charge of that particular line of business deciding they want to run things in a different way. And all these things have got knock-on effects in the way that business is restructured. So, I would not want to extrapolate from that and draw broader conclusions about the viability, for example, in this case, of our pharmaceutical space. As I have said, just a couple of weeks back, I opened a facility by AbbVie, a bio-pharmaceutical company producing state-of-the-art biological treatments for cancers and various other disease conditions. So, in the context of Singapore, we continue to attract good investments in this space. We should not be complacent, but it is not something that should cause great alarm because it is in the context of one particular company making a decision on one particular aspect of its activity in Singapore. The other point was about retrenchments, pay cuts and so on. I think the Minister for Manpower will be addressing several of these points later. But let me just make a more general point. If you look at the job creation data that I have shared, we continue to create jobs and there are adequate jobs in many ways to meet the needs and aspirations of Singaporeans.”
“So, we continue to attract good quality manufacturing investments. But the key is really to make sure that the investments that we attract are consistent with, first, as I have said earlier, our stage of development, because it is no point shoe-horning a manufacturer into our environment if it is not something that is sustainable in the medium to long-term. Far better for us to target the sectors or the part of the value chain that can continue to operate in Singapore in a sustainable way and that will then drive economic growth and job creation. Er Dr Lee Bee Wah (Nee Soon): Mdm Speaker, I would like to ask the Minister two supplementary questions. Just a few days ago, there was a pharmaceutical research company that pulled out of Singapore. I would like to ask the Minister whether is that a concern and what is the Page: 30 real reason. Will there be more companies pulling out of Singapore? The second question is that, on the ground, there are quite a lot of retrenchments as well as pay cuts. Is the Minister concerned with these and are there any measures to be taken soon?”
“Madam, I thank the Member for his questions. First, a point of clarification. It is not a decline of $10 billion. I said $12.1 billion in 2013 and $11.5 billion in 2015. So, it is a different order of magnitude. Secondly, when talking about manufacturing investments in Singapore, let me talk in general and also specific terms. First, manufacturing is changing. So, it is no longer just about investing in fixed assets, plants, equipment and doing manufacturing in the conventional sense that we understand. In fact, manufacturing has got a very significant complementary aspect. Some call it the "servitisation" of manufacturing. What it basically means is that traditional manufacturers are also embarking on very different service-oriented models. One example is Rolls Royce. We understand Rolls Royce to be a company that sells engines for aircraft. But Rolls Royce is increasingly moving towards a model where they sell power by the hour. In other words, I do not sell you the engine but I sell you the power that drives the aircraft by the hour. And that means the business model changes. It may not always be reflected as an investment in manufacturing in our context, but, in terms of its impact on the economy and in terms of what we are doing for job creation, it remains absolutely valid. So, in a very general sense, manufacturing is changing. Having said that, even at the more traditional understanding of manufacturing, we continue to attract good investments. In recent times, Members would have read about the commitment by Micron, which has a substantial investment in semi-conductor manufacturing in the wafer fabrication sector, which is an important part of our electronics cluster in Singapore. Also about AbbVie in bio-pharmaceutical manufacturing.”
“Madam, successful economic transformation will require the collective effort of our workers, unions, companies, industry associations and the Government. It is critical that our companies stand ready to embrace new technologies and business models and that our workers stay open to Page: 29 learning new skills and capabilities in order to take on new or redesigned jobs. On its part, the Government is firmly committed to supporting our workers and companies through this transformation.”
“At the project level, EDB works closely with the companies to meet their projected job commitments. And this includes partnering our academic institutions and industry to ensure that Singaporeans are equipped with the appropriate skillsets to take up the diverse range of jobs that are on offer. Specific interventions include curriculum development for pre-employment training (PET), continuing education and training (CET) with local Institutes of Higher Learning (IHLs), as well as partnerships with companies to provide apprenticeships and other applied learning opportunities for our students. These manpower efforts are aligned with our national SkillsFuture movement, which aims to prepare Singaporeans for jobs of the future, with a judicious complement of foreign manpower to address any skills gaps in the short to medium term. Madam, the Singapore economy will continue to create and generate good job opportunities for Singaporeans who are willing to upgrade their skills and work in growth sectors. For 2016, EDB expects investment commitments to create 20,000 to 22,000 jobs. This represents an increase in job commitments, compared to 16,800 in 2015 and 18,600 in 2014. At the same time, our industry transformation efforts, which I have described, will also support sustainable job creation in the medium term in both new and existing industries. Many of these jobs, and others in sectors like education and healthcare, are suitable not just for new entrants to the job market but also for mature workers seeking a new career. The Minister for Manpower will be elaborating on our efforts and measures to help workers adapt and secure these job opportunities.”
“In addition, as part of the S$4.5 billion Industry Transformation Programme announced in Budget 2016, the Government will develop customised roadmaps for key industries. This is really what the Industry Transformation Maps are about. Each roadmap will comprise a growth and competitiveness plan, supported by strategies to upgrade productivity, develop skills, promote technology adoption and innovation, and help our companies expand overseas. Mr Saktiandi Supaat asked about falling private investments. Attracting investments remains a key part of our strategy to grow the Singapore economy. The investment commitments that EDB has secured for fixed asset investments (FAI) have moderated from S$12.1 billion in 2013 to S$11.5 billion in 2015. This is partly due to the uncertain global economic conditions, but it is also a reflection of our targeted approach towards attracting projects that are more consistent with our stage of economic development, manpower policies and international commitments on carbon emissions. Companies generally understand and accept these constraints, which are by no means unique to Singapore, and have been supportive of our push towards productivity-driven growth. Re-investments from the existing base of companies have focused on increasing productivity through the adoption of automation technologies and upskilling of the workforce. In addition, EDB continues to harness investor interest in the growth markets of Asia and ASEAN to establish "Homes", that is, headquarters that comprise top decision-makers and differentiating competencies. These initiatives do not always entail large FAIs but they create good jobs for Singaporeans. Assoc Prof Randolph Tan asked if there have been difficulties filling jobs created via EDB's investment commitments.”
“These trends, and their differential impact on our industries, underscore the need to redouble our efforts to improve productivity and to adopt industry-specific strategies to sustain competitiveness. Against this challenging economic backdrop, the Government seeks to help companies manage immediate pressures but also importantly to adapt to stay competitive in the medium to long term. So, SPRINGSingapore launched the Working Capital Loan (WCL) this year to help address Small and Medium Enterprises' (SMEs) near-term cash flow concerns and growth financing needs. The WCL is expected to catalyse more than S$2 billion of loans over the next three years, and complements existing loan schemes. This year, there has been a strong take-up of SPRINGSingapore's various loan schemes, with over S$1.2 billion worth of loans given to SMEs so far. Notwithstanding these cyclical headwinds, there remain good market opportunities for our companies. If I can illustrate, the annual growth for the ASEAN region is expected to average 5.2% from 2016 to 2020. In fact, for Asia, it is meant to be even higher. And this is significantly higher, compared to the projected global growth for the same period. To seize these opportunities, our industries, enterprises and workers must transform. Structurally, Singapore is entering a new mode of growth. Rather than increasing manpower, we must anchor Singapore's competitiveness and growth in increased productivity and greater innovation. So, in April this year, the Government announced a grant budget of over S$2.3 billion under the Enterprise Development Fund (EDF) for the development of local companies. This will support the efforts that are undertaken at the enterprise level to upgrade capabilities, automate Page: 28 processes and internationalise.”
“Madam, Singapore, like the rest of the world, faces a challenging and uncertain economic environment. However, the impact on our industries has been uneven. Minister Lim Hng Kiang has just spoken on the external headwinds that are affecting industries, such as wholesale trade and marine and offshore engineering, as well as the weakness in industries, such as food services and real estate. Nonetheless, there are other industries, such as information and communications, education, and health and social services, where demand remains resilient. Er Dr Lee Bee Wah has asked about business costs. There are several components to this. Let me just speak on a few of them. The cost of utilities is expected to remain subdued, given sustained low oil prices. One reference point is the regulated tariffs that households pay because they are in a non-contestable market, and that have declined by 24% from the beginning of last year to the second quarter of 2016. And there are similar trends for those in the industry, especially because they have greater flexibility in negotiating contracts. Industrial rental index has decreased by 6.8% over the past five quarters. For commercial rents, the office rental index in the central region fell by 12.2%, while the retail rental index also in the central region declined by 9.3% over the same period. And the strong pipeline supply of industrial and commercial space coming on-stream in 2016 should continue to ease rental cost pressures. For labour costs, there are variations across sectors. In the manufacturing sector, unit labour cost (ULC) fell by 0.7%. This is in Q2 on a year-on-year basis on the back of productivity improvements. In contrast, the ULC in the services sector rose by 4.5%.”
“Mdm Speaker, may I have your permission to take Question Nos 7, 8 and 9 together, please?”
“Our SMEs must also play their part by taking the initiative to tap on the capabilities and assistance available in our public sector research institutes, to develop and deploy technology solutions that can drive their transformation and growth.”
“Small and medium enterprises (SMEs) are important to Singapore's economy, comprising 99% of enterprises and employing 70% of Singapore's workforce. The Government is committed to helping our SMEs tap on innovation and technology to optimise business processes, improve productivity and enhance competitiveness. SMEs are able to gain access to research expertise and advice at the public research institutions through programmes such as Growing Enterprises through Technology Upgrading (GET-Up), which provides secondment of research scientists and engineers (RSEs) to SMEs, technical advice, and operation and technology road-mapping (OTR) services. To help researchers improve their communication skills, the Agency for Science, Technology and Research (A*STAR) organises regular training sessions and master classes on science communication and presentations. More than 600 researchers have attended these sessions since their inception in March 2015. A*STAR also has a team of technology transfer and industry development professionals who link companies to relevant technologies that meet their business needs. In particular, A*STAR has established an SME Office to proactively reach out to SMEs. These efforts have resulted in deeper and broader engagement between A*STAR’s research institutes and our SMEs. Projects with SMEs have increased by 40% from 2011 to reach 737 in 2015. Under GET-Up, A*STAR has seconded 657 RSEs to 356 SMEs, appointed 148 technical advisors to 100 SMEs and conducted 227 OTR projects for 194 SMEs as of 31 July 2016. The Government will continue to help our SMEs to innovate.”
“The Partnerships for Capability Transformation (PACT) scheme, administered by the Economic Development Board (EDB) and Standards, Productivity and Innovation Board (SPRING Singapore), supports partnerships between large enterprises and small and medium enterprises (SMEs) by upgrading suppliers' capabilities through the sourcing and qualification process. The scheme has helped locally-based suppliers enter growth industries, such as aerospace, medical technology and semiconductor equipment. For instance, PACT has enabled locally-based suppliers to get onto the approved vendor lists of large enterprises through supplier qualification. EDB and SPRING have supported close to 130 PACT projects since 2010, from which over 700 Singapore-based suppliers have benefited. Over 650 of the 700 suppliers are local SMEs. The Government has continually reviewed the PACT scheme to ensure its relevance. In 2013, the scheme was expanded to cover new sectors, such as food manufacturing, printing, retail, food services. At the same time, PACT was enhanced to support productivity improvements, knowledge transfer and test-bedding of innovative solutions. In 2015, the scheme was further extended to cover a broader spectrum of co-innovation activities, to include joint product development between the large enterprise and the supplier at the proof-of-concept stage. The Government will continue to monitor and review how the scheme can be further enhanced to support our local SMEs.”
“For instance, IE Singapore has partnered the Singapore Chinese Chamber of Commerce and Industry to launch a Singapore Enterprise Centre in Shanghai. The Centre helps our SMEs venture into China by providing one-to-one advisory, organising business events and sharing market information and business leads. We will also work with TACs on Collaborative Industry Projects (TAC-CIP) seeking scalable solutions to industry-specific productivity and innovation needs.”
“The Government helps companies seeking to expand their business by supporting their innovation, productivity and internationalisation efforts. Under the Automation Support Package (ASP) announced in Budget 2016, SPRING assists companies to undertake automation solutions by providing a grant of up to $1 million. SPRING also provides the Capability Development Grant (CDG) to support companies in building capabilities to innovate, enhance productivity and competitiveness. A*STAR and SPRING's GET-Up Programme seconds senior research scientists and engineers (RSEs) from our universities, research institutes and polytechnics to small and medium enterprises (SMEs). These senior RSEs help SMEs grow their business through innovation projects by enhancing their access to technologies and expertise. International Enterprise (IE) Singapore helps SMEs to internationalise through the Market Readiness Assistance grant and Global Company Partnership. These programmes help to accelerate the international expansion and support the development of capabilities to venture into new markets. We are also developing Industry Transformation Maps (ITMs) for over 20 sectors. These ITMs comprise growth and competitiveness plans for both domestically-oriented sectors, such as construction, food services and retail, as well as export-oriented sectors like hotels, logistics, food manufacturing and precision engineering. These will include the programmes to upgrade productivity, develop skills, promote technology adoption and innovation and help companies expand overseas. These efforts also require deep partnerships with trade associations and chambers (TACs).”
“The plans will be refined over time in response to external developments and trends as well as the needs of companies in each sector.”
“As part of the $4.5 billion Industry Transformation Programme (ITP), the Government will develop individual Industry Transformation Maps (ITMs) for 23 sectors. They include both domestically-oriented sectors, such as construction, healthcare, food services and retail, as well as outward-oriented sectors, such as hotels, logistics, food manufacturing and precision engineering. These sectors account for about 80% of gross domestic product. Each ITM will comprise a growth and competitiveness plan and will integrate existing sector-specific initiatives and schemes. These include programmes to upgrade productivity, develop skills, promote technology adoption and innovation, and help companies expand overseas. Each ITM will be developed and implemented in partnership with companies, industry associations, business chambers and unions. Let me use precision engineering (PE) as an example. The productivity roadmap for the sector promotes automation, process improvement and job redesign among PE companies. At the same time, the Precision Engineering Vocational Continuing Education and Training programme will develop a pipeline of skilled craftsmen to support the shift to higher value-added manufacturing. In the longer term, we also aim to seize growth opportunities afforded by technologies, such as additive manufacturing and advanced robotics. The Singapore Precision Engineering and Technology Association and the Singapore Manufacturing Federation are partnering the Government in refining and implementing these initiatives. Collectively, ITMs are important opportunities for the Government and industry to work together and maximise the benefit for companies.”
“The Government is helping our SMEs to prepare themselves to seize these opportunities. For example, companies can seek support from SPRING Singapore for capability development efforts in developing innovative technologies, products and services in areas, such as environmental management, logistics and engineering services. Companies can also tap on IE Singapore's schemes and initiatives to access opportunities in China and countries along the B&R. The Market Readiness Assistance (MRA) scheme provides broad-based assistance for companies new to internationalisation, while the Global Company Partnership scheme provides customised help for companies with more established presence Page: 103 overseas. In 2015, IE Singapore supported 34,000 companies in their internationalisation efforts and over 80% of these companies were SMEs. IE Singapore has recently signed MOUs with the Bank of China, China Construction Bank and Industrial and Commercial Bank of China to provide more financing options for Singapore companies undertaking infrastructure projects along the B&R. IE Singapore also works with Trade Associations and Chambers to organise overseas in-market workshops in key target markets, including China. These workshops help SMEs gain first-hand experience of market conditions and facilitate the building of networks with potential local business partners.”
“Singapore welcomes China’s "Belt and Road" Initiative (B&R), as it is a mutually beneficial initiative that will encourage further economic integration, infrastructural cooperation and people-to-people linkages between countries in the region. A key component of this initiative is the internationalisation of Chinese companies. As a key financial, transportation and trading hub in the region, Singapore is well-positioned to be a base for Chinese enterprises venturing into Southeast Asia. In 2015, Chinese investments into Singapore amounted to US$4.96 billion, an increase of 76.5% from the previous year. To date, more than 6,500 Chinese companies have established their presence in Singapore, almost twice the number of companies five years ago. Singapore companies can benefit from collaboration opportunities with this growing pool of Chinese companies venturing into the region in sectors, such as transport and logistics, mixed-use park developments, construction materials and financing. The B&R initiative will also open up possibilities for Singapore companies in China. Various provinces in China have rolled out infrastructure and development plans to support the initiative, resulting in greater opportunities for Singapore companies in sectors, such as information and communications technology (ICT), urban solutions, transport and logistics, as well as infrastructure and related services. A key example of this is the Chongqing Connectivity Initiative, the third Government-to-Government project between Singapore and China. Under this initiative, Singapore companies can access opportunities and bring on board our expertise in the areas of financial services, aviation, transport and logistics, and ICT.”
“Sir, I thank the Member for his clarification. As I stated, and as we all acknowledged, it is a major task and it will require a coordinated effort across various stakeholders – companies, TACs, Centres of Innovation and also in terms of the unions. We will be appointing cluster champions from our various Statutory Boards for some of these key sectors. What we propose to do is that, in the time-honoured tradition of financial prudence, we will start by working within what we already have. But, of course, where necessary, and it may well be necessary, we will then seek assistance from the MOF.”
“There is also the question of full retail contestability. As announced, the plan is to have full retail contestability in the electricity market by 2018. Certainly, well before we embark on that, we will need to have a comprehensive education programme to make sure households and individuals understand. Having said that, I want to make two points. First, we need to get the system right before we talk about communication. So, that is what the work is on now. The system is not just about the technical aspects but also the potential suppliers, how they will come in and what kind of packages they offer. Secondly, we also want to make sure that there is a default fall-back option for households, precisely because some of the households may not be able to fully appreciate the decisions or may not want to make those sorts of choices. These are some of the policy aspects that are being worked out. Once we are ready, we will embark on an education programme to socialise our households to the opportunities. Sir, I have addressed the key points and I want to end by emphasising that the fact of the matter is our economy faces important challenges arising from all the forces we have talked about. It calls for proactive measures at the sectoral level, even as companies try and adapt to some of the challenges that they face. So, we are responding with efforts like the Industry Transformation Programme (ITP) and also through efforts to boost entrepreneurship and pervasive innovation in order to create value in the economy. I would conclude by saying that it is a formidable task but not insurmountable. The key is that we have all parties on board in order to achieve the objectives that we have set for ourselves. Transform SMEs and Industries to be Future-ready”
“Finally, on the responsibility of countries that deploy nuclear energy, they have to be accountable to their population and to the neighbouring regions to ensure that high safety and security standards, based on those set by the International Atomic Energy Agency (IAEA) and international conventions, such as the Convention on Nuclear Safety, are adhered to. This is both on aspects of operations as well as issues of disposal of nuclear waste which Mr Low Thia Khiang mentioned. It is important that our region collectively build and strengthen our emergency preparedness and response as nuclear and radiological emergencies have basically no boundaries. We are working with the ASEAN countries through the ASEAN Network of Regulatory Bodies of Atomic Energy (ASEANTOM) and IAEA to strengthen cooperation in this area and to share radiation monitoring data. Mr Low Thia Khiang has asked if electricity prices can be delinked from oil and linked to natural gas or LNG instead. It is quite ironic because, right now, we actually have lower electricity prices because of lower oil prices. So, we should be careful what we wish for. Having said that, the crux of the matter is not about picking which is going to be cheaper because, at some point, oil prices may be low; at other times, it may be high, and we will see a similar impact on gas prices. What we really want to do is to allow options in Singapore where the buyers of gas have the opportunity to create a portfolio which they think best suits their risk appetite and hedges against the movements that they are concerned about. So, SLInG, which Mr Low highlighted, is one possibility. It is very new and not quite ready yet for that sort of indexing, but we think that it has potential and we have to see how the market responds.”
“The pre-feasibility study, which the Member noted was completed in 2012, concluded that the currently available nuclear energy technologies were not yet suitable for deployment in Singapore. However, we are strengthening our capabilities to understand nuclear science and technology to allow us to assess the implications for Singapore of evolving nuclear energy technologies and regional nuclear energy developments. In April 2014, the Government announced the plan for a $63-million Nuclear Safety Research and Education Programme to support capability development in this space. It comprises the Singapore Nuclear Research and Safety Initiative focusing on research and developing capabilities in nuclear safety science and engineering, and the Nuclear Education and Training Fund to support education and training in these areas. It works on a wide range of areas and I am happy to furnish more information. But so far, four of the research projects have commenced in 2015 and the remaining five are expected to commence in 2016. In terms of scholarships, so far, nine scholarships have been awarded. Mr Low Thia Khiang commented that it is lower than expected. Well, the only comment that I would make is that this is a rather specialised field. It is not so easy to get people in their applications to say, "Let's take up the scholarship to go and do nuclear studies". What we have done is to reach out to try and attract students to take this up, and we will continue to invest in these efforts significantly. Importantly, it is also about working together with other nuclear technology partners in other established venues like in France and the US and so on, which adds to our knowledge and ability to build up the core of Singapore-based capabilities to understand this space.”
“Sir, may I, finally, turn to our goal of ensuring a secure, reliable and sustainable supply of competitively-priced energy to our economy? Mr Low Thia Khiang asked about the Government's plans to enhance and diversify our energy sources. We have taken significant steps in this regard. Our LNG terminal, which commenced operations in 2013, allows us to geographically diversify our sources of natural gas, which is our main source of energy. Just to take up Mr Low's point, you could say that we are intensifying our use of LNG. But what we are actually doing with the LNG terminal is diversifying geographically our sources of natural gas. That is a very important strategic step and something that should not be underestimated in terms of its value to Singapore. We have been expanding the terminal capacity and the fourth tank could be completed by 2018, which would take throughput capacity to 11 million tonnes per annum. EMA is studying the need for more. There are some questions on renewables which Parliamentary Secretary Ms Low Yen Ling will take up. We are also studying the feasibility of electricity imports in the medium to long term. That is where the ASEAN Power Grid is relevant. It is really a plan to have a network of the grid infrastructure for an integrated ASEAN electricity market. To date, Members may not be surprised to hear that six of the 16 planned bilateral interconnection projects have been completed, including one between Singapore and Peninsular Malaysia. Mr Low Thia Khiang asked about the potential impact to Singapore should our neighbours embark on a nuclear power programme.”
“Such R&D activities bring many other valuable benefits to Singapore which I have enumerated. Ms Foo Mee Har, Mr Saktiandi Supaat and Ms Sun Xueling rightly pointed out that innovation should play a key role in the push for our SMEs to transform. And we will enhance SMEs' access to technologies and expertise. One way is through the Intellectual Property Intermediary (IPI) under A*STAR, which has helped our companies source technologies locally and overseas. So far, they have matched, I am told, more than 70 companies. Recently, this intermediary was transferred to SPRING. Through SPRING's network amongst SMEs and TACs, I think the level of technology transfer that is relevant to the needs of SMEs is going to be significantly improved. There is also an initiative to simplify licensing terms for SMEs. I was very pleased to learn that A*STAR's licensing agreements are now shorter and use simpler language. We can all do with simpler language and it has reduced the time required for licensing significantly. We will also do more – and I think this is something that is noteworthy for Members – to grow the in-house innovation capabilities of our SMEs. A*STAR and SPRING's GET-Up Programme actually seconds our public researchers in our IHLs, research institutes and polytechnics to SMEs to undertake innovation projects. So, they become the employees of that company to work on their research blueprint, in order to develop particular solutions. In many cases, they have gone on to become commercially valuable. To date, we have more than 600 researchers who have been seconded to SMEs. Under RIE2020, we will enhance the programme to second senior research scientists and engineers (RSEs) to SMEs.”
“The IAF is also being adapted to meet the changing needs of industry, which are becoming more complex and need to tap on a diverse spectrum of capabilities. For example, Nestle sees opportunities in combining traditional food manufacturing with sophisticated biomedical knowledge, especially on nutrition and formulations. The Nestle Research Centre Asia was established here to leverage A*STAR's research capabilities to develop new nutritional products. We will allocate about $660 million to this form of IAF-Industry Collaboration Projects, which will draw on the best researchers and capabilities across our public sector research community. And this goes to the point about what we expect in return – we require tangible contributions from industry partners in cash, in terms of the resources they commit and the longevity of that commitment, as a measure of their commitment to the projects and the projects' relevance to industry. Very often, these commitments are also in parallel with other kinds of activities the industry partners are undertaking in Singapore. I just want to make one final point on this. I know this was not the intent of Ms Chia Yong Yong's comment. The Member qualified it but I would like to restate it. We should be cautious not to adopt a parochial attitude towards innovation or the ownership of IP. That is a very important thing to bear in mind. Some of the best outcomes in innovation are produced when it is undertaken in an open and collaborative manner. We must preserve that environment in our R&D ecosystem. Hence, we must maintain an open innovation ecosystem that fosters collaboration among multiple stakeholders, whether they are public or private, large or small, local or foreign.”
“As a reference, if I remember correctly, in 2000, VA from the BMS sector was about $4 billion. To assure Members, we also have a framework to track the KPI of our R&D investments. These range from input measures, such as R&D intensity and researcher intensity, relative to comparable economies so that we have some benchmarking, to measures of the quality of the research, such as citations and papers published, and measures of value creation, which several Members have talked about, through commercialisation, including licensing and spinoffs. 5.45 pm Ms Chia asked about the treatment of IP ownership arising from R&D activities. In general, A*STAR retains ownership of the IPs that it develops; where an IP is jointly developed with a collaborator, including from the private sector, the IP may be jointly-owned. And we have multiple mechanisms to facilitate the use and commercialisation of that IP later on. Licensing is one, but there are other mechanisms. Beyond the licensing of IPs, we also have longer-term initiatives to align our R&D investments with the needs of companies and the economy. The Industry Alignment Fund (IAF), which was introduced under RIE2015, seeks to tighten the linkages between R&D capabilities and the industry's needs. We are trying to bring the research in our institutes closer to industry, and IAF is one mechanism to do that. IAF has supported about 600 projects to date. These projects were carried out in collaboration with industry by our public sector research institutes and also pertain to developing capabilities needed by the industry. Under RIE2020, the IAF funding will be increased by $200 million to $1.8 billion. We are adding to that Fund because that is where we want to emphasise the R&D efforts in the way it is aligned with the industry.”
“We will continue to provide support for mentorship through initiatives, such as SPRING's Incubator Development Programme (IDP). Under IDP, incubators and accelerators are supported with grants to enhance their capabilities and programmes, including the engagement of mentors. Through the 21 incubators and accelerators supported under IDP, about 90 industry professionals have been engaged to provide mentorship and expertise to our startups. This is something we can scale according to the needs and responses. Let me now move on to the point on innovation. I agree fully with Ms Foo Mee Har and Ms Chia Yong Yong who emphasised the need to ensure that value is created for Singapore from our $19 billion investment in RIE2020, and our broader investments in R&D. Our investments in R&D have strengthened our innovation ecosystem and created value for Singapore. One measure is the number of research scientist and engineer jobs in Singapore, which has increased from 19,000 in 2004 to 33,000 in 2014. That is a significant increase and, importantly, 70% of those jobs are held by locals. So, we have been able to grow our local capacity as well. Another measure is the business spending on R&D, which has doubled from $2.6 billion to $5.2 billion over the same 10-year period, catalysed by public spending on R&D. So, on the one hand, the businesses have been catalysed to spend more on R&D, and we also see a commensurate enhancement in our capacity, especially in the local talent pool, to meet those needs. Importantly, our R&D investments have also enabled new industries to grow. Our biomedical sciences (BMS) R&D initiative, which was launched in the 2000, has spawned a strong BMS sector, contributing over $12 billion in value-added (VA) and employing more than 18,000 people in 2014.”
“SPRING and IE Singapore will continue to support our companies, especially the startups, to build capabilities in these areas, such as customer analytics, social media marketing, mobile commerce and digital platform development, to benefit from the global digital economy. Second, on partnerships. What we see more and more of are large enterprises embracing open innovation to access new technologies and ideas. EDB and SPRING have, in fact, been working with many MNCs and large local enterprises (LLEs) to undertake corporate incubation and venture activities, as well as co-innovation partnerships with our startups. What this means is that with such partnerships, our startups will have the financial resources, expertise and networks to scale. On regulatory environment, let me use the medtech industry as an example. The Health Sciences Authority (HSA) has been adopting a risk-based approach to the regulation of medical devices by ensuring that the controls commensurate with the risk of the devices to individual health. HSA has also expedited approvals for devices that have been cleared by reference agencies. More recently, they have introduced an online Medical Device Risk Classification Tool, which allows companies to quickly identify the risk classification of a medical device within five to 10 minutes. This is important because the risk classification tells them the kind of regulatory hurdles they face. And these five to 10 minutes, to put it in context, are much faster than the previous one to two weeks of paper-based processing. HSA and many of our other regulators are exploring how we can create an enabling environment without compromising their core regulatory objectives. Mr Azmoon Ahmad asked about our efforts to nurture entrepreneurs.”
“With SPRING's support and, together with co-founders, Deputy President and provost of NTU, Prof Freddy Boey, and Chair of the School of Material Science and Engineering at NTU, Prof Subbu Venkatraman, Assoc Prof Wong has developed the world's first sustained-release nanomedicine for ophthalmology for the treatment of glaucoma. Her startup has attracted the attention of the world's top five pharmaceutical companies and will make inroads into the global glaucoma drugs market worth US$4.3 billion, potentially benefiting up to 80 million glaucoma patients by 2020. Mr Henry Kwek also asked about the Government's future plans to support the growth of startups in Singapore. We plan to support the startup ecosystem by supporting innovative companies to scale through: (a) internationalisation; (b) partnerships; (c) an enabling regulatory environment; and (d) talent development. First, on internationalisation. There are more and more opportunities for a startup to scale through digital internationalisation. Indeed, you could say that many of these companies are born global because, from the moment they start, they can access international markets. BeMyGuest (BMG) is a local startup that recently became the first Singaporean company to be featured on Fast Company's "World's 50 Most Innovative Companies List 2016" for its online travel platform. IE Singapore supported this company in its digital integration with Ctrip, China's largest online travel agency. This has allowed BMG to establish tie-ups with 25 other Chinese partners and increase bookings by over 100 times in a period of nine months. That is the power of digital access to markets. And this year, the company is also working with IE Singapore to penetrate other Asian markets, such as Japan, India, Indonesia and Korea.”
“With the capacity to scale production, he can also tap on IE Singapore's schemes, such as the Market Readiness Assistance and Global Company Partnerships, in order to go overseas. So, taken together, this is a package which will deliver substantial benefits to SMEs that are prepared to take the decision to automate. That decision will also give SMEs the capacity to think about going overseas and entering new markets, for which there are also support schemes available. Sir, let me now turn to the issues beyond industry transformation and, in particular, the need to fuel growth and value creation by generating new ideas, products, services and business models. Entrepreneurship and innovation are two important enablers of this. Many Members have spoken on this. Mr Henry Kwek asked about the progress of our efforts to develop a startup ecosystem. Over the years, startup activity has increased, with the number of startups in Singapore more than doubling from 24,000 in 2005 to 55,000 in 2014. Our startups have also attracted more investor interest, which is one measure of their quality. The number of venture capitalist deals doubled from about 70 in 2007 to 140 in 2013, with aggregate deal value increasing seven-fold from $120 million to $860 million. The number as well as the value of these venture capital funded transactions have been significant in the startup space. Importantly, our efforts to nurture the startup ecosystem have allowed budding entrepreneurs to fulfil their aspirations. One example is Assoc Prof Tina Wong. She is the co-founder and CEO of Peregrine Ophthalmic, a local biotech start-up.”
“Sir, the Industry Transformation Programme will be complemented at the enterprise level by efforts to support businesses to adopt technology, and key to this is the Automation Support Package which was announced in this Budget. Over the next three years, $400 million of support will be available for more than 300 automation projects. This will comprise three elements: the enhanced Capability Development Grant (CDG) which supports 50% of full-scale automation project costs up to $1 million; the new 100% Investment Allowance (IA); and the enhanced Local Enterprise Finance Scheme (LEFS). Let me illustrate how a company could benefit so that this is crystalised. Mr Tan is the owner of a local medium-size food manufacturer, with plans to automate and increase production for export. He engages a system integrator to study the automation project, with a consultancy and installation fee of $200,000. He then invests $1.8 million to purchase three robotic arms and a conveyor belt system that integrates the packing and palletising process. Under the enhanced Capability Development Grant, Mr Tan will receive a support grant of $1 million, defraying $100,000 of consultancy and installation fees, and $900,000 for the cost of capital investments. And Mr Tan will also receive a 100% Investment Allowance on the remaining capital investment of $900,000, which will translate to about $153,000 of tax savings. Finally, Mr Tan can obtain financing for the equipment purchase from financial institutions participating in the enhanced LEFS. And as Members know, the Government's risk-share has been increased from 50% to 70% for SMEs. This should improve Mr Tan's chances of securing a competitive loan.”
“Under the Industry Transformation Programme, what we can do is bring stakeholders and our resources together, with scale and focus to proactively support each sector's development and response to the differing challenges that they face. And we do not underestimate the scale of this challenge. This is a point that several Members have made. Industry Transformation is challenging and will require deep partnerships among large and small companies, public research institutions and private enterprises as well as TACs and, of course, Government agencies. Each will bring an important perspective. Centres of innovation, for example, will have a view on the technology landscape. TACs will have a better grasp of industry trends and what the needs of their members are. Unions will have a view on how skills training and workforce development can take place. We need to bring all these together to address some of the most salient issues in the medium to long term for our sectors. To coordinate and execute the industry transformation effort, we will appoint "cluster champions" from agencies like EDB, SPRING and IE Singapore. But they are not the only ones, because there are other agencies looking at different sectors. I understand Assoc Prof Randolph Tan's fears that this might impose an excessive administrative burden. However, based on our experience, the plans that are being formulated should result in a tighter coordination of efforts and a more effective use of our resources. We will have to implement and work on this, and it is going to be an iterative process as we go forward.”
“Last year, PACT was enhanced to support activities like joint product development between larger enterprises and their suppliers. So, there is co-development. 5.30 pm We have also brought together competitors in collaborative projects. An example of that is A*STAR's Aerospace Research Consortium, which brings together Airbus, Boeing and Embraer, to undertake pre-competitive research into complex problems facing the industry. This is not just about collaboration with the Government, but also within the private sector. More companies are embracing the idea of open innovation and working collaboratively. These partnerships are not dysfunctional. They are born out of the recognition that even competitors stand to benefit when they cooperate in certain parts of the business process, either because it is an area which is very complex or where the barrier costs are very high. So, a collective effort tends to achieve a much better outcome and they can all share in it. Mr Henry Kwek and Assoc Prof Randolph Tan asked how the Industry Transformation Programme differs from our current approach. At the enterprise level, the Government will continue to support our companies in their innovation, productivity, skills upgrading and internationalisation efforts. However, as I have mentioned and we have heard in the comments by many Members, the nature of the current trends and challenges is such that it calls for broader strategies at the sectoral level. We need measures which the market may not be ready to supply or adopt. Take, for example, the case of modularised robotics solutions. It may not be quite market-viable yet. We could call this market failure or perhaps market gap. We will need to act proactively in order to generate the solutions which can be adopted.”
“Thank you. One example of a Singaporean who has acquired new skills to meet the needs of his industry is Mohd Jamil Bin Mohd Said from Sanwa-Sayama Precision Engineering Pte Ltd. Mr Jamil joined Sanwa in 1998 as a technician specialising in mold-making. In 2012, he enrolled in the Precision Engineering Master Craftsmen Programme conducted by Nanyang Polytechnic where he acquired technical skills, such as machining process design. Upon graduation with the Workforce Skills Qualification (WSQ) Diploma in Precision Engineering Master Craftsmen Skill and a WSQ Specialist Diploma in Precision Engineering, Mr Jamil now oversees the mold-making team and facilitates the automation of machining processes. This is a very good example and there are many others like him. We need similar efforts across all sectors and Parliamentary Secretary Low Yen Ling will elaborate further. Members would have noted that partnerships are central to these industry transformation efforts. Assoc Prof Randolph Tan asked whether such coordination and cooperation can be balanced with the natural competitive instincts of an open-market economy. On the face of it, Chairman, this inherent tension seems irreconcilable. Yet, if we look at our track record and experience, we have always encouraged and nurtured close partnerships among quite diverse stakeholders in our economic system; some of them are "natural partners" and others could even be competitors. Let me illustrate what I mean. We have supported "natural partners" through schemes, such as the Partnerships for Capability Transformation (PACT), where large enterprises upgrade their suppliers' capabilities, through sourcing and qualification processes, and that is mutually beneficial.”
“It will host the entire value chain, which will include R&D, design, prototyping, production and supply chain management, and have access to NTU's research and engineering capabilities. JTC LaunchPad @ JID will be ready in 2017 to support startups, incubators and accelerators. [Deputy Speaker (Mr Charles Chong) in the Chair] But ultimately, Chairman, we must ensure that our people benefit from these changes and the opportunities, as Dr Tan Wu Meng has emphasised. Under SkillsFuture, the tripartite partners are working closely with education and training institutions to equip Singaporeans with the requisite skillsets under various sectoral manpower plans. Sir, may I have your permission to display some slides on the LED screen, please?”
“This team partnered Philips Healthcare to jointly develop a tele-health programme for heart failure patients in Singapore, to care for their health and, more importantly, to reduce the risk of re-admission via tele-monitoring, education and customised care plans. EDB also worked with Philips to establish its Asia-Pacific Centre of Excellence for its hospital-to-home business units in Singapore. This is an example of how a firm that was in manufacturing of medical technology (medtech) is also moving into larger solutions or related service activities which complement manufacturing. This is something we want to work on and there are other examples in aviation, aeronautics and so on. Dr Tan Wu Meng highlighted the need to bring together the industries and disruptive technologies of tomorrow. I think this is very important because many new opportunities actually lie precisely at this confluence of different industries and new technologies. Physical proximity is one means to encourage greater interaction among enterprises, solution providers and researchers that can spark novel ideas and create new products. We have done this at one-north, which is home to some 250 leading companies and global institutions, many incubators, startups and public research institutes and they, collectively, create about 40,000 jobs. This rich ecosystem has spawned many collaborative projects in biomedical sciences, infocommunications, physical sciences and engineering. The Jurong Innovation District (JID) can do the same for the manufacturing sector, with several new growth areas that can be housed there, for example, advanced manufacturing, robotics which I mentioned, urban solutions, cleantech and also smart logistics as an extension.”
“In eldercare, the use of assistive technology can ease the burden on healthcare professionals and caregivers, and nursing homes, such as Peacehaven, are already exploring possible applications. Similarly, with the Singapore Tourism Board's (STB's) support, two robots will be deployed from July this year in Park Avenue Rochester Hotel for housekeeping and back-of-house functions, such as transportation of linen, refuse and bulky items. So, if you go there, you may not see it because it is operating at the back-of-house. But there are plans to take it further to the front-of-house for the delivery of luggage or room service to guests. The adoption of robotics in areas where you have human interface, what Mr Leon Perera called social robots, would take more effort. Precisely because of the human interface, a lot more effort needs to be done, in terms of how you calibrate these devices in order to serve their purpose and to be able to respond. But there are significant efforts being made and part of it is, of course, what we are trying to do in some of these verticals. Secondly, in terms of new business models in manufacturing, many of these are emerging. It is expanding the notion of manufacturing and we are working with the industry to capture those opportunities. Let me give Members an example. Medical technology firms are using analytics – Members have talked about it – to go beyond producing medical devices to providing digital healthcare solutions. So, they are enlarging the value proposition, such as the remote monitoring of medical conditions. EDB and the Ministry of Health supported the Eastern Health Alliance to establish their innovation team at Changi General Hospital to work with the industry and test-bed new healthcare solutions.”
“For all these reasons, manufacturing remains important to our economy. But the nature of manufacturing is changing and we must undertake several measures to ensure that the sector is well-positioned for the future. Let me talk about some of those measures. First, we want to invest in advanced manufacturing technologies, such as additive manufacturing and robotics, and also promote their adoption across different verticals. The global robotics industry is projected to grow from about US$27 billion last year to about US$80 billion in 2025. To seize this opportunity, we will invest over $450 million through the National Robotics Programme (NRP) in the end-to-end development of robotics technology. This will include public-private partnerships among research institutions, companies and public agencies, to pilot robotics technology applications across various industries. We will support the mass adoption of robotics across sectors to drive productivity. In fact, EDB and the Standards, Productivity and Innovation Board (SPRING) are working with technology partners and system integrators locally to develop standardised and scalable modular robotics solutions. This will allow SMEs to mix and match these modules to suit their needs and, importantly, the cost of adoption can also be reduced by about 50%. These are important upfront work that we need to do in order to not just come up with solutions, but encourage its adoption. Mr Leon Perera would be interested to note that there are potential robotics applications in the services sector that are currently being worked on in Singapore to automate manual tasks, raise productivity and address manpower challenges.”
“Dr Tan Wu Meng commented on its strategic value and Mr Yee Chia Hsing asked for the Government's view on its importance. Madam, the manufacturing sector is a key pillar of our economy that accounts for nearly 20% of nominal GDP in 2015. Though that is slightly lower than in 2010, largely due to the relatively faster growth of financial and insurance services, amongst others, the real value-added of the manufacturing sector, in fact, increased by $4.6 billion over the same period. That is a compound annual growth rate of about 1.4%. Some commented on the decline last year. But that was due to the impact on one or two particular sectors, especially offshore and marine, due to the oil-related impact. Manufacturing productivity is also higher and has grown faster than the overall economy. From 2009 to 2015, the real value-added per actual hour worked in the sector grew by 6.1% per annum, higher than the 2.7% which is for the overall economy. And manufacturing, which employs more than half a million people, continues to provide good jobs not just in the sector alone, but in related areas like R&D, after-sales services and distribution. In 2015, more than 60% – six out of 10 – of the resident workers in the sector were in skilled jobs. This is higher again than the overall economy. Median wages in the manufacturing sector are also higher than that for the overall economy. In addition, the sector generates healthy spillover benefits for the rest of the economy, through its wide range of industry inter-linkages. Based on MTI's estimates, a $1 billion increase in manufacturing value-added due to an increase in final demand will generate about $300 million of value-added and 2,400 jobs in the rest of the economy. So, the spillover impact is substantial.”