CNA - Singapore firms want FTAs to cover areas like digital economy and services: Study

Singapore firms are pushing for Free Trade Agreements (FTAs) to cover areas such as the digital economy and services. Lennon Tan, SMF President, was invited to speak on this issue alongside Kok Ping Soon, SBF CEO, discussing the challenges Singapore manufacturing companies face. Reasons for Singapore firms’ struggles: ✅ Manufacturing firms struggle to expand or fully adopt automation and digitalisation because many Singapore companies are limited in size and manpower. As a result, they often lack the resources and investment needed to pursue these areas effectively. ✅ Singapore manufacturing firms also tend to prioritise quality and consistency over speed. This results in companies seeing less incentive to invest in automation and digitalisation, especially given their limited budgets and revenue. ✅ The complexities involved in fully utilising FTAs and expanding internationally make it difficult for Singapore firms to take advantage of these opportunities, particularly due to their resource constraints. Overall, Lennon Tan encouraged SMEs to place greater emphasis on automation, digitalisation, and internationalisation, while highlighting the Singapore Manufacturing Federation’s support in helping firms overcome the challenges and complexities involved.