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Why Singapore is Investing heavily in Digital Manufacturing System

Singapore must keep on investing in its technology. This helps to keep pace with the latest demands of the industry. The manufacturing sector is very competitive around the globe. With China being the manufacturing center in Asia, Singapore has to improve its methods to overcome competition.

What is digital manufacturing?

Digital manufacturing is an integrated approach to manufacturing centered around a computer system. The transition to smart manufacturing has become more popular with the rise in the quantity and quality of computer systems in manufacturing plants.

4 Reasons why Singapore is investing in digital manufacturing:

1. Energy savings

Energy saving is making economical use of; electricity, gas, and other forms of energy. The scarcity of resources necessary to save energy. For Singapore to be ranked as a manufacturing center, there must be an increase in the number of firms. An increase in the number of firms leads to a rise in power consumption.

Digitalization of the manufacturing sector reduces energy consumption. It encourages restructuring of the manufacturing process. Restructuring promotes efficiency and effectiveness in production. Which leads to energy saving.

2. Decrease in down time

Downtime is the occurrence of an unplanned event. It breaks up the manufacturing process. A clear stand is important for accurate downtime measurement. For downtime to be measured accurately, it is important to create a clear standard. The standard is consistently applied over time and across the equipment. Most manufacturing firms single out downtime as the largest source of lost production time.

Downtime is decreased by smart technology adoption in manufacturing which eases tracking and monitoring. This helps in avoiding and preventing anything that can cause the system to breakdown. Which leads to a reduction in downtime.

3. Increase in productivity

Productivity is a ratio between the output volume and the volume of input. Productivity outlines various measures of the efficiency of production. It measures production efficiency based on inputs. The price of output is important in the economy.

Productivity increase is improved by firm digitalization, this is assisted by increased effectiveness in manufacturing. The combination of effectiveness and efficiency affects production. Which leads to productivity increase in manufacturing firms.

4. Decrease in costs

Cost refers to the value used to produce a product or deliver a service. Manufacturing costs refer to the costs directly involved in the manufacturing of products. There are three categories of costs; Direct material cost, direct labor cost, and manufacturing overhead cost.

Smart manufacturing reduces the costs of manufacturing through, efficiency, effectiveness, and restructuring. This is achievable through maximum utilization of direct material and labor.


There are many problems and barriers associated with manufacturing. These range from production costs to energy costs. This makes it useful for manufacturing states to forge away forward. There has to be a way of addressing the high costs involved in the production. Singapore’s investment in digital manufacturing is the right step. It will make Singapore’s goal of becoming a manufacturing hub achievable and realistic.

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I am a student at Bina Nusantara University in the faculty of Business. I am pursuing a bachelor's degree in Business Management and Marketing. My Date and Place of birth is 22-04-1995 and Mbale City respectively. And lastly my country of origin is Uganda.


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