Go Global

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.

Profiled Market: China
 

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:


  1. Akribis Systems, a motion control solutions specialist
  2. Barghest Building Performance, an energy-efficiency technology provider focusing on intelligent buildings
  3. K-One, an innovative solutions provider focusing on sustainability, environmentally-friendly and value-added solutions
  4. PlantWerx, an industrial information technology provider
  5. SESTO Robotics, an autonomous technology specialist in automated guided vehicle solutions

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.

Profiled Market: India
 
3 tips for doing business in India
  1. Start by trading with India first, to better assess market acceptance of your products. Manufacturing in India presents Singapore companies with opportunities to produce parts for export as well.
  2. Cultivate strong relationships with local partners. Establishing a business in India requires much patience and persistence to learn the local conduct and culture of conducting business there.
  3. Understand India’s tax rules and business setup process. In the business development planning process, leverage the “Make in India” programme, an initiative of the Government of India to encourage companies to manufacture their products in India.
Overview and Opportunities

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.

Profiled Market: Southeast Asia (SEA)
 
3 tips for doing business in Southeast Asia (SEA)
  1. Identify the appropriate entry strategy depending on the target market. Success in overseas business ventures and risk management can hinge on your company’s strategy towards having local partnerships, or independently entering the market.
  2. Cultivate strong relationships with local stakeholders, including economic agencies (eg. Board of Investment (BOI) for Thailand, and 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 on increasing consumer spending and demand trends arising due to a growing middle class in SEA countries.
Overview and Opportunities

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.