The manufacturing and logistics sectors are important engines for an economy. In Singapore, they collectively contributed more than 30% of Singapore's GDP in 2005. These are also sectors that have experienced significant changes over the past decade. Forces such as globalisation, increased outsourcing and intense competition among manufacturers have compelled companies in these sectors to find ways to enhance their competitive advantage. This includes shifing work to where it can be done best, process optimisation and increased automation.

Such forces will continue to exist and will intensify in the next 10 years. Companies will need to cope greater demands from consumers for personalisation. Customers will no longer be satisfied with mass products and will want to buy products that are more customised to their needs. Another trend is the increased regulatory requirements on security of supply chains and environmental impact of products and manufacturing processes. The growing threat of terrorism is also pushing governments and industry to work together to secure global supply chains.

Singapore aims to turn into a High Value Manufacturing Hub and Supply Chain Nerve centre, powered by infocomm.

As a High Value Manufacturing Hub, Singapore will host high value-added manufacturing and related activities enabled by infocomm. Such activities will involve leveraging on infocomm to enable end-to-end connections across manufacturing supply chains, complex manufacturing activities such as design and innovative business models.

As a Supply Chain Nerve Centre, Singapore will be the place from which companies monitor and control their global supply chains using infocomm technologies. These will be supported by a world-class logistics infrastructure and new supply chain services using advanced infocomm solutions.