City state all set to meet the challenges While the logistics business in the Far East has certainly come under strain, Singapore is as well equipped as anywhere in the area to surmount the difficulties K


elvin Wong, executive director, logistics at the Singapore Eco- nomic Development Board – which is the


lead government agency tasked with planning and executing strategies for shaping the future of the country’s economy – explains: “Singapore is today home to many multinational, Asian and local logistics players and many have continued to do well.” Despite the slowdown in the


global economy, they have grown in tandem, he said, with a “grow- ing base of manufacturers and businesses that are increasingly positioning Singapore as their supply chain con- trol tower for Asia Pacific or even globally”. Wong went on: “To cater to the needs of an


Wong: “complete global


procurement and supply chain infrastructure”


disasters have had a particular impact in Singapore, Wong believes. “There is increasing recognition of the need for supply chains to be more resilient and more secure. “As more companies review


and redesign their supply chains, Singapore has stood out as a trusted and reliable supply chain hub. “Many leading multina-


tional corporations have chosen to locate their regional headquarters and logistics hubs in Singapore. Some of the key factors for choosing Singapore include our politi- cal stability, strong financial


increasingly sophisticated market, many 3pls (third-party logistics service providers) have grown and invested in higher margins, higher skilled specialised logistics services to manage critical spare parts, healthcare/clinical trial sam- ples and also complex production logistics. “With the growing base of headquarters in


Singapore, many leading logistics companies have also grown their supply chain solution capabilities here. Such capabilities allow them to provide closer support to decision-makers in Singapore that are increasingly overseeing Asia Pacific and global supply chains,” he added. Recent disruptions to logistics activities caused by terrorism, political unrest and natural


fundamentals, natural disaster-free environ- ment, strong intellectual property protection and respect for the rule of law,” he said. What is more: “Singapore provides a com-


plete global procurement and supply chain infrastructure – that includes strengths in the vibrant financial sector, strong physical, IT and trade connectivity to Asian markets, an abun- dant availability of supply chain management and procurement talents and a strong base of global and Asia logistics service providers.” With all this in place, the future looks bright


for the nation’s logistics sector, Wong insists. Plus, the rise of Asia in recent decades has brought about a boom in intra-Asia trade, he noted, adding: “This trend looks set to con- tinue as Asia grows from being not simply the manufacturing centre of the world, but also


CAAS takes the lead on e-freight for island state


The Civil Aviation Authority of Singapore (CAAS) has taken a lead role in promoting paperless air freight shipping in the country – the project known as e-freight@Singapore. Only recently, CAAS and the Infocomm Development Authority of Singapore (IDA) selected three consortia compris- ing 37 companies to manage the nation’s paperless air freight processes (ACW, 16 April, p2). These commercial groupings are expected to develop their solutions for a period of up to a


year. By 2013, the consortia will pilot deployment among their members before the solutions are rolled out to the industry no later than 2014. e-freight@Singapore currently includes government agencies such as the IDA, Singapore Cus-


toms, Economic Development Board (EDB) and SPRING Singapore, as well as partners from industry including the Singapore Logistics Association (SLA), Singapore Aircargo Agents’ Associa- tion (SAAA), the International Air Transport Association (IATA), Changi Airport Group (CAG), Singapore Airlines Cargo, SATS and dnata Singapore.


the largest consumer market in the world. “In five years, the manufacturing and supply


chain footprints could shift significantly across Asia,” he added. “Singapore, at the crossroads of intra-Asia trade and as the home base in Asia for many leading global companies, is well posi-


tioned to assist companies in transforming and optimising their supply chains in the region. “New business opportunities will emerge in


Asia and companies can rely on Singapore to respond quickly to these new supply chain needs,” Wong concluded.


➤


7 May 2012


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