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SPEECH BY MR S ISWARAN, MINISTER, PRIME MINISTER’S OFFICE,  SECOND MINISTER FOR HOME AFFAIRS AND TRADE & INDUSTRY, AT THE LAUNCH OF THE PRECISION ENGINEERING MASTER CRAFTSMAN (PeMC) INDUSTRY CERTIFICATION FRAMEWORK ON TUESDAY, 26 NOVEMBER 2013, 1100 HRS, SINGAPORE MANUFACTURING FEDERATION

 

Mr. George Huang, President, Singapore Manufacturing Federation,

Distinguished Guests,

Ladies and Gentlemen,

 

Good morning.

Introduction

 

            I am pleased to join you this morning for the launch of the Precision Engineering Master Craftsman (PeMC) industry certification framework.  This industry initiative for formal certification of master craftsmen marks an important milestone in our effort to develop highly skilled manpower for the precision engineering industry, the foundation of Singapore’s manufacturing sector.

 

Manufacturing continues to be a key pillar of Singapore’s economic development

 

2.            The manufacturing sector currently accounts for about 20 per cent of Singapore’s GDP and employs about 15 per cent of Singapore’s workforce.  It has been and will continue to be a pillar of Singapore’s economy.  Singapore has built up a strong base of manufacturing activities, capabilities and leadership.  We are in good stead to pursue more advanced complex manufacturing and compete at a higher value level.  For example, Rolls-Royce made recent investments in aircraft engine assembly and fan blade manufacturing, while Halliburton invested in deep water oil & gas well completion tools.

 

Precision Engineering is transforming

 

3.            We are transforming the precision engineering industry to support this shift.  This is a priority sector under the National Productivity and Continuing Education Council (NPCEC).  In 2011, we launched the precision engineering productivity roadmap with the aim of improving the sector’s value-added per worker from S$67,000 in 2008 to S$178,000 by 2020.  A key aspect of this initiative was for the industry to re-define itself beyond its traditional supplier role, and move into higher value-added industry pillars, namely precision components and complex equipment.

 

4.            We have seen good early progress in our long-term plan.  From 2009 to 2012, output in the precision engineering cluster grew by 70 per cent from S$20 billion to S$34 billion, and value-added grew by 50 per cent from S$6 billion to S$9 billion.  This strong growth was brought about by the wave of investments in precision components and complex equipment.  As a result, the value-added per worker for this sector reached S$95,000 in 2012 – a compounded annual growth rate of 14 per cent since the start of the roadmap.

 

5.            However, there is still some way to go if we are to achieve the 2020 target.  Even as the industry continues to move up the value chain, companies must continue to improve their operational efficiency, whether through capital productivity, automation, or process improvement.  Under the roadmap, EDB and SPRING have a range of programmes and incentive schemes in place to support such projects.  To date, more than 50 companies have benefitted, and we encourage more companies to leverage these programmes and schemes to upgrade and raise their competitiveness.

 

6.            To support the shift towards these complex and knowledge-intensive activities over the longer term, Singapore needs to upgrade our precision engineering workforce.  In addition to transformation at the industry level and upgrading the productivity of precision engineering firms, manpower development is the third thrust in our strategy to raise the industry’s productivity.

 

Supporting transformation through manpower development

 

7.            The goal is to build a comprehensive pool of skills and knowledge in Singapore.  Apart from technologists and engineers, we have a need for deeply-skilled craftsmen, and a pipeline of new talent to rejuvenate the workforce.

 

8.            With this in mind, EDB, SPRING and the Workforce Development Agency (WDA) launched the S$52 million Precision Engineering Vocational Continuing Education and Training (PEVC) programme in 2012.  The PEVC takes a life-cycle approach.  It provides an attractive and structured pathway that offers opportunities for individual growth at each career stage.

 

9.            At the front end, we aim to attract ITE students with the aptitude to embark on careers in the industry through the National Precision Engineering Study Awards (NPESA).  For craftsmen already in the industry, we encourage their employers to provide them with well-defined career paths through systematic on-the-job training and upgrading.

 

Building a new generation of deeply skilled talent – the Master Craftsman

 

10.         A major component of the PEVC is the Precision Engineering Master Craftsman course at Nanyang Polytechnic (NYP).  The course will develop experienced master craftsmen with even deeper skills to supervise and lead modern complex manufacturing operations.

 

11.         Let me give an example of how the craftsmen from our precision engineering companies are benefitting from the course.  Kenneth Koh is a PeMC trainee and works in JEP Precision Engineering, a local machining company.  He rose through the ranks from a machinist to become the company’s engineering manager today.  Kenneth shared that the course has enhanced his knowledge and skills in precision engineering technologies.  The modules on management & application of productivity tools have also enabled him to introduce productivity improvements in his company.  Kenneth’s example shows how up-skilling of experienced craftsmen can benefit the companies.  I encourage more companies to support the participation of your experienced craftsmen in the PeMC course.

 

12.         To recognise master craftsmen for their deep expertise and value to their companies, the Singapore Manufacturing Federation together with the Singapore Precision Engineering and Tooling Association, has developed the PeMC industry certification framework.  Under the framework, participating PE craftsmen will be evaluated and recommended by a SMF certification committee comprising industry representatives after they complete the PeMC course.

 

13.         Upon successful certification, the craftsmen will be paid a minimum fixed salary of $3,500.  Certification enhances the career opportunities for craftsmen and will accord them salaries that are commensurate with the higher value they bring to their companies. 

 

Conclusion

 

14.         I am heartened to see the strong industry commitment and participation in developing and providing good career opportunities for Singapore’s manufacturing talent.  Such partnerships are critical to our long-term effort to raise the productivity of the precision engineering industry.  With your partnership, I am confident that we will be successful in taking Singapore to the next level of manufacturing excellence.

 

15.         I wish you all every success.   Thank you.