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Singapore’s edge as a manufacturing hub

Singapore is in an advantageous position in spite of the harsh external conditions. By Andrew Ong.

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Andrew Ong

Despite an expected slow recovery from the recession and the rise of business costs, it seems manufacturing in Singapore remains a vibrant and relevant industry. This article aims to present Singapore’s edge as a manufacturing hub that has seen companies such as Abbott, Neste Oil and Illumina investing here.

As an export-dependent economy, Singapore had been the first country in Asia to slump in a recession. Now our manufacturers are feeling the heat especially with the rising cost of running their businesses that have been eroding their competitiveness.

It is not wrong to say that manufacturers are looking into more viable means of sustaining their businesses such as moving to cheaper production hubs like Vietnam and China. However, the truth remains that Singapore has strong fundamentals that still makes her an attractive location for manufacturers.

IP protected location

Besides Singapore’s reputation as one of the best connected countries in the world, with all the sea, air and telecommunications links needed for business, it has also gained recognition for being an Intellectual Property (IP) rights protective country.

For the past two years, Singapore has been voted the most-IP protective country in Asia by the Political & Economic Research Consultancy (Perc). Like Aalst, a local chocolate manufacturer, many who have located their bases in Singapore have found it easier to maximize the value of their corporate IP here.  

CIBA VISION,  with divisional HQ in the US and a Swiss parent company NOVARTIS, is a global leader in the research, development and manufacturing of contact lenses and lens care products. They chose Singapore to set up their manufacturing plant for their DAILIES disposable contact lens in 2005.

Mr Mark Chua, General Manager for CIBA VISION’s DAILIES & Distribution Asian Supply Chain explained. “Despite having other plants in Malaysia and Batam with cheaper alternatives,” he told me, “we chose Singapore to manufacture this particular product because of our long-term strategy in taking advantage of Singapore’s IP protection environment and technology base.”

Their DAILIES are produced by high technology automated machines that dispenses what they call “lightstream technology” that gives its lens precise accuracy. Because they are fully automated without using any manual labour, this provides thorough cleanliness for top quality products. 

With manufacturing performances no longer solely dependent on physical assets alone, Singapore still gets a high vote of confidence from high-tech manufacturers in this new era where growing and managing intangible assets, such as brands, inventions and processes, are critical in achieving the equilibrium of long-term sustainability for their businesses.

Talented and skilled workforce

Makino Asia,  a leading manufacturer of advanced machine tools has its manufacturing headquarters in Singapore where its office is fully integrated with R&D and engineering production. It produces S- and E-series Milling Machines, which are sold worldwide, as well as the CNC Electrical Discharge Machines (EDM) and CNC Wirecut Machines.

As such, a skilled workforce is essential in meeting their clients’ every need by providing high-quality engineering solutions, and reliable technical support. This remains one of the main factors why Singapore has been an ideal location for Makino Asia.

“In Singapore, we are well-positioned to access a three billion population market from India to China in a short time, due to its excellent logistics infrastructure. Language and communication are not a problem with the multicultural workforce,” said Dr Moh Chong Tau, CEO and President of the company (picture right). “There are no limitations to getting the right talent here, regardless of where they come from. This makes doing business here fast and easy.”

Despite labour costs in Singapore being generally more costly than in China and India, their logistics and administrative costs for such operations can add up to as much as three times more than Singapore. That is why Dr Moh is confident that Singapore will continue to play a pivotal role in Makino’s operations.

Moving ahead

Manufacturing in Singapore is moving rapidly up the value chain towards increasingly knowledge-intensive and innovation-driven activities. This transition has been made possible with Singapore’s vibrant economic eco-system of complementary activities – from manufacturing, R&D and innovation, and supply chain management, to shared services and intellectual property management.

Manufacturers also benefit much from Singapore’s network of trade agreements and linkages, such as Free Trade Agreements (FTAs).  The most significant agreement recently signed was with China. This FTA would allow more growth and integration between both countries, and provide freer movement and more economic benefit for our manufacturers.

Moving forward, Singapore is positioning itself for the future. Apart from its strategic location, IP protected environment and availability of skilled and talented workforce from a well-educated population, Singapore’s political stability and security in comparison to our neighbouring countries are conditions that favour business sustainability and profitability.

With such attributes, it only stands to reason that Singapore is in an advantageous position in spite of the harsh external conditions. Manufacturing in Singapore, though costly, might pay off greater dividends in the long run by tapping on the island’s strong and tested fundamentals when the economy bounces back.

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Indonesia

Miss Universe cuts ties with Indonesia chapter after harassment allegations

The Miss Universe Organization severs ties with Indonesia franchise due to harassment claims. Malaysia edition canceled.

Women allege body checks before pageant. Investigation launched. Safety prioritized.

Indonesia winner to compete in November finale. Height requirement controversy.

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WASHINGTON, UNITED STATES — The Miss Universe Organization has cut ties with its Indonesia franchise, it announced days after allegations of sexual harassment, and will cancel an upcoming Malaysia edition.

In the complaint, more than a half dozen women said all 30 finalists for Miss Universe Indonesia were unexpectedly asked to strip for a supposed body check for scars and cellulite two days before the pageant’s crowning ceremony in Jakarta.

Their lawyer said Tuesday that five of the women had their pictures taken.

“In light of what we have learned took place at Miss Universe Indonesia, it has become clear that this franchise has not lived up to our brand standards, ethics, or expectations,” the US-based Miss Universe Organization posted Saturday night on social media site X, formerly known as Twitter.

It said that it had “decided to terminate the relationship with its current franchise in Indonesia, PT Capella Swastika Karya, and its National Director, Poppy Capella.”

It thanked the contestants for their bravery in coming forward and added that “providing a safe place for women” was the organization’s priority.

Jakarta police spokesman Trunoyudo Wisnu Andiko said Tuesday that an investigation into the women’s complaint has been launched.

The Indonesia franchise also holds the license for Miss Universe Malaysia, where there will no longer be a competition this year, according to the New York-based parent organizer.

In a lengthy statement posted to Instagram, Indonesia franchise director Capella denied involvement in any body checks.

“I, as the National Director and as the owner of the Miss Universe Indonesia license, was not involved at all and have never known, ordered, requested or allowed anyone who played a role and participated in the process of organizing Miss Universe Indonesia 2023 to commit violence or sexual harassment through body checking,” she wrote.

She added that she is against “any form of violence or sexual harassment.”

The Jakarta competition was held from 29 July to 3 August to choose Indonesia’s representative to the 2023 Miss Universe contest, and was won by Fabienne Nicole Groeneveld.

Miss Universe said it would make arrangements for her to compete in the finale, scheduled for November in El Salvador.

This year’s Indonesia pageant also came under fire for announcing a “significant change in this (year’s) competition guidelines” with the elimination of its minimum height requirement after it had crowned a winner.

In its statement, the Miss Universe Organization said it wanted to “make it extremely clear that there are no measurements such as height, weight, or body dimensions required to join a Miss Universe pageant worldwide.”

— AFP

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Malaysia

A Perodua service centre in Kuantan, Malaysia went viral for its strict dress code, Perodua responds

A dress code for vehicle servicing? A Malaysian car brand’s service centre dress code signage has puzzled netizens, raising queries about the need for attire rules during a routine service.

The manufacturer responded with an official statement after a flurry of comments, seeking to clarify and apologize.

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MALAYSIA: A dress code signage positioned at a service centre belonging to a prominent Malaysian car brand has sparked bewilderment among Malaysian netizens, who question the necessity of adhering to attire guidelines for a simple vehicle servicing.

The signage explicitly delineates clothing items that are deemed unsuitable, including sleeveless tops, short skirts, abbreviated pants, and distressed jeans.

The car manufacturer swiftly found itself flooded with comments from both inquisitive and irked Malaysian netizens. This surge in online activity prompted the company to issue an official statement aimed at clarifying the situation and extending an apology.

In a post that gained significant traction on the social media platform, politician Quek Tai Seong of Pahang State, Malaysia, shared an image to Facebook on Monday (7 Aug).

The image showcased a dress code sign prominently displayed at a Perodua Service Centre in Kuantan. Within the post, Quek posed the question: “Is this dress code applicable nationwide, or is it specific to this branch?”

The signage reads, “All customers dealing with Perodua Service Kuantan 1, Semambu, are requested to dress modestly and appropriately.”

Adding visual clarity to these guidelines, the sign features illustrative graphics that explicitly outline clothing items deemed unacceptable, including sleeveless tops, short skirts, short pants, and ripped jeans.

Delineating the specifics of the dress code, the signage stipulates that male visitors are expected to don shirts accompanied by neckties, opt for long pants, and wear closed shoes.

Conversely, female visitors are advised to don long-sleeved shirts, full-length skirts, and closed-toe footwear.

Perodua’s dress code sparks online uproar

Following the rapid spread of the post, Perodua’s official Facebook page found itself inundated with comments from both intrigued and frustrated Malaysian netizens, all seeking clarifications about the newly surfaced dress code policy.

Amidst the flurry of comments, numerous incensed netizens posed pointed questions such as, “What is the rationale behind the introduction of such regulations by the management? We demand an explanation.”

Another netizen expressed their dissatisfaction, arguing against the necessity of the rule and urging Perodua to take inspiration from the practices of other 4S (Sales, Service, Spare Parts, and Survey) automotive dealerships.

A concerned Facebook user chimed in, advocating for a more lenient stance, asserting that attempting to dictate customers’ clothing choices might not be in the company’s best interest.

Someone also commented in an angry tone, “Oi what is this? Going there for car service, not interview or working, right.”

As the discourse unfolded, it became evident that while some inquiries carried genuine weight, others chose to inject humor into the situation, playfully remarking, “If I wanted to buy a Myvi, I should buy or rent a formal attire first.”

“I sell economy rice at a hawker centre, I have never worn a long sleeve shirt and a tie… I guess I will not buy a Perodua car then.”

“I guess they will not serve those who wear short pants.”

Perodua addresses dress code controversy

As reported by Chinese media outlet Sin Chew Daily News, the manager of Kuantan’s Perodua Service Centre had acknowledged that the images on the dress code signage were misleading.

In response, the manager divulged that discussions had transpired with the head office, leading to the prompt removal of the signage to prevent any further misconceptions.

The manager clarifies, “We do encourage visitors to adhere to the dress etiquette, but we won’t go to the extent of restricting their choice of attire.”

He also revealed that currently, no complaints have been directly received from the public.

However, feedback from certain customers was relayed through Perodua’s agents.

Perodua also released an official statement by chief operating officer JK Rozman Jaffar on Wednesday (9 Aug) regarding the dress code on their official Facebook page.

The statement stated the dress code etiquette is not aligned with their official guidelines and they are currently conducting an official investigation on the matter followed by corrective measures to avoid the same incident from happening.

Perodua also extends its apologies for any inconvenience caused.

 

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