NO HINTERLAND? NO PROBLEM
Mr Lim argues that Singapore starts from a strong base, with a skilled workforce and existing engineering capabilities. "This puts us in a position to seize growth opportunities."
Applied Materials regional president (South-east Asia) Russell Tham says: "We have an advantage (in) that Singapore doesn't rely on one sector. Within manufacturing, there are multiple sectors. Singapore has an established base, whether it's chemical electronics, engineering infocomms or biomedical sciences."
And what were disadvantages previously, such as a shortage of land, are less of an issue now. Mr Tham says: "Some of these latest manufacturing trends, like additive manufacturing (3D printing), are not exactly land intensive."
There are now a rising number of "factory-less good-producing firms". An example would be a semiconductor firm based here that designs semiconductor chips but the actual production is done overseas.
This is a reversal from the days of contract manufacturing in Singapore, when chips were made here but designed elsewhere.
In fact, Singapore Manufacturing Federation president Douglas Foo, who is the founder of the Sakae Sushi chain, says the Asean Economic Community (AEC) - which came into effect in December, and whose policies include free flow of trade- has opened up ways to overcome Singapore's land and labour shortage.
For example, with manufacturing processes that still need labour, Mr Foo's point is that Indonesia can be an alternative location. Singapore firms may not even need to build a facility in the overseas location as there is likely to be enough capacity over there already. Previously, only the lower end of the manufacturing process was outsourced but, these days, often just the research and development aspects are done in Singapore.
"So, Singapore firms can consider how to collaborate with a facility owner who can do that manufacturing aspect, with the final piece coming back to Singapore, then being exported as a product of Singapore, leveraging on the brand that Singapore has, as well as the many free trade agreements that are in place," Mr Foo suggests.
In other words, Singapore should be "taking advantage of the AEC as a large market of consumers as well as a producing hub".
Potentially, technology and the AEC, for example, could soon render the term "resource constraints" irrelevant for Singapore.
With the likes of world-beaters such as oil-rig builder Keppel Offshore & Marine and Sembcorp Marine, Singapore has a lot going for it.
Mr Lim says Singapore and its "peaks of excellence" in semiconductors, aerospace, and marine and offshore sectors creates ample opportunities for collaboration.
He cites the automotive industry, which could learn from the aerospace industry on how to scale up - for example, as more planes get produced - or from the semiconductor industry, which needs to ramp up to produce more chips for phones quickly.
Or take, for instance, Seletar Aerospace Hub, where the likes of aircraft engine maker Rolls-Royce operates. More aerospace manufacturing activities based here will support growth in maintenance, repair and overhaul services.
Mr Lim gives another example of what the offshore and marine sector could learn from the aerospace industry. He says: "Whether it's 30,000 feet above ground or 30,000 feet underground, it is still a harsh environment - high temperatures, high pressure, so there could be things to tap on between the two sectors".
The challenge for the agencies will be to ensure and engineer successful collaborations across different industries.
One model is the Advanced Remanufacturing and Technology Centre, launched last year by A*Star, where different industries collaborate on technologies that can be deployed across multiple sectors. But Mr Lim says other platforms need to be created.
WHAT ABOUT THE FUTURE ECONOMY?
Digital manufacturing, which covers 3D printing and robotics, for example, is changing the face of manufacturing.
It has the potential to make manufacturing more productive, such as carmakers that use computer-aided design to draw up designs for a car, or to capture data on consumers to allow manufacturers to make the products that consumers want, rather than relying on "gut feel".
Mr Lim says that with new products such as smartphones, the pressure is on chipmakers to innovate, by making chips that will go into smaller phones, yet allow for more storage and have more power.
This imperative runs across all sectors, be it in the semiconductor or aerospace sector. In the aerospace sector, for example, every engine has to be more cost-effective, yet of a lower weight and better performance, says Mr Lim.
Mr Foo says with the trend towards hotel operators with no hotels (Airbnb), and transport companies with no vehicles (Uber), business models all need to change, and that goes for the manufacturing sector, too.
For Singapore to continue to thrive, the sector needs to encourage creative and innovative capacities, to build new companies and new industries.
"We have been resourceful in how we have built this country into where it is today," Mr Foo says. "But the next chapter is going to be much more exciting."
VIDEO
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