While Singapore cannot compete on cost and sheer production volume, it has become a hub for high-value, knowledge-intensive manufacturing industries such as semiconductors, biomedical, consumer electronics, and precision engineering.

With an ambitious target to boost Singapore’s manufacturing sector’s value-add by 50% by 2030, the government takes an active approach in strengthening manpower pipeline, improving established infrastructure, and offering tax incentives and grants.

Industry 4.0 initiatives, for instance, encourage manufacturers to integrate digital technologies like Industrial Internet of Things (IIoT) to streamline processes, reduce costs, and address labour shortages. Programmes like the Productivity Solutions Grant and the Industry 4.0 Human Capital Initiative offer companies resources to adopt new technologies and upskill their workforce.

These efforts increase support for promising local enterprises, which in turn help the city-state draw notable investments from manufacturers who wish to tap on its political stability, vibrant ecosystem, established air and seaports, and highly skilled workforce.

For instance, biopharmaceutical multinational AstraZeneca announced a $1.5 billion manufacturing facility in Singapore for antibody drug conjugates in May, tapping onto Singapore’s reputation in complex manufacturing. Expected to be operationally ready by 2029, the company’s first end-to-end facility will be supported by the Singapore Economic Development Board.

In the wafer fab industry, silicon-wafer producer Siltronic doubled its manufacturing capacity with the launch of its S$2.9 billion wafer plant at Tampines Wafer Fab Park. With a total floor area of 150,000 sq m, it will be able to churn out 100,000 wafers a month by end-2024. The firm has set its sights on its new modern and cost-efficient facility being among the world’s most advanced wafer fabs.

As manufacturing companies re-evaluate their operations to meet fast-approaching ESG deadlines, Singapore’s commitment to achieving net zero emissions by 2050 further strengthens its appeal as a destination market.

By 2030, 80% of new buildings in Singapore, including industrial buildings, are expected to be rated Super Low Energy.

Up-and-coming industrial estates are leveraging sustainability features to help manufacturers move the needle on their ESG targets, while meeting the need for uninterrupted power.

While available land may be limited, Singapore’s location means manufacturers stand to gain access to other key manufacturing markets in the region.

For instance, AstraZeneca’s facility in Singapore will support its plans to expand its market presence in Asia Pacific markets like Indonesia, China and Japan.

The Southeast Asia Manufacturing Alliance is a partnership between Singapore’s public and private sector players to develop a strong network of industrial parks across Southeast Asia.

Participating companies will be able to leverage Singapore’s strengths in global connectivity and innovation ecosystems, while expanding their production bases across Southeast Asia through the manufacturing strengths of Indonesia, Malaysia, and Vietnam.