The "Singapore + 1" model integrates Singapore's global business center and innovative ecological advantages, as well as the manufacturing advantages of Malaysia, Indonesia, and Vietnam. By combining the complementary advantages of Singapore and other regions in Southeast Asia, it achieves a 1+1>2 effect. Assist manufacturing companies to quickly expand regional markets, build diversified supply chains, and create a new regional pattern.
Strategic advantages of manufacturing in Southeast Asia
As a hub connecting global trade networks, Southeast Asia has a diversified manufacturing ecology, booming labor and consumer markets, and has a long-term growth trend in manufacturing exports. Southeast Asia is located at the intersection of major trade routes, with annual global trade flows of 3.4 trillion. ASEAN’s rich free trade agreement network includes the largest multilateral free trade agreement network RCEP covering 30% of the entire economy; Southeast Asia is in It is competitive in automobiles, electronics, machinery, textiles and clothing, chemicals, metals and other fields. In addition, it has good development prospects in biomedicine, consumer goods, plant proteins, electric vehicles and other fields; the total population of Southeast Asia is 650 million, of which more than 61 % are under the age of 35. It is the third largest labor force producer in the world after China and India; the average growth rate of Southeast Asia's manufacturing exports from 2015 to 2019 was maintained at 5% (the world average is 3%).
Singapore Manufacturing Vision 2030
As the most globally favored regional business center in Southeast Asia, Singapore has always regarded manufacturing as an important engine of economic growth. According to the Singapore Department of Statistics' annual report, Singapore's manufacturing industry accounts for 22% of GDP. In 2021, Singapore's manufacturing output increased by 13.2% year-on-year, the fastest growth since 2010. Singapore is working hard to upgrade its manufacturing base and deepen its partner ecosystem, pooling its advantages in industry, talent, and policies. It is committed to building Singapore into a global business, innovation and talent center for advanced manufacturing, and will continue to strive for 50% growth in the next 10 years. , and ensure that the manufacturing industry's contribution to Singapore's GDP remains at around 20%.
Southeast Asia Manufacturing Alliance helps you
In 2021, Singapore's Economic Development Board EDB, Enterprise Singapore and private company strategic partners jointly established the Southeast Asia Manufacturing Alliance (SMA) to provide "Singapore + 1" for manufacturing companies interested in expanding the Southeast Asian regional market. "strategy. Currently, the alliance has covered more than 10 industrial parks in Indonesia, Malaysia and Vietnam, including Nusajaya Technology Park in Malaysia, Batam Indu Industrial Park in Indonesia, Bintan Industrial Zone in Indonesia, and Singapore Industrial Park in Vietnam.
After joining the alliance, the Singapore Economic Development Board will provide funding of up to S$1.5 million for eligible R&D and innovation activities implemented in Singapore; Enterprise Singapore will provide one-on-one assistance to partner companies in the alliance, providing Customized supply resources and help companies obtain suppliers that match manufacturing or Industry 4.0 related solutions; strategic partners including CapitaLand (Malaysia), Grant Investment (Indonesia) and Sembcorp (Vietnam) will provide a One-stop services and related preferential policies to reduce the risks of early establishment of enterprises.
Redirected from:https://www.edb.gov.sg/cn/insights/sg-plus-1.html