Singapore’s plan to be part of supply chains in a ‘world of flux’
Singapore should leverage the power of data and digitalisation and avoid taking sides in global conflicts to ensure it plays a central role in future supply chains, a government minister has said.
Education minister Chan Chun Sing told the Supply Chain Asia Forum 2022 the island state would have to navigate a “world in flux” where supply chains were changing.
He said challenges such as the Russian-Ukraine war, the US-China trade war, and new sourcing trends like “China plus one” strategies would change patterns of production.
New technologies including 3D printing and digital manufacturing would increasingly drive greater efficiencies.
Countries that dominate these technologies and can produce the minerals, materials and technologies for renewables will be the “new winners” in changing global economics networks, he said.
“We know that Singapore must strengthen our resilience. But equally important is to… redefine Singapore’s competitiveness, strengthen and entrench Singapore’s position as a key node in global supply and value chains.”
Among the elements that could help Singapore establish its position in new supply chains was maintaining “a conducive and predictable business environment, with stable institutional norms”.
This meant responding to events “based on principles and not by taking sides”.
“We earn our living by remaining an open node, where businesses have assurance in a stable investment environment, and trust that their assets are secure here,” Chan added.
He said Singapore would need to pioneer new forms of connectivity and enhance its hub port status and global logistics network.
“We are building our new Tuas mega port. And we will resume our plans for Terminal 5 at Changi Airport. Our sea and air connectivity with the rest of the world helps companies compete as a global network even while remaining anchored in Singapore,” Chan said.
He also called on Singapore to “leverage technology and digitalisation to transcend physical boundaries” and make better use of data to develop more resilient and efficient supply chains.