[h=2]MTI rebuts Ngiam Tong Dow on SG backing away from manufacturing[/h]
April 2nd, 2013 |
Author: Contributions
In his speech, Mr Ngiam Tong Dow (“Let’s get our young talent job ready”; last Wednesday) asserted that Singapore has backed away from manufacturing, and instead has promoted low-skilled and low-wage service industries since the global financial crisis.
This is incorrect. Manufacturing continues to remain a key pillar of Singapore’s economy. It accounts for about 21 per cent of our gross domestic product (GDP), and we are committed to sustaining it at 20 per cent to 25 per cent of GDP.
Singapore has also not shifted away from growing higher-value-added manufacturing activities since the financial crisis.
Conversely, our growth strategy in attracting higher-value-added and higher-technology investments remains intact.
A case in point is Rolls-Royce’s investment to assemble the Trent aero-engines here, a knowledge-based industry that Mr Ngiam cited. The investment was in fact secured after the financial crisis broke and not before.
Many global companies such as GlaxoSmithKline and Applied Materials continue to base their high-value and innovation-intensive manufacturing functions here.
These projects have replaced low-cost, labour-intensive manufacturing and created good-paying and highly skilled jobs.
The Economic Development Board’s $500 million Future of Manufacturing initiative will further drive the development and adoption of new enabling technologies, capabilities and business models across the entire value chain.
Singapore is similarly moving up the value chain to build strong capabilities in research and development, supply chain management and HQ functions.
These capabilities complement the growth of our manufacturing industries and strengthen our position as a manufacturing location.
Contrary to Mr Ngiam’s belief, these are high-value-added industries that require technical and professional expertise, and provide Singaporeans with good-paying job opportunities.
.
Cindy Keng (Mrs)
Director (Corporate Communications)
Ministry of Trade and Industry
* Letter first appeared on ST Forum (2 Apr).
.
Editor’s note: Mr Ngiam is not entirely wrong to assert that Singapore is backing away from manufacturing if one is to look at the figures, not withstanding MTI/EDB’s attempt to attract higher-value-added manufacturing activities into Singapore.
In fact, in the 80s, manufacturing sector contributed as much as 30% of the GDP:
So, looking at historical figures, Mr Ngiam is essentially saying that Singapore’s economy now depends less in manufacturing than before. It has to be cause Singapore has no choice after the fall of communism in Eastern Europe as well as the opening up of China in the late 80s. Previously, there is an “iron curtain” forbidding investments from the West to these countries. Now, it’s a fair game for everyone… in fact, the SG Govt went ahead to open up 2 casinos in Singapore is another implicit acknowledgement to the decline of manufacturing contribution as a % of GDP…
.
Return to the Mobile Edition.
This is incorrect. Manufacturing continues to remain a key pillar of Singapore’s economy. It accounts for about 21 per cent of our gross domestic product (GDP), and we are committed to sustaining it at 20 per cent to 25 per cent of GDP.
Singapore has also not shifted away from growing higher-value-added manufacturing activities since the financial crisis.
Conversely, our growth strategy in attracting higher-value-added and higher-technology investments remains intact.
A case in point is Rolls-Royce’s investment to assemble the Trent aero-engines here, a knowledge-based industry that Mr Ngiam cited. The investment was in fact secured after the financial crisis broke and not before.
Many global companies such as GlaxoSmithKline and Applied Materials continue to base their high-value and innovation-intensive manufacturing functions here.
These projects have replaced low-cost, labour-intensive manufacturing and created good-paying and highly skilled jobs.
The Economic Development Board’s $500 million Future of Manufacturing initiative will further drive the development and adoption of new enabling technologies, capabilities and business models across the entire value chain.
Singapore is similarly moving up the value chain to build strong capabilities in research and development, supply chain management and HQ functions.
These capabilities complement the growth of our manufacturing industries and strengthen our position as a manufacturing location.
Contrary to Mr Ngiam’s belief, these are high-value-added industries that require technical and professional expertise, and provide Singaporeans with good-paying job opportunities.
.
Cindy Keng (Mrs)
Director (Corporate Communications)
Ministry of Trade and Industry
* Letter first appeared on ST Forum (2 Apr).
.
Editor’s note: Mr Ngiam is not entirely wrong to assert that Singapore is backing away from manufacturing if one is to look at the figures, not withstanding MTI/EDB’s attempt to attract higher-value-added manufacturing activities into Singapore.
In fact, in the 80s, manufacturing sector contributed as much as 30% of the GDP:
http://www.encyclopedia.com/topic/Singapore.aspx
By the late 1980s, Singapore had begun to further diversify its economy, making it capable of providing manufacturing, financial, and communications facilities for multinational firms. In the late 1980s, one of the fastest-growing sectors of Singapore’s economy was international banking and finance, accounting for some 25% of GDP. It ranked behind Tokyo and Hong Kong among financial service centers in the Southeast Asia region. In 1989, earnings from manufacturing accounted for 30% of GDP. Manufacturing accounted for 24.3% of GDP in 2002.
By the 2000s, it started to decline as % of GDP. Even now, MTI (in the above letter) said, “We are committed to sustaining it at 20 per cent to 25 per cent of GDP.”By the late 1980s, Singapore had begun to further diversify its economy, making it capable of providing manufacturing, financial, and communications facilities for multinational firms. In the late 1980s, one of the fastest-growing sectors of Singapore’s economy was international banking and finance, accounting for some 25% of GDP. It ranked behind Tokyo and Hong Kong among financial service centers in the Southeast Asia region. In 1989, earnings from manufacturing accounted for 30% of GDP. Manufacturing accounted for 24.3% of GDP in 2002.
So, looking at historical figures, Mr Ngiam is essentially saying that Singapore’s economy now depends less in manufacturing than before. It has to be cause Singapore has no choice after the fall of communism in Eastern Europe as well as the opening up of China in the late 80s. Previously, there is an “iron curtain” forbidding investments from the West to these countries. Now, it’s a fair game for everyone… in fact, the SG Govt went ahead to open up 2 casinos in Singapore is another implicit acknowledgement to the decline of manufacturing contribution as a % of GDP…
.
Return to the Mobile Edition.
