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)Cindy Keng (Mrs)
Ministry of Trade and Industry
ST Forum, 2 Apr 2013
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