The precision engineering industry is a key pillar of growth for Singapore, said Minister of State for Trade and Industry Teo Ser Luck on Wednesday.

He disclosed that the sector's output has increased by nearly four times over the past two decades, to reach $32 billion last year.

To ensure continued expansion of the sector, the government will continue to upgrade the workforce and to boost research and development activities.

Mr Teo pointed out that the private sector also has an important role to play.

"While the government can seek to ensure the supporting measures are in place, the continued growth of the precision engineering sector ultimately lies in the hands of the companies that comprise the sector."

Precision engineering companies can benefit from Singapore's strategic location in the heart of Asia, with the region poised to grow its industrial production in excess of 5 per cent this year, he added.

Mr Teo was speaking at the opening ceremony of Japanese manufacturer Yamazaki Mazak's new facilities on Wednesday.

The company embarked on an expansion of its factory and technology centre by more than doubling the floor area of the facilities, located in Jurong

It declined to disclose the cost of the expansion, but said the added investment will raise its production capacity here by 60 per cent.

Mazak set up a sales and support office in Singapore in 1988 and has since grown its presence by establishing production lines here. Singapore is one of the five production facilities that Mazak has outside of Japan.

The company produces advanced machine tools like engines for sports car maker Lamborghini.