Logistics sector is seen to generate yearly VA growth of $6.9b by 2025: Gov't
This will be through efforts of Industry Transformation Maps.
The logistics sector is expected to post an annual value-added (VA) growth of 2% to $6.9b by 2025 from the $6.2b annual VA reported in 2020 as the government aimed to place Singapore as a world-class logistics hub in Asia.
During the Industrial Transformation Asia-Pacific 2022 (ITAP), Deputy Prime Minister and Coordinating Minister for Economic Policies Heng Swee Keat introduced the strengthened Industry Transformation Maps (ITM) for five clusters, including the logistics sector.
In 2020, the industry hired 85,000 employees but through ITM efforts, it will introduce 2,000 more jobs by 2025.
Part of the strategy of the ITM for this sector is to "attract new investments and transform warehouse operations."
To do this, Singapore will work with firms to attract and anchor best-in-class warehouse operations that will set a new benchmark for operations.
For instance, DB Schenker’s next-generation warehouse in Singapore, has state-of-the-art warehouse management systems.
The Economic Development Board and EnterpriseSingapore are seeking to onboard 75 warehouses to the goDCE distribution centre excellence assessment framework by 2025.
The goDCE programme by the Centre of Innovation for Supply Chain Management at Republic Polytechnic and funded by SkillsFuture Singapore, evaluates firms on their warehouse processes, identifies gaps, and advises productivity and innovation solutions.
"It will also provide support to implement the proposed solutions and capability building through project-based training for employees," read the media release from ITAP.
Boost productivity via digitisation
Also included in the strategy is digitisation which will enhance logistics companies' productivity, which will also be cost-effective.
Under the revamped Logistics ITM, agencies seek to push at least one digital solution to 40% of small and micro firms.
The government said it will work with Trade Associations and Chambers to encourage digitisation amongst firms.
It suggested that firms can use the container tracking system to boost operational efficiency and use applications such as trailer sharing to optimise resources.
It was referring to the Container Depot and Logistics Association's project that enables "container haulage companies to track assets such as trailers and prime movers through installing Internet of things sensors and trackers."