Singapore may not manufacture any cars but the local automobile parts industry is very much alive.
The sector churns out nearly S$500 million worth of goods a year.
And according to SPRING Singapore, local manufacturers can aim to have a large slice of the global auto parts market amid the booming car industry in countries in China and India.
And according to SPRING Singapore, local auto parts manufacturers have the opportunity to rev up their output to one billion Singapore dollars’ worth in as little as three years.
And SPRING Singapore says there are government incentives in the pipeline for local auto parts companies to boost output.
Png Cheong Boon, Deputy Chief Executive, SPRING Singapore, said: “We are putting together a package of assistance scheme to help local companies to upgrade and be ready to serve the automotive market, also bringing forth the research institutes in A*Star, provide the research and technical assistance to help these companies to upgrade.”
As it is, Singapore auto parts companies are already manufacturing a wide range of gadgets or electronic parts.
And the island is home to some 25 local companies which has access to carmakers such as DaimlerChrysler and Volvo with regional headquarters here.
Sia Kheng Yok, Deputy Director, Logistics and Transport, EDB, said: “There are companies today for example producing air bag initiators and these are the things that inflate the airbag in the event of an incident. Yet more companies also produce digital maps or navigation systems or fleet management systems for taxis. And I think these are the areas that companies can aim to grow in and diversify their business. ”
SPRING Singapore says Singapore can benefit from its proximity to China, one of the fastest growing car markets in the world. – CNA/ch