Exit of Manufacturing Operations by US Companies
Ministry of Trade and IndustrySpeakers
Summary
This question concerns government strategies to mitigate the effects of United States manufacturing operations returning home, as raised by Mr Dennis Tan Lip Fong. Minister Lim Hng Kiang responded by highlighting Singapore's competitiveness, noting that the Economic Development Board attracted S$9.4 billion in fixed asset investments in 2016. He detailed the implementation of Industry Transformation Maps, the "Home Strategy" to anchor global industry leaders, and a S$3.2 billion commitment for advanced manufacturing research. Additionally, the government is partnering with agencies like SkillsFuture Singapore to build a talent pipeline and ensure the manufacturing sector remains well-positioned for the future. Finally, the Minister emphasized maintaining global connectivity and liberalizing trade to guard against protectionism while creating new opportunities for businesses and people.
Transcript
4 Mr Dennis Tan Lip Fong asked the Minister for Trade and Industry (Trade) how does the Government intend to help Singapore companies mitigate the effects of the manufacturing move back to the US by US companies.
The Minister for Trade and Industry (Trade) (Mr Lim Hng Kiang): Mdm Speaker, Singapore remains an attractive investment destination, including from United States companies. In 2016, the Economic Development Board (EDB) attracted S$9.4 billion in fixed asset investments. For 2017, EDB expects investment commitment numbers to be comparable to 2016 levels, namely, at S$8 million to S$10 billion. Our manufacturing sector is also well-diversified, with investments from companies around the world.
For Singapore to remain attractive, Singapore must maintain our economic competitiveness. In the case of our manufacturing sector, this competitiveness is built on several key attributes, including our pro-business environment, access to skilled talent, research capabilities and strong intellectual property protection. Many companies have decided to establish themselves in Singapore to complement their global manufacturing footprint. From Singapore, they can more readily tap on regional supply chains as well as better access regional markets.
Maintaining our competitiveness means pressing on with our industry transformation efforts to better position our manufacturing sector for the future. The Industry Transformation Maps are critical in this effort. They set out growth and competitiveness plans for 23 sectors, including several in the manufacturing cluster, complemented by initiatives to raise productivity, spur innovation, promote internationalisation, as well as equip our people with the relevant skillsets.
As part of EDB's Home Strategy, EDB anchors the critical functions and differentiating competencies of globally leading companies to improve their rootedness to Singapore for the long term. In the manufacturing sector, EDB aims to anchor industry leaders in Singapore while building up a complementary ecosystem of suppliers and research and development institutes that can partner effectively with these "queen bees". We have also committed S$3.2 billion for the Advanced Manufacturing and Engineering domain under the Research and Enterprise 2020 plan, through which the Agency for Science, Technology and Research will support the development of technological capabilities for our manufacturing and engineering sectors.
In addition, EDB is partnering other Government agencies, such as SkillsFuture Singapore, Workforce Singapore, the Institutes of Higher Learning and industry players, to equip our people with the skillsets to stay competitive. These efforts will ensure that our manufacturing companies can access a steady pipeline of talent.
More broadly, Singapore must remain open and connected to ensure that we retain our relevance to businesses. Singapore must continually work with like-minded partners to guard against protectionist policies, which adversely affect global trade with knock-on effects on economic growth worldwide, while pursuing the liberalisation of trade and investment that will create opportunities for our companies and our people.
11.45 am
Mdm Speaker: Order. End of Question Time.