Key Markets | Precision Engineering
Precision Engineering
  • China
  • India
  • Southeast Asia 
  • United States
China

S$167.04b

Total bilateral trade in goods with Singapore (2023)


Population (2022)

 

1.4b
Currency

 

Chinese yuan
GDP growth (2022)

 

3.0%
GDP per capita (2022)

 

US$12,720.2
GDP (2022)

 

US$17.96t
Global competitiveness index (2023)

 

21st

Tap into emerging markets and platforms

With average wages surpassing the likes of Indonesia, Malaysia and Vietnam, China’s workforce is no longer viewed as a source of cheap labour. Their level of industrial automation remains low (fewer than 50 robots per 10,000 employees) compared to Germany or Japan. Hence, China has focused an estimated S$363 billion on increasing their Made in China (MIC) market size in automation and digitalisation until 2025.

  • Made in China 2025 Programme

    In 2015, China’s State Council announced “Made in China 2025” (MIC 2025) – a 10-year national initiative to transform China into a global manufacturing powerhouse. The programme aims to increase the domestic content of core materials to 40% by 2020 and 70% by 2025.

    With Singapore’s manufacturing experience and track record in serving global high-technology manufacturers, you can work with Chinese manufacturers to create “smart factory” standards and solutions for the world.

  • SME Centre @ SCCCI

    This one-stop business service centre supports Singapore enterprises in venturing into the China market through a suite of integrated services including business advisory, market information and business matching.

India

S$28.82b

Total bilateral trade in goods with Singapore (2023)


Population (2022)

 

1.4b
Currency

 

Indian rupee
GDP (2022)

 

US$3.42t
GDP growth (2022)
7.2%
GDP per capita (2022)

 

U$2,410.9
Global competitiveness index (2023)

 

40th

Tap into emerging markets and platforms

Contributing to almost half of the country’s exports, India’s manufacturing sector is expected to reach US$1 trillion by 2025 as demand grows for automotive, food products and consumer electronics.

  • Made in India

    Launched in 2014, “Make in India” is a government initiative that encourages international companies to choose India as a product manufacturing base. Spanning states from Tamil Nadu, Maharashtra to Rajasthan, this programme enables foreign businesses to invest in production services for up to 25 different sectors.

  • Tips for doing business in India
    1. Looking to test the market with your products? Start by trading with India first. Manufacturing in India presents Singapore companies with opportunities to produce parts for export as well.
    2. Build strong relationships with local partners. Establishing a business in India requires patience and persistence, and learning the local conduct and culture will help you in conducting business.
    3. Learn about India’s tax rules and business setup process. When planning your business development, leverage the “Make in India” programme to build clear operational strategies.
Malaysia

S$168.55b*

Total bilateral trade in goods with Singapore (2023)



Population (2022)
673.4m*

Tap into emerging markets and platforms

Looking to Southeast Asia (SEA) as a manufacturing hub for your company? Tap high potential, young and hardworking talent to help you grow your business. As a fast-growing economy with abundant land area, this region has plenty of potential to grow as a manufacturing hub. Consider key markets like Indonesia, Malaysia, Thailand and Vietnam for your product development.

  • Strong industry stakes in emerging markets

    Rich in many industries such as chemicals, food and beverage, metals and motor vehicles, SEA nets about 5% of global manufacturing value.

    Overall foreign direct investment into SEA reached US$619 billion in 2021, promising signs of high socioeconomic growth and profit potential for international businesses like yours.

  • Tips for doing business in SEA
    1. Create an appropriate strategy to enter your desired target market. Success in overseas business ventures and risk management depends on your strategy towards having local partnerships, or independently entering the market.
    2. Build strong relationships with local stakeholders, including economic agencies (eg. Board of Investment (BOI) for Thailand, or the Malaysian Investment Development Authority (MIDA) for Malaysia). Establishing a business footprint in SEA requires much patience and persistence to learn the local sentiments and cultures of conducting business.
    3. Tap increasing consumer spending and demand trends in SEA due to a growing middle class.
United States of America

S$129.06b

Total bilateral trade in goods with Singapore (2023)


Population (2022)

 

333.3m
Currency

 

United States dollar
GDP (2022)

 

US$25.44t
GDP growth (2022)

 

1.9%
GDP per capita (2022)

 

US$76,329.6
Global competitiveness index (2023)

 

9th

Changing dynamics of the global manufacturing supply chain

The US remains one of the largest markets in the world, and the continued presence of large American manufacturing MNCs in Singapore have continued to generate positive spillovers to SMEs in Singapore.


However, trade tensions between China and the USA have prompted industry players to seek alternatives. Congress recently passed the CHIPS act, which funds and incentivises internal investment in semiconductor manufacturing and R&D, and boosts STEM opportunities. This will create downstream strategic opportunities that Singaporean firms can capitalise on for their US expansion plans.

  • Made-in-America The White House

    Key markets include MedTech, where America leads the world with a long list of large MNC MedTech owners, including Baxter, Stryker, Boston Scientific, and Medtronic. The US holds approximately 40% share of the global MedTech market. EnterpriseSG can help SGMedtech contract manufacturers access this market share through manufacturing opportunities through product ownership.

    Silicon Wafer Manufacturing is another key segment as trade tensions have uncovered gaps in the market which firms with capabilities can plug. The strong push from D.C. has spurred businesses across America to source for local content. Firms can thus look to strong growth in the semiconductor back end space, and understand trends and opportunities in new upcoming areas of silicon photonics and advanced packaging.

  • Reshoring and nearshoring in North America

    Consider EnterpriseSG’s financial and non-financial support schemes, to promote and facilitate physical setups in the USA and assimilate into the local semiconductor ecosystem.

    EnterpriseSG's presence can be felt from coast to coast, with Overseas Centres in the key cities of Los Angeles and New York. They can connect you with business opportunities in America and identify market gaps, trends and potential partners for firms. Through Trade Associations and Chambers (TACs) like Singapore Semiconductor Industry Association (SSIA), members can explore curated opportunities with potential partners, and consider consortias to provide end to end solutions.

    You can also consider pivoting towards Mexico, where low labour costs paired with high technology and standards, have led to competitive growth in the manufacturing sector. Mexico's close proximity to the US, strong trade links with USMCA and abundance of logistical networks crossing the border provide companies with an abundance of options for expanding into the North American market.