Singapore Manufacturing Federation charts path for human-centric manufacturing in AI era

Source: SMF. From left: Nigel Lee, Singapore GM, Lenovo Singapore; Christanto Suryadarma, Sales VP, Zebra Technologies; Terry Gao, MD, Huawei; Lennon Tan, President, SMF; Alvin Tan, Singapore Minister of State for Trade and Industry; Albert Chan, VP, Inkjet Supplies & Ink Operations, HP Singapore; and Tony Kang, Business VP, Secure Power, Singapore and Brunei Cluster, Schneider Electric during MNC-SME Alliance MoU signing ceremony.

The manufacturing sector, currently the second-largest contributor to Singapore’s gross domestic product (GDP), will continue to be a critical driving force of the nation’s economic growth, said the Singapore Manufacturing Federation (SMF). But to maintain its transformation momentum and realise its goals of becoming a global advanced manufacturing hub, Singapore must navigate the disruptions of technologies like AI and learn to balance the intersection of technology with human potential to create a more resilient manufacturing ecosystem, concluded participants of Manufacturing Day Summit 2025, SMF's flagship conference.

Themed Smart Collaboration: Humanising the Future of Manufacturing in the Age of AI, Manufacturing Day Summit 2025 showcased the transformative role of AI in manufacturing while emphasising that human creativity is indispensable.

Key highlights at the event included the launch of the MNC-SME Alliance with SMF as the key facilitator and orchestrator. The alliance offers a collaborative platform for multinational corporations (MNCs), local small and medium-sized enterprises (SMEs), as well as ecosystem partners.

It aims to support Singapore’s Manufacturing 2030 goals by driving innovation, enhancing supply chain competitiveness, and accelerating the adoption of advanced manufacturing practices, and is designed to create business opportunities between MNCs and SMEs, while facilitating knowledge sharing, capability building, and co-development opportunities. Ultimately, the alliance will prepare SMEs for global challenges in alignment with SMF’s Industry 5.0 vision. 

Applied Total Control Treatment (ATC), Lenovo, Zebra Technologies, Continental and IBM are alliance members, together with ecosystem partners A*STAR Singapore Institute of Manufacturing Technology (A*STAR SIMTech), UOB and the Singapore Institute of Technology’s Innovation Leadership Programme. The programme is a public course designed to equip SMEs with practical strategies and skills to drive innovation, enhance collaboration with MNCs, and scale their operations effectively in a global market.  

Lenovo shared their work with ST Logistics, one of the largest logistics and warehousing providers in Singapore, to streamline processes and enhance operational efficiency through AI, automation and robotics. The joint case study featured Industry 5.0 applications and will pave the way towards a smarter and more innovative manufacturing future.

“The future of manufacturing is not about replacing humans with machines, but about creating a powerful synergy between human ingenuity and AI capabilities,” said Lennon Tan, President, Singapore Manufacturing Federation.

“Through strategic partnerships and knowledge sharing, we are building a smarter and more resilient manufacturing ecosystem that empowers our workforce, drives innovation, and strengthens Singapore’s position as a global manufacturing hub. This collaborative approach is essential as we look towards the next 60 years and beyond.”

At the event, HP, Huawei, Lenovo, Schneider Electric and Zebra Technologies were awarded Honorary Gold certifications under the Green Excellence for Manufacturing (GEM) Mark programme, part of SMF’s Chief-Sustainability-Officer-as-a-Service (CSOaaS) initiative. This certification recognises organisations that have achieved advanced sustainability levels and demonstrated a strong commitment to sustainable operations. 

Eligible companies must have consistently excelled in sustainability reporting and continually enhanced their sustainability practices, setting a benchmark for others to follow. The CSOaaS programme, launched at last year’s Manufacturing Day Summit, empowers SMEs with the tools and guidance necessary to incorporate sustainable practices into their operations.

In addition, the Manufacturing Day Summit shone a spotlight on the significance of developing a skilled and future-ready manufacturing workforce that will support SG60’s manufacturing ambitions. A new Learning-and-Development-Solutions-as-a-Service (L&DSaaS) initiative from SMF will address the critical need for a skilled, adaptable workforce in SMEs. By offering tailored training, leadership development, and advanced digital learning, the L&DSaaS helps to build resilient businesses through strengthening workforce capabilities, driving innovation, and enhancing operational effectiveness.

The SMF Centre for Corporate Learning (SMF-CCL) also announced that SMF-CCL and Duke Corporate Education (Duke CE) are working on an initiative to empower enterprises to lead a sustainable future amid the climate crisis. Leveraging Duke CE's global leadership expertise, the collaboration will culminate in an e-learning platform with curated sustainability programmes to equip organisations with the knowledge to tackle complex manufacturing and supply chain challenges, foster innovation and drive sustainable, scalable impact for long-term success.

The L&DSaaS and partnership with the Duke CE will target 100 companies and benefit approximately 2,500 employees.

To further support the growth and development of manufacturing SMEs, SMF and NTUC U SME also inked an MOU to create awareness of training available for SMEs to transform their workforce. With SMEs representing 99% of all businesses in Singapore, SMF and U SME want to encourage SMEs to adopt new technologies; support workers’ training and development; and facilitate harmonious labour-management relations.

Beyond upskilling the existing workforce, SMF is also focused on nurturing the next generation of manufacturing talents. The association inked an MoU with Ngee Ann Polytechnic and Flexspeed Technology to enhance workforce development in Singapore’s manufacturing sector. The five-year collaboration, supported by factory automation specialist FANUC, will promote upskilling and technology adoption of robotics automation through customised training programmes, workplace learning initiatives, and technology development projects.

“Sustainability and talent development are twin pillars of a resilient and forward-looking manufacturing sector,” said Dennis Mark, CEO, Singapore Manufacturing Federation. 

“We hope that initiatives and collaborations like these will not only drive innovation and environmental responsibility but also ensure the industry is well-equipped with the talent and capabilities needed to grow Singapore into an advanced manufacturing hub.”

Cautious business sentiment for 2017 in Singapore

The Singapore government has released business sentiment from the manufacturing and the retail sectors for 2017.

A majority of the firms polled (a weighted 76%) in the manufacturing sector by the Singapore Economic Development Board expect the business situation in 1H17 to remain similar to a quarter ago. A weighted 13% of manufacturers expect business conditions to improve while a weighted 11% foresee a slower business outlook. Overall, a net weighted balance* of 2% of manufacturers anticipate a favourable business situation for January to June 2017, compared to in Q416.

Within the manufacturing sector, the electronics cluster is the most optimistic about the next six months ending June 2017. A net weighted balance of 26% of firms anticipate an improved business situation ahead. This optimism is largely from the semiconductor segment, which expects the current improved market conditions to continue into 2017. In contrast, the infocomms & consumer electronics segment expects the business outlook to deteriorate compared to the preceding quarter.

In the precision engineering cluster, a net weighted balance of 2% of firms anticipate that business conditions will improve in the six months ahead, compared to Q416. Within this cluster, the machinery & systems segment foresees better business prospects, largely supported by the semiconductor-related equipment industry. On the other hand, the precision modules & components segment projects a less favourable business situation, in particular for metal stamping, plastic and rubber components.

In the transport engineering cluster, a net weighted balance of 4% of firms foresee that the business outlook will worsen from January to June 2017. This weaker outlook is largely driven by the marine & offshore engineering segment, which continues to be weighed down by lacklustre offshore exploration and drilling activities. On the other hand, the aerospace segment foresees a positive business outlook, in anticipation of more engine repair jobs.

A net weighted balance of 5% of firms in the chemical cluster anticipates a less favourable business situation in the first half of 2017. Within the cluster, the petroleum refining segment is concerned about the strength of refining margins following a seasonal uptick in Q416, while majority of the petrochemicals and specialties firms expect similar business conditions as a quarter ago. In contrast, the other chemicals segment is positive about business prospects, supported by the fragrances industry.

The general manufacturing industries cluster is the least upbeat about business prospects for the first half of 2017, with a net weighted balance of 29% of firms predicting a softer business outlook in the months ahead. The weak sentiment is broad-based, with all segments anticipating poorer business conditions ahead. In particular, firms in the miscellaneous industries segment expect lower demand for construction-related materials due to the slowdown in construction activities.

A net weighted balance of 4% of manufacturers expect a lower level of output in Q117 compared to Q416. While the electronics and precision engineering clusters forecast output increases, the rest of the clusters project declines:

• A net weighted balance of 18% of firms in the electronic cluster expect production to increase in Q117 as compared with a quarter ago. 
• The semiconductor and other electronic modules & components segments expect higher output from January to March 2017 in anticipation of higher export orders and increased production capacities. 
• In the precision engineering cluster, a net weighted balance of 10% of firms project higher output, largely supported by the semiconductor-related equipment industry. 
• A net weighted balance of 17% of biomedical manufacturing firms expect a lower output level in Q117  compared to Q416.

When it comes to the service sector, a survey** has shown that a net weighted balance of 14% of related firms expect less favourable business conditions for 1H17 (January to June 2017) compared with 2H16 (July to December 2016). This is less optimistic compared to the net weighted balance of -8% registered in the previous quarter’s survey (October 2016 to March 2017) but is an improvement over the net weighted balance of -18% recorded for the same period last year.

Overall, a weighted 10% of firms are optimistic about the business conditions for 1H17 while a weighted 24% of firms foresee slower business. The majority of firms (a weighted 66%) anticipate the level of business activity to remain the same.

Within the services sector, all industries expect the level of business activity to deteriorate or remain the same for 1H17 as compared to 2H16. After experiencing brisk business during the year-end holidays, firms in the accommodation and food & beverage services industries expect slower business in 1H17.

A net weighted balance of 43% of the firms in the transport & storage industry expect the business situation to worsen in the six months ending June 2017. In particular, shipping lines foresee a slower global economy and weaker consumer demand to have a negative impact on the cargo volume in 1H17. Firms in the real estate industry are also less optimistic in their business outlook, registering a net weighted balance of -39%. Real estate developers continue to cite the government property cooling measures including the additional buyer’s stamp duty (ABSD) and total debt servicing ratio (TDSR) requirements as well as the uncertain economic outlook for the weak demand in the property market. For the retail trade industry, a net weighted balance of 22% of firms expect business prospects to deteriorate. In particular, retailers of wearing apparel & footwear, household appliances & furniture expect weaker consumer demand. A net weighted balance of 13% of firms in the services sector expect operating receipts to decrease for 1H17 as compared to 2H16. All industries within the services sector expect operating receipts to deteriorate or remain the same in Q117 compared to the preceding quarter.

In line with their negative business outlook, firms in the accommodation and food & beverage services industries expect the level of operating receipts to fall, with a net weighted balance of -48% and -21% respectively from January to March 2017 as compared to the preceding three months, which coincided with the year-end and festive holidays.

Firms in the transport & storage and real estate industries are also less optimistic in their operating receipts outlook for Q117 with a  net weighted balance of -34% and -22 % respectively. In terms of employment, a net weighted balance of 4% of the firms in the services sector expects to reduce hiring for Q117. Within the services sector, firms in the accommodation, business services, and transport & storage industries expect to reduce hiring as they anticipate slower business activity. On the other hand, the retail trade industry expects hiring to increase, due mainly to supermarkets which anticipate higher sales during the Chinese New Year festive period***.

*A net weighted balance is used to indicate the likely overall direction of change of a particular activity or industry. Net weighted balance is calculated by taking the difference between the weighted percentages of  “ups” and “downs”. A minus sign denotes a net downward trend.

**The Business Expectations Survey for the services sector is conducted quarterly, one month before the reference quarter, by the Singapore Department of Statistics. The Q117 survey was conducted from December 2016 to mid-January 2017. It is a survey aimed at obtaining the business outlook for the immediate future of firms in the services sector. The survey covers some 1,500 enterprises in wholesale trade, retail trade, transport & storage services, accommodation, food & beverage services, information & communications services, financial & insurance services, real estate, business services (excluding real estate) and recreation, community & personal services. 

Respondents are asked about their expectations of the business situation in the next six months as well as operating receipts and employment in the next three months. Their views are expressed in terms of directional change (i.e., “up”, “same” or “down”). Enterprises’ responses are then weighted and aggregated to derive the weighted percentages for “up”, “same” or “down” at industry and overall sectorial level for each question. Employment size is used as the weighting variable at both the enterprise and industry level for the employment forecast. For the general business outlook and operating receipts forecast, operating receipts and value added are used as weights at the enterprise level and industry level respectively.

***Chinese New Year began on January 28 in 2017 and continues till February 11, 2017. Celebrations typically begin about two weeks before the first day of the lunar new year.

Singapore's F&B industry dives deep into value creation

Lee's presentation shared industry forecasts on the Asian food industry opportunity.

Singapore’s food and beverage (F&B) industry is shifting its focus away from productivity and onto value creation. Spearheaded by the Singapore Manufacturing Federation (SMF) and International Enterprise Singapore (IE Singapore), the industry is transforming as manufacturers look towards innovation, growth, and internationalisation.

Lee says Singapore F&B manufacturers have much to offer
the world.

From April 12 to 15, FoodAsia2016 will showcase a range of home-grown companies with first-of-a-kind creations as part of the Singapore Pavilion led by SMF. FoodAsia, a specialised exhibition dedicated to food and drink, is a part of Food&HotelAsia (FHA), Asia’s premier and most comprehensive biennial trade event for the food and hospitality industry. A total of 114 companies will be at the 1,857 sq m Singapore Pavilion, reflecting a 50% expansion compared to the previous event, with 24 others exhibiting in other events at FHA.

Asian F&B industry tipped for robust growth

The F&B industry is thriving in the Asia Pacific region as the world economy shifts from the West to the East. According to Euromonitor International, the region’s F&B ingredients industry is expected to have a CAGR of 4% over 2012 to 2017, accounting for 38% of global use of value-added food and drink ingredients by 2017. This prospect has attracted many foreign investors to expand into Asia, resulting in stiffer competition among local and regional F&B players. To compete, the Singapore F&B industry is looking toward creating long-term value and developing strategies that will set it apart.

“Despite a fall in global trade in 2015, Asia’s total trade with the rest of the world in packaged foods attained third spot in 2015, behind Europe and the Americas¹. Asia Pacific is also projected to have the second-highest growth rate for packaged foods in the next five years². So even with a modest economic outlook for 2016, there are pockets of opportunities in the region. It is thus imperative for Singapore companies to look beyond our market, innovate and transform their business models, in order to sustain future growth. With a strong ecosystem of food companies in place, the Singapore food and beverage industry is at a prime spot to ride this growth trajectory,” says Lee Yee Fung, Group Director for Lifestyle Business at International Enterprise (IE) Singapore.

Prima is introducing wholegrain LaMian (noodles) in
laksa and curry flavours. One pack will fulfil an adult's 
minimum recommended daily intake for whole grains. The 
steamed noodles are made with 51% Superfine Wholegrain 
flour, and come with Prima Taste paste. The halal-certified packs 
do not contain added MSG or preservatives, and have no 
artificial colouring or flavouring. Typical instant noodle packs 
offer fried noodles and powder-based seasoning.

Lee shared Euromonitor figures on the packaged foods opportunity, nothing that the Asia Pacific CAGR is 4.8% from 2015 to 2020, second only to the Middle East and Africa at 4.9% for the same period. Australasia comes in fourth with a 1.9% CAGR. Lee also pointed out that Asians have become more sophisticated consumers, with Asia projected to make up 66% of the global middle class population by the year 2030, according to Kharas and Gertz.

Instead of going for the cheapest product, Asian consumers are demanding quality, convenience and safety in their food. "These are opportunities going forward and as food manufacturers we should think about how to capture those opportunities," he said, pointing to Singapore's advantages of infrastructure and a tradition in food safety as plusses. Inherent strengths, Lee said, include free trade agreements, an emphasis on food safety, and excellent business infrastructure, including global connectivity and Singapore's leading position as a financial hub.

Value creation and internationalisation 

New products and solutions that will be showcased by Singapore food manufacturers at FoodAsia2016 range from ready-to-cook meals, premium chocolates, and canned fish otah.

One example of innovation is frozen "Hargow Crystal Skin” in a retail pack, which is the first of its kind globally. Developed by Tee Yih Jia Food Manufacturing, the pastry to make hargow (Chinese shrimp dumplings), is traditionally handmade. Quality can be inconsistent, and it has to be made fresh each time to remain pliable. This product can be thawed as required, and offers a consistent, tender yet chewy skin after steaming. Tee Yih Jia anticipates that it will reduce food preparation times significantly and will benefit home cooks, restaurant owners, dimsum manufacturers.

Tee Yih Jia is introducing frozen hargow skins for more consistent hargow, every time. These are the first frozen hargow crystal skins in the world.

Source: Tan Seng Kee Foods (TSK). TSK is known for its Kang Kang (康康) fresh, preservative-free shelf-stable noodle range. The company is launching Express Meal Kits, which incorporate its noodles together with sauces for laksa, curry mee and the non-spicy prawn mee. All products are halal and have a shelf life of a month. 

Tan Seng Kee Foods (TSK), already well known for Kang Kang (康康) noodles, will be introducing Express Meal Kits based on the fresh, preservative-free noodles. These all-natural and preservative-free pasteurised fresh noodles have a shelf life of three to four weeks without refrigeration, six months in chilled conditions and 12 months if frozen. The company is launching Express Meal Kits, which incorporate its noodles together with sauces for laksa, curry mee and prawn mee. All three flavours were chosen for their popularity, with the prawn mee offering a non-spicy alternative for those who prefer it.

The Factory Chocolat is offering matcha flavoured luxury chocolate-covered fruit. The freeze-drying process preserves the antioxidant and vitamin content of the fruit.

The Factory Chocolat, manufacturer of a range of freeze-dried fruit chocolates, will be unveiling its Gourmet range at FoodAsia2016. It is one of the local companies that have successfully expanded and exported its products overseas, to Mainland China, Hong Kong, Indonesia, Taiwan, Thailand, and Vietnam. The company will introduce matcha (green tea) flavoured fruit chocolates, presented in premium packaging. Each fruit is carefully coated in a thin layer of dark chocolate and then white chocolate, and finally rolled in matcha powder from Japan that has been specially chosen to complement the chocolate and the freeze-dried fruit.

“FoodAsia2016 is a good platform for us to introduce our new product as it presents a catchment with so many visitors coming from different parts of the world. It creates export potential for our product,” says Ronald Ng, General Manager of The Factory Chocolat.

SMF has in place several initiatives that aim to help local F&B manufacturers create value and internationalise, including the Working-in-Partnership (WIP) Programme. WIP allows local food exporters to consolidate their efforts and ship their products directly to overseas supermarkets. This does away with middlemen, helping food companies reduce operational costs, while leveraging on the strength of collective branding.

“Innovative practices and technology as well as strategic alliances are important pillars for the Singapore F&B industry to create value, stay competitive in the global and local market, and contribute towards a diverse global food industry. The Singapore Pavilion at FoodAsia2016 allows exhibitors to build networks and distribution channels. SMF helps to make the internationalisation process easier for our exhibitors through the Hosted Buyers Programme, whereby buyers from all parts of the world are brought to meet the exhibitors directly. We are seeing some positive results of food companies’ efforts to expand overseas, especially as the Made in Singapore brand becomes increasingly recognised for food safety and high quality, ” says Sunny Koh, SMF Deputy President and Chairman of SMF Food & Beverages Industry Group.

Koh speaks at a media preview of Food&HotelAsia.

Koh emphasised that both retailers and manufacturers have to transform, and the value chain trimmed. "Retailers facing challenge of operational costs, low margins and strong competition from e-commerce channels," said Koh. "For exporters, gone are the days where you sit in the office waiting for orders to come."

Internationalisation is the answer, Koh said, noting that food manufacturers can get help from fellow SMEs; government support; as well as from trade associations and chambers.

He shared that the Working-in-Partnership (WIP) Programme allows manufacturers to share the costs of shipping their food products in the same container, which is then sent to the port closest to the customer. The initiative helps SMEs to achieve internationalisation faster and more easily, he noted, and does away with logistics middlemen to narrow the price between e-shop and physical shop.

"Singapore products in China are selling at two to three times the Singapore retail price. WIP consolidation can cut retail prices down," he said. Soy sauce, for instance, may cost S$5.30 a bottle locally, but RMB78 (S$16.28) in China. "With WIP we can cut it down to RMB32.15 (S$6.71), and penetrate the market better, in a more efficient way," he said.

Koh added that the WIP programme, already working with companies in Thailand and Myanmar, is set to expand. "By going direct some of the Singapore products in Thailand can retail at almost same price as (those from) local manufacturers," he said.

This year, FHA expects to attract more than 65,000 trade attendees from more than 90 countries and regions. In collaboration with IE Singapore, SMF will be inviting more than 130 buyers from over 60 companies across 18 countries and regions to meet Singapore exhibitors through scheduled business matching sessions.

“We are pleased that more local exhibitors are taking up booth space this year. It is a testament to their confidence that the convergence of buyers and exhibitors from across the globe at FoodAsia forms a budding marketplace for the Singapore food sector to develop partnerships and broaden their network with the relevant buyers,” said Ting Siew Mui, Project Director of Lifestyle Events at Singapore Exhibition Services, organiser of FHA.

FHA will see many firsts in 2016, including a significant number of new exhibitors from Singapore, such as Boon Tong Kee, Fraser & Neave, Lam Soon, Owl International, Super Group and Yeo Hiap Seng. There are exhibitors from Singapore both at the Singapore pavilion and outside it. Individual exhibitors include Aalst Chocolate, Cocoaorient, Delifrance Singapore, Euraco Finefood and Foodxervices.

Interested?

FHA2016 will run from 12 to 15 April 2016 at Singapore Expo (Halls 1 to 9 Annex) from
10am – 6pm (12 – 14 April 2016) and 10am – 4pm (15 April 2016)
The event is open to business and trade professionals only

Read the WorkSmart Asia blog post on what's new at FHA

1 According to International Trade Centre, total trade of packaged foods between each region and the rest of the world are as follows: Europe (US$416 billion), Americas (US$295 billion), Asia (US$197 billion), Middle East and Africa (US$88 billion), and Oceania (US$40 billion).
2 According to Euromonitor, Asia Pacific’s market size for packaged food is expected to grow at a 4.8% five-year CAGR till 2020. This is the highest growth rate projected after the combined Middle East and Africa region.

New designer crystals could create more powerful devices

Source: CSIRO. Dr Styles.

A new process that uses vapour– rather than liquid – to grow designer crystals could lead to faster, more powerful electronic devices. The crystals are the world's most porous materials, and if applied to microelectronic devices, could significantly boost their processing power.

For the first time, researchers have shown how the designer crystals known as metal organic frameworks (MOFs), can be grown using a vapour method that is similar to steam hovering over a pot of hot water. The method, invented by scientists from the University of Leuven in Belgium, the National University of Singapore and CSIRO has been published in the journal Nature Materials.

According to CSIRO researcher Dr Mark Styles, the crystals could previously only be grown and applied using a liquid solvent, making them unsuitable for electronics applications. "Just like your smart phone doesn't like being dropped in water, electronic devices don't like the liquid solvent that's used to grow MOF crystals," Dr Styles said. "It can corrode and damage the delicate circuitry. Our new vapour method for growing and applying MOF crystals overcomes this barrier and has the potential to disrupt the microelectronics industry.

"On the atomic scale, MOF crystals look like bird cages that can be tailor-made to be different shapes and sizes. They have an extremely large surface area, meaning they can be up to 80% empty inside. The net result is a structure where almost every atom is exposed to empty space: one gram of MOF crystals has a surface area of over 5,000 sq m – that's the size of a football field. Crucially, we can use this vast space to trap other molecules, which can change the properties of a material. In the case of electronics, this means we can fit a lot more transistors on a microchip, making it faster and far more powerful."

The international team, which was led by Ivo Stassen and Professor Rob Ameloot from the University of Leuven in Belgium, drew on specialist X-ray analysis techniques from CSIRO and the Australian Synchrotron to understand how the vapour process works, and how it can be used to grow the MOF crystals.

According to Dr Styles, the applications for MOFs can only be limited by your imagination. "Another potential use for this technology would be in portable chemical sensing devices that could be used in hazardous environments such as chemical processing plants and underground mines," he said.

Interested?

Read the Nature paper

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