SINGAPORE: Singapore’s manufacturing outlook is expected to be slightly better than last year, although growth will be uneven across different sectors. According to Singapore Manufacturing Federation’s (SMF) president Lennon Tan, the advanced manufacturing industries will see the strongest growth, based on surveys with the federation’s members.
The advanced manufacturing cluster, including semiconductor and electronics producers, is expected to have strong demand, driven by artificial intelligence (AI) adoption and increased need for personal computers, The Business Times reported.
However, manufacturers outside this cluster will continue to face cost pressures and uncertainty, which means they may not invest as much in growth, said Mr Tan. To support these businesses, SMF is working to help them adapt and move up the value chain.
One effort is a new memorandum of understanding (MOU), signed on Friday, aimed at boosting collaboration between multinational companies (MNCs) and small and medium-sized enterprises (SMEs).
Nearly half of the nine signatories are MNCs, including Continental, IBM, Lenovo, and Zebra Technologies. The rest include the Applied Total Control Treatment, the Singapore Institute of Manufacturing Technology, the Singapore Institute of Technology’s Innovation Leadership Programme, SMF, and UOB.
This group has agreed to create an ecosystem that promotes MNC-SME partnerships, innovation, and digital transformation, said SMF chief executive Dennis Mark.
The ecosystem offers MNCs benefits both upstream and downstream, which means they can access local resources and supply chains while the local market provides customers for their products and solutions. At the same time, SMEs gain access to MNC technologies.
SMF believes the initiative will strengthen Singapore companies and attract more MNC investment. Mr Mark noted that MNCs have been a “success factor” in Singapore’s success over the years.
When asked about potential tariffs and export controls that US President-elect Donald Trump may impose, Mr Tan said most companies are preparing for what’s ahead.
He added that Singapore often thrives in uncertainty and crisis thanks to its adaptability, trustworthiness, and international relationships.
He noted that the country’s strength lies in its consistency, and businesses value this predictability in an uncertain world. According to him, the only thing companies can do is not rely on a single source. /TISG
Read also: AI adoption to drive increased demand for cloud-based data storage, survey finds
Featured image by Depositphotos (for illustration purposes only)