Manufacturing to remain major pillar of economy: PM Lee
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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 -
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