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Future of manufacturing lies 
in utilising digital environment

SINGAPORE — With manufacturing ­accounting for 18 per cent of Singapore’s Gross Domestic Product, the industry must evolve to keep pace with the new digital environment, and when that happens, so will logistics, pointed out Dr Vivian Balakrishnan today (Oct 22)

SINGAPORE — With manufacturing ­accounting for 18 per cent of Singapore’s Gross Domestic Product, the industry must evolve to keep pace with the new digital environment, and when that happens, so will logistics, pointed out Dr Vivian Balakrishnan today (Oct 22)

The future of manufacturing in Singa­pore will depend on the decisions and investments made into manufacturing technologies of the ­future, the Minister for Foreign Affairs and Minister-in-charge of the Smart Nation Initiative said at his opening speech at the McKinsey Innovation 
Forum.

“If we don’t get on to the next wave, you know that manufacturing will fall. But it’s not just about robots and making them more efficient, we know that there’s also a revolution in additive manufacturing, 3D printing. It means the end of the age of mass production, to be replaced by the age of mass customisation.”

Governments will also face the challenge of creating good jobs as middle class, white collar jobs face the risk of being wiped out by automation.

“If you don’t have something unique and valuable to bring to the table, if you are doing middle class, median, white collar jobs … it will be wiped out by computers and robots. It’s going to be very disconcerting.”

After his speech, Dr Balakrishnan participated in a panel discussion on digital leadership together with ­Microsoft Singapore Managing ­Director Jessica Tan, Singapore Post Group CEO Dr Wolfgang Baier, Singtel Group Digital Life CEO Samba ­Natarajan and Dr Michael Gryseels, senior partner at McKinsey & Co.

There will be three layers in how the government steers the country through the digital revolution going forward, said Dr Balakrishnan in the discussion.

At the basic level, next-generation infrastructure has to be laid, such as fibre in every home. Then, the software, or human capability, has to be developed.

“Skills, rather than paper qualifications. What can you do? Can you operate these networks? … So, SkillsFuture, for instance, (and) trying to transform our education system, trying to transform our health 
system.”

At the final level, the business eco-system has to attract smart investors, he pointed out.

“We’re not short of money, but we are short of smart money. That’s the key difference between Silicon Valley and anywhere else that’s trying to pretend to be a Smart Nation. Because smart money is money that’s connected to someone who’s been there, ­understands the technology, who’s able to mentor the startups and who has access to technology.

“Silicon Valley has a unique combination of academia, industry, smart money. We need to build up that business ecosystem,” he concluded.

As for companies, said Microsoft’s Ms Tan, they have to not just think about the digital age, but specific ­areas within that, keeping in mind a mobile and cloud first world.

Companies also needed to act more like startups, and constantly adapt, pointed out Dr Gryseels.

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