Singapore manufacturers urged to keep up with green trends

Esther Teo, Straits Times 31 Oct 09;

MANUFACTURING has long had an off-putting image of smokestacks and soot but the sector here is pushing hard to add a healthy shade of green to the picture.

The Singapore Manufacturers' Federation (SMa) made its eco-intentions clear at the inaugural Manufacturing Excellence Community network session yesterday.

The session's aim is to help best practices be shared among leaders in academia and the industry with a focus on green manufacturing this year.

SMa president Renny Yeo emphasised the need for manufacturers to seek excellence by constantly exploiting new technologies and innovations.

He highlighted sustainable or green manufacturing as a way for companies to improve their operational performance and so ensure their long-term viability.

He said the remaining challenge was to remove the apprehension business owners showed when it came to going green.

Mr Yeo recalled that while people used to perceive improving quality as a cost in the 1960s, by the 1970s they had realised that raising quality standards saved money instead.

'Today, people look upon the green movement as a cost, tomorrow they will look upon green as an instrument that improves their profitability - both their top line and bottom line,' he said. 'They must realise that it's not just about reducing pollution but using less as well.'

Manufacturing accounts for about 22 per cent of Singapore's gross domestic product and leads the world in some industries. The country has approximately 70 per cent of the world market for building offshore oil rigs and 30 per cent of the hearing aids market.

Managing director of the Economic Development Board (EDB) Beh Swan Gin told the gathering at Suntec City that it was imperative that manufacturers kept up with green trends.

'Manufacturing holds the key to greening the supply chain and lowering the carbon footprint for companies in a strategic and profitable way,' he said, adding that the sharing of best practices was the best way forward.

'No nation can be a technology laggard, no economy can achieve sustainable growth by simply consuming.'

Speaking to reporters after the event, Dr Beh pointed out that Singapore was already an efficient energy user with power plants using natural gas - described as the cleanest fossil fuel as it burns more efficiently than coal or oil.

However, he said that the EDB was working to improve local expertise in carbon services by strengthening companies involved in carbon consulting and locating more of them here.

'Since people tend to congregate in a central location for such rare expertise, Singapore is well placed for that role,' he added. 'However, the low hanging fruits (of the carbon credit market) will be the power plants and the infrastructure-type pro-jects... in China and India where the opportunities lie.'

The increasing focus on going green and its growing economic importance are behind the decision to add a growth category to the annual Manufacturing Excellence Awards (Maxa) by SMa and its partners.

The new award will recognise high-growth local manufacturing companies that demonstrate excellence, innovation and sustainability.

It aims to encourage small- and medium-sized enterprises to leverage on the 'Singapore-made, globally acclaimed' brand name to venture into new and emerging markets.

Profit by going green, manufacturers told
Felda Chay, Business Times 31 Oct 09;

GOING green can be profitable, and local manufacturers should start embracing the idea, Economic Development Board managing director Beh Swan Gin said at a networking session held by the partners of the Manufacturing Excellence Award (MAXA).

'Manufacturing holds the key to greening the supply chain and lowering the carbon footprint for companies in a strategic and profitable way,' Dr Beh said at the session, which had a focus on green manufacturing. He told reporters that going green does not require a drastic increase in skilled manpower for manufacturers, and that Singapore has enough skilled manpower to support green manufacturing.

'It's really about what they can do to tweak their processes, possibly they will need one or two experts,' he said. 'They can develop them in-house, they can recruit them, they can even get consultants to help.' Manufacturers can also reap the benefits of carbon trading when they reduce their carbon footprint.

EDB is currently trying to strengthen the infrastructure for carbon services expertise here 'because to earn carbon credits, you have to document the savings and be able to lodge it and validate the declarations and claims, and all these require expertise,' Dr Beh said.

Earlier this year, the government unveiled the Singapore Sustainable Blueprint, under which 80 per cent of buildings in Singapore should achieve at least the basic Green Mark Certification by 2030 - a move expected to reduce energy intensity by more than 30 per cent.

This creates opportunities for local manufacturers to be involved and is an incentive for them to turn to green manufacturing, Renny Yeo, president of the Singapore Manufacturer's Federation (SMa), said on the sidelines of the session.

At the session, MAXA also announced the creation of a 'Growth Award' to recognise excellence among fast-growing local manufacturing companies. The award will be presented from next year.