Singapore, Thursday, 3 December 2009 - Amid a more uncertain economic environment and growing competition from fast-growing developing countries with a lower manufacturing cost base, Singapore companies seeking growth should depend less on being sub-contractors to MNCs. They should instead embrace a "product-led economy" where they innovate new products, develop their own intellectual properties and further enhance their product value with service innovation, said business leaders during a half-day seminar today.
Jointly organised by SPRING Singapore, Singapore Business Federation (SBF) and Singapore Manufacturers' Federation (SMa), the seminar on "Embracing A Brave, New Economy: Developing a Product-led Economy", saw business leaders sharing their product development journey and experience on how they had attained success in commercializing their products in the global market. Over 120 participants from various sectors in manufacturing and services heard how these companies leveraged on mega-trends and regulatory issues to successfully develop world class products.
Spotting the advent of A380 airbus, aircraft ground support equipment maker Aeromobiles has scored a global first with its proprietary A380 Airbus Hi-lift. It participated in the first trial-run of A380 airbus working shoulder-to-shoulder with EADS Airbus and Singapore Airlines. Currently, Aeromobile has an approximately 80% of Middle East market share.
Another product in development is the Intelligent Healthcare Robotic Assistant to help patients at healthcare institutions. The system is a collaborative consortium spearheaded by KooPrime, a bioinformatics company, a few contract manufacturers and key participating healthcare institutions. Seeing the opportunities in the International Maritime Organization (IMO) regulation which called for the mandatory installation of voyage data recorder (VDR) to enhance safety of navigation of passenger and cargo ships, Pamarine, which specializes in marine safety solutions, launched a regional first Singapore-made VDR product which enables audio, video and navigation data recording.
These initiatives are encouraging in the era where multi-national manufacturers are shifting their outsourcing activities to lower cost countries. These showcases will encourage local subcontractors to reduce their reliance on MNC outsourcing through revenue generating intellectual properties. Such efforts in service innovation - where companies' products are boosted with technology and innovation - will steer Singapore companies well amid global competition as they provide good customer-centric value-added products.
Speakers at the seminar included Mr. Victor Tay, Director, Services & Biomedical, SPRING Singapore; Mr. Alvin Ho, Senior Manager, Aeromobiles Pte Ltd; Ms. Evelyn Ho, Group Financial Controller, Pamarine Pte Ltd; Mr. Lim Teck Sin, Founder, KooPrime Pte Ltd; Mr. Andy Schroeter, Director, Sunlabob Renewable Energy Ltd; Ms. Cher Joven, Account Manager, Lawton & Yeo; Mr. Eugene Tan, Managing Director, XentiQ; Mr. Alvin Heng, CEO, WiMe Pte Ltd; and Mr. Matthew Tan, Managing Director, SIF Technologies Pte Ltd.
The seminar also saw panelists from Aeromobile, Pamarine, and Kooprime sharing their journey to derive Singapore-made products, thus highlighting the critical success factors for the product development process that starts from conceptualisation to marketing. A foreign speaker from Sunlabob Renewable Energy from Laos spoke on how they penetrated the "bottom of pyramid" market in Laos with their own Solar Lantern product which is funded by United Nations.
Explaining the move to embrace a product-led economy, Victor Tay, Director, Industry Development Group, SPRING Singapore, remarked, "Singapore manufacturing sector's value-add has doubled to S$56 billion since 1997. However, in recent years, Singapore faces growing competition from regional developing economies and cheaper manufacturing sites. Singapore SMEs, which rely heavily on MNCs subcontracting, should develop their own intellectual properties to ensure alternative revenues. In the past few years, SPRING has assisted some local companies to score a world first or regional first with Singapore-made products. These opportunities were identified by spotting economic trends and leveraging on compliance to regulatory hurdles.
SPRING Singapore will collaborate with SBF and SMa to strengthen the product design and development community as well as encourage Singapore businesses and manufacturers to push forward with product and service innovation so that they remain competitive in today's global market to better serve their clients.
SBF CEO, Mr. Teng Theng Dar, said, "The evolving global economy presents both challenges and opportunities. Amidst a landscape of scarce resources and increased volatility, as well as growing levels of affluence, ageing and urbanisation, it is key for businesses to embrace technology-led new product development and innovation to deliver sustainable high value add customer-centric products and services. Singapore companies need to step up and lead the change, particularly in the fast expanding Asian market."
SMa Secretary-General, Mr Gwee Seng Kwong, commented, "SME manufacturers have to realise the growing need to integrate manufacturing and services to produce innovative products. More importantly, they must first look beyond traditional forms of production, and reinvent their business model and customer value proposition. At the same time, it is important to infuse technology in manufacturing and enhance their products with service innovation. This gives them the differentiation advantage as they come up with products that cater to the changing consumer market."
About SPRING Singapore
SPRING Singapore is the enterprise development agency for growing innovative companies and fostering a competitive SME sector. We work with partners to help enterprises in financing, capabilities and management development, technology and innovation, and access to markets. As the national standards and accreditation body, SPRING also develops and promotes internationally-recognised standards and quality assurance to enhance competitiveness and facilitate trade.
Please visit www.spring.gov.sg for more information and news about SPRING Singapore.
About Singapore Manufacturers' Federation (SMa)
Established since 1932, SMa's mission is to represent the interest of the Singapore manufacturing community and to drive its competitiveness and sustainable growth through serving industry-specific needs.
SMa is supported by 11 industry groups to serve diverse industry-specific needs, as well as five Centres of Excellence to offer a holistic approach towards improving competitiveness, upgrading skills and capitalizing on new technologies to grow market share. Current membership is more than 2,600 corporations ranging from MNCs to SMEs. SMa carries out a myriad of activities to enhance the competitive edge of our members.
For more information, please visit http://www.smafederation.org.sg.
For media queries, please contact:
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Genette Koh
Executive, Corporate Communications
Singapore Business Federation
Direct: 6827 6874
Mobile: 8100 7928
Email: corpcomm@sbf.org.sg
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Gillian Lim
Senior Executive, Research and Corporate Communications
Singapore Manufacturers' Federation
Direct: 6826 3053
Mobile: 9459 5050
Email: gillianlim@smafederation.org.sg
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Victor Tay
Director, Services & Biomedical, SPRING Singapore
SPRING Singapore
Mobile: 96622531
Email: victor_tay@spring.gov.sg
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