Singapore To Further Develop High Value-Added Automotive Components

Autoparts Report, Feb 23, 2001

A senior economic official of Singapore has said his country focuses on services and high- value-added manufacturing in developing its automotive industry as it does not have the comparative advantages as a base for automotive assembly plant. Managing Director of Singapore Economic Development Board (EDB) Ko Kheng Hwa made the point at a recent ground-breaking ceremony for Daimler- Chrysler's regional logistics center in Singapore.

Ko said that Singapore will develop some subassemblies for the automotive. He said EDB will focus on the development and promotion for building Singapore as a hub for regional headquarters, engineering and design, logistics and supply chain operations as well as e-commerce.

In addition, he said, Singapore will target the manufacturing of high- value-added automotive electronics and components such as sensors and engine control modules, conducting research and testing of new transport technologies and business models, and developing software for automotive subsystems.

DaimlerChrysler's regional logistics center in Singapore will be the corporation's largest distribution center in the world outside North America and Western Europe. To be completed in 2001, the center will then have 40,000-square-meter warehouse and will be responsible for the distribution of all Daimler-Chrysler brand parts for Asia Pacific, which will amount to an annual worth of $100 million flowing through Singapore, the company said.