The Manufacturing Sector Of Singapore

The Manufacturing Sector of Singapore

Singapore is a country that has relied on the manufacturing industry to develop its economy. A manufacturing sector is an unit in the economy that deals with the processing, production, and development of goods from raw materials. It involves the biomedical manufacturing, electronics, precision engineering, general manufacturing, transport engineering, and chemicals.

Importance of Manufacturing Sector to Singapore’s Economic Growth and Development

Singapore’s economy relies primarily on exports. Therefore, it has to produce goods internally for trade with its neighbors. Recently, 2015, it became the first country from the ASEAN region to sign Free Trade Agreement with the European Union. Its future of manufacturing is aerospace, precision engineering, and the biotechnology. Singapore will rely on the manufacturing sector to balance trade with its business partners. About 20% of Singapore’s GDP comes from the manufacturing sector (Katsikas 2015). It also employs about 20% of the workforce in the country.

Demand and Supply Factors that Increase Manufacturing Output

The country has opened up its borders to neighboring countries and distant nations. It has enabled the government to increase its network of trade. The government favors globalization and free trade. As a result, it has demands for its produce both within and outside the boundaries. Countries like China, Indonesia, Japan, South Korea, the US, and Hong Kong are its trading partners (Kozulj, 2011). Saudi Arabia and Malaysia are also its markets. Due to the availability of ready market, it has created demand for its produce. One of its greatest imports is oil (Palangkaraya & Yong 2009). It is critical to the production industry to enable the goods to be ready for uptake. The nation is also a member of NATO, ASEAN, and other multinational trade organizations. As a result, it has created the need for its products in the market. It is anticipating growth by upgrading its workforce in the electronics sector.

Challenges and Problems in the Manufacturing Sector

One of the biggest challenges that Singapore is facing is the lack of skilled labor. The country has to train a majority of its workforce to prepare for the journey it is undertaking in all its sectors. The sector is also facing competition from the service industry. The manufacturing unit must continually grow and create opportunities for the country (Lee 2014). The lack of sufficient ram materials for the developing industries is also a major concern. The cost of production also has to come down for its private businesses to thrive. The country has to find alternative means to energy. The cost of energy affects the production levels. It will culminate in the reduction of the prices. The sector also relies on oil from imports. It increases the cost of production. The government supports the manufacturing sector by funding the studies that lead to innovation. It has released funding to research institutions.

The universities have joined the campaign to develop the production industry. For instance, the Nanyang Technological University has already started a course that will guide in the set up of research mechanisms. The Institute will also seek to establish the pan-Asian consumer needs, wants and preferences. It will issue out guidelines to organizations. They can use them to develop their products and brands in a modern way. It will also guide them to develop the Asian and market-related brands, goods and services. It will also nurture the next generation of marketing talents needed to support the growing consumer research and brand management activities in Singapore.

Government’s Role

Singapore’s capacity for Continuing Education and Training has expanded in recent years to local institutions of higher learning, particularly in the polytechnics. The Singapore Workforce Development Agency has also partnered various training providers to offer management and technical proficiency courses for working adults in different fields under its Singapore Workforce Skills Qualifications scheme (Bandopadhay 2009).

The Singapore Economic Development Board is promoting its ‘Host to Home’ strategy. It is a vision to encourage companies to anchor themselves in Singapore and turn their local operations into a home away from home. They can nurture their talent and improve their business and innovation.

The government through the Ministry of Education is working together with the Economic Development Board to develop a syllabus that fits the market needs. The relationship has produced an Industrial Postgraduate Program that is critical to the sector. Program candidates enroll in participating universities in Singapore as full-time Ph. D. students. The beneficiaries of this visionary course also take the time to work on current industry projects. They join the particular Research and Advancement team both in your area and internationally to improve growth. The college students graduate with the Ph. D. level in the industry (Katsikas 2015). The particular government seeks in order to increase the quantity of trained teachers in the L & D field who will assist nurture the producing industry. The abilities will accelerate advancement in the business and private field to have an advanced economic climate.

The particular government has competent advisors. It really is shifting the economy to incorporate more of the particular activities which have increased value additions (Lee 2014). The field should also depend less on international workers. It offers a clear goal. The government can also be considering the greatest options on increasing the country’s general productivity and competitiveness.

The particular global pharmaceutical plus MedTech industries discuss the same eyesight. They want in order to increase revenue simply by improving Research and Development efficiency and the effectiveness of new market place entry (Kim & Cho 2015). Presently there are high factors for product R& D, manufacturing procedures, and supply string management. The stakeholders are also operating on the marketplace access that is required to drive the industries’ continual growth.

Singapore will be well positioned in order to facilitate the advancement and implementation associated with these advanced improvements. Its location will be strategic. It really is in the center associated with a rapidly growing Asian market. This has strong financial fundamentals (Chua ainsi que al. 2014). Area continues in the commitment to extensive growth. It offers involved experts in order to fasten the development strategy that will certainly build confidence inside the local plus international investors. Singapore’s research institutes plus local enterprises have got continued to companion with foreign businesses and organizations with regard to sustainability of their own studies. The partnership has forestalled brand new business opportunities, created innovations, and discovered new ideas. They have also led in order to the inclusion associated with new management plus marketing strategies. And therefore, these variables have made Singapore a really attractive investment location.

Upcoming Planning and Methods

Since far as our economy of Singapore is involved, the tiny express has made typically the best of several unfavorable conditions. Singapore is just a new small country regarding only 800 km². It will not have adequate land for producing. Only 1. 3% of the human population works in typically the agriculture sector. Culture only constitutes a small contribution for the country’s GDP.

However, Singapore’s place is its aggressive advantage in the area. Typically the coastline has normal deep-water ports. That is situated alongside important shipping ways in Southeast Parts of asia too. It is dependent in business purchases having its neighboring nations around the world. The government’s hard work to purchase education regarding many years in addition has borne fruit. Typically the nation’s available work force has significantly written for economic growth.

There is usually an agribusiness playground where the region produces some food for local intake and export. Additional agricultural products contain orchids for garden or ornamental species of fish (Kim & Cho 2015). Some industrial sectors do not add much to typically the growth of typically the country’s economy

The producing sector is very important to the region. The gives typically the government approximately a new third of their contribution to typically the GDP. In addition, it implements not less as compared to 10% of typically the population. The petrochemical industry plays a new significant role in the import activities. Brought in crude oil is usually useful in the marketplace regarding the processing regarding refined petroleum goods.

Singapore produces semiconductors in addition to consumer electronics. That also makes delivers and transport products. The government is usually also seeking to promote future growth areas such as tail wind, precision engineering, plus the life sciences which include biotechnology, medical products, and pharmaceutics (Michl, 2016).

Singapore’s business-friendly surroundings has continually urged investment in producing. It offers also reinforced the service industry that drives typically the economy. The industry employs 80% regarding workers and generates over 75% regarding the gross home-based product (Kozulj, 2011).

A number of the service industry participants include the savings, finance, and insurance policy segments. It provides become one regarding the great centres for business inside the Asian community. Singapore’s Central Business Region has been in a position to spend money on their capital and control the wealth successfully. Its management rules are the perfect in the area.

The country’s pro-trade environment and determination to free deal had created a great easy and successful place to work (Chua et ‘s. 2014). The upcoming looks bright regarding the country since of its investment decision in high-tech researching and development center.

Because of attractive business surroundings, it has utilized to the talent market for your growth regarding the city-state. Typically the strategies have aided to shape typically the environment and marketed the high common of living. Regardless of all the initiatives, you can still find some approaching problems that the federal government needs to deal with. It has to be able to ensure that that deals with typically the population’s inequalities.

References

Bandopadhay, Capital t 2009, ‘Forecasting élément, informal sector in addition to urban unemployment a new theoretical analysis� volume. 54, no. a single, pp. 89-99.

Chua, S i9000, Lim, Y, Apresentar, T & Chew on, S 2014, ‘Efficiency wage theory: data for Singapore developing sector’, The Singapore Monetary Review , volume. 59, no. 3 or more, p. 1450021.

Katsikas, Some sort of 2015, ‘Confessions of your project finance modeler’, Typically the Journal of Methodized Finance , volume. 20, no. your five, p. 150.

Kim, S i9000 & Cho, N 2015, ‘Determinants involving south Korea’s intra-industry trade with your ex major trading places inside the manufacturing sector’, Singapore Econ. Rev. , vol. 15, not any. 1, p. 1550091.

Kozulj, R 2011, ‘Development, poverty and strength, inside the 21st century’, US , vol. 02, number 4, pp. 483-497.

Lee, B 2014, Efficiency and production of Singapore’s making sector 2001-2010: the analysis using bootstrapped truncated approach’, The Singapore Economic Review , vol. 59, no more. 5, p. one hundred forty five.

Michl, T 2016, ‘Capitalists, workers and Betty Piketty’s capital inside of the 21st century’, Assessment of Political Economic system , vol. twenty eight, no. 2, pp. 205-219.

Palangkaraya, A & Yong, J year, ‘Parallel imports, industry size and purchase incentive’, The Singapore Monetary Review , volume. 54, no

Leave a Reply

Your email address will not be published.