Debated in Parliament on 8 May 2024.
Mr Saktiandi Supaat asked the Minister for Trade and Industry (a) what are the factors which caused closures of mid-sized factories in Q3 2023; (b) whether the Ministry can provide updates on how Singapore's manufacturing sector is recovering relative to other Asian countries such as Korea and Vietnam; and (c) what are the manufacturing sector's challenges and outlook for the year ahead.
We do not specifically track the number of factory closures. However, over the past five years, more manufacturing entities, including factories, have been established than closed in Singapore. Companies that have closed factories have done so due to changes in market dynamics or shifts in their global production strategy.
As of the first quarter 2024, Singapore's manufacturing output was 16% above its pre-pandemic average in 2019. This was better than the 6.6% and 5.8% recorded by South Korea and Vietnam respectively, over the same period. We expect our manufacturing sector to recover this year as inventory levels and external demand normalise.
We are strengthening our competitiveness as a key node in advanced manufacturing. This includes working with companies to adopt artificial intelligence (AI) and digitalisation to increase productivity and anchor investments in new growth areas, such as the green economy, AI and precision medicine. This aligns with our Manufacturing 2030 vision to position Singapore as a global business, innovation and talent hub for advanced manufacturing so that we can continue to create good jobs for Singaporeans in the sector.
PAPERCUTS