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Singapore manufacturing to be at 20% of GDP over medium term: CFE
THE Committee on the Future Economy (CFE) has proposed that Singapore's manufacturing sector should still contribute to about a fifth of economic output over the medium term.
In its report released on Thursday, it recommended that "a globally competitive manufacturing sector, at around 20 per cent of GDP (gross domestic product)", is still key to Singapore's future economy.
As such, Singapore should encourage the growth of areas that sit at the "confluence of high-tech manufacturing and high-end services", said the report. Some examples include advanced manufacturing and the Industrial Internet of Things.
The growth of such areas is concurrent with the CFE's proposed seven strategies that will help it achieve its vision for Singapore's economy.
With such manufacturing activities, the economy can remain broad-based and resilient.
They can also retain competitive capabilities in the economy by anchoring high-value and complex activities here.
Their activities can have positive spill-over effects in the services sector through outsourcing, the committee added.
Additionally, a competitive manufacturing sector can serve as a key linkage for Singapore's economy to the world.
The CFE hopes that with multiple efforts to support the manufacturing sector, Singapore can "retain a globally competitive, high-VA (value-added) and vibrant manufacturing sector in Singapore - one which will support the growth of the wider ecosystem and continue to create good jobs for Singaporeans."