Creating the Singapore advantage in Industry 4.0

IT MAY come as a surprise to some that as of 2019, the manufacturing sector accounted for close to 21 per cent of Singapore's gross domestic product (GDP).

Ensuring that manufacturing remains a key pillar of the economy in the future requires enhancing the strength of the sector against a growing regional and global competitive market. This competition is heightened due not least to relatively high operating costs here - for such as talent and real estate - which makes maintaining a strategic competitive advantage in Singapore challenging. While there are great benefits such as a skilled workforce, strong IP protection and technology/research capabilities, it can be argued that regional countries have been fast gaining ground. At some point, other nations will catch up. This means that Singapore's current advantages will become less compelling for manufacturers considering locating production here or purchasing parts and components from the Republic.

Another competitive battleground is centred on automation, robotics, and analytics to keep production in Singapore. This often comes in the form of "buying" this advantage. However, these same advanced solutions such as AGVs (automatic guided vehicles), Cobots and 3D printing can just as easily be moved to a regional country where costs of operations/workforce, real estate and sourcing of raw materials are much more competitive.