Manufacturers' Sentiments after Budget Speech
With more than 50 per cent of manufacturers voicing uncertainty of economic growth in Singapore during a Q1 survey report by SMa, it came as no surprise that manufacturers were looking to the Government for some reprieve in the form of taxes and charges with the spiraling rise of raw materials and rental cost. But most were left disappointed.
The Budget Speech produced the only good news for R&D in Singapore in the form of increased tax rebates by 50 per cent; totalling it to 150 per cent for R&D rebate. This would likely boost innovation growth for R&D in Singapore to compete globally.
Although most of the manufacturers did not see their wish-list items being fulfilled, they would like to know what incentives could be provided for older-aged workers who undergo re-training in attaining higher skills. This would also serve as an alternative solution for the lack of skilled workers and to minimise the levy charge on foreign workers in which the manufacturing sector relies heavily.
The manufacturing sector which experienced a dip last year, posted a growth of 5.8 percent in 2007, slower than the 12 percent growth seen in the previous year. The weakened growth was due to a 28 percent contraction in the biomedical manufacturing cluster as a result of plant maintenance shutdowns and changes in product mix.
Now in 2008, external conditions have worsened, especially with the world's biggest economy- the US hitting a slowdown which will in turn affect how the rest of the world and key industries will perform.
With the added uncertainty over the length and severity of this slowdown, Singapore’s economy has been revised to grow from 4 to 6 per cent this year, down from the previous forecast of 4.5 to 6.5 per cent.
SMa SOM chosen as Murdoch University's International Centre
The SMa School of Management (SOM) has been chosen by Australia's Murdoch University to open their International Study Centre within SOM’s City Campus at North Bridge Road.
This was announced on 14 January 2008 during a press conference with Murdoch University's Deputy Vice Chancellor, Professor Gary Martin (centre in picture) and SMa SOM CEO, James Wong signing the agreement.
The move will now see Murdoch increase the subjects it offers from the current 15 majors to 25. And SOM will benefit from this close collaboration with its enhancement of its brand image.
Dr Moh Chong Tau, chairman of SMa School of Management, said: "SMa SOM staff team will now be carrying the Murdoch University name cards, as representatives of Murdoch University."
Under the new partnership, local lecturers will be granted affiliated Murdoch University lecturer status and students will be given the option to complete part of the programme in Singapore and the rest in Perth, Australia.
This new collaboration is set to take off within the next six months and is expected to see an increase of Murdoch’s student population from 1,000 to 3,000 in 5 years time.
Singapore attractive as a Manufacturing Hub: US
According to the US Department of Commerce, Singapore has become even more important to American multinational corporations as a manufacturing hub.
This comes as good news for Singapore's manufacturing sector with some observers believing that it is headed for a decline. With US MNCs still account for a high proportion of offshore manufacturing, globally. Their continued presence here will help keep the manufacturing sector buoyant.
Besides being seen as a manufacturing base for the Asia-Pacific region, the attractiveness is heightened by the enactment of the US-Singapore Free Trade Agreement. This agreement removes tariffs on all goods entering Singapore from the US and also eases restrictions on Singapore's exports to the US.
US MNCs' value added in Singapore is larger than in China (US$14.61 billion), which has become the world's factory. It's the third largest in the region, behind Japan (US$47.86 billion) and Australia (US$31.74 billion).
US MNCs' value added here accounts for 15 per cent of Singapore's GDP. Only in Ireland is the US MNCs' contribution larger (at 18.5 per cent of GDP) - but unlike in Singapore where it has been rising, the contribution there has slipped.