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SPEECH BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE AND INDUSTRY AND EDUCATION AT THE LAUNCH OF THE SUSTAINABLE MANUFACTURING PROGRAMME AT 2.00PM ON
THURSDAY, 30 April 2009 AT INTERCONTINENTAL SINGAPORE BALLROOM 3
Mr Renny Yeo, President, Singapore Manufacturers’ Federation;
Ms Isabella Loh, Chairman, Singapore Environment Council;
Dr Lim Ser Yong, Executive Director, Singapore Institute of Manufacturing Technology;
Distinguished Guests;
Good afternoon.
Introduction
1. I am pleased to join you today for the Launch of the Sustainable Manufacturing Programme.
2. I would like to take this opportunity to commend the three partners - Singapore Manufacturers’ Federation, the Singapore Environment Council (SEC) and the Singapore Institute of Manufacturing Technology (SIMTech) - for this timely pilot collaboration to implement a Sustainable Manufacturing Programme for the industry. This will help to maximise the competitiveness of manufacturers in Singapore, especially in the current challenging economic conditions.
3. Sustainable Manufacturing is more than just the latest green buzzword. Companies worldwide are realising that earth-saving ways are no longer a trade-off to cost considerations. Potentially, it enhances a company’s bottomline as there will be lower operating costs through less waste and better energy efficiency. Such green efforts also enhance the company’s image. Sustainable Manufacturing is the way forward to compete in the global market.
Collaboration Opportunities between Manufacturing and Environmental companies
4. With the increasing global focus on climate change and environmental issues, manufacturing companies face constant challenge to meet stringent criteria to be more environmentally sustainable. On the other hand, the decrease in worldwide demand for consumer goods has resulted in lower manufacturing outputs though operating costs remain high.
5. This presents collaboration opportunities between environmental services companies and manufacturing companies to use environmental technology solutions to alleviate cost pressures.
6. Singapore has some 280 companies in the environmental sector contributing a value-add of $980 million in 2007[1]. These companies have the capability to develop innovative solutions in energy efficiency, waste minimisation and the conversion of waste stream into useful products.
7. I know of at least two successful collaborations of sustainable manufacturing in Singapore. The first is between Winrigo and Nanyang Optical. Winrigo is an environmental solutions provider and plastic recycler. It developed a special polymer formula that allows recycled plastics to be made into spectacle frames for Nanyang Optical. Winrigo also recycles the used disposable contact lens packaging into spectacle cases.
8. The second collaboration is between waste oil recycler, Alpha Synovate and curry-puff retailer, Old Chang Kee. Instead of disposing its used cooking oil, Old Chang Kee now sends it to Alpha Synovate who converts it to biodiesel, which is then used to power Old Chang Kee’s mobile shops.
9. Sustainable Manufacturing will have a global impact and it is important that our manufacturers understand how to leverage on it.
Impact of the Sustainable Manufacturing Programme
10. The benefits of the Sustainable Manufacturing Programme are three-fold.
11. First, companies will be able to reduce operating costs such as utility cost through efficiency and recycling. As a comparison, the savings in utility costs far outweigh retrenchments as utility costs ranges from $120,000 to $200,000 per month, depending on the size of the factory.
12. Secondly, the environmental technologies developed will be a showcase and reference site for exports to overseas markets. These environmentally friendly solutions by the manufacturers and environmental companies can also be adopted by other sectors, such as electronics and lifestyle.
13. Lastly, the programme can result in reduced carbon emissions for Singapore. With the emphasis to reduce energy consumption and carbon emissions, this programme will enable carbon credits aggregation through the Singapore Manufacturers Federation (SMa).
Conclusion
14. The Sustainable Manufacturing Programme will kick off with a pilot project in the food manufacturing sector. It will bring together all the players of the food manufacturing value chain. They include the food manufacturers, packaging companies, F&B retailers, environmental technologists and waste management providers. The successful implementation of the project will further enhance the competitiveness and branding of our food manufacturers in the global arena.
15. I would like to thank SMa, SEC and SIMTech for taking the lead in launching the Sustainable Manufacturing Programme with the food manufacturing sector. Beyond food manufacturing, I urge other manufacturing sectors such as electronics, precision engineering, chemicals and logistics to examine the needs of their respective sectors and actively participate in the programme.
16. I wish all of you a fruitful and engaging session today.
17. Thank you.
[1] Source: Singapore Department of Statistics, 2007