SPEECH BY DR KOH POH KOON, SENIOR MINISTER OF STATE, MINISTRY OF TRADE & INDUSTRY AND MINISTRY OF NATIONAL DEVELOPMENT AT THE SIGNING CEREMONY FOR TIMMAC @ KRANJI ON 31 JANUARY 2018, 10:00 AM, AT THE JTC SUMMIT

Distinguished guests,

Ladies and Gentlemen,

1.    It is my pleasure to join you today at the signing ceremony for TimMac @ Kranji. I am encouraged by how the TACs have partnered closely with JTC to conceptualise this facility, and that 22 companies have already signed up for units within TimMac. This is a commendable take-up rate of 70 per cent, two years before TOP, which shows strong industry support. It is through such strong tripartite partnerships between the Government, TACs and companies that we can most effectively help businesses to optimise resources, develop strong capabilities and remain nimble to seize new opportunities in today’s dynamic and fluid economic environment.

THE IMPORTANCE OF METAL, MACHINERY AND TIMBER INDUSTRIES

2.    The MMT industries provide critical support to major sectors of Singapore’s economy, supplying essential products and services like overhead cranes, outdoor decking and building materials to the built environment and offshore & marine sectors. 

3.    In particular, with major infrastructure projects in the pipeline, such as the Changi Airport expansion, Tuas mega port and new HDB towns, there will be opportunities for MMT companies to grow. To fully reap these opportunities, however, it is vital for MMT companies to continue to stay ahead of business challenges – our labour market remains tight, technological disruptions and advances will continue to disrupt business models, and regional competition will only intensify.

4.    As we have done for companies in other sectors, the Government will continue to partner our MMT companies to help them raise productivity and remain competitive. One of the ways we do so is through the development of innovative facilities like TimMac @ Kranji. Allow me to elaborate on how TimMac @ Kranji will support our MMT companies on their transformation journeys.

SUPPORTING THE INDUSTRY TRANSFORMATION EFFORTS OF THE MMT INDUSTRIES

5.    First, the multi-storey TimMac has been designed to replicate the land-based environment that MMT companies typically operate in, thus easing their shift into the new facility. This shift presents an unique opportunity for participating companies to review their business models, redesign and automate their operating processes. In addition, productivity-enhancing features like high clear ceilings with installed corbels will allow and enable MMT companies to more easily use overhead cranes to transport their products instead of the current method of using forklifts. This helps participating companies further optimise space usage by about 20 per cent.

6.    Second, TimMac has been designed with modular units, which will allow tenants to easily take up adjacent units and scale their operations as their businesses grow. With knock-out slabs separating the units, industrialists can quickly integrate their operations across units without having to undertake extensive structural works. Such flexibility helps companies quickly configure and scale their operational space according to changing business needs.

7.    Third, the clustering of SMEs across the entire metal, machinery and timber industries at the same location will make it easier for companies in these complementary sectors to collaborate and find solutions to enhance their productivity and optimise space usage. I encourage the tenants of TimMac to use this opportunity to work together on mutually-beneficial ways to strengthen your competitiveness.

DEEPENING PARTNERSHIPS WITH INDUSTRY ASSOCIATIONS

8.    TACs play an important role as key partners in our industry transformation efforts, enhancing the competitiveness and strengthening the capabilities of their members. With their deep knowledge of the industries’ needs and strong networks across the industries, TACs can take the lead to develop common solutions to challenges faced by the industry and drive positive change within the community.

9.    TimMac is a good example of how our TACs can partner Government to benefit their industries. JTC worked closely with the Singapore Metal and Machinery Association ("SMMA") and Singapore Structural Steel Society ("SSSS") to conceptualise TimMac, especially in ensuring that the specifications of the facility would meet the current and future operational needs of MMT companies. The Singapore Timber Association ("STA") and Singapore Cranes Association ("SCA") have also come on board and taken the lead to provide shared facilities and services in TimMac, so that tenants can benefit from economies of scale and lower startup costs.

10.    For example, STA will offer services such as chemical treatment, sawmilling and warehousing that are required by most timber companies. These shared facilities and services are expected to help timber companies reduce their operating costs by at least 30 per cent and achieve land savings of about 6 hectares.

11.    On the other hand, SCA will operate an open yard to support the operations of metal fabricators and machinery owners, including the assembly of large and bulky metal components and commissioning of construction machinery. The open yard will also house a load-testing facility for cranes. Traditionally, metal and machinery companies transport their cranes to another facility to undergo mandatory testing. This requires additional storage space and manpower. By sharing the open yard, companies can dedicate their manpower resources and space to other more productive activities and enjoy cost savings of about 20 per cent with this pay-per-use service.

12.    In addition, SCA will set up a rooftop heavy vehicle workshop to provide tenants with services such as maintenance of engines, tyre management and towing and recovery services. With the workshop in the same building, companies will reduce downtime by not having to send their heavy vehicles to another facility for maintenance or repair works.

13.    With STA and SCA taking care of such supporting functions, TimMac's tenants will be able to focus on their core business and explore ways to enhance their competitive advantage, such as improving their production processes and accessing new markets.

14.    We will continue to work closely with our industrialists and TACs to develop facilities and implement other initiatives to support our businesses. We will also want to continue to hear your feedback.

CONCLUSION

15. Congratulations to the TACs and JTC on the launch of TimMac @ Kranji. Let us look forward to the completion of this facility in 2020!