DPM Heng Swee Keat at the Industrial Transformation Asia-Pacific (ITAP) 2024

Mr Chua Wee Phong, Group Chief Executive Officer, Constellar
Mr Paul Lee, Chief Executive, Markets, Constellar,
Mr Arno Reich, Senior Vice President, Deutsche Messe AG,
Mr Christoph Hallier, Deputy Chief of Mission, Embassy of Germany,
Ladies and gentlemen,

A very good morning and a warm welcome to this 7th edition of the Industrial Transformation Asia-Pacific, or ITAP. It is lovely to see such a big turnout despite the heavy rain. 

Since ITAP was first convened in 2018, it has grown into a trusted platform connecting global manufacturers and suppliers with new markets, customers and partners in the Asia-Pacific region.

This has helped unlock useful collaborations and co-innovations, across sectors and borders, that have advanced the frontiers of manufacturing.

You heard from Paul and Arno earlier about how ITAP has grown over the years.

This year’s edition, as Paul said, involves more than 400 product and solution showcases from over 30 countries around the world. And we are expecting around 18,000 trade visitors this year.

It is a strong affirmation of the important role that the manufacturing sector plays, and will continue to play, in keeping the global economy dynamic and resilient.

I just returned from a working trip to the UK and Japan.
 
One key reflection from my meetings in both countries is that economies – in the UK, Japan, and around the world – are doubling down on transformation, to seize opportunities from technological advances and to overcome challenges such as a slowing labour market in many countries. 

In Singapore, we have continuously undertaken economic restructuring to keep our economy and our workforce globally competitive and relevant.

For the past 8 years, I have chaired the Future Economy Council, and now the Future Economy Advisory Panel, that steers the latest chapter in our transformation.
 
As part of this work, we published and implemented 23 Industry Transformation Maps covering about 80% of the economy. This includes several manufacturing-related sectors.

Working with businesses, Trade Associations and Chambers, and academia, we ignited a change movement through strong partnerships across all sectors. 
 
And we have made good progress in building a more innovative and resilient Singapore economy, even in the face of challenges like COVID-19.

Between 2016 and 2023, the Industry Transformation Map sectors registered overall real value-added growth of 3.5% per annum.

Manufacturing-related sectors like aerospace, electronics and precision engineering performed especially strongly, registering real value-added growth exceeding 6% per annum.

Importantly, this growth translated to better lives and livelihoods for our workers.

During the same period, the real gross monthly income of full-time employed residents working in the Industry Transformation Map sectors grew by 1.9% per annum.

Even so, transformation, whether across the economy or within specific industries, will always be a constant work-in-progress.

So there is much for us to learn from one another – between governments, the private sector and academia, as well as between businesses. 

In this regard, ITAP is a valuable exhibition and meeting platform. I thank Constellar, Deutsche Messe AG and all other partners for bringing together some of the best minds globally to discuss how Industry 4.0 can shape a better future for everyone.

And I encourage all of you to make the best of these exchanges and interactions over the next three days to spark off new ideas and collaborations.

As we look to the future, manufacturing sits at the nexus of 2 major intersecting trends – the digital revolution and the green transition.

The application of AI will certainly reshape the manufacturing sector.

A leading Japanese technology executive whom I met last week described AI as a game-changer in three key areas – discovery, creativity and productivity.

On each of these fronts, AI will have a transformative impact on the manufacturing sector.

At the same time, the manufacturing sector globally also accounts for around one fifth of global carbon emissions.

So it is critical that new green and sustainable solutions are enabled and deployed by the sector to support and accelerate global efforts to combat climate change.

For us here in Singapore, and indeed in many parts of Southeast Asia and Asia, and I would say globally, climate change is existential.

The theme of this year’s ITAP, “Shaping a Sustainable Future with AI-Powered Manufacturing” is therefore both timely and important.

And it is a topic that resonates strongly with Singapore, where manufacturing accounts for around 20% of GDP.

Under our Manufacturing 2030 plan, we aim to increase manufacturing value-added by 50% between 2020 and 2030, and position Singapore as a critical global node for advanced manufacturing.

We are on track to achieve our 2030 target. We are also doubling down on high value-added sectors including semiconductors, healthcare, aerospace, complex equipment and specialty chemicals.

Just like with our wider economic transformation efforts that I mentioned earlier, partnerships are a critical enabler of Singapore’s manufacturing ambitions. This is a point that all three previous speakers have also made.

This year alone, we have deepened collaborations with industry-leading partners from around the world, including Pfizer, AST, Novartis and Siltronic AG to expand their manufacturing footprint here in Singapore.

Over the years, we have also worked with industry and academia to build a strong ecosystem across the manufacturing value chain.

Our universities and research institutes have established Corporate Labs with industry partners covering areas such as digital manufacturing and advanced packaging, and the use of AI.

In addition, we have nurtured a pipeline of research talent in manufacturing through schemes such as the Industrial Postgraduate Programme.

Singapore also hosts best-in-class facilities by global manufacturing leaders that promote the adoption of AI, robotics and Internet of Things.

By developing new solutions in robotics, AI, Additive Manufacturing and other Industry 4.0 technologies, and deploying them on the shopfloor, our manufacturing sector can be even more resource efficient and competitive.

As a Global-Asia node of technology, innovation and enterprise, Singapore is keen to collaborate with even more like-minded partners to advance AI-enabled manufacturing towards a greener and more sustainable future.

Such partnerships allow us to develop our respective strengths and support one another in navigating some of the difficult adjustments that come with transformation.

So I invite partners from Asia and around the world to consider how you can work with, and tap on, the manufacturing ecosystem in Singapore towards a more AI-enabled and greener future.

Let me briefly outline three suggestions in particular in this regard.

First, we must partner to advance science, technology and research that catalyses new innovations in manufacturing.

Research institutions in Asia and globally are deepening their work in cutting-edge, interdisciplinary areas to transform manufacturing.

One area is to promote greater circularity in the use of resources.
 
With growing demand for batteries for example, we must address next-generation battery manufacturing and the management of the end-of-life of batteries.

In Singapore, the Agency for Science, Technology and Research or A*STAR is advancing innovation in key areas such as battery materials, manufacturing processes, safety, and end-of-life management, to contribute to the development of battery technology.

The Singapore Battery Consortium, hosted by A*STAR, fosters R&D partnerships amongst public research performers and industry players in the development and advancement of battery technologies.

A*STAR is also working closely with government agencies to support the safe deployment of batteries, and with industry partners to explore economic opportunities.

Second, we should work together to broaden platforms that translate scientific insights into practical, innovative and viable solutions.

For R&D to enable industry and economic transformation, research insights should lead to new solutions that help businesses stay relevant and competitive.

Over the years, Singapore’s government agencies have worked with Institutes of Higher Learning to set up Centres of Innovation, including in Electronics and Internet of Things, and Precision Engineering.

So far, companies in Singapore have leveraged the expertise and resources in these Centres of Innovation to engage in more than 350 innovation projects spanning areas such as energy, water, food manufacturing and the built environment.

To take this forward and expand innovation support for local enterprises, Enterprise Singapore is partnering A*STAR’s Singapore Institute of Manufacturing Technology and four Polytechnics – Nanyang, Ngee Ann, Singapore and Temasek – to launch the Advanced Manufacturing Centre of Innovation.

This latest Centre of Innovation builds on previous Centres and will expand support to emerging areas such as artificial intelligence and autonomous technology.

Companies can collaborate with these institutes to develop and tap on new products or solutions and improve their business competitiveness and offerings. 

Third, we must forge collaborations that equip our workers in the manufacturing sector with relevant skills and proficiencies to harness new technologies like AI.

Workforce transformation must be part of economic transformation to ensure that workers are not left behind, but instead, share in the gains of prosperity.

As AI transforms economic activity, we must prepare workers to identify opportunities where human ingenuity, human creativity and machine intelligence can complement each other, and to deepen their skills and talent, for greater efficiency, productivity and creativity.

So I am happy to launch the Singapore Workforce Institute of Future Transformation, or SWIFT, this morning.

This is a joint collaboration between A*STAR, SkillsFuture Singapore and the Advanced Manufacturing Training Academy.

SWIFT aims to leverage A*STAR’s technological expertise to provide project-based training and equip the Industrial workforce with future-ready skills for the evolving manufacturing landscape, especially in AI and sustainability.

To kick-start this, A*STAR and the Advanced Manufacturing Training Academy will collaborate with the Singapore Manufacturing Federation to launch a mentorship-based “Green Transformation Programme”.

Supported by SkillsFuture Singapore, the programme will guide companies to conduct sustainability assessments and develop quick-win technology Proof-of-Concepts.

This approach trains the companies’ workers while also jumpstarting their sustainability journeys.

This programme is part of the larger initiative of “Chief-Sustainability-Officer as a Service” launched by the Singapore Manufacturing Federation earlier this year to prepare companies in achieving Sustainability Green Marks, such as the Green Excellence for Manufacturing & Green Excellence for Business.

As I said earlier, there is also much for us to learn from one another across borders and regions and across sectors as manufacturing globally undertakes a collective transformation journey.

So I am glad to see participants from all over the world gathering at ITAP once again this year.

I also commend the Singapore Polytechnic and the Federation of Malaysian Manufacturers for signing a Memorandum of Understanding to foster deeper industry-academia linkages and develop industry-relevant graduates.

In closing, let me reiterate that the manufacturing sector can play a catalytic role in transforming economies around the world to be future-ready and more resilient.

Platforms like ITAP enhance this by convening a diverse and inclusive group of stakeholders to promote collaboration and co-innovation across different manufacturing verticals.

I encourage all of you to make the best use of this opportunity to network and learn more about each other’s products and innovations, and how we can work together to build a more purposeful, impactful Industry 4.0.

So I look forward to learning more about some of your work later this morning, as well as some of the promising co-innovations that will emerge from ITAP 2024 in the years to come. 

Thank you, and I wish all of you a very productive and inspiring three days ahead!

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