S'pore to double manufacturing output
S'pore to double manufacturing output
Associated Press, Singapore
Singapore says it hopes to double manufacturing output in 15
years even as regional competition heats up from lower-cost
rivals such as fast-growing China and India.
Manufacturing plays a significant part in Singapore's economy,
accounting for about a quarter of gross domestic product -
equivalent last year to about S$40 billion (US$23.5 billion; euro
19 billion).
"The Economic Development Board is quite confident that in 15
years we can double our manufacturing output," Prime Minister Lee
Hsien Loong said late Sunday in his first major policy speech
since he was sworn in as leader Aug. 12.
Suan Teck Kin, an economist at Overseas-Chinese Banking Corp.,
said Monday Singapore would be able to meet the target as long as
the pace of overall growth keeps up.
"I think it's realistic because, I think, going forward the
main driver is going to be the pharmaceuticals and the biomed,"
he said, referring to the government's efforts to cultivate a
fledgling biomedical industry.
Manufacturing, which is dominated by high-tech products,
accounts for one job in five in Singapore.
Lee said by concentrating on attracting so-called higher-end
work - which uses larger amounts of capital relative to labor -
the manufacturing sector could continue to grow.
Some observers, however, have suggested that Singapore is
already struggling to retain its manufacturing base as
multinationals opt to set up operations in lower-cost countries,
especially China.
In reply officials have said Singapore should aim to balance
its admittedly higher costs with the country's greater
efficiency, stability and superior infrastructure.
Singapore's administration has also argued that it is
important to keep a manufacturing capability to support the tiny
country's defense needs.
In his three-hour address, Lee painted a positive picture of
the economic outlook, saying although continued restructuring
would mean some job losses, newer positions would be created.
After several revisions, the government expects growth of 8
percent to 9 percent this year, the best showing in four years.