The pandemic has accelerated the digital transformation of Singapore's manufacturing companies to achieve business resilience, and the Singapore Manufacturing Federation (SMF) has a role to play in facilitating this, says president Douglas Foo
What are the key challenges faced by your industry?
Since the pandemic, many companies have realised how vital digital transformation is for business resilience. However, with the pandemic still in recovery, companies lack the funds to push their transformation further.
There is also a limited pool of skilled workers to operate digital tools. While the companies could send their workers for upskilling, it will take time to train.
Sustainability has also become an issue for companies, especially with the implementation of the mandatory packaging reporting (MPR) framework. Although they understand the importance of having this report to reduce the amount of packaging waste, many companies are still unsure how to fulfil their obligations to the MPR.
The continuing port congestion has also been a source of concern for the manufacturing industry, specifically the global supply chain sector. Container shortage had been a significant issue for global shipping, resulting in a massive line of ships waiting to dock and unload, bringing the entire supply chain to a halt.
What is SMF doing to help its members navigate these obstacles?
The SMF has been actively looking for ways to assist businesses in implementing smart manufacturing, such as through webinar sessions where industry experts (discuss) upcoming trends and technology.
The SMF is also leading a national initiative named Manufacturing Alliance Transformation Office (MATO) to help companies solve their challenges in going digital. Since its launch in January 2021, MATO has helped more than 100 companies with their digital challenges. As we recognise the need to upskill the workforce in tandem with digital transformation, MATO is partnering with the Industry 4.0 Human Capital Initiative (IHCI) to equip companies with people management and job redesign skills required for successful digital transformation.
The SMF is also leading an initiative with National Environment Agency to help companies with their sustainability challenges in reducing packaging waste and fulfilling their MPR obligations. This programme, called Packaging Partnership Programme, and launched in March 2021, organised webinars and workshops to help companies with their sustainability challenges and handhold companies to fulfil their MPR obligations. The programme now has around 280 companies signed up for the programme.
What support is available to companies that are unable to innovate and push beyond traditional practices?
The SMF believes that it is possible for companies to push beyond traditional practices and innovate. Therefore, we have MATO to help them think beyond and find ways to innovate. The SMF organises smart manufacturing factory tours to show them the capabilities these factories achieve after transformation and the possibility of transformation. In addition, the SMF showcases various SMF members who have innovated through video profiling, to show that it is possible to innovate – they just need to make the first step.
Were there any initiatives SMF took on that were unusual, perhaps not something SMF would do if wasn’t for the pandemic and its impact on some manufacturing businesses?
The SMF has set up a fund called the SMF ACTS! STEER Fund to offer targeted support for companies to build up their capabilities through business model innovation, digitalisation, and reskill and upskill workers through training. The Fund is part of the SG Together Enhancing Enterprise Resilience (STEER) Programme by the Singapore government to help support companies that have been affected by Covid-19.
The SMF has also launched the Testing, Tracing, Vaccination (TTV) programme to help companies get their workforce to return to work safely and adapt to the new norm. The programme has set up an in-house pre-event testing centre that also provides outbound pre-departure testing, roster routine testing, and conducts training for company representatives to do ART testing for their colleagues. TTV programme also provides ART test kits to SMF members at a preferential rate.
Are there opportunities that the manufacturing community can capitalise on despite the tough climate?
The pandemic has shown how vital digital transformation is for business resilience. Therefore, the manufacturing community should capitalise on Industry 4.0 to reshape business operations. If companies do not know how to, they could approach the MATO team in the SMF to help create stepping stones for them to achieve digital transformation and build their business resilience.
In 2020, the sector expanded for six consecutive months from July to December, and experts have said the manufacturing sector would continue to be a key driver of Singapore’s economic growth in 2021. Can you provide some examples of segments which thrive despite the challenging times?
Biomedical manufacturing industry has continued to thrive during the pandemic due to the substantial increase in global demand for healthcare products.
Precision engineering is another sector that has thrived. As more businesses continue to be digitally transformed, demand for technologically advanced new products and services will continue to rise, necessitating a great deal of precision engineering.
Has the current circumstances led SMF to step up its advocacy work, or communications with government agencies, to develop sustainable remedies for the businesses of manufacturing and manufacturing-related industries in Singapore?
The SMF believes in tripartism between government, employer, and employee. Hence, we have been in close contact with government agencies and the labour movement, such as the National Trade Union Congress, to resolve labour issues for manufacturing companies while ensuring our workforce is gainfully employed and benefitting from the sector. In November 2021, the SMF held a dialogue session with the Ministry of Manpower to address manpower issues our member-companies face. Through such dialogue sessions, we hope our member-companies will have better insight into resolving their manpower issues, thereby benefitting the workforce.
The SMF has also provided government agencies with feedback from our members and worked closely with the government to assist them. Though we have constantly been engaging our members to know what they are going through, we increased the number of engagements during the pandemic to quickly provide their feedback to the government and provide the assistance our members need, such as through the SMF Helps! Telegram group chat. The SMF will transmit help requests to the appropriate government agency for a response. The SMF also has the SME Centre@SMF, one of our associated services working closely with Enterprise Singapore, to assist companies in their grants applications to get the assistance they require quickly.
With some members fretting so much over their business and daily bread, has it become a challenge to engage them the usual way? Did SMF have to come up with different ways to maintain communications and demonstrate its value to members?
Our engagements with members have increased, such as through the SMF Helps! Telegram group chat. Though it is challenging to meet face-to-face, we could now engage members through virtual means. I think it is because of the convenience that digital tools bring that we could engage members better now, without having them put their work down to travel to our premises.
Of course, face-to-face engagements is still highly sought after. So when the measures are relaxed, with safe distancing measurements in place, we will plan networking sessions such as our New Members’ Welcome events to allow our new members to know more of the services the SMF offers and network with fellow members.
