Singapore to keep manufacturing an "integral" part of economy

Singapore to keep manufacturing an "integral" part of economy
Channel NewsAsia

SINGAPORE: Singapore aims to keep its manufacturing industry an "integral" part of the economy as it seeks new strategies to help it grow faster than other advanced countries.

Trade and Industry Minister Lim Hng Kiang told Bloomberg that the government is "very reluctant" to let the industry’s contribution to gross domestic product (GDP) drop "sharply". This is due to its multiplier effects on other parts of the economy, including logistics and business services.

Manufacturing accounts for about a quarter of Singapore’s GDP.

Mr Lim said that over the years, Singapore has built up some competitive strengths and good market share of some niches, in areas such as electronics, pharmaceuticals and maintenance overhaul of aircraft.

While he recognised that some segments of manufacturing may not be competitive in Singapore and may have to move out, there is constant restructuring taking place.

On the Economic Strategies Committee, the minister said he believes the committee studying the importance of manufacturing would subscribe to this importance and see how Singapore can continue to encourage manufacturing investments to take place here and to grow it.

The committee was formed in May and is expected to unveil its main recommendations in January.

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How will Singapore continue to compete and yet be different from the rest of the world?

- wong chee tat :)