SINGAPORE: Prime Minister Lee Hsien Loong said the
government wants manufacturing to remain a major pillar of the
economy, but urged firms to adapt to changes.
He promised help for local small and medium
enterprises (SME) in adapting to the new manufacturing landscape,
acknowledging the challenges faced by such
companies.
Mr Lee was speaking at the Singapore Manufacturers'
Federation's 80th anniversary dinner on Saturday.
Manufacturing contributes more than 20 per cent of Singapore's
gross domestic product, and has led the economy out of recent
downturns.
So as a major pillar of growth, the manufacturing sector must be
strengthened.
One way is to leverage Singapore's position as a hub, seizing
opportunities in the region and connecting with the rest of the
world, Mr Lee said.
This means Singapore companies should go international to attract
firms to use the country as a base for their Asian
operations.
"We need to improve productivity across the whole value-chain,
which is especially important as we approach our physical limits of
growth and reduce our inflow of foreign workers. We need to
strengthen our whole eco-system, from the logistics infrastructure,
to the IP protection, to tripartism, which is one of our unique
advantages," he said.
With the government's continual efforts to upgrade the workforce at
all levels, Mr Lee urged firms to also invest in human resources
and take a long-term view in building people's capabilities.
He said manufacturing provides good, skilled jobs to Singaporeans,
with average local wages in the sector growing faster than the
national average for a number of years.
And Singapore must continue to maintain a pro-business environment,
attract multinational corporations, and welcome foreign talent as
employers build up the local talent pool.
Mr Lee said the smaller players remain important to Singapore's
economy amidst changes to the manufacturing landscape.
"You employ many locals, you complement the multinationals'
production chains. We can't guarantee that every single company
will always succeed, but we are committed to help every company
find a way forward."
Mr Lee also calls on firms to take full advantage of government
support to upgrade, and work together to overcome size
constraints.
He said one way of doing this is to form consortiums to enter new
markets or bid for large contracts.
On its 80th anniversary, the Singapore Manufacturers' Federation
changed its name to the Singapore Manufacturing Federation and
unveiled a new logo as part of its year-long celebrations.
- CNA/ck
