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SINGAPORE: Companies in the precision engineering ecosystem will receive further support to deepen their capabilities, with improvements to a scheme aimed at fostering partnerships between local companies announced on Monday (November 16).
Under the enhanced Partnerships for Capacity Transformation (PACT) scheme, companies can benefit from increased financial support for certain costs and an expanded scope of coverage until March 2022.
Speaking on the sidelines of a visit to precision engineering firm Rohde & Schwarz, Trade and Industry Minister Chan Chun Sing said the move is important because the sector is a bright spot with “huge growth prospects,” in middle and beyond COVID-19.
READ: IN FOCUS: After COVID-19, where is Singapore’s workforce and economy headed?
“In the coming years, the advent of 5G technologies, the Internet of Things and all the new advancements we see in technology fields will require a lot of precision engineering behind the scenes,” he said, adding that sectors such as biomedicine will also take advantage of this. field.
“This is the reason why we are making a strong push to continue helping our companies in this sector, to continue growing from one force to another to meet the growing demand for such products and services,” said Chan.
With the aim of making Singapore a precision engineering center for the region, the PACT scheme will be enhanced to help companies create more partnerships.
The changes would help original equipment manufacturers (OEMs) build more diverse and resilient supply chains, while local suppliers could deepen their capabilities and increase their revenues, according to the Ministry of Commerce and Industry.
OEMs refer to the brand owner of the final product, while suppliers are companies that provide various components, modules, and manufacturing services.
IMPROVEMENTS OF THE ‘PACT’ SCHEME
First, the support fees for qualification costs will be increased. For all categories of labor, such as training and salaries, these rates will rise from 50 percent to 70 percent.
For other cost categories, including software, supplies and supplies, and professional services, support rates will go up from 30% to 50%.
Funding levels for the team will remain unchanged at 50%.
In addition, beyond supporting the qualification of new suppliers and new products, the scheme will be expanded to cover existing products.
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To help expand Singapore’s global presence, companies with overseas manufacturing activities will also receive financial support. for 70 percent of the labor costs of some of its Singaporean or permanent resident employees.
Plus, they’ll get 50 percent support rates for consumables required for specific operations qualification.
There are currently 16 partnership projects underway between OEMs and OEMs that can benefit from the enhancements.
The changes will also apply to other sectors covered by PACT, such as food manufacturing, retail, and food services.
Since PACT was established in 2010, more than 280 projects have been included in the scheme, benefiting more than 1,500 Singapore-based companies.
CULTIVATE LOCAL ENGINEERING TALENT
Chan also reiterated that engineering talent must be prepared “in a sustained way in the long term”, which is why such investment must continue “despite the short-term challenges facing COVID-19 or political tensions.”
According to a Sept. 14 employment status report, more than 270 precision engineering companies have offered nearly 1,500 jobs, internships and bonding opportunities since April, most of which are PMET positions.
READ: Nearly 1,500 opportunities offered in the precision engineering sector under the SGUnited: MOM program
Noting this, Mr. Chan said: “We are very encouraged that many companies, including Rohde & Schwarz, have played their role in enhancing the precision engineering ecosystem by continuing to enhance the development skills of our workers.”
He also mentioned how the company had achieved a localization rate of around 80% to perform critical functions such as research and development.
Chan added that the ministry will continue to work closely with industry partners and trade associations to ensure Singapore has long-term core engineering talent.
