SINGAPORE OFFICIAL SEES “TREMENDOUS GROWTH” IN ASIAN LOGISTICS
SINGAPORE OFFICIAL SEES “TREMENDOUS GROWTH” IN ASIAN LOGISTICS
Demand for supply chain management services in the Asia-Pacific region have a “tremendous growth potential,” said Teo Ming Kian, chairman of Singapore’s Economic Development Board.
“Despite lingering uncertainties in the global economy, there is tremendous growth potential in the logistics/supply chain management industry in the Asia-Pacific region,” Teo said at a ceremony to mark the opening by Exel of a new logistics facility in Singapore.
“The global supply chain management market is estimated to grow to $173.7 billion by 2005, with a compound annual growth rate of 10 per cent,” he said. “In Asia, the supply chain management market is poised for even more robust growth, 15 per cent annually, as compared to 10 per cent in North America and seven per cent in Europe. Logistics outsourcing activities in Asia are expected to grow fourfold to reach $80 billion by 2012.”
Teo said that these high growth rates for Asia are confirmed by a recent JP Morgan Research survey which revealed that Asian companies are showing strong interest in revamping their supply chains and integrating them with operations worldwide.
“We believe Singapore is well-positioned to capitalize on the tremendous growth,” he said.
Singapore’s Economic Development Board and the Economic Review Committee Working Group on Logistics aim to foster “knowledge-intensive” logistics activities in Singapore that will deepen and broaden the Asian country’s competencies.
“Though small in size geographically, but well-connected to the rest of the world, Singapore has grown to become the regional supply chain management nerve centre for many leading logistics service providers and manufacturers,” Teo said. These companies in Singapore undertake key management activities such as procurement, supply chain planning and coordination, data management, and regional distribution activities for the Asia-Pacific region, he added.