Rethinking supply chain strategies? Tap into Singapore

Companies can take advantage of the SG+ twinning model, a study said.

Manufacturing companies wishing to optimize their supply chains should take advantage of opportunities provided by Singapore, EY said in a study.

According to a study titled “ Investing in Southeast Asia: Reimagining manufacturing and supply chains,” one of these opportunities lies in Singapore’s SG+ twinning model, a joint initiative of the Singapore Economic Development Board, Enterprise Singapore and private sector companies.

The model allows international manufacturers “​​to leverage the business advantages of setting up dual production locations in the country and its closest neighbours: Johor in Malaysia; and the Batam, Bintan and Karimun islands in Indonesia.”

“This will allow them to launch synergistic manufacturing bases, diversify supply chains and expand businesses in SEA,” the study added.

Overall, the initiative can help “manufacturers build more resilient and efficient supply chain,” Atul Chandna, EY Asia-Pacific supply chain leader, said.

EY also cited Singapore for investing in its port infrastructure and terminal development through the new Tuas port, which is expected to ramp up the country’s cargo capacity and improve productivity to support the supply chain in the region.

The study also said Singapore is also a leader in the health care equipment, electronic manufacturing services (EMS), and agritech sectors.

In 2020, Singapore received a significant portion of agrifood tech-related investments. Meanwhile, six of the world's top 10 EMS companies are also present in Singapore.

On the healthcare equipment market, EY said Singapore has a “favourable business environment, strong intellectual property laws, an expansive research network and incentives,” which companies can take advantage of.