Distinguished guests,
Ladies and gentlemen,
I am happy to join you here at the Transport and Logistics Industry Day 2022.
Introduction
2. Change has been acceleratingin the past few years, particularly for the Transport & Logistics sector. Global developments like the pandemic and geopolitical tensions have led to supply chain disruptions and rising energy prices, exacerbating the operational and cost pressures faced by industry players.
3. Notwithstanding these challenges, the industry has demonstrated resilience and continued to uphold Singapore’s role as a global trade and connectivity hub. Singapore’s transport and logistics industry moved S$1.2 trillion of trade in 2021, surpassing pre-pandemic trade volume of S$1 trillion in 2019.
4. Ournext phase of economic growth continues to be dependent on a robust and resilient logistics ecosystem. To this end, I would like to elaborate on three areas today:
a) raising delivery efficiency and service levels;
b) doubling down our efforts in digitalisation, automation, and innovation; and
c) supporting industry collaborations to accelerate the pace and scale of the green transition.
5. Let me elaborate further.
Raising Delivery Efficiency and Service Levels
6. First, raising delivery efficiency and service levels.
7. The Singapore Standards Council and Enterprise Singapore have been developing and reviewing standards for the logistics sector.
a) About a month ago, we launched two new standards on container depot operations and the safe use of autonomous mobile robots in warehouses.
8. I am happy to share that we are launching the Technical Reference 105, or TR105 today.
a) TR 105 provides guidelines for the last mile delivery of parcels.
b) The guidelines cover a comprehensive range of issues, such aslabel font sizes, use of scannable codes, data privacy protection, and delivery instructions.
c) TR 105 will optimise operations, strengthen data exchange and protection, and improve communication across the value chain and end-recipients.
d) I thank our industry partners who have volunteered their expertise in the development of this standard.
9. I encourage all companies to adopt these standards to further uplift efficiency and service delivery in the logistics industry.
Doubling Down on Digitalisation, Automation, and Innovation
10. Second, we will double down on digitalisation, automation, and innovationto ensure Singapore remains Asia’s leading logistics ecosystem.
a) Digitalisation and automation are key productivity boosters and enable companies to overcome manpower constraints.
i. One example of a company that has benefitted is Lim Siang Huat, a food distributor and cold chain logistics provider.
ii. With Enterprise Singapore’s support, the company installed a Goods-to-Man Automated Storage and Retrieval System.
iii. Today, Lim Siang Huat enjoys a picking accuracy of up to 99.9% and warehouse operators see 50% time saving for each job order, freeing up their time to complete other tasks.
iv. We will work with more transport and logistics companies to digitaliseand automate like Lim Siang Huat. As announced at the launch of the refreshed Logistics Industry Transformation Map (ITM), we hope to see 40% or more of our SMEs adopting at least 1 digital solution by 2025.
b) Besides digitalisation and automation, innovation is also critical as it can catalyse new business models.
i. We know of fintech, agritech, biotech – but there is another emerging space which is equally exciting: logtech, or logistics technology.
ii. We have seen increased interest in the logtech startup space over the past few years.
iii. Enterprise Singapore supports this space through events such as the Trade and Connectivity Challenge and fundraising initiatives such as Deal Friday.
iv. I am happy to hear that in the recently concluded Deal Friday focusing on Transport and Logistics, the ratio of investors to startups was 7:1.
v. It shows significant interest in this space – and that is no accident. Investors know that there will not be a future without transport and logistics. You are quite literally what keeps us moving forward!
11. Digitalisation, automation,and innovation benefit not just companies, but also workers.
a) As companies adopt new technologies, new skillsets will become necessary.
b) Workers can look forward to new and redesigned quality jobs.
c) Let me share some examples.
i. Con-Lash Supplies is an SME in the ship supplies industry.
• With support from Enterprise Singapore, Con-Lash introduced Robotic Process Automation into their sales documentation preparation processes, eliminating the need for manual data entry.
• 5 data entry staff have been retrained and redeployed to become purchasers and accounts executives.
ii. Another example is Grocery Logistics of Singapore Pte Ltd., the supply chain arm of grocery retailer Fairprice Group.
• The company set up a Supply Chain Operations Centre, or SCope, to conduct real-time tracking of shipments across the globe.
• SCope also monitors the end-to-end movement of goods levels across FairPrice stores.
• In creating this new set-up, new job positions in data analytics were created.
12. The benefits of digitalisation, automation, and innovationare multifold - greater productivity, new business models and quality jobs. I encourage everyone to keep up with developments in this area and adapt your business accordingly to reap these outcomes.
Supporting Industry Collaborationsto Accelerate Pace and Scale of Green Transition
13. Finally, to grow the Transport and Logistics industry, the Government will continue to support industry collaborations, especially in sustainability.
14. As one of the heavy contributors of carbon emission, the Transport and Logistics industry must do more and start immediately. This will help to future-proof businesses and enable companies to seize new opportunities in the green economy.
15. To this end, I am happy to see sixnew industry partnerships being forged today with support from Enterprise Singapore.Let me just share three brief examples.
a) First, in the electric vehicle (EV) space. Commercial fleet ownerscan look forward to an EV digital services platform developed by Strides Digital. This willbe a one-stop platform hosting software applications providingdigitalisation and carbon management solutions for commercial fleet owners. This platform can increase exposure for our local SME solution providers and expedite internationalisation efforts through a hunt-in-a-pack model. A win all around for the parties involved, be it users or providers, and more importantly, our environment.
b) Second, in the maritime space. Kuok Maritime Group and six other partners are leading a Coastal Sustainability Alliance. The Alliance will organiseindustry consultation sessions and workshops to solicit ideas for innovative vessel design and sustainable energy solutions, with the goal of creating a vision for a Next Generation Coastal Logistics Ecosystem.
c) Third, in the aviation space, SATS will work with its SME suppliers to strengthen sustainability awareness, develop capabilities in carbon accounting and carbon reduction, and co-develop sustainable solutions. At least 70 local SMEs will stand to benefit.
16. Such partnerships help our companies to capture emerging opportunities in the sustainability space. They alsohelp to contribute towards Singapore’s ambition to achieve net zero emissions by 2050.
17. Besides industry-led efforts, more will be done to uplift sustainability capabilities at the enterprise level.
a) Our engagements with industry have highlighted the need to continue building awareness on the importance of sustainability. I am happy to announce that the Transport and Logistics sector will be one of the first to benefit from EnterpriseSingapore’s expanded Enterprise Sustainability Programme.
b) In partnership with the Singapore Logistics Association, a playbook to identify sector-specific sustainability trends and opportunities will be developed. This is part of EnterpriseSingapore’s efforts to provide additional resources and support for enterprises as they embark on their sustainability journey.
c) More details of these new resourceswill be released from early 2023.
d) We will continue to develop initiatives under the Enterprise Sustainability Programme, and welcome more knowledge and industry partners to join us in doing so.
Conclusion
18. To conclude, I strongly encourage and urge all transport and logistics companies to forge ahead in your transformation efforts, to raise servicelevels, double down on digitalisation, automation, and innovation, and collaborate with other companies.
19. I wish everyone a productive session ahead. Thank you.