SPEECH BY DR KOH POH KOON, MINISTER OF STATE, MINISTRY OF NATIONAL DEVELOPMENT & MINISTRY OF TRADE AND INDUSTRY, AT THE OFFICIAL LAUNCH OF ASM PACIFIC TECHNOLOGY’S NEW MANUFACTURING FACILITY (TECH-PARK BUILDING 2) ON 17 JANUARY 2017, 3.15PM

Ms Orasa Livasiri, Chairman of ASM Pacific Technology (“ASMPT”) Board,

Mr Lee Wai Kwong, CEO of ASMPT,

Distinguished Guests,

Ladies and Gentlemen,

Introduction

1.            I am happy to join you today to celebrate ASMPT’s official launch of its Tech-Park Building 2.

2.            ASMPT first set up its operations in Singapore in 1990, in a rented JTC factory with 50 employees.  Today, ASMPT employs over 1,400 workers in Singapore, with operations including Global Headquarters, R&D and manufacturing.

3.            The opening of Tech-Park Building 2, a new 6-storey manufacturing facility, is an important milestone in the strong partnership between ASMPT and Singapore.  It signifies the market leadership that ASMPT has achieved in electronics assembly and packaging equipment, as well as its efforts to expand into growth segments such as Advanced Integrated Circuit (“IC”) packaging, digitisation and automation.

The Government will continue to support the transformation and growth of our manufacturing sector.

Importance of the manufacturing sector and Precision Engineering industry

4.            The manufacturing sector is an important pillar of Singapore’s economy, contributing around 20 per cent of our Gross Domestic Product (GDP)¹ and employing around 510,000 workers in 2015.  It contributes significantly to our overall productivity growth, generates positive spinoffs for the rest of the economy, and is a key source of our competitiveness.

5.            Manufacturing also creates good jobs for Singaporeans.  For instance, the median monthly income² of full-time employed residents in the manufacturing sector increased by a Compound Annual Growth Rate (CAGR) of 5.5 per cent from 2009 to 2015, higher than the 5.1 per cent growth for our overall economy.

6.            The Precision Engineering (PE) industry is a critical enabler for our manufacturing sector.  In 2015, it employed around 90,000 workers and generated $9.1 billion in Value-Added (VA), or 13% of our manufacturing VA.  The PE industry supports the production of complex equipment and highly precision engineered components required in industries ranging from electronics and aerospace, to oil & gas and medical technology. Singapore has also established leadership positions in areas such as precision semiconductor equipment through close partnerships with industry leaders, including ASMPT. 

The Committee on the Future Economy

7.            Against the backdrop of an uncertain global environment, we must continue our efforts to transform our industries to build and sustain a vibrant and resilient economy in the long term.  This is also the focus of the Committee on the Future Economy (CFE), to ensure that our economy remains competitive and well-positioned for future opportunities.  The committee’s report will be issued soon.  

Industry Transformation Maps (ITMs)

8.            A key implementation platform under the CFE is the Industry Transformation Maps (ITMs).  Under the ITMs, the Government will work in close partnership with companies, Trade Associations & Chambers (TACs), research institutes and training providers to develop customised roadmaps to transform each industry.  Each roadmap will integrate strategies to upgrade productivity, create good jobs, deepen skills, promote technology and innovation, and strengthen internationalisation efforts.

9.             The Precision Engineering (PE) ITM was launched in October 2016 by our Minister for Industry, Mr S Iswaran, and was the first ITM to be rolled out for the manufacturing sector.

Transforming companies under the PE ITM through digital manufacturing

10.         One of the key initiatives of the PE ITM is to embed digital manufacturing capabilities into the industry.  Digital technologies will enable companies to optimise manufacturing capacity, increase productivity, as well as create new products, processes, services and business models.  

11.         ASMPT is positioning itself to serve the growing demand for advanced manufacturing solutions.  In conjunction with the opening of Tech-Park Building 2, ASMPT has established an Innovation Centre at Tech-Park Building 1, which will showcase the company’s latest IC packaging equipment.  The Innovation Centre will also serve as a platform for the test-bedding and development of “Industry 4.0” applications, such as predictive maintenance, adaptive process control, as well as resource and equipment fleet management. These activities are aligned with our focus on digital manufacturing under the PE ITM.  

The Government will also continue to support our workforce to upgrade their skills and take on new job opportunities.

12.         As our PE industry transforms and becomes more innovation-intensive, new job opportunities that require deeper skills and knowledge will be created.  Under the PE ITM, an additional 3,000 PMET jobs are expected to be created in the PE industry by 2020.  Existing jobs will also be upgraded into higher-skilled roles.  Some examples of new job roles include:

• Integration engineers: who implement digitisation on the shopfloor, integrating equipment, software and systems across the manufacturing value chain; 
  
• Development engineers: who develop and manage algorithms, software and production systems, to translate digital and computing capabilities into real world solutions.

13.         A key thrust of the PE ITM is to support the training and skills upgrading of our workforce, so that they can take advantage of these new job opportunities. For example, the Government has introduced the Precision Engineering Skills Framework.  This framework maps out the career pathways for 13 occupations within the PE industry, and identifies the key skills and competencies required for the various job roles.  At the economy level, the SkillsFuture initiative plays an important role in helping Singaporeans deepen their skills to stay apace with industry transformation.

Workers and enterprises must also play an active part

14.         Workers and enterprises also need to play an active part in these efforts.  Workers should take advantage of the available training and career development opportunities, while enterprises should actively partner the Government on relevant training programmes to develop their workers.

15.         I am pleased to note that ASMPT is working closely with Workforce Singapore (WSG) in the Adapt & Grow Professional Conversion Programme (PCP).  This is an important programme to help mid-careerists acquire the relevant skills to enter new sectors.  ASMPT is planning to fill some of the jobs in this new facility with workers trained under the PCP for Complex Equipment Engineers and Assistant Engineers. 

16.         Mr. Ali Bin Zakariah is an example of how workers can upskill and take on new roles, through their proactive efforts and support from the companies.  Mr. Ali joined ASMPT in 1990 as a machinist. Through training and development in areas such as automation skills, he became a key tool-maker and master craftsman for the company.  ASMPT also provided opportunities for Mr. Ali to utilise and further develop his skills, including his role in supporting the transition of the company’s grinding operations to a fully Computer Numerical Controlled process.  Today, Mr Ali’s expertise is being deployed in the area of engineering planning and management, where he oversees predictive maintenance for ASMPT’s metal fabrication operations.  

Concluding remarks

17.         Just as we are transforming the PE industry through digital manufacturing, we must continue our efforts to transform the rest of our economy.  Everyone must play their part in this journey. I am confident that if the Government, industry, workers and other stakeholders, continue to work closely together, we can collectively achieve continued economic growth and the creation of good jobs for Singaporeans.

18.         Once again, my congratulations to ASMPT on the opening of this new facility.  I wish the team at ASMPT every success.  Thank you.

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