Covid-19 underscores importance of diversified strategy for supply chain resilience: Gan Kim Yong
THE Covid-19 pandemic has reinforced the importance of having a combination of strategies to enhance supply chain resilience, an approach that Singapore took even before the pandemic, Minister for Trade and Industry Gan Kim Yong said on Tuesday (Mar 21).
At the start of the pandemic, one of three key challenges Singapore faced was securing essential supplies and strengthening supply chain resilience, he told the House on the second day of the debate on a White Paper that reviewed the government’s response to Covid-19.
This meant having to diversify imports, enhance local manufacturing capability, and stockpile, said Gan.
For example, when mask supplies were in short supply, the government worked quickly with the private sector to set up production capabilities in Singapore, even as they sourced for supplies from around the world.
Similarly, the government collaborated with importers to diversify their food sources, including frozen chicken from Poland, red sea shrimp from Saudi Arabia and dried fruit from Uzbekistan. Singapore companies then helped to manage the local distribution network, from warehousing to retail shops.
“I would also like to encourage Singaporeans to support our diversification strategy by trying different sources of supplies, different brands when you go about your daily shopping,” the minister told Parliament.
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To maintain a supply of vaccines, the government will work with the industry and trade partners “to find cost-effective solutions”, he added.
Another challenge was in preserving Singapore’s hub status and safely reopening its borders.
While Singapore’s port remained busy, border restrictions led to significant disruptions in flows of people. These were “complex decisions that had to be made urgently”, said Gan, who also co-chaired the Covid-19 multi-ministry taskforce.
At the beginning, the government “took some time” before deciding to close borders, since connectivity is Singapore’s lifeline as a small and open economy. One concern was ensuring that workers – especially those in essential services – could still enter Singapore, while managing Covid-19 risks, he said.
But the minister added: “There were also other times when we erred too much on the side of caution, which created disruption and uncertainty for businesses and workers.”
Later, with experience and more information on the coronavirus, the government could strike a better balance and find ways to safely reopen Singapore’s borders, which are now fully open, said Gan.
Changi Airport passenger traffic is expected to recover to pre-pandemic levels by next year, he said. Good progress is being made on long-term infrastructure projects, such as Changi Airport Terminal 5 and Tuas Port.
The third challenge was working with industries to chart the road to recovery. The government provided more than S$72 billion of support through eight Covid-19 Budgets, while the Emerging Stronger Taskforce was set up to plan a longer-term response to structural shifts arising from the pandemic.
Gan said he was glad that many businesses showed resilience despite the disruptions and made strides in digitalisation.
“Digitalisation is a journey without end,” he said. “Even though the worst of the pandemic is behind us, the government will continue working with our businesses as we progress on this journey of transformation.”
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