Singapore Sees New Opportunities In Industry 4.0

By Massita Ahmad SINGAPORE, Sept 19 (Bernama) -- Malaysia's manufacturing sector is the second largest contributor to the gross domestic product (GDP) by 23 per cent after services sector, which contributes the most by 54 per cent. As the wave of Industry 4.0 or the fourth industrial revolution blows it is great to see how Malaysia's southern neighbour, Singapore, adapts to that current trend. The term, Industry 4.0, which was first used in 2011 at the Hannover Fair, is the trend of automation and data exchange in manufacturing technologies. Industry 4.0 creates what has been called a "smart factory", which will include cyber-physical systems, the Internet of Things (IoT) and cloud computing. Singapore's manufacturing industry, an important pillar of the republic's economy, contributed almost the same amount of percentage - 20 per cent - to its GDP in 2015. Singapore has established global leadership positions in several key industries, such as electronics, biomedical sciences, energy & chemicals and transport engineering. For instance, Singapore manufactures six out of the top 10 drugs and one in 10 semiconductor chips worldwide. However, there is no room for complacency, said Singapore Minister for Trade & Industry, S. Iswaran, recently. Iswaran said manufacturing is a globalised and highly-competitive sector and Singapore must continue to adapt to technological trends that are fundamentally transforming it. "As part of the phenomenon that some are calling Industry 4.0, we will see man and machine interact more than ever before," he said. Advanced manufacturing technologies, such as the Industrial IoT, additive manufacturing, robotics and cloud computing are not only disrupting industries, but also "creating new opportunities for companies". For example, these technologies will allow manufacturers to increase productivity and reduce operating costs by enabling predictive maintenance, remote monitoring, real-time supply chain optimisation and efficient energy consumption. In response, Iswaran said, Singapore is investing in advanced manufacturing technologies to better position its companies for the future. Under the government's Research, Innovation and Enterprise 2020 Plan, S$3.2 billion (S$1 = RM3) has been dedicated to support research in advanced manufacturing & engineering. The Committee on Future Economy (CFE), which is studying economic strategies to position Singapore for the future, has also identified advanced manufacturing as a key growth sector to be further developed. One important enabler for the growth of the advanced manufacturing sector and for Singapore's industry transformation efforts in general, is "partnerships". Citing a report by McKinsey & Co, Iswaran said, strategic collaborations in the industry ecosystem will be a key factor for companies to successfully navigate Industry 4.0. In particular, partnerships between technology providers and manufacturing companies will be important. Citing another McKinsey report, the minister said, technology providers tend to be more advanced than manufacturers in terms of having an Industry 4.0 strategy and roadmap. "Fostering partnerships is thus an integral part of Singapore's strategy to develop its advanced manufacturing sector," Iswaran said. For instance, the National Robotics Programme supports collaborations between manufacturing companies, technology providers and local system integrators to provide end-to-end support in the adoption of robotics technologies. The importance of forging partnerships to capture opportunities is also a key theme under both the CFE and the Industry Transformation Maps, which were announced in Singapore Budget 2016. Back home, Malaysia is at her best position in adopting a different approach or replicating what Singapore does in 'crusing' Industry 4.0 wave. Malaysia's Second Finance Minister, Johari Abdul Ghani, reiterated recently that Malaysia's GDP is among the best in Asean despite the global economic slowdown. Based on statistics as of July 31, the economy still grew by 4.1 per cent in the first half of this year, while Singapore registered only two per cent. Johari noted that Malaysia's debt to the GDP is only 54.5 per cent compared to Singapore's 89 per cent and trade surplus for 2015 at about US$22.95 billion (RM95 billion) and US$10.87 billion (RM45 billion) for the first six months of this year. --BERNAMA