ADDRESS BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE SINGAPORE MANUFACTURERS FEDERATION APPRECIATION NIGHT 2009, HELD ON THURSDAY, 25 JUNE 2009 AT 7.40 PM, BALLROOM, SHERATON TOWERS

Mr Renny Yeo, President of Singapore Manufacturers’ Federation

Your Excellencies

Distinguished guests

Ladies and Gentlemen

Good evening.

Tonight is a very special event for the Singapore Manufacturers’ Federation (SMa) and I am delighted to be part of this celebration. Earlier this evening, Mr Renny Yeo shared on SMa’s good performance and it is encouraging to see this federation chart the way forward for its members.

Government’s Commitment To Grow Manufacturing

Manufacturing has remained one of the key contributors to Singapore’s GDP.The industry is a robust engine of growth and will continue to feature prominently in our economic landscape.Manufacturing investments create jobs across the entire value chain. These jobs are no longer only production-line positions – they span a wide range and offer different challenges.Manufacturing also leads to spin-offs in other industries and diversifies our economic base.These are compelling reasons for the Government to remain committed to growing manufacturing.

Our vibrant enterprise ecosystem, made up of both MNCs and SMEs, is a significant advantage that Singapore has as a manufacturing hub.One of the deciding factors for investors, in the choice of location for their operations, is the availability of a pool of qualified suppliers.This is something that we have built up over the years, across the various sectors in the manufacturing industry.

One of our biggest challenges is growing our local companies amid strong global competition. Currently, we have about 160,000 local companies and most of them are SMEs. Our growth strategy for these SMEs is called Growth-Oriented Enterprises, where we review and develop programmes to provide and facilitate the growth of our SMEs. These programmes include support for financing, promotion of their products overseas, training of management and adoption of technological developments and innovation.

SPRING Singapore and IE Singapore are actively collaborating with trade associations, such as SMa, to identify challenges and develop programmes to assist these SMEs with their business upgrading and expansion plans, be it with market-specific data, trade promotion activities or fund assistance.

SMa Leading The Way

It is heartening to note that SMa is working very closely with the government and manufacturers to explore ways to improve their members’ capabilities.With a base of over 2,600 corporate members, SMa has been active in putting in place various programmes and activities to enhance the competitive edge of its members.I will highlight just a few of these programmes here.

SMa is proactively looking into implementing a Sustainable Manufacturing Programme for the industry. In collaboration with SPRING Singapore, Singapore Environment Council and Singapore Institute of Manufacturing Technology under the Agency for Science, Technology & Research; the programme will assist manufacturers in adopting technology to enhance their processes in sustainable yet environmentally-friendly methods.

This Sustainable Manufacturing Programme is already making headway with the manufacturing community since its introduction in April 2009. A consortium of food manufacturers such as Prima Foods is presently working with SMa and its partners to tap on SPRING’s assistance programme, EnviroTech Capability Development Programme, to improve process flow efficiency, reduce operating costs and carbon footprints as well as develop sustainability technologies.

I am also pleased to learn about the partnership between SMa and Exploit Technologies to further commercialisation and adoption of technologies.This is to assist manufacturers in improving their manufacturing processes as well as diversifying into new products. It aims to build a strong “made-in-Singapore” branding and create more business opportunities for our local manufacturers.

The Enterprise Development Centre, or EDC@SMa, has provided SMEs with customised business solutions such as business advisory services on government assistance schemes. Let me cite an example of such an SME. With the EDC’s assistance, Libra 2002 redefined its business vision and realigned its business strategies and direction based on the SME Management Action for Results (SMART) Initiative. It has even ventured beyond our shores.

SMa, in consultation with key Government partners, has conceptualised the Manufacturing Excellence Initiative to upgrade our manufacturers’ capabilities.This framework, with its long-term goal of adopting appropriate strategies to meet the needs of future trends in manufacturing, would put the industry in good stead to meet the challenges ahead.

SMa has also applied for assistance under the Local Enterprise Association Development Programme. It is a good attempt by SMa to fortify its members’ current capacity as well as help them stay relevant in a changing manufacturing landscape.

Conclusion

It leaves me now to thank SMa for its commitment to position itself as a mutual platform for communication between government and manufacturers. I wish SMa success in implementing its various initiatives and everyone here an enjoyable evening.

Thank you.