Singapore +1: Starting from Singapore, explore endless possibilities-FOZL

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Strategic Advantages of Manufacturing in Southeast Asia

As a hub connecting the global trade network, Southeast Asia boasts a diversified manufacturing ecosystem, a thriving labor and consumer market, and a long-term growth trend in manufacturing exports. Southeast Asia is located at the intersection of major trade routes, with US$3.4 trillion in global trade flowing through annually. ASEAN's rich network of free trade agreements includes RCEP, the largest multilateral free trade agreement network covering 30% of the global economy. Southeast Asia is competitive in automotive, electronics, machinery, textiles and apparel, chemicals, and metals, and also has good development prospects in biomedicine, consumer goods, plant protein, and electric vehicles. The region has a total population of 650 million, with over 61% under the age of 35, making it the world's third-largest labor producer after China and India. From 2015 to 2019, the average growth rate of manufacturing exports in Southeast Asia remained at 5% (world average: 3%).

Singapore Manufacturing 2030 Vision

As Southeast Asia's most globally favored regional business center, Singapore has always regarded manufacturing as a key economic growth engine. According to the Singapore Department of Statistics' annual report, manufacturing accounts for 22% of Singapore's GDP. In 2021, Singapore's manufacturing output grew by 13.2% year-on-year, the fastest growth since 2010. Singapore is working to upgrade its manufacturing base and deepen its partner ecosystem, bringing together advantages in industry, talent, and policy. Singapore aims to become a global center for advanced manufacturing, innovation, and talent, striving for 50% growth in the next 10 years and ensuring that manufacturing maintains its contribution to Singapore's GDP at around 20%.

Southeast Asia Manufacturing Alliance to Support You

In 2021, the Singapore Economic Development Board (EDB), Enterprise Singapore, and private sector strategic partners jointly established the Southeast Asia Manufacturing Alliance (SMA) to provide a "Singapore +1" strategy for manufacturing companies looking to expand into the Southeast Asian market. Currently, the alliance covers more than 10 industrial parks in Indonesia, Malaysia, and Vietnam, including Nusajaya Tech Park (Malaysia), Batamindo Industrial Park (Indonesia), Bintan Industrial Estate (Indonesia), and Vietnam Singapore Industrial Park.

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 within the alliance, providing customized supply resources and helping companies find suppliers that match manufacturing or Industry 4.0-related solutions. Strategic partners, including CapitaLand (Malaysia), Grant Thornton (Indonesia), and Sembcorp (Vietnam), will provide one-stop services and related preferential policies to reduce the risks of companies' initial setup.