Logistics Industry Transformation Map To Strengthen Singapore’s Position As a Globally Leading Logistics Hub

16/11/2016

Logistics Industry Transformation Map To Strengthen Singapore’s Position As a Globally Leading Logistics Hub

2,000 PMET jobs to be created

Mr S Iswaran, Minister for Trade and Industry (Industry), launched the Logistics Industry Transformation Map (ITM) today at the groundbreaking of JTC’s Logistics Hub @ Gul. Developed by a multi-agency team which includes International Enterprise Singapore (IE Singapore), JTC Corporation (JTC), SPRING Singapore, Workforce Singapore (WSG) and led by the Singapore Economic Development Board (EDB), the Logistics ITM maps out strategies that will reinforce Singapore’s position as a globally leading logistics hub through operations excellence, innovation and a strong Singaporean core. Transformation of the industry is expected to achieve a value-add of S$8.3 billion and introduce 2,000 new PMET jobs by 2020.

Importance of the Logistics Industry

The logistics industry is a critical enabler of Singapore’s economy and our everyday-lives. It connects suppliers to manufacturers and merchants to consumers, both domestically and overseas. In 2015, the Transportation and Storage sector, which includes logistics, contributed 7.4% to Singapore’s GDP and employed over 8% of the total workforce.

The Logistics ITM identifies the opportunities that the industry can tap on as a result of global trends such as the rise of Asia, emerging business and manufacturing developments such as additive manufacturing and omni-channel retail, as well as the advent of new technologies. It takes into consideration the challenges that the industry will face in securing sufficient land and labour, as well as competition from the region and globally.

To this end, the ITM has identified strategies to catalyse enterprise level efforts to transform and grow the industry through productivity and innovation. Strategies will also focus on developing strong local talent and enterprises, strengthening trade associations to be change agents and improving Singapore’s overall logistics landscape.

Enabling enterprises through innovation, productivity and talent

The Logistics ITM aims to uplift the operations excellence of the industry by directly supporting companies to tap on suitable process methodologies and technologies. Implementation assistance will also be made available to enterprises that adopt impactful productive technologies that are new to Singapore or the industry. For SMEs, the Government will invest in next-generation facilities with high specifications units that encourage co-location of companies. This will drive the deployment of advanced technologies by operators and improve overall collaboration of the industry to derive productivity savings. These efforts will safeguard the industry’s ability to capture cargo volume growths in the next few years amidst Singapore’s resource constraints.

The Logistics ITM will also help companies to build differentiating capabilities through the establishment of Centres of Innovation and Centres of Excellence in Singapore. To bolster the logistics innovation eco-system in Singapore, the Government will work with research institutions and universities to develop world-class capabilities in the logistics and supply chain management domains. The Government will also continue to promote Singapore as a choice location for leading manufacturers and brand owners to base their supply chain management activities and decision making.

The logistics industry is expected to create 2,000 PMET jobs over the next five years, and see changes to its workforce – rank-and-file jobs will become less laborious and more skilled, while new professional roles will be created. Through the Adapt and Grow initiative which includes the Logistics Professional Conversion Programmes by Workforce Singapore, the Government aims to help mid-careerists from other sectors transit smoothly into the industry. Workforce Singapore will also support the current logistics workforce to acquire niche and emerging skills aligned to Logistics ITM through the Industry Catalyst Programme. A Logistics Skills Framework that provides comprehensive information on career pathways in the logistics industry led by SkillsFuture Singapore is also being developed, in consultation with various government agencies, unions and industry leaders. These initiatives will complement each other and further strengthen the Singaporean core within the Logistics industry.

Transforming the industry for long-term growth

To enable enterprise growth, the ITM will support the adoption of technology and the deepening of specialisation into sectors such as food and healthcare through the development of specialised logistics handling capabilities. Enterprises will also be supported in their market expansion efforts to secure trade flows and increase international presence. With these efforts, the ITM hopes to develop more Globally Competitive Companies.

Taking a broader industry perspective, the Logistics ITM will involve the Trade Associations and Chambers (TACs) to amplify the impact through projects that will optimise resource utilisation across industry players (please refer to Annex D for more information). The active participation of TACs such as the Singapore Logistics Association in the Logistics ITM will also ensure that more companies can come to know of and tap the benefits of its initiatives.

At the national level, the Logistics ITM will improve our domestic logistics system to deliver resource optimisation for enterprises and the public. The initiative encompasses projects such as the deployment of federated lockers, consolidation logistics at malls, and a possible integrated goods mover system.

Annex A: JTC Logistics Hub @ Gul to boost efficient and collaboration for the Logistics sector

Annex B: About JTC Logistics Hub @ Gul

Annex C: Factsheet for Logistics Professional Conversion Programmes (Logistics PCPs)

Annex D: Fact sheet on Logistics Trade Associations and Chambers and their LEAD-supported Industry Initiatives

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