Singapore manufacturers fight outdated image to attract workers

The sector grew 12.5% in the second quarter, driven by AI-related demand.

Singapore’s manufacturing sector must shed its traditional factory image and offer clearer career paths to attract local workers as it seeks to expand by 50% by 2030, according to the Singapore Manufacturing Federation (SMF).

“As Singapore’s manufacturing sector continues to grow, driven by advances in artificial intelligence (AI) and demand for advanced technologies, the key challenge will be ensuring we have a pipeline of skilled talent to support that growth,” SMF CEO Wayne Yap said in an emailed reply to questions.

Yap said manufacturers must show prospective workers how technology is changing factory jobs whilst offering better training, career progression, flexible working arrangements, and employee wellbeing support.

Manufacturing output grew 12.5% year on year in the second quarter, accelerating from 7.3% in the previous quarter, the Ministry of Trade and Industry said in August. Electronics and precision engineering led the expansion, supported by strong AI-related demand.

Minister of State for Trade and Industry Gan Siow Huang said in January that AI, advanced robotics, and digitalisation would change the skills factories require, making worker training essential to maintaining competitiveness.

The government introduced an enhanced Workfare Skills Support program in January to help eligible lower-wage workers undertake longer-term training and improve their job prospects.

SMF's Advanced Manufacturing Training Academy has developed more than 80 training programmes with industry and education partners, training more than 2,000 participants.

Yap said skills in AI, automation, advanced engineering, and digital technology would become increasingly important to Singapore's manufacturing competitiveness.

He said manufacturers were willing to adopt AI but faced obstacles including costs, limited awareness, and uncertainty about implementation.

Singapore's manufacturing sector must also become more resilient to geopolitical tensions, supply-chain disruptions, and changing customer demand to achieve its 2030 ambitions, Yap said.

“Ultimately, Singapore should remain a place where manufacturers can innovate, scale and respond to change with confidence,” he said. “The sector’s ability to combine productivity with resilience, and technology with human capability, will be central to achieving that outcome.”

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