Singapore will continue to strengthen its status as an international business hub and improve its attractiveness to global logistics players, Trade and Industry Minister Chan Chun Sing said yesterday.
Speaking to the media after a visit to German logistics firm DB Schenker's Red Lion facility at the Airport Logistics Park in Changi, he outlined three ways the Republic will do so:
• Singapore will ensure that global logistics players continue to plant investments and grow operations here to serve both their local and worldwide operations.
• It will also strengthen its network of free trade agreements to provide more opportunities at more competitive prices for logistics firms to base their operations here.
• It is also essential for firms to improve the efficiencies of their systems and utilise the latest technologies to quicken logistics processing, Mr Chan said.
He noted that it is better to see a relatively empty warehouse these days rather than one that is at full capacity, which was what people used to be impressed with in the past.
An empty warehouse demonstrates that things are moving through a faster rate, he pointed out. "That is really what we are striving for rather than just to store things," the minister added.
The logistics sector is a key pillar of Singapore's economy and contributed $6.8 billion, or 1.4 per cent, of Singapore's gross domestic product last year. It employs over 86,000 workers across more than 5,300 business entities.
Mr Chan highlighted how Singapore's reliability as a logistics hub has become much more important during this coronavirus pandemic.
"In a Covid-19 situation where there is a lot of disruption to supply chains and a lot of man-made policy-induced restrictions to supply chains... Singapore's reputation as a trusted partner becomes even more important," he said.
Mr Chan also highlighted how beyond the efficiency and reliability of Singapore's policies, the resilience of its logistics network also solidifies its position as a global hub amid the Covid-19 crisis.
"Today, in Singapore, if someone wants to ship something through Singapore, and one part of the network gets disrupted, we can quickly rechannel the network to another part and still provide that continuity in service," he said.
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Sector's key numbers
- Singapore's world-class logistics ecosystem is crucial to its status as a global business hub, allowing it to connect key supply chain nodes to facilitate both domestic and international trade flows.
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> 5,300
Business entities in the sector.
> 86,000
Workers employed in the industry.
> 2,100
Employment opportunities in the sector as at the end of last month.
$6.8 billion
Value-add contributed to Singapore's economy last year.
1.4%
Contribution to gross domestic product last year.
1,500
New jobs expected to be created in the sector over the
next five years.
These strengths provide the Republic with more opportunities for expansion in the logistics industry moving forward, Mr Chan noted.
"We are confident that this sector will continue to grow and create many good jobs for our workers and create many good business opportunities for our partners that have chosen Singapore as their base to service the rest of the world."
