September 24, 2021

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4 Causes Why Singapore Will Quietly Develop into the World’s Main Industrial Hub

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Opinions expressed by Entrepreneur contributors are their very own.

There are deep rumblings afoot in Singapore’s manufacturing sector, and I believe the world will quickly be shocked at its rise to international prominence.

In latest many years, know-how, globalization and Asia’s rise have all induced vital adjustments within the manufacturing sector. At the very least inside the confines of Asian and ASEAN international locations, this has usually meant a race to the underside for competitiveness based mostly on value, reasonably than worth. With Singapore arguably being higher recognized for monetary companies and tax incentives, you may assume it will don’t have any future within the international manufacturing sector. 

I’m happy to say, that’s an entirely incorrect assumption.

Whereas low-cost and repetitive-task human labor has had its heyday, Singapore has proven itself to be a lighthouse of forward-thinking. By totally embracing Business 4.0, Singapore is shifting up the worth chain so as to consolidate its place because the world’s main industrial hub.

Such a lofty ambition takes immense proactivity after all, so listed here are 4 the reason why Singapore would be the world’s main industrial hub.

1. The Singapore authorities’s foresight 

Singapore has an extended historical past of exhibiting immense foresight into the wants of the nation. Probably the most well-known instance of this was maybe the federal government’s institution of the Housing and Improvement Board (HDB) in 1960, designed to raise the inhabitants out of poverty and into their very own houses.

It’s that tradition of foresight that has led to many different progressive insights, together with the federal government’s latest pledge to develop its manufacturing sector over the subsequent 10 years. Crucially although, this isn’t a scattergun technique to construct factories and import staff to fabricate low-quality items. 

The federal government has strong plans in place to be aggressive not by way of price, however based mostly on the mental property the nation can generate. This implies reasonably than low-value manufacturing, Singapore will intention to fabricate within the increased finish of the worth chain, together with sectors like prescribed drugs, fintech and biotechnology.   

Singapore’s three-pronged laws for this progress is detailed and nicely thought out, making provisions for attracting top-tier firms, creating higher-paying manufacturing jobs, and coaching the native inhabitants with in depth tertiary schooling collaborations.

Associated: 6 Causes Why Singapore is Asia’s Most Enterprise Pleasant Nation

2. A world-class ecosystem for manufacturing 

Whereas the federal government’s latest however detailed plan for a high-value manufacturing future evokes confidence, you solely have to take a look at how Singapore is performing in the present day to see an upwards trajectory. Singapore is already the world’s third-largest exporter of high-tech items, produces 4 of the world’s prime 10 medication, and is the fourth-largest producer of refined oil. It’s little shock then, that business giants like Micron, Shell and Merck haven’t solely chosen Singapore as a producing base, however as a strategic hub for R&D, headquarters and provide chain administration.

This world-class ecosystem is bolstered by energetic authorities initiatives the place multinational firms (MNCs) can associate with analysis and tertiary schooling institutes to develop cutting-edge improvements with international affect. 

Singapore’s status as a plug-and-play manufacturing ecosystem will solely proceed to develop, as increasingly more prime MNCs leverage the nation’s funding within the sector. 

Associated: Singapore: the Manufacturing Hub

3. A workforce of expert people and adaptable robots

Whereas China and lots of components of Southeast Asia stick with a repetitive-task-based human workforce, Singapore is forging forward with an adaptable however extremely expert native workforce comprised of complementing robots and people.

Singapore at the moment ranks third within the World Expertise Aggressive Index, thanks largely to 2 main methods. First is the federal government’s vital funding in human expertise via their SkillsFuture sequence in superior manufacturing and their partnerships with business leaders and tertiary institutes. Second is a large funding in robotic know-how, which has led them to turn out to be third on the planet for robotic density, in keeping with the World Expertise Aggressive Index.

These synergetic workforces present a longtime dedication to each human and robotic capital that gives end-to-end manufacturing experience — an infinite plus to potential MNCs seeking to manufacture in Singapore.

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4. A longtime tradition of innovation

Lastly, Singapore continues to solidify its status as a worldwide powerhouse for innovation. Singapore is at the moment ranked third within the Bloomberg Innovation Index, primarily as a consequence of its productiveness and value-added manufacturing progress, whereas sustaining a top-in-world rating in tertiary schooling effectivity.

This tradition of innovation has led to the likes of Siemens and ABB to leverage Singapore’s rising momentum inside business 4.0, and I totally count on many different international innovators to observe.

Associated: Can Singapore be Asia’s cryptohub?

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