Singapore, Malaysia, and Indonesia Come Together for Regional Supply Chain and Manufacturing
Singapore is fortifying its regional bonds with Malaysia and Indonesia to harness the evolving global manufacturing landscape. Jacqueline Poh, the Managing Director of Singapore’s Economic Development Board (EDB), unveiled this strategic alliance during a prominent LSEG and Reuters Newsmaker event. The three countries will build a regional supply chain together.
A Vision of Manufacturing Excellence
This groundbreaking collaboration is centred around establishing a robust manufacturing stronghold across Singapore, the southern Malaysian state of Johor, and Indonesia’s nearby Riau Islands. Singapore’s overarching aim is to leverage the burgeoning investments pouring in from India, China, and Southeast Asia in recent years.
Jacqueline Poh underlined the pivotal role of regional supply chains in this endeavour, emphasising, “We’re intensifying our efforts in regional supply chains, envisioning a formidable production base when combined with Malaysia and Indonesia as Southeast Asia.”
Bolstering Singapore’s Global Standing Amidst Competition
This regional supply chain initiative not only bolsters Singapore’s position as a global financial hub but also aligns seamlessly with the ongoing shift of global wealth towards Asia.
However, the competitive landscape remains fierce as businesses and societies strive to recover from the enduring impacts of the COVID-19 pandemic. Thus, Poh cautioned that the EDB anticipates a more restrained year for investments in 2023. This follows a record-breaking 2022 when Singapore secured a staggering S$22.5 billion ($16.5 billion) in fixed asset investments. Over 66% of these investments were channelled into electronics manufacturing projects, primarily driven by the semiconductor supercycle.
A Semiconductor and Green Finance Powerhouse
Singapore currently commands an 11% share of the global semiconductor market. Furthermore, the city-state produces 20% of the world’s semiconductor equipment.
In addition to its traditional strengths in electronics, Singapore is diversifying its focus by channelling investments into “green finance” and renewable energy sectors, including solar, wind, and hydropower.
A Sanctuary for the Wealthy
Singapore is also emerging as a haven for the ultra-wealthy, attracting individuals seeking to establish family offices to manage their assets, protect against political instability, and mitigate economic uncertainties in their home countries. Data from the Monetary Authority of Singapore (MAS) revealed a remarkable surge in single-family offices, skyrocketing from 400 at the end of 2020 to 1,100 by the end of 2022.
To cater to this burgeoning trend, Singapore has fortified its commitment to cultivating family offices by enhancing educational programs focused on asset management and financial planning. Jacqueline Poh emphasised their collaboration with the Wealth Management Institute at MAS, where a new program equips family offices with the knowledge to deploy their capital effectively.
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Singapore’s proactive approach to regional supply chain and manufacturing, diversification into green finance, and appeal to the ultra-wealthy through family offices align with the city-state’s evolving role in the ever-changing global economic landscape. As you navigate this dynamic landscape, remember that 3E Accounting is your steadfast partner. Contact us for expert solutions to empower your success.