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Strategies To Ensure Singapore’s Manufacturing Growth By Minister Chan Chun Sing

Strategies To Ensure Singapore’s Manufacturing Growth By Minister Chan Chun Sing

The manufacturing industry contributes to a fifth of Singapore’s overall economy and it has been forecasted to fall in the coming years. According to flash estimates by the Ministry of Trade and Industry (MTI), manufacturing output grew by 5.5 percent in the last quarter of 2018 compared to 2017, but when compared with the third quarter, output actually fell by 8.7 percent. That being said, Chan Chun Sing, Minister for Trade and Industry has also stated that the manufacturing sector can halt the forecasted industry slowdown with the right approach.

According to Minister Chan, as the sector evolves, products manufactured will also require greater skills to produce because the industry as a whole is shifting towards the production of high-quality products at lower volumes. Thus, investing in research and development and increasing the number of foreign investors could be means to drive the growth of the industry. This can be achieved by improving Singapore’s intellectual property protection regime, which assures investors that they will be protected. To ensure greater quality products, the method in which quality assurance is conducted should also be improved and a skilled labour force is also required for expansion of the manufacturing industry. By acquiring better skill sets, employees can perform highly specialised tasks and achieve greater overall productivity. As such, systems should be put in place to produce a highly trained workforce. Furthermore, an engaging company culture will help to retain talents in the industry.

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Manufacturing And Processing To Be Driving Force For Vietnam’s 2018 Trade Surplus

Manufacturing And Processing To Be Driving Force For Vietnam’s 2018 Trade Surplus

In accordance to Vietnam’s Cong Thuong newspaper, the country’s export revenues in 2018 is projected to reach a value of US$237 – 239 billion with an expected 10 – 12 percent year on year increment, while FDI investments reached US$127.84 billion, increasing by 14.6 percent. This is mainly attributed to the growth in the manufacturing and processing industry which constitutes a majority of the country’s exports, with smartphones comprising the largest export pool.

In March, Vietnam’s export turnover reached a high of over US$21 billion while in August, export turnover peaked at US$23.48 billion. Of which, US$5 billion were from smart phone exports over those two months.

The local government is also looking to reduce import tariffs to 0 percent due to free trade agreement commitments and this has increased the competitiveness of Vietnamese products, especially when coupled with the improvements in the local business environment. Also, while the US-China trade war has yet to be resolved, the Ministry of Industry And Trade will be monitoring it to reduce its impacts on Vietnam’s trade activities.

On the whole, Vietnam witnessed a trade surplus of US$5.39 billion in the January – September period, of which the FDI sector contributed for a trade surplus of US$23.65 billion, and domestic enterprises constituted a trade deficit of US$18.26 billion.

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