Singapore should look at investing in new niche areas that will allow global firms to tap growth in the region.
These include areas such as data analytics, green manufacturing and complex supply chain solutions.
That is one of the latest recommendations from the Economic Development Board (EDB’s) International Advisory Council which held its 11th meeting in Singapore.
The council makes its recommendations for Singapore’s economic strategy once every two years.
It includes 14 high-profile business leaders from around the world and is chaired by Deputy Prime Minister Teo Chee Hean.
The manufacturing sector has been singled out as a key driver that will power Singapore’s future growth.
The high-powered panel advising the EDB said this is one fundamental strength the country should build on.
Going forward, it believes Singapore should continue to move up the value chain, such as the production of complex parts and being involved in engineering and design phases.
This will allow it to play a key role in prototyping new technologies and processes.
Anand Mahindra, vice chairman and managing director of Mahindra Group, said: “One of the suggestions I made was perhaps an incubation facility, an incubation valley as opposed to simply innovation, where a company like mine can parachute in, and find ready-made facilities for rapid prototyping, pilot assembly and consumer testing. That is the kind of manufacturing I think Singapore will excel in.”
Andrew Witty, CEO of GlaxoSmithKline, said: “Probably the most interesting thing that Singapore has for us at the moment is that it is a venue for us to really test and prototype our future manufacturing technologies, particularly as far as environmental protection is concerned, and green manufacturing.”
The panel praised Singapore’s current strategy in attracting investments from global companies, and it believes new growth opportunities can be found by developing some niche industries.
These include data analytics, consumer insights, green manufacturing, complex supply chain solutions and catering to the ageing population.
Dominic Barton, global managing director of McKinsey & Company, said: “Data analytics is the ability to handle massive amounts of information that companies have around the world. We think that Singapore can play a major role in that because of the trust position. We are dealing with data, the talent proposition, and the locational site of things. I think that will be a big push going forward.”
Another recommendation by the council is for Singapore to enhance its role as a place where companies can hire and train their talent.
It said the country is well-positioned to do so, especially for those looking to expand their businesses into Asia..
Economists welcome the recommendations but said implementing some of these proposals fast will be important.
“The directional cues provided by the EDB are not completely surprising, but well grounded nonetheless. Green manufacturing - certainly there is a wave to ride here, but haste must be made in terms of technology leadership. In fact, the latter may really be where the competitive advantage lies. Let us not forget that China is also venturing into this space, and that certainly ups the ante,” said Vishnu Varathan, Asia Economist at Capital Economics.
