By 2030, Asia will experience an influx of 2.5 billion people to 1st middle class. This will lead to significant growth in air and land travel and consumer goods movements.
Singapore’s strategic location, robust eco system, world class sea and air facilities, make it an optimal base for tapping into these fast growing markets
Logistics-the art and science of moving stuff around a fast-paced economy is the latest industry to face a bold makeover in the Singapore Government’s $4.5billion Industry Transformation Program (They were set out by Minister for Trade and Industry (Industry) S.Iswaran at the launch of logistics Industry Transformation Roadmap on Nov 17, 2016)
What are the key attributes? Robust Eco Systems
There is increasing trend for supply chains to be more resilient and secure. Singapore has stood out in this respect through our strong commitment to global and national security initiatives that support successful business operations. These include the streamlining of security regulations and operational procedures to help businesses cope with the adoption of many international customs and security programs
Singapore has also been recognized to have highly efficient customs and business-friendly import/export procedures providing companies greater efficiencies in obtaining clearance/documentation/permits for their goods.
Example TradeNet platform, provides a one-stop platform simplifying all documentation, saving time, costs and improving efficiency.
These factors attracted many logistics firms operating their regional and global functions here.
Example LF Logistics opened a one million square foot facility in Singapore on April 26, 2016. This nine-storey, multi-temperature facility counts as Singapore’s largest automated and customs bonded warehouse. It seeks to tap into the booming e-commerce industry and serve as a logistic hubs meeting the needs of retailers across Asia. Singapore, 19 April 2016:
DHL Supply Chain, the global market leader for contract logistics solutions, today launched its Advanced Regional Center (ARC) in Singapore. Built at an investment of more than S$160 million1, the new 90,000 sqm facility features an S$18.8 million multi-customer automation system featuring advanced robotics.
Singapore’s Changi Airport is one of Asia’s largest cargo airports and boasts the world’s busiest transshipment hub, handling about one-seventh of the world’s container transshipment. (reference to data above) .
The sea and air ports are readily accessible through a well-planned domestic road network, ensuring that companies based in Singapore are better positioned to serve customers and manage their operation both regionally and globally.
Singapore has stood out as a leading supply chain hub with the presence of world-class service providers and talent equipped with the knowledge of accessing the diverse geographies in Asia.
Singapore continue to invest and on 30th June 2016.PSA Corporation Limited (PSA) with the support of the Economic Development Board (EDB) and the Maritime and Port Authority of Singapore (MPA) has inaugurated the PSA Living Lab, a living laboratory in Singapore for the port and logistics industry, with close to S$100 million committed to the initiative over the next three years.
The PSA Living Lab is an integral part of PSA’s on-going program to develop innovative and cutting-edge technology solutions for its existing terminal operations in Singapore, as well as the future Tuas Terminal. One key project is the Automated Guided Vehicle (AGV) system, which will ramp up operations to a total fleet of 30 vehicles in 2017. Operationally-ready solutions have the potential to be deployed at terminals of the PSA Group worldwide.
Supply Chain Home grown Talent
Singapore offers a base of home-grown talent, including more than 8,500 graduates in science and engineering annually, as well as graduates of specialized Supply Chain Management courses. Singapore’s high quality of life additionally, draws global and regional talent who can further enhance Singapore’s vibrant logistics/SCM sector.
Riding on the boom in Asia and strong growth in intra-Asia trade, Singapore’s Economic Development Board is working with companies to develop pan-Asian talent through exposure particularly to Asian giants China, India and emerging economies in South and Southeast Asia. By centralizing the knowledge and expertise in Singapore, logistics companies and manufacturers can better navigate and orchestrate their supply chain solutions for the Asian market. There are many existing platforms and programs to groom talents. Example :
The Logistics Institute-Asia Pacific Double Masters Program
Drawing on the academic standing of both the National University of Singapore and Georgia Institute of Technology (in the US), the renowned Double Masters Program (DMP) by The Logistics Institute-Asia Pacific (TLI-AP) is a highly selective program tailored to train logistics professionals for strategic and management roles in the supply chain.
As the winner of the Asian Freight & Supply Chain Awards for Best Education Course Provider for ten consecutive years, the DMP has groomed a new generation of leaders familiar with world-class SCM methods and best practices. The program has nurtured more than 150 professionals who now work in a wide spectrum of logistics companies and supply chain control towers that manage regional supply chains in Asia’s key markets, forming Singapore’s very own “Circle of Logisticians”.
TLI-AP THINK Forum
TLI-AP’s THINK Forum in Singapore is a platform for thought leadership, knowledge dissemination and executive learning. The Forum brings together industry leaders, supply chain practitioners and academia to address issues that shape the industry landscape. These forums provide top executives with opportunities to network, share and discover new opportunities.
In June 2015, Singapore initiated a framework called SkillsFuture , a national initiative to encourage Singaporeans to develop industry-relevant skills by recognizing career progression base on skills and training and promoting lifelong learning at workplace
Singapore ‘s CFE (Committee on Future Economy) has outlined 7 strategies to take the economy forward in February 2017.The aim is for Singapore to stay ahead in a challenging global climate:
What are the seven strategies?
- Deepen and diversify international connections
- Acquire and utilize deep skills
- Strengthen enterprise capabilities to innovate and scale up
- Build strong digital capabilities
- Develop a vibrant and connected city of opportunity
- Develop and implement industry transformation road maps
- Partner one another to enable growth and innovation
Source : Committee on Future Economy Straits Times Graphics
These 7 strategies is a game changer and a great testament to Singapore’s attractiveness and robustness as a strategic choice for many companies to navigate the increasing demand of a sustainable and complex supply chain both regionally and globally.