Impact of British Inventor’s Announcement to Drop Electric Car Project in Singapore

4 Mr Liang Eng Hwa asked the Minister for Trade and Industry what is the impact of Dyson's cancellation of plans to build electric vehicles (EV) in Singapore and whether there are value propositions and opportunities to develop the EV business.

The Senior Minister of State for Trade and Industry (Mr Chee Hong Tat) (for the Minister for Trade and Industry): Mr Speaker, Sir, the question on electric vehicles and Dyson's decision was also raised by Mr Seah Kian Peng yesterday and the reply had been converted into a written answer. But, let me address Mr Liang Eng Hwa's question on a very similar topic.

Sir, Dyson's decision to wind down its electric vehicles business will not impact its presence and operations in Singapore. Out of Dyson's 1,200-strong workforce in Singapore, 20 employees are from their electric vehicles business. Dyson will redeploy the affected employees within the organisation.

Although Dyson will no longer pursue its electric vehicles business, it will continue to grow its core business in Singapore, develop battery technology for consumer products and expand research and development in areas such as sensors, robotics and artificial intelligence, which will also support the development of a smart mobility eco-system.

Other companies have also expressed interest in developing smart mobility solutions in Singapore. They value our highly skilled workforce, our strengths in advanced technologies such as robotics and automation and our strong intellectual property protection regime; and if I may add, our strong tripartite partnership. We will continue to work with these companies to harness the new opportunities for Singapore, for our companies, for our workers.

Mr Liang Eng Hwa (Holland-Bukit Timah): Sir, can I ask the Senior Minister of State whether there were any issues of the lack of any specific capabilities or advantages on our part that contributed to Dyson's cancellation of the plans to build electric vehicles here in Singapore? Whether the electric vehicles industry is one that we want to grow or pursue; whether we do have plans to attract other electric vehicles industry players here; and also, whether do we have the necessary capabilities to support such an industry?

Mr Chee Hong Tat: Sir, I thank Mr Liang Eng Hwa for his supplementary question. Is it due to a lack of capabilities? No. Dyson decided not to continue with its electric vehicles manufacturing, this is a business that they were thinking of going into and later they decided that it would not be viable, commercially, for the company to continue. So, they have stopped their plans to go into this area.

Singapore, we do have strengths, as I explained in my answer, in advanced manufacturing, in automation. Because people see Singapore as a place where you can do research and development, you have a skilled workforce, you have good intellectual property protection. This eco-system is what we are trying to grow, whether it is for manufacturing of electric vehicles, high-end equipment for precision engineering, for bio and medical technology equipment, things which require high skill and can produce high value, things which require a lot of intellectual property and knowledge-based, things which Singapore, with our trusted brand name, skilled workforce, we are well-equipped to play it.

Mr Seah Kian Peng (Marine Parade): I just want to ask the Senior Minister of State, Dyson in its earlier investment commitments that it had made, notwithstanding the change in plans for electric vehicles, would these continued to be honoured?

Mr Chee Hong Tat: The plans for the electric vehicles and any associated incentives that are tied to the electric vehicles project, if the electrical vehicles project is not going to continue, the incentives would not be given. I want to be clear that because the project has not taken place and the investments have not been made, the incentives have not been given. So, with the decision by Dyson not to continue with this electrical vehicles business, the incentives would therefore not be given for this project.

For other projects that Dyson has already started or it is planning to expand some of its activities in Singapore, that is something we will look at separately.