Debated in Parliament on 18 Sep 2023.
Mr Desmond Choo asked the Minister for Trade and Industry in view of the weaker outlook for the export-driven manufacturing sector (a) what is the expected impact on the job market; (b) what are the key uncertainties faced by the export-oriented manufacturing industry; and (c) what are the short and long-term measures or policies to be implemented to support the manufacturing sector and enhance its resilience.
Singapore’s manufacturing sector will be affected by dampened global demand and the electronics downturn. Nevertheless, there are bright spots, such as the aerospace segment, due to strong demand from air travel.
The manufacturing sector added 4,400 jobs in the first half of 2023. Retrenchments also tapered, from 1,400 in the first quarter of 2023 to 500 in the second quarter. We expect employment in the sector to remain resilient in the medium term.
Manufacturing will continue to be a key pillar of our economy in the long term, but companies must be prepared to continue to transform to stay competitive and relevant. The Government has many schemes to help manufacturing companies develop new capabilities, train their workers and undertake higher value-added activities. For example, manufacturing companies can tap on schemes, such as the Enterprise Financing Scheme – Working Capital Loan, Productivity Solutions Grant and Enterprise Development Grant, for their short-term cashflow needs or to adopt automation solutions. We encourage companies to make full use of our incentives to enhance their competitiveness.
PAPERCUTS