Despite its lack of natural resources, Singapore has risen to become one of the world’s top three export oil refining centres and the world’s third largest oil and oil products trading hub – making it the undisputed oil hub in Asia.

Asia’s Premier Oil and Gas Hub

Singapore is further translating its strengths in the oil sector to natural gas too. In 2013, the International Energy Agency (IEA) backed Singapore to become the natural gas trading hub for Asia, citing its good location and status as a global oil trading hub.

Indeed, the oil and gas sector has grown to be of vital importance to Singapore’s economy, contributing almost 5 per cent of Singapore’s gross domestic product according to the Economic Development Board of Singapore (EDB). Growth prospects for the sector remain sound, with global energy demand set to rise by 35 per cent from 2010 to 2040, due to population increase, rapid urbanisation and the growth of economic powerhouses China and India.

While Singapore has many strengths that make it an attractive location to oil and gas multinationals, it has one critical advantage in the form of Jurong Island, an integrated complex hosting more than 95 leading petroleum and chemical companies from all around the world. With its unique "plug and play” infrastructure, Jurong Island enables companies to enjoy cost savings through shared utilities and services, while building synergy through product integration.

Building from a Position of Strength

Far from resting on its laurels, Singapore is committed to further widening its lead in the oil and gas sector. One way it is doing so is by growing oil refining capacity through expansion and upgrading of existing facilities, as well as attracting new refinery investments. Another way is continual investment in Research & Development (R&D) and talent development to preserve its cutting edge in the industry.

Yet one more way involves the development of innovative logistics solutions, such as the S$950 million Jurong Rock Caverns (JRC), which opened in September 2014. The JRC is Southeast Asia's first underground liquid hydrocarbon storage facility, located 130 metres beneath Banyan Basin on Jurong Island. The facility provides infrastructural support to manufacturers on Jurong Island, and meets their storage needs for crude oil, condensate, and more.

Another infrastructure development that is set to consolidate Singapore’s leadership position in the sector is the Singapore LNG Terminal located at the Southern-most tip of Jurong Island. The facility commenced operations in 2013 and is the first open-access, multi-user LNG terminal in Asia. With the announcement of a fourth LNG tank and regasification facilities in 2012, the terminal’s capacity is set to rise to 9 million tonnes per annum (Mtpa).

Securing Power

Singapore’s position as a leading natural gas hub also has the additional benefit of strengthening the Republic’s own energy security. This is because 90 per cent of the electricity in Singapore is generated using imported natural gas. The Energy Market Authority (EMA) is the government agency charged with the regulation and development of Singapore’s energy sector, as well as the operator of critical energy delivery infrastructure. Since its establishment in 2001, the EMA has been championing the liberalisation of the electricity market, opening up the generation and retail markets to commercial players to ensure effective competition and keeping prices competitive for consumers.

Ultimately, the EMA’s key remit remains the security, reliability and adequacy of Singapore’s electricity supply. And while the EMA has previously approved local power generation company YTL PowerSeraya to supply electricity to Malaysia in 2011, this was largely a one-off situation, as the electricity supply in Malaysia supply had been disrupted by the maintenance shutdown of gas production platforms owned by state oil company Petronas.

Growth of Renewables

While Singapore has secured a strong position in the oil and gas sector, it is also committed to developing clean energy technologies to position itself for the next stage of growth. The IEA reported that global renewable energy capacity grew at its fastest pace ever in 2013, and now accounts for 22 per cent of the world's electricity generation. And Asia is at the heart of global clean energy growth, driven by the region's robust energy demands, which is expected to more than double by 2035, and a desire for sustainability.

Singapore’s strong R&D capabilities and experience and capabilities in the semiconductor, industrial equipment and chemicals sectors place the country in good stead to capture emerging opportunities in the solar, fuel cells and biofuels markets. It is also leveraging on its strengths as a key financial centre to support the region in clean energy project development and financing.

The inter-agency Energy Innovation Programme Office (EIPO) has been set-up to coordinate clean energy R&D, pilot and test-bedding initiatives. Led by the Singapore Economic Development Board (EDB) and EMA, the Programme Office has since expanded its coverage from an initial focus on solar energy, into new R&D areas such as smart grids, green buildings, and other renewable generation sources. This strong focus on research has also attracted companies to set up clean energy research facilities in Singapore to tap on the infrastructure and ecosystem.

Better Living Through Chemistry

Singapore's chemicals sector is one of the key pillars of its manufacturing sector. In 2013, the chemicals sector accounted for the largest share of Singapore's manufacturing output at 33.4 per cent or S$97.1 billion. The sector also employed close to 25,000 workers, with a value added per worker of more than S$159,700. Looking ahead, the world economy is set to experience sustained growth as it shakes off the worst of the global financial crisis. With Asia being the key seat of growth in the coming years, its urbanisation and growing middle class will generate strong demand for chemical products.

While Singapore's oil industry was the initial catalyst for the development of its chemicals sector - providing a plentiful supply of raw materials for petrochemical production - the Republic has since built on this advantage to attract many of the world's leading chemical companies. To date, Jurong Island has attracted more than S$35 billion in investments.

In line with its advanced manufacturing ambitions, the country is also leveraging its expertise to move into the higher-value specialty chemicals segment. Industry players are responding too by investing in new facilities, attracted by the Republic's mix of advanced R&D capabilities, strong intellectual property (IP) protection, deep talent pool, excellent logistics and connectivity, and strategic location in Asia.

Realising a Vision

Much of Singapore’s economic success today is a result of big bets on its oil, gas and chemicals sectors, which have paid off handsomely. Each segment has grown into a major economic contributor in its own right, while generating a whole host of additional benefits and spinning off new growth sectors. Looking ahead, the Republic is committed to further strengthening its competitive edge across each sector, and will be looking towards rolling out more forward-thinking policies and measures to consolidate its position.

Today's packaging industry does far more than manufacture simple containers. It is often the packaging itself that first catches our attention in supermarkets and department stores and clinches the sale.

It is also the packaging that protects our food from spoilage, expensive breakables from damage and tiny items from getting lost. Yet, all this must be done neatly and in an attractive compact manner that is cost effective.

The packaging industry comprises companies dealing with packaging materials, equipment, machinery, design and consultancy. They serve a large group of manufacturers, including food, beverage, electrical, electronics, pharmaceuticals, chemicals, cosmetics, etc.

In paper packaging, corrugated cartons are the main medium for carrier containers here. With numerous manufacturers servicing this market, there is ample capacity for export. Other paper packaging includes printed cartons, multiwall sacks, paper bags, drums, tubes, cups and wrapping paper.

The bulk of metal cans produced here, mainly for the beer, beverage, aerosol and food industries, are exported. Also made here are metal drums, plastic-lined drums and pails.

Wooden pallets are still in demand to meet the large volume of exports, while the use of wooden cases has diminished.

Singapore's packaging industry is poised for greater growth. To achieve that, manufacturers must keep up with new packaging trends and use improved products and innovative materials.

 

This article is courtesy of the Packaging Council of Singapore. Visit www.packaging.org.sg.

With the global economy shaking off past episodes of crisis, the construction sector looks set for a sustained phase of expansion.

Global Construction Sector Growing

According to the Global Construction 2025 report by Construction Perspectives and Oxford Economics, the volume of construction output will grow by more than 70 per cent to US$15 trillion worldwide by 2025.

This growth will be largely concentrated in the US – which is experiencing an economic resurgence of late – and the two largest emerging economies of China and India. Meanwhile, emerging markets look set to increase its share of the global construction market from 52 per cent now to 63 per cent in 2025.

On the domestic front, the Building and Construction Authority (BCA) has forecasted the construction industry in Singapore to remain steady at S$31 to 38 billion in 2014, as compared to last year's S$35.8 billion expenditures.

Material Gains

The resurgence in global construction demand will see the construction materials and building products market grow in tandem too. The range of materials and products in the market span a wide spectrum, which can be broadly categorised into basic construction materials, building products and green building materials.

Basic materials include sand, gravel, aggregates, cement, concrete and bricks, among others. According to research conducted by Research and Markets, the global construction materials market is expected to see brisk growth, achieving sales of US$889 billion by the end of 2015.

For key materials such as cement, it is simply not cost efficient to ship them across long distances. As such, their manufacturers mainly serve local markets. The Singapore cement market is served by both multinationals such as Holcim and LaFarge, as well as domestic SMEs, with plants that are within Singapore or nearby.

Beyond basic materials, there are also the building products. These are finished or semi-finished components that can be readily added to a building such as roofing, siding, windows, doors, piping, plumbing and flooring, among others.

One segment of the construction materials and building products market is that of green building materials. Typically, these green building materials are those that require less material to produce, consume less building energy and water, or are made with recycled product materials.

According to research conducted by Transparency Market Research, the global market for green building materials was valued at US$106.32 billion in 2012. This market is expected to see astonishing growth at a Compound Annual Growth Rate (CAGR) of 12.5 per cent between 2013 and 2019 to reach a market value of US$234.77 billion.

The same research noted that the main end-user applications of the green building materials market included public facilities, healthcare, residential, commercial, industrial and R&D centres. Whilst North America and Europe dominated more than half of the market share in 2012, the Asia Pacific region has the highest upside potential.

Trends and Impact

Specific to the Singapore market, there are several on-going trends that could have a significant impact on the current demand and future growth of the construction materials and building products sector.

One key trend is the greening of buildings in Singapore, which will have a positive impact on the growth of the green building materials market here. Since the launch of the Green Mark Scheme in 2005, the BCA has set about fulfilling the government’s vision of a greener built environment for Singapore.

Through three iterations of the Green Building Masterplan, the BCA has set out a wide range of programmes, guidelines, standards, research and legislation to bring about greener buildings in Singapore.

Critically, the Building Control Act was amended in 2008 so that all new buildings would need to achieve the Green Mark certified standard. The government also moved to mandate all larger new air-conditioned public sector buildings to achieve the Green Mark Platinum award. Existing public sector building will need to achieve the Green Mark Gold Plus standard by 2020 too.

Another major trend that will impact the construction materials and building products sector here is the government’s push for builders to adopt productive technologies, specifically cross-laminated timber (CLT) and Prefabricated Prefinished Volumetric Construction (PPVC) to increase productivity.

During the 2014 Budget debate, the Ministry of National Development (MND) announced that developers would have to adopt these two technologies for selected Government Land Sale (GLS) sites from the second half of the year.

For CLT, this advanced materials is manufactured from wood harvested from sustainably managed forests and through an industrial process. The advantage of CLT is that it is significantly than steel and concrete, making it much easier to hander.

For PPVC, complete flats or modules made of multiple units are manufactured in factories, before being transported on site for installation and piecing together. PPVC can help speed up the construction process, potentially achieving a productivity improvement of 30 to 50 per cent for manpower and time savings.

While the demand for CLT is definitely set to grow as a result of the new legislation, the exact impact of PPVC adoption on the construction materials and building products market is not quite so clear. Possibly, the PPVC process could result in less wastage of materials since components are manufactured in the controlled environment of a factory.

Poised for Growth

The outlook for the global construction materials and building materials market looks rosy, with global economic growth and emerging economies set to drive construction activity in the near horizon. Locally, the shift towards green buildings and productive technologies will also benefit the market.

Laser is an extremely fast and versatile tool that can be used to process almost any kind of material you throw at it.

Because of its non-contact form of processing, the omission of wear and tear of typical tooling parts has convinced many companies to introduce laser processing machines into their production. Over the years, with the constant advancements in laser technology, industrial laser automation has become increasingly popular, replacing arc welding, machine cutting, chemical treatments and many other applications.

Laser integration is ideal for industries with extremely precise requirements for material processing and micro-material processing. The coherency, high monochromaticity, and ability to reach extremely high powers are all properties which allow for these specialised applications. Laser applications include welding, soldering, cutting, heat treating, marking, scribing etc. To throw in a few examples, Apple’s sapphire glass can be cut from laser.

Aluminium welding, known to be hard to achieve, can also be done by laser.

Hydrophilic/hydrophobic properties can be textured on by laser.

Laser Welding

Laser beam welding is a welding technique used to join multiple pieces of metal through the use of a laser. The high power density of lasers provide high quality and deep welds with small heat affect zones – similar to electron beam welding – without the sky-high price tag. Being more efficient and cleaner than traditional arc/MIG welding techniques, laser welding is the preferred welding method for many mass production industries. They are usually paired with robot arms to maximise welding angles and flexibility. To achieve even better welding quality, laser welding can be combined with arc welding, known as laser hybrid welding. Using a lower power laser beam to pre-heat the material’s welding path also helps to achieve better welds. Besides welding metals, laser can be used to weld many other materials, including plastic.

Similar applications: Laser Cladding and Laser Soldering

Laser Cutting

Depending on your requirements on edge quality, material thickness and cutting area, among others, different lasers will be used for the cutting. Lasers with shorter wavelength tend to get absorbed better, thus less of the power is translated into heat, reducing the heat affect zone greatly. Needless to say, they come with a heavier price tag, and most industries are content with CO2/Fiber/YAG lasers. Surrounding factors such as gases and water vapour can always be optimised for better cut quality.

Laser Texturing

With beam size as small as a few microns, laser texturing is able to achieve many micro-textures. The pictures below are some nanometer bumps and shapes made with laser processing.

 

Laser Marking

Laser can mark on almost all kinds of materials, and can be controlled to create many different effects. With the correct parameters, you can even mark a variety of colours on metal surfaces.

Laser Cleaning

Laser cleaning is a non-contact, thus non-abrasive way of cleaning. It can be used to clean rust from old metal surfaces, stripping paint off old cars etc. It is a generally cleaner and more effective method for cleaning small surface areas, but for large surface cleaning, it would be simpler to use either sandblasting or chemical cleaning. Depending on the power of the laser, even stubborn epoxy paint coatings can be removed in a few seconds.

 

This feature is brought to you by Precision Laser Solutions Pte Ltd. All photos are courtesy of Precision Laser Solutions Pte Ltd.

It is not uncommon for more industries to explore industrial automation, as the rising labour costs coupled with increasingly attractive grants give companies an enticing alternative to their traditional work processes.

Even if you have already introduced automated processes, the rapidly improving technology gives rise to many faster and better applications. In order to compete with a better edge, constant upgrading is crucial.

Automation makes sense on many levels. To begin with, using properly selected and applied automation, manufacturers need fewer people on the plant floor and can eliminate dangerous and repetitive tasks. Moreover, automation has a successful track record in making companies more competitive.

Making Maximum Use of Government Grants

With the generous monetary support of the government, many local Small and Medium Enterprises (SMEs) are more willing to invest in automating work processes that would otherwise be too much of a burden to most. The most well-known grant would be the Productivity and Innovation Credit (PIC). Another helpful grant that may not be as commonly utilised is SPRING Singapore’s Capability Development Grant (CDG).

SPRING Singapore’s CDG is a financial assistance programme which helps SMEs defray up to 70 per cent of qualifying project costs, relating to consultancy, manpower, training, certification, upgrading productivity and developing business capabilities for process improvement, product development and market access.

By combining the CDG and PIC grants, companies can claim a portion of their project costs from CDG first, before claiming the rest from the latter grant.

In a haste to tap on the grants and outdo their competitors, many companies tend to be less meticulous with the implementation of automated machineries, and sign on without a thorough evaluation. Since the bulk of the investment is claimable from the government, they do not feel the need to search for the best to justify for the investment to be made. In lieu of this lack of alertness from customers, solution providers that fall under the grants have been widely incorporating these monetary grants into their marketing campaigns. Advertisements on public transportation and taxis are all urging the public to tap on the PIC. What’s there to lose? With the dollar-for-dollar bonus, some can even claim back more than what they paid for. Do you get to benefit? Of course you do. But is it significant? Do you really need that new printer? Don’t allow yourself to be coerced by the salesman to sign on the spot. Salespeople have learnt different ways to close the deal, from guilt-tripping to ego-bruising – anything to get your ink on the dotted line. The take away is: Better be safe than sorry. A little comparison and evaluation won’t hurt.

Most of the time, the one who signs the contracts are not the ones handling the accounts. To them, everything is straightforward because they are not involved in the claim process. However, do remember that the more small amounts claimed on impulse from the grants, the less you can claim for products you really need. Sure, a new printer costs S$7,000 on plan, and it’s nothing compared to the S$100,000 cap for PIC, of which 60 per cent is claimable. But then there comes another company selling software to replace your current versions, followed by many more salesmen each promoting a different item. How much do you have left for automation implementations after that?

Finding the Correct System Integrator to Automate Your Processes

So how ses. So, how would you determine the best indo you start? Evaluate, prioritize. ROI? Health? Work hours? Efficiency?

You want to automate your procestegrator to solve your problems? How do you calculate a suitable budget? System integrators are able to handle anything from leading a large-scale integration effort for a new process, retrofitting obsolete control systems, or developing an innovative automated approach to an old problem. Many system integrators also provide ongoing service, support, and maintenance for your automated systems. When choosing an integrator, know that these are characteristics of a good integrator:

They genuinely want to help you, and listens to your needs.

They ask questions and make sure they study your work process thoroughly. They may request you to provide some videos, or pay your factory a visit personally.

Here are some questions you can ask yourself to help you identify a good integrator:

Do they have recurring customers?

Does their portfolio only consist of one-time customers? This is a tell-tale sign that the integrator is unable to gain enough acknowledgement from their customers, be it machine quality-wise, or after-service support-wise. A good system integrator would have many repeat works for the same customer, as they were able to gain the trust and prove their ability in their first project.

They include you in their brainstorming and pay attention to your ideas as you are most familiar with your current work processes and the rationale behind them.

Does their company go by a rigid structure with many hierarchies?

System integration and industrial automation is one of the industries where a large company might not necessarily be better for you, as the more complicated the hierarchy of the company, the harder it is to get them to listen to you effectively. Miscommunication is bound to happen, and as much as your sales person may want to help you, the amount of paperwork and red-tape set by a well-established firm could limit his actions. If you notice that your point of contact is usually hesitant about delivering promises to you on the spot or takes a long time to get back to you, chances are that he always has to obtain permission from someone else. It will not be good when you need urgent help in the future. Also, large companies have so many projects on their hands that they might not find it worthwhile to divert their support to your site for maintenance at a short notice.

Does the integrator have a competent support team near you?

You need to make sure your integrator is able to offer full support in case of emergencies. Thus, the geographical location of the company is another important factor. You may know the CEO of the system integrator company in charge of your machines, but if they are based more than half a day away from where you are, there is basically little hope for them to be able to support you without taking a few days to book their tickets and accommodation. By the time they make it to your site, the service engineers are probably too jet-lagged to perform their best. It is even worse if you are already out of warranty, as the servicing fee would probably cost a bomb (on top of your downtime losses), due to the last minute flight and accommodation arrangements your integrator has to make.

Customised automation processes, especially, are not standard machines where you can just search for another distributor or agent to replace the original servicing team. System integrators like Precision Laser Solutions are the ones who assemble and link up the control systems and ensure seamless communication. Some system integrators develop their own software to let you run the system with easy steps, otherwise known as ‘turnkey solutions’.

Are you able to maintain friendly terms with someone of high position in their company?

This will be very helpful as they would be the ones that could answer your calls for help in the middle of the night and be able to arrange for support at the earliest time possible. If your only contact from the company is a sales person, it might be difficult for them to promise you anything without waiting for hours and hours for approval from their supervisors, who in turn look to higher management.

Beware of ridiculously low quotes

Understand the market price by comparing between different integrators. You might get anomalies where a company offers you a significantly lower price compared to the others. In the best case scenario, you would have just found a great integrator that could fulfill all your needs at the most inexpensive price you can find. However, that is usually not the case. Undercutting prices may lead to compromised quality, so be sure to check if your supplier is willing to share with you the grade of wires and cables used, etc. These small details may seem negligible now, but will make a difference in the long run.

Being a Cooperative Customer

Calculate out a budget beforehand.

A system integrator needs to know how much you are comfortable with setting aside for the investment before they can suggest appropriate solutions for you. If your company does not have experience in budgeting, you can let your system integrator know your yearly running costs. They would be able to help you calculate an approximate budget in terms of how long you need to wait for it to start reaping return in investments (ROI).

Once the ROI is calculated accurately, you will find yourself to be more accepting to the quotations of your potential integrators.

Benefits of Automation

For example, this project below costs more than S$1 million. However, the company was able to reap returns in less than a year, and subsequently purchased another robot transfer line for their factory. In this case, can you say that the million dollars spent on it is too expensive? The automated transfer line below consists of seven large robots guarded by a safety-interlocked fence and CCTV supervision. On top of replacing a total of 30 operators (who work over two shifts), the cycle time and production output doubled while quality improved. Thus, although the lump sum cost of the automated system may be huge, it ultimately boils down to how effective it is in terms of helping you save costs in the long run. The main concern for investing in automation should be the amount of time it takes to break even and start earning profits, and not so much on the initial cost of investment.

Besides enjoying cost savings, automation usually improves the overall work environment and safety as well. This will help companies abide by more safety guidelines and regulations, and can be marketed as a stand-out factor in comparison to other competitors. With the Ministry of Manpower’s (MOM) tight regulations on workplace safety, it’s always better to be safe than sorry. Automation also optimises space allocation, which is extremely important in the land-scarce Singapore. All these factors together reflect well on the company, and they in turn gain more trust from their customers in terms of more purchase orders.

Risks of Automation and How to Prevent Them

Whether you are starting up a new line, or bringing an existing line down to be upgraded, you need to know that the project risks are being managed. Those risks include:

• Knowing how to limit downtime
• Having a fallback plan
• Addressing personnel safety
• Understanding the level of testing that is required before shutdown

If you are introducing a new system, always start by setting a benchmark. Never fully replace an operation process with machines unless you have total faith in its stability. Ask your integrator to provide a list of consumables for your new system to minimise machine down time due to minor wear and tear. Just a loose nut or worn out bearing could affect your entire process.

Make sure there are internet cables accessible to your machine so that your integrator can make use of screen sharing software to carry out long distance troubleshooting for emergencies.

Always let the supervisors and operation managers attend the machine trainings together. This will ensure that in case of sudden turnover of operators, there is still someone who knows how to operate it. Keep the operation manual and SOP instructions at accessible locations near the machine.

 

This feature is brought to you by Precision Laser Solutions Pte Ltd.

Based on the figures released by the Ministry of Trade and Industry (MTI), the Singapore economy grew by 2.9 per cent in 2014. MTI has also maintained the growth forecast for 2015 at 2.0 to 4.0 per cent.

The Singapore economy grew by 2.1 per cent on a year-on-year basis in the fourth quarter of 2014. Meanwhile, the manufacturing sector contracted by 1.3 per cent year-on-year, reversing the 1.7 per cent growth in the previous quarter. The transport engineering and electronic clusters were the primary clusters that held back the sector’s overall growth.

The year opened with a slow start for Singapore’s manufacturing sector, which grew less than expected. The weak showing was attributable to a broad-based, uninspiring performance across all industrial clusters except for biomedical manufacturing and precision engineering.

According to the data released by the Economic Development Board (EDB), factory output rose to 0.9 per cent in January on a year-on-year basis, which is lower than the market’s consensus forecast of a 3.3 per cent growth. January’s meagre rise in industrial production was all attributable to the biomedical manufacturing cluster, which expanded 5.3 per cent. The EDB said that after adjusting for seasonal factors, industrial production contracted 4.7 per cent month-on-month in January. If not for the biomedical manufacturing cluster, output would have fallen by 4.6 per cent.

Industry Developments

The manufacturing sector remains a key pillar of the Singapore economy, providing more than half a million jobs and contributing about a fifth of GDP in 2013. In recent years, key manufacturing sectors have continued to grow even as Singapore’s cost base has increased.

Keenly aware of the need to maintain Singapore’s attractiveness as a manufacturing hub, the government has been actively promoting productivity and innovation-driven growth through a wide variety of incentives and support.

Some of these initiatives include the Productivity and Innovation Credit (PIC) scheme — which partly subsidises companies adopting technologies to improve productivity — and the Singapore Innovation and Productivity Institute (SiPi) — which was established under the Singapore Manufacturing Federation (SMF) to assist the manufacturing and engineering sectors.

The government has also been encouraging the transformation of the sector, continually moving manufacturing clusters up the value chain and repositioning the country as an advanced manufacturing hub.

One way it has been doing so is by leveraging on Singapore’s strengths in existing sectors to upgrade and move into adjacent ones, such as from precision engineering to aerospace, and petrochemicals to specialty chemicals.

Singapore is further investing in research and development (R&D) to deepen its manufacturing capabilities. Through its S$500 million Future of Manufacturing initiative, the government is helping businesses develop and adopt new technologies in order to build up industry capabilities, in areas such as additive manufacturing, robotics, and manufacturing information technology.

The workforce is also being upgraded, with the EDB working with industry stakeholders to develop a pipeline of multi-skilled engineering talent to support the growth of manufacturing. These include initiatives such as the EDB’s Precision Engineering Vocational Continuing Education and Training programme, which aims to groom a pool of 2,800 master craftsmen to take on higher value, more complex manufacturing operations and leadership responsibilities.

With all this in consideration, Singapore still remains a competitive manufacturing location. In its 2013 Global Manufacturing Competitiveness Index (GMCI) report, Deloitte predicted that Singapore will retain its ninth ranking through to 2018, citing key advantages such as the educated workforce, quality infrastructure, favourable tax system and R&D incentives.

Manufacturing Sector Performance

According to EDB’s official report released on 26 February, Singapore’s manufacturing output grew 0.9 per cent on a year-on year basis in January 2015. Aside from biomedical manufacturing, overall output remained unchanged.

Precision Engineering
Overall output of the precision engineering cluster showed a remarkable 4.1 per cent increase year-on-year in January 2015. The precision modules and components segment increased by 9.7 per cent due to higher production of metal precision components as well as optical instruments and photographic equipment. Meanwhile, output of the machinery and systems decreased by 1.0 per cent due to lower output in mechanical engineering work and measuring devices.

Biomedical Manufacturing
Output from the biomedical manufacturing cluster expanded by 5.3 per cent in January 2015 compared to the same period a year ago. The medical technology segment’s output grew by 12.2 per cent due to strong demand for new medical devices. Meanwhile, pharmaceuticals output increased by 3.6 per cent.

Electronics Manufacturing
The electronics manufacturing cluster was unchanged in January 2015 compared to January 2014. Driven by higher regional demand, the other electronic modules and components segment expanded by 30.8 per cent. In addition, the semiconductors and computer peripherals segments also registered growths. Meanwhile, the infocomms and consumer electronics and data storage segments declined by 3.8 and 13.2 per cent, respectively.

Chemicals Manufacturing
Output from the chemicals cluster contracted by 0.5 per cent on a year-on-year basis in January 2015. The specialties segment expanded 8.6 per cent due to new production capacities and higher output in additives. Meanwhile, the other chemicals segment grew by 6.4 per cent with higher output in glass products and fragrances. Plant maintenance shutdowns made a huge dent in the petrochemicals output, with an astounding 12.2 per cent decline.

Transport Engineering
Output of the transport engineering cluster fell 2.2 per cent year-on-year in January 2015. The land transport segment grew 24.4 per cent while the marine and offshore engineering segment grew by 4.2 per cent. The aerospace segment offset such growth, with a contraction of 18.2 per cent due to low demand for repair jobs.

General Manufacturing
Output of the general manufacturing cluster decreased 0.3 per cent on a year-on-year basis in January 2015. The printing segment increased by 1.3 per cent, while the miscellaneous industries segment rose by 1.1 per cent. The food, beverages and tobacco segment declined by 3.1 per cent partly because of the high base in 2014 when output was boosted by festive demand.

SG50 Special
In conjunction with Singapore’s 50th birthday, Global Yellow Pages (GYP) has collaborated with the National Heritage Board to promote the 19 most iconic made-in-Singapore brands. Some of these Singapore-manufactured brands include Axe Brand Universal Oil, RISIS, Boncafé and DFurniture Pte Ltd — formerly known as Diethlem Furniture. To read more about this special feature, click here [hyperlink to SG50 article].

The Economic Outlook for 2015
According to MTI’s 2015 GDP forecast released on 17 February, the global outlook has more or less softened in the recent months. Growth this year is expected to be only marginally better than in 2014. Meanwhile, the pace of recovery is expected to remain uneven across the economies, with the US economy being the main bright spot.

Growth in the US is expected to accelerate, while growth in the Eurozone will most likely remain weak because of sluggish labour market conditions and deflationary pressures. Likely due to sluggish real estate activities, China’s growth is also expected to ease further this year. Furthermore, despite the recent plunge in oil prices benefitting oil-importing economies, it has notably dampened growth prospects in oil-exporting countries.

Due to the challenges of the global economic environment, externally-oriented sectors such as the manufacturing and wholesale trade sectors are likely face headwinds. In the domestic scene, the labour market is expected to remain tight, with low unemployment and increasing vacancy rates. Due to these factors, labour-intensive sectors such as construction, retail and food services may see their growth weighed down by labour constraints. However, other domestically-oriented sectors are expected to remain resilient.

Sources: International Enterprise Singapore, Ministry of Trade and Industry, Monetary Authority of Singapore and the Economic Development Board

The biomedical science sector has been on the rise in Singapore since the turn of the millennium, when the government declared life sciences as the "fourth pillar" of Singapore's manufacturing sector

Springing into Life

With its determination to transform Singapore into a world-class biomedical hub, the government has overseen tremendous progress over the years. This has been achieved by attracting leading players in the sector to set up operations here, while implementing forward-thinking policies to support the development of a flourishing research and development (R&D) ecosystem and an advanced manufacturing base.

From its modest beginnings, the biomedical sector here has grown to become one of the key sectors in Singapore's manufacturing landscape, accounting for 8.2 per cent (or S$23.7 billion) of total manufacturing output in 2013. The biomedical manufacturing cluster was also the second-largest contributor to manufacturing valued added at 20.5 per cent, while value added per worker was an impressive S$706,000.

Positive Outlook

Looking forward, there are even more reasons to be optimistic. While the biomedical market is expected to see only moderate growth in the mature economies, the growth economies are set to see significant growth in the years ahead. The World Bank has already forecasted the middle class in Asia to grow six-fold from the current 500 million to 3 billion by 2030.

This rapidly expanding middle class, coupled with longer life expectancies will see greying populations in many Asian nations. In turn, this will escalate rapid growth in demand for healthcare services. The Economist Intelligence Unit estimates healthcare spending in Asia to rise to US$2.1 trillion by 2017. This represents an annual growth rate of 7.1 per cent, significantly outperforming the expected global average growth rate of 4.6 per cent.

In the Business Expectations of the Manufacturing Sector report released in October 2014, the Economic Development Board of Singapore (EDB) reported that the biomedical manufacturing cluster was optimistic about business conditions in the six months ahead, with a net weighted balance of 3 per cent of firms forecasting a positive business outlook.

While the pharmaceutical segment projects the business situation to remain largely unchanged, the medical technology segment is expecting improved business prospects, on the back of upcoming new product launches.

Supporting Research

In the short span of a decade and a half, Singapore has catapulted itself into the forefront of the biomedical science industry. Such rapid growth would not have been possible without the full support of the Singapore government, along with careful planning and concerted efforts to develop the industry.

On the research front, Singapore is now home to more than 7,100 researchers carrying out biomedical sciences R&D across major companies, local universities, and public-sector institutes under the Agency for Science, Technology and Research (A*Star) and Ministry of Health (MOH). In fact, more than S$1.5 billion is spent on biomedical R&D annually, with the figure set to grow significantly in the years ahead.

The Singapore government recognises R&D to be an important enabler in the country's economic ecosystem, and has committed S$16.1 billion towards its Science, Technology and Enterprise Plan 2015 (STEP 2015). Of this investment, S$3.7 billion has been set aside to support biomedical science research efforts between 2011 and 2015.

This support goes beyond just funding though. Much effort has gone towards creating an ideal R&D ecosystem for the sectors. These include establishing leading public sector research institutions, attracting top scientific talent from around the world, building up the local research talent pool, supporting IP protection and promoting public-private partnerships to match companies’ R&D efforts to expertise within Singapore’s public research cluster.

This commitment further finds its physical manifestion in the Biopolis @ one-north development. The two-million square feet integrated complex is billed as the premier research hub for the biomedical sciences industry, and home to key public and private biomedical research institutes and organisations, carrying out the full spectrum of R&D activities the sector requires.

Manufacturing Success

Besides a strong R&D ecosystem, another factor behind Singapore’s success as a biomedical sciences hub is its advanced manufacturing base. The Republic is a trusted and competitive manufacturing site for many biomedical firms, with seven leading biopharmaceutical companies and 25 medical technology companies already here.

In addition, the JTC Corporation (JTC) – Singapore’s premier government agency leading the development of industrial spaces – has been working closely with the Bio-pharmaceutical Manufacturers Advisory Committee (BMAC) to design and develop customised spaces to meet the specific needs of industry players here.

One of the fruits of this collboration is the Tuas Biomedical Park (TBP). The 312-hectare TBP is a world-class manufacturing hub, which houses the manufacturing operations of major pharmaceutical, biotechnology and medical technology companies, such as Abbott, Ciba Vision, GlaxoSmithKline, Lonza, MSD, Pfizer and Roche just to name a few.

Biopharmaceuticals and Medical Technology

For Singapore’s biomedical sciences sector, most of the production – around 77 per cent – is dominated by biopharmaceutical output. Besides the infrastructure in place for such manufacturing, Singapore has also steadily built up a manpower base that is ready for future needs, counting more than 4,800 skilled engineers and technicians.

In 2011, the biopharmaceutical sector contributed about S$22.8 billion in output and more than 6,000 jobs. The same year also saw the sector expand by more than 30 per cent. In fact, according to Datamonitor research, Singapore was the third fastest growing nation globally in the export of pharmaceutical goods from 2000 to 2010.

Meanwhile, although the medical technology sector occupies a relatively low base, it has demonstrated much growth potential. The sector has almost tripled its manufacturing output from S$1.5 billion in the year 2000 to about S$4.3 billion in the year 2011. Over the same period, its manpower base more than doubled from about 4,000 to 9,000. By the year 2015, the sector targets to achieve S$5 billion in manufacturing output.

Currently, a wide variety of medical products, ranging from syringes and catheters to research instruments and scientific analytical equipment, are manufactured Singapore. The medical technology sector also benefits greatly from the significant presence of electronics and precision engineering firms, which they can count on for technical backing.

Strength to Strength

Looking ahead to the future, Singapore is set to build on its current success in the biomedical sciences sphere. With further enhancements to its already impressive R&D ecosystem and advanced manufacturing base, it stands to further grow its share of the global biopharmaceutical and medical technology markets.

Metal, Machinery and Engineering

The latest World Economic Outlook (WEO) report from the International Monetary Fund (IMF) in October 2014 has predicted the global economy to grow at 3.3 per cent in 2014 and 3.8 per cent in 2015.

Global Outlook Driving Demand

The pace of growth has been uneven across countries, with the US and Asia Pacific seeing a faster pace of expansion, and China still posing strong growth numbers despite a moderation in the economy.

These bright spots are expected to power the global metalworking sector, with demand coming from diverse areas such as infrastructure development, resource exploration and aerospace engineering.

Permanent Magnets

Permanent magnets are made from materials, which are magnetised and retain their own persistent magnetic field. Industrially, they are produced through the process of casting or sintering, from cobalt, nickel, iron and alloys of rare earth elements, as well as naturally occurring minerals.

Permanent magnets are widely used in many aspects of everyday life. These include household equipment, electronic devices, power generators, and car motors, among others. Furthermore, their demand is set to continue growing, with the development of new applications and technologies.

A Transparency Market Research report says global demand for permanent magnets was valued at US$15.32 billion in 2012 and is expected to reach US$28.7 billion in 2019, growing at a Compound Annual Growth Rate (CAGR of 9.5 per cent from 2013 to 2019.

In volume terms, demand was at 650.0 kilo tonnes in 2012 and is expected to be 1,168.7 kilo tonnes in 2019, growing at a CAGR of 8.8 per cent from 2013 to 2019.

According to the same report, China dominated the permanent magnets market in 2012 followed by the rest of the Asia Pacific region. China is further expected to witness the highest growth from 2013 to 2019 – at a CAGR of 9.0 per cent – due to increasing demand from its industries.

Superalloys

Superalloys, or high-performance alloys, are alloys capable of withstanding high stresses, high temperatures, and highly corrosive or oxidising environments. These superalloys usually count iron, nickel and cobalt as their base alloying element, and are used in areas such as aerospace engines, industrial gas turbines and auto turbochargers, where their unique properties are required.

According to a report published by Transparency Market Research, the three segments most responsible for driving the global superalloys market are aerospace, oil and gas, and industrial gas turbines.

Due to strong economic growth and accompanying increases in air traffic rates, airlines across Latin America, Asia Pacific and Africa are expected to expand their fleet to meet demand, providing a major boost to the industry.

Lasers

Lasers are widely used in the metalworking industry for many types for processes, such as cutting, boring and welding. The word laser is an acronym that stands for “light amplification by stimulated emission of radiation” – a process that can create different types of beams through simulated emission.

Optech Consulting reports that the global industrial laser systems market reached a record volume of US$10.7 billion in 2013, up by 5 per cent year-on-year.

While still in positive territory, the 5 per cent growth rate seen in 2013 falls short of the long-term CAGR of nearly 10 per cent the global market has seen in the last 10 years. The slowdown was largely due to weaker demand in the Asia Pacific region, which traditionally accounts for more than half of global demand.

One possible source of future growth could come with the growing trend of miniaturisation, especially in the medical, automotive, and electronics markets. Laser systems can be used for micromachining purposes, often yielding faster and more flexible results.

Machine Tools

Machine tools are used to manufacture metal components of machines through machining, a process whereby metal is selectively removed to create desired shapes. They vary in complexity and are widely used in sectors such as general machinery, automotive, precision engineering, transport and aerospace.

In its report, Frost & Sullivan revealed that the global machine industry earned revenues of US$15.72 billion in 2012. This is predicted to reach US$21.18 billion in 2017. From 2012 to 2017, Frost & Sullivan is forecasting the market to grow at a CAGR of 6.2 per cent, powered by various industries.

Despite the economic downturn, the demand for machine tools is expected to remain strong in emerging economies such as China and India. The increasing usage of advanced materials such as superalloys, is also likely to spur Research & Development (R&D) investment and usage of new machine tools and cutting tools.

Control Systems, Instruments and Diagnostics

Power is nothing without control, the proper instruments and effective diagnostics. Thus, the increasing need for precision and automation, especially in critical sectors, will spur the growth and adoption of new and advanced systems, instruments and interface design to better manage and control industrial production and other system configurations.

Reasons for Optimism

The outlook for the global metalworking industry is an upbeat one, as it looks poised to benefit from both the recovery of the global economy and the expansion of sectors such as aerospace and oil and gas.

Breakthroughs in metalworking technologies, processes and materials are also likely to spark new segments of growth, spurring businesses to upgrade existing equipment for greater efficiency and productivity, or find real-world applications for these varied advancements.