THE GROWTH of the Iskandar development region will not pose a threat to Singapore's manufacturing sector.

Instead of competing, the region will complement Singapore companies' growth, said Senior Minister of State Lee Yi Shyan.

"We have to make full use of the hinterland to support our operations... As our companies grow, they will reach a point beyond which they will have to go overseas," said Mr Lee.

The minister was a panellist at a business productivity seminar organised by the National Productivity and Continuing Education Council and the SME magazine.

During the seminar held at the Singapore Press Holdings auditorium, consultants and company bosses offered insights on the challenges that small and medium-sized enterprises might face in enhancing productivity.