Speech by Minister of State Raymond Lim, at The Launch of Strategic Manpower Conversion Programme (Logistics), 25 April 2002, 3.00 pm

Singapore Government Press Release
Media Division, Ministry of Information, Communications and the Arts,
MITA Building, 140 Hill Street, 2nd Storey, Singapore 179369
Tel: 6837-9666

ADDRESS BY MR RAYMOND LIM, MINISTER OF STATE FOR FOREIGN AFFAIRS AND TRADE AND INDUSTRY AT THE LAUNCH OF STRATEGIC MANPOWER CONVERSION PROGRAMME (LOGISTICS) ON THURSDAY, 25 APRIL 2002 AT 3.00 PM AT THE MERCHANT COURT HOTEL

Distinguished Guests

Ladies and Gentlemen

Good Afternoon

It is my pleasure to be here this afternoon at the launch of SMCP (Logistics).

Global demand for specialised logistics services

According to a report by ING Barings in January 2002, total logistics costs are expected to contribute up to 20 per cent of total production costs in developed countries. As pressure mounts to sustain operating margins, Asian-based enterprises will likely follow their US counterparts and increasingly turn to third party logistics providers to take care of their logistics needs. This translates to demand for logistics service providers with worldwide networks and specialised, efficient logistical capabilities.

The contribution of the logistics sector is vital to Singapore. Accounting for 8 per cent of Singapore’s GDP, it not only services the trading and manufacturing sectors, but also provides jobs for more than 93,000 employees.

Singapore has over the years built on her strength as a transportation and distribution hub to become one of the leading logistics centres in the world. To remain competitive in the long-term, we must aim to develop into a global integrated logistics hub.

However, competition in the global transport and logistics industry is a tough game. Our counterparts in Asia are catching up in the development of their infrastructure and IT capabilities. We have to find our niche and build ourselves up quickly in key areas of capability like manpower development.

Need for middle-level logistics manpower

The advent of IT developments and the Internet has brought radical changes to the way businesses are conducted. Logistics companies must thus stay ahead of the trends and competition, by developing their business process, IT and manpower capabilities.

With Singapore’s excellent infrastructure and companies here gearing up to compete for a share of the global pie, the next lap of competition will require players to look seriously at the development of specialised and skilled logistics professionals. This is confirmed by the results of a Logistics Skills Study commissioned by IE Singapore and completed in end 2000.

The study, which surveyed and compiled the findings of 133 Singapore-based logistics players, revealed amongst others, a gap in middle-management manpower. The study also shows an urgent need for industry executives and professionals to acquire skills like integrated supply chain management and customer relationship management. These will be necessary in the face of stiffer competition and increasingly sophisticated customer demands. Companies will require well-trained logistics professionals to think strategically to provide creative and high quality customer-oriented services. From a wider perspective, Singapore needs to strengthen and expand its current pool of skilled and professional logistics workforce.

Employment Opportunities in the logistics sector

Despite the opportunities available in the logistics sector, the image of logisticians has sadly, not moved along with times and often poses a hurdle to career choice and long-term career planning. The public often associate logistics with physical handling of cargo. However this has changed over time.

Today, a logistician is required to perform more complicated and challenging tasks. Logistics has evolved from its brawn nature of work to more strategic roles like supply chain management and planning, procurement and even financing of inventory on customers’ behalf. In addition, as Singapore-based logistics companies look to internationalising their operations to compete more effectively with global players, career opportunities will brighten for those in search of experience across country boundaries. Logisticians will need to be equipped with a new toolkit to manage logistics operations in foreign business environments.

Clearly, these opportunities have not been communicated to the masses and the outdated image of logisticians continues to hinder many more people from taking on specialised careers in the sector. As a result, even with the current unfavourable employment conditions, those without jobs tend not to consider a job switch to logistics. This should not be the case, as we should all be flexible and keep our options open. Hence, I urge you to look out for career opportunities beyond what you have been trained in, especially in times like this. The introduction of the Strategic Manpower Conversion Programme (SMCP) for Logistics could well be the beginning of the road to a promising, new career for you.

Background of SMCP

The Strategic Manpower Conversion Programme for Logistics is brought to you by IE Singapore and the Ministry of Manpower. It was announced previously as part of the Logistics Enhancement and Applications Programme (LEAP) last year. The SMCP Logistics aims to enhance the critical pool of logistics-trained manpower by re-skilling and converting non-logistics professionals to serve in Singapore-based companies.

The target of SMCP Logistics is to re-skill at least 200 individuals a year and convert them into logistics professionals. Applicants can look forward to the following:

Training subsidies of up to 50 per cent;

Training allowances for full time courses of up to 50 per cent, capped at $800 per month and

On-The-Job (OJT) allowances of $800 per month for up to 3 months

This would not only benefit logistics companies in their search for trained professionals, but also assist individuals who wish to make career switches and take on jobs in the logistics industry.

Conclusion

The SMCP (Logistics) will play an important role in advancing the manpower capability development of the sector. It can also be an important step for many of you. I would like to thank the many course-providers who are participating in this launch today. If you are not already a part of the logistics sector, I urge you to discover and explore your career options with them. I trust that you will have a fruitful session and wish you success ahead.

Thank you.

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