Singapore: Overview of precision engineering industry

Precision engineering is the crucial enabler for industries as diverse as aerospace, oil & gas, medical devices and electronics. It is the essential ingredient in the manufacturing of the smallest semiconductor chips, to the most cutting-edge of medical devices, and the largest drill bits used in oil exploration.

Singapore’s precision engineering activities began in the 1970s to support the first manufacturing investments. Today, there are some 2,700 companies, ranging from small and medium enterprises (SMEs) to large multinational corporations (MNCs), in the precision engineering sector. Singapore also plays host to the headquarters and R&D functions of many of these companies.

Singapore’s precision engineering sector comprises a range of companies from contract manufacturers to full solution providers, who offer design, prototyping, production and supply chain management capabilities. The precision engineering sector’s unique strengths are key reasons for Singapore’s global leadership position in areas such as aerospace, semiconductor equipment and oil & gas equipment.

Precision Engineering is also flourishing in Singapore, as companies leverage on Singapore’s strong supplier base and vast connectivity to the region. And importantly, Singapore’s well-established research and development infrastructure allows companies to gain competitive advantages over their competitors.

Precision engineering is a core enabler for many industries such as complex equipment, marine, aerospace, oil & gas, and medical devices. It is the skill that enables us to design and build complex components for sophisticated machinery; from the tiniest semiconductor chips to mechanical hearts; to sturdy drill bits for deep sea exploration to complicated aircraft engines.

Singapore accounts for about 10% of global output for refrigeration compressors, 30% of global output for hearing aids, and about 70% of wire bonders used in the semiconductor industry. The island is the leading location in the region for the production of oil and gas equipment, as well as aerospace maintenance repair and overhaul.

Singapore’s precision engineering industry has moved from being simple contract manufacturers to solution providers with strong design, prototyping, production and supply chain management capabilities.

The Supplier Development Initiative (SDI) encourages supplier companies to enhance their capabilities and establish business linkages with larger companies.  It enables OEM manufacturers in the semiconductor equipment, aerospace, medical technology and electronics sectors to build business relationships with contract manufacturers and suppliers in Singapore.

With some 2,700 companies in the precision engineering sector, Singapore therefore offers a wide spectrum of products and services.

Singapore has sufficient and quality manpower to meet the needs of businesses.  We are continually upgrading our manpower and plan ahead for anticipated demand. In October 2007, a $76 million precision engineering manpower initiative was launched to attract a new generation of talent to join the precision engineering industry, and to upgrade & deepen the capabilities of our precision engineering manpower base.

As part of this initiative, the Centre for Digital and Precision Engineering (CDPE) was established to train PE professionals. The centre was officially opened at Nanyang Polytechnic (NYP) in January 2010.