Electronics & Precision Engineering|
Business Monitor View - Singapore Holds Its Own
A lack of domestic production has not hindered Singapore's automotive industry, due to the country's ideal location as a regional hub for re-exports. New vehicle registrations maintain healthy growth, despite restrictions on the number of vehicles allowed on the roads. Sales for the first seven months of 2006 were 3% higher y-o-y, which supports the view in BMI's recently published "Singapore Automotives Report" that growth of 5% is attainable. The Report also highlights a move towards the small car segment in response to increasing fuel prices, reflected in higher than expected sales for vehicles with engines under 1.6-litres in 2005. By 2010, BMI expects this particular segment to account for around 47% of the total market.
Singapore also enjoys a traditionally strong position in the component sector due to expertise in the value-added electronics industry. The industry's capacity for global export, rather than a restricted focus on the regional scene should ensure that the sector can be protected from growing competition from manufacturers establishing a presence on the Chinese mainland.
Singapore benefits from an improved political risk rating and a low level of vehicle ownership. Although other markets may have the competitive edge in cost terms, BMI scores Singapore highly for its business environment, which is the least corrupt in the region, according to Transparency International.
Toyota remains the dominant player in Singapore and has followed this up with the launch of a new showroom and service centre for its commercial vehicle division, Hino Motors. The move will further increase the group's exposure to the market, in addition to the Toyota and Lexus brands already available in the passenger car segment. Indeed, apart from Hyundai in third place, the remainder of the top five manufacturers in Singapore are Japanese. However, the strongest growth in 2005 (over 82% y-o-y) came from Kia Motors, which will undoubtedly benefit from the position of its affiliate Hyundai and a switch in consumer preference towards smaller cars. Toyota has this covered too, with the launch of the new Yaris earlier in the year, as well as the next generation of Prius hybrid, which will extend its lead in this niche segment and most likely the market as a whole.
The Singapore Manufacturers' Federation (SMa), formerly known as the Singapore Manufacturers' Association, was first established in 1932. Its main aim is to champion manufacturing and the Singapore manufacturing sector.
With a membership of over 2,800 corporate members ranging from MNCs to SMEs, SMa carries out a myriad of activities to enhance the competitive edge of its members. Its mission is to be a world-recognised manufacturing federation making a difference to its members.
Singapore Precision Engineering & Tooling Association
SPETA is a non-profit trade association representing locally registered companies engaged in the manufacturing of moulds & dies, jigs & fixtures, metal stamping, metal castings, plastic and rubber moldings, precision machining, photonic and semi-conductor equipment, aerospace and automotive parts, as well as in providing services related to the precision engineering industry.
Its mission is to marshal and assist with the development of resources and manpower skills essential to a sound and healthy Precision Engineering and Tooling industry to enhance its competitiveness and the economic development of Singapore. This is to be achieved through organising activities or programmes to help members grow and broaden their market base and attain technological excellence.