[SINGAPORE] Singapore's precision engineering industry could generate an output
of $28 billion as early as 2010, well in advance of the 2018 target previously
projected by the government, Spring chairman Philip Yeo said yesterday.

He was speaking at the official opening of a $12 million factory at Changi
for contract equipment maker Eng Tic Lee Achieve (Etla).

Precision engineering, or PE, which supports the electronics, aerospace and
medical technology sectors, generated about 9.6 per cent of Singapore's total
manufacturing output and 13 per cent of manufacturing value added in 2006. It
is also a large contributor of employment, accounting for one in four
manufacturing jobs.

After a tour of Etla's facilities, Mr Yeo said: 'Last year we already
crossed $21.8 billion ... I think I will be more ambitious - the faster the
better - say, 2010, finish; 2018 is too far for me.'

He said growth factors in the precision engineering industry include whether
companies upgrade their technology, the pool of skilled technical workers
available and the level of management depth, which is critical for expansion
possibilities.

Emphasising the importance of developing managerial talent in the sector, he
said, 'Many of the people here (in precision engineering) are pioneers,
founders. We need to attract younger people to join them, to build up the
company. For them to expand overseas, they need good management who are
experienced in manufacturing.'

Mr Yeo said Spring, the agency dedicated to the promotion of Singapore's
economic growth and productivity, will begin offering management training next
month. 'The limit is really talent,' he said.

Some of the recent initiatives Spring has launched for precision engineers
are the Medtech Capability Development Programme to help companies tap the
high-growth medical technology industry; the Local Enterprise and Association
Development programme to provide broad-based assistance to the industry through
the Singapore Precision Engineering and Tooling Association; and setting up by
early next year, a Centre of Innovation in PE in SIMTech, an A*Star research
institute to help companies grow through technological innovation.

'Over 90 per cent of the companies in the PE industry here are SMEs. It is
in our interest to grow them. The stronger our capability here, the better for
us to anchor multinationals here who outsource the work to them,' Mr Yeo said.
Etla's new extension increases the company's manufacturing space and
production capacity by more than 50 per cent. Besides catering to an expanding
business and consolidating the company's precision machining activities, the
extension will house activities for its pharmaceutical and medical equipment
customers.

The company signed a memorandum of understanding yesterday with SIMTech to
promote R&D collaborations in the areas of laser fabrication technology and
radio frequency identification (RFID).

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