SPEECH BY DR KOH POH KOON, SENIOR MINISTER OF STATE, MINISTRY OF TRADE AND INDUSTRY & MINISTRY OF NATIONAL DEVELOPMENT, AT THE LAUNCH OF URBANFOX BY KEPPEL LOGISTICS AT MARINA MANDARIN SINGAPORE, ON 24 OCTOBER 2017, 12:00 NOON

Dr Lee Boon Yang, Chairman of Keppel Corporation,

Mr Loh Chin Hua, CEO of Keppel Corporation
and Chairman of Keppel T&T,

Distinguished guests,

Ladies and gentlemen,

1.            It gives me great pleasure to join you today to witness the launch of UrbanFox and to celebrate this new milestone in Keppel Logistics’ journey.  Keppel Logistics is a pioneering logistics company as old as modern Singapore!  From its early roots in 1965, the company has consistently invested in its people and the latest technology to stay ahead.  Today’s launch of its new business model is yet another step in its journey in transformation and growth.

Transformation of Singapore’s logistics sector

2.            Let me begin by sharing about the broader logistics landscape.  Today, the Transportation and Storage sector, which includes logistics, contributes about 7%[1] of our GDP and provides 230,000 jobs.  We expect these numbers to grow, and the sector to transform, especially since agile new startups are using technology to change the way we shop and move goods around.  Last year, we launched the Industry Transformation Map (or ITM) for Logistics, with the aim to support companies, small and large, in making the change to become more innovative and productive.  When we succeed, the industry should grow to S$8.3 billion in value added to our economy and create 2,000 new PMET jobs by 2020.

3.            The logistics sector is also a key enabler of our economy, supporting the development of other sectors, such as retail and wholesale trade:

a.               On the retail front, consumers want an omni-channel experience. They may buy an item directly online, or research online before making a purchase at a physical store. Operating behind the scenes is an army of logistics and IT professionals - working to ensure a seamless experience for consumers, help manage the inventory, and fulfil individual orders.

b.               Logistics firms also help to translate opportunities in the wholesale trade sector into actual benefits. These firms ensure that business-to-business (B2B) transactions can be fulfilled where they need it, and when they need it. The sustainability of the logistics industry, coupled with excellent connectivity networks, will hence have a significant impact in ensuring our status as a key B2B trading hub.

4.            In this regard, the Logistics ITM includes strategies to ensure our logistics players are attuned and can respond swiftly to global developments. Let me speak about a few key themes of the ITM.

Adopting technology to innovate and transform

5.            First, we need to adopt technology to innovate and transform.  Today, logistics has been optimised at an enterprise level. The strong growth and B2C nature of e-commerce transactions mean that exploiting efficiencies for every transaction across the entire value chain can add up to significant overall gains.

6.            One of the strategies outlined under the Logistics ITM aims to capture such opportunities.  By tapping on and integrating technologies, enterprises can significantly enhance their business operations.  For example, leveraging digitisation to generate insights through data analytics can enable enterprises to provide their services more efficiently and effectively.

7.            I am pleased to note that that UrbanFox has deployed cloud computing solutions for effective logistics management and cross-channel visibility, as well as put in place a crowdsourced delivery model that is powered by smart algorithms.  With these capabilities, UrbanFox is able to provide businesses and brand owners the ability to use a unified inventory to service orders from numerous online marketplaces, while keeping costs low with crowdsourced delivery solutions.

Capturing opportunities in regional markets

8.            Second, there is immense potential for e-commerce in our region and we need to capture the opportunities that this represents. The growing regional demand for goods in Southeast Asia, fueled by a growing middle class segment and increasing digital adoption rates, will create numerous opportunities for our logistic companies to grow their business through Singapore. In fact, our companies have many capabilities and networks that they can bring to the market. UrbanFox is one example.  It will tap into Keppel’s network across key Southeast Asian cities to be the logistics partner that can help other companies to scale.

9.            The Singapore Government will also continue to support companies in their internationalisation efforts. The formation of Enterprise Singapore will build on the strong networks that IE Singapore has developed over the years, and leverage SPRING’s expertise in helping companies build up domestic capabilities. Enterprise Singapore will provide a more seamless and comprehensive support to companies, from scaling-up to venturing into new markets overseas.

Developing the talent pipeline

10.         Third, is developing the talent pipeline. To help workers keep abreast of changes in the logistics sector, the Singapore Government has also rolled out new training schemes to encourage mastery in different domains of the logistics practice. We recently refreshed the Skills Framework for Logistics in September 2017 – this identifies job roles, career pathways, and existing and emerging skills required for the logistics sector.  The framework is complemented by workforce initiatives such as Professional Conversion Programmes (PCP) which help mid-career Singaporeans make a transition between sectors.

11.         In particular, we are cognisant that for businesses to be successful in capturing overseas opportunities, they must be supported by skilled talent with market expertise. As such, the recently launched PCP Southeast Asia (SEA) Ready Talent is an example of how we can work with industry partners to help internationalising logistic companies to build a pipeline of Singapore talent with market ready skills for Southeast Asia.  On this note, I am happy to learn that Keppel is participating in the PCP. We encourage more companies to come on board this programme.

Conclusion

12.         In conclusion, the future of the logistics sector remains bright with concerted effort from both the Government and companies, building upon our strong position as a global logistics hub.  Once again, I would like to congratulate Keppel Logistics on the launch of UrbanFox.  I wish you every success and hope that this will encourage more companies to embrace change and innovate.  

13.         Thank you.

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