MANUFACTURING OUTPUT AND JOBS

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MANUFACTURING OUTPUT AND JOBS: 15.

Dr Amy Khor Lean Suan asked the Minister for Trade and Industry (a) what specific strategies will his Ministry adopt in order to double its manufacturing output to $300 billion by 2018, and create more than 20,000 new jobs at the same time, while facing stiff competition from China and India; and (b) how many of these jobs are estimated to be filled by locals.

The Minister for Trade and Industry (Mr Lim Hng Kiang): Mr Speaker, Sir, to achieve the target of doubling our manufacturing output to $300 billion and value-add to $80 billion by 2018, we will adopt the following strategies.

First, we will strengthen our manufacturing capabilities, both in terms

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of manpower and technology. We will equip our workforce with the knowledge and skills to undertake more sophisticated production, through education and workers training. We will invest more in research and development to support product and process innovation. Under our Science & Technology Plan 2010 (S&T2010), the target is to increase our national research spending to 3% of GDP within the next five years.

Second, we will build up on our connectivity, in terms of physical connections, access to resources and markets, as well as linkages with suppliers and partners. With our efficient logistics and supply chain management, Singapore is well-positioned for high value manufacturing that requires flexibility and fast turn-around time. We are also in the midst of a resource-rich region, and have strong connectivity to world markets. We will continue to expand our network of Free Trade Agreements (FTAs), Investment Guarantee Agreements (IGAs), Double Taxation Agreements (DTAs) and Mutual Recognition Agreements (MRAs) so that our manufacturers located here have better, facilitated access to many markets. With manufacturing trends moving towards outsourcing, having strong supporting industries will be a key competitive advantage. We will strengthen our enterprise ecosystem to provide manufacturers with good linkages within and across clusters to support their activities.

Third, we will leverage on our capabilities and connectivity, and grow our existing clusters, as well as nurture new clusters. We have built a core of key industries, such as those in the electronics, chemicals, biomedical sciences and in transport engineering. There is still much scope for us to expand these clusters. At the same time, we will also develop new industries that play to our strengths, such as alternative energy,

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environmental technology, nanotechnology and digital media.

Fourth, we will expand our reach for manufacturing investments. We are looking beyond our traditional catchment areas for manufacturing investments to include emerging geographies, such as China, India and the Middle East. These are emerging economies that will also provide the big companies of the future.

Mr Speaker, Sir, by adopting all these strategies and continuing to stay cost competitive, EDB believes that it can achieve the target of doubling manufacturing output by 2018 and, in the process, create about 15,000 jobs a year from new manufacturing projects. This growth in manufacturing is estimated to create another 6,500 jobs a year due to spin-offs to the services sector. At least 70% of these jobs will be skilled and professional, and will provide ample job opportunities for Singaporeans.