Singapore Gearing Up To Become Global Manufacturing Center
Singapore’s installment of its first-ever Surface Engineering Hub signals a boost in Singapore’s manufacturing industry, which is seen as a force majeure behind the rebound of the city-state’s economy.
The Surface Engineering Hub, which was recently unveiled by the country’s Trade Minister Lim Hng Kiang, brings together Singapore’s manufacturing companies under the one business park. As of press time, thirteen companies have already signed up to become tenants of the hub.
The new hub is also equipped with a centralized waste treatment plant that is seen to minimize the set-up and operational costs among tenant manufacturing companies. Companies such as engineering companies, chemical solution manufacturers, plating technology and equipment providers will be benefiting from the said waste treatment facility.
Singapore is home to a surface engineering industry that is composed largely of SMEs. According to data released by the Singapore Economic Development Board, over 3,000 people are employed by companies under the said cluster, whose output has reached a whopping SG $414 million two years ago.
Surface engineering is a cluster of the manufacturing industry that involves subsectors such as precision engineering, aerospace, electronics, biomedical, marine, and offshore engineering.
Just a month ago, Singapore poured funds into developing its first-ever research and development remanufacturing facility, the Advanced Remanufacturing And Technology Center, which aims to improve the remanufacturing process that will be of tremendous use to various industries.
The Surface Engineering Hub is a welcome addition to Singapore’s surface engineering industry which has suffered for a while from increasing competition with China and other uprising Asian countries. Cheaper labor and overhead costs in China and smaller Asian countries are to be blamed for Singapore’s lower profits in the said industry, although lower tax rates have, in some way, outweighed these threats.
The Singapore government has set the $400-million project in motion through SPRING Singapore, which aims to assist companies in key areas such as automation, technology, innovation and human resources development.