Countries in the region are adopting new initiatives in the precision engineering industry, signalling opportunities for Singapore companies. Take a look at some of the promising overseas markets that you can venture to.
Made in China 2025: In May 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.
China’s level of industrial automation remains low at fewer than 50 robots per 10,000 employees, compared to about 300 in Germany and Japan. China is also no longer a source of cheap labour, with average wages surpassing that of Indonesia, Malaysia and Vietnam. As such, the drive towards automation and digitalisation is a key focus and the total market size for MIC 2025 is estimated to be approximately S$363 billion from 2015-2025.
With Singapore’s manufacturing experience and track record in serving global high-technology manufacturers, local companies can work with Chinese manufacturers to create “smart factory” standards and solutions for the world.
Singapore Manufacturing Innovation Centre (SMIC): Enterprise Singapore partnered Ascendas-Singbridge to set up SMIC in Sino-Singapore Guangzhou Knowledge City (SSGKC). Singapore technology players can use this platform to co-innovate, test-bed, localise and showcase Industry 4.0 solutions in China. It connects Singapore providers of advanced manufacturing solutions with industry players in China, and ultimately, to the global Industry 4.0 ecosystem.
SMIC provides an active programme of seminars, workshops, trade shows, and demonstrations that facilitates networking, business matching and partnerships between Chinese manufacturers and SMIC companies. Companies can enjoy regular outreach initiatives to explore partnership opportunities, market access and commercialisation of new technology, products and services.
The pioneer batch of five companies on this integrated platform offers a complementary suite of advanced Industry 4.0 solutions. They are:
We welcome new members to join the pioneer batch of SMIC companies.
If you wish to tap China’s rising demand for Industry 4.0, and can support Chinese manufacturers with innovative solutions in these areas, consider being a part of SMIC:
Find out more about SMIC here.
India’s manufacturing sector contributes to about 50% of the country’s exports. It is expected to hit US$1 trillion by 2025. With the launch of India’s national manufacturing initiative –“Make in India” – which encourages companies to manufacture their products in India, you could consider India’s potential as a manufacturing base. The initiative covers states including Tamil Nadu, Maharashtra and Rajasthan.
Manufacturers are expected to benefit from the growing demand for automotive, consumer electronics and food products. Several top global automotive component suppliers have also announced plans to increase procurement from their Indian subsidiaries.
Southeast Asia currently accounts for about 5% of global manufacturing value, with dominant stakes in industries such as chemicals, food and beverage, metals and motor vehicles. Some of the key markets in this region include Indonesia, Malaysia, Thailand and Vietnam.
SEA is the rising economy in the world. Overall foreign direct investment into ASEAN reached US$97 billion in 2016, according to the ASEAN investment report1. There are also over 1,600 economic zones within the region that have boosted socioeconomic growth.
Given its abundant land area as well as a young and hardworking workforce, SEA has good potential to grow as a manufacturing hub.