manufacturing industry in asean overview & trends by frost & sullivan
TRANSCRIPT
2
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2
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3
Our Industry Coverage
3
Automotive &
Transportation
Aerospace & Defense Measurement &
Instrumentation
Information &
Communication Technologies
Healthcare Environment & Building
Technologies
Energy & Power
Systems
Chemicals, Materials
& Food
Electronics &
Security
Industrial Automation
& Process Control
Automotive
Transportation & Logistics
Consumer
Technologies
Minerals & Mining
8
Factory of the Future
Current Plant Material Handling conveyer
Mixing Plant
Processing Plant
Heating Plant
Batching & Blending Plant
Cleaning Plant
Packaging Shop
Waste Water Processing Plant
Separation Plant
Quality Plant
Chilling Plant
Drying Chamber
Material Handling conveyer
Mixing & Processing Plant
Heating Plant
Batching & Blending Plant
Cleaning Plant
Packaging Shop
Future Plant
Waste Water Processing Plant
Separation Plant
Quality Plant
Chilling Plant
Drying Chamber
Work Simulation
10% decrease in production time; 30%
savings in project cost; 20% reduction in
manual labour; Reduced CO2 emissions
Remote Support and Diagnosis
of Production Equipment, Virtual
Reality based maintenance and
Planning
LV and MV drives coupled
with energy efficient
products
Premium
efficiency class
motors, pumps
and compressors;
all requiring low
voltage drives
Factory of the future will Lower Production Costs and shorten Innovation and Production
Cycles
SMART Factory 2020
FUTURE TECHNOLOGIES
• Current Sensing
• Cloud Computing
• Digital Factory
• Mobile Applications
• OELD Displays
• Reduced Complexity
• Software as a Service
• Software configurable hardware
• Sustainability
• Virtualization
9
Future Manufacturing
• Green
• Sustainable
• Environmentally responsible
• Environmentally conscious
• Environmentally benign
• Clean
Operate
Green
Invest
Green
Produce
Green
12
ASEAN: a 2 trillion economy
Vietnam
(123bil)
Others
(89bil)
Thailand
(346bil)
Indonesia
(846bil)
Philippines
(213bil)
Malaysia
(279bil)
Singapore
(260bil)
Gross Domestic Product of SEA Countries, 2011
(in US$)
13
ASEAN: Growth Zone
GD
P, U
S$
2011-2015
Indonesia 6.6
Malaysia 5.5
Philippines 4.6
Singapore 4.7
Thailand 5.2
Viet Nam 7.1
Average 6.0
14
Indonesia – set to break out
2011-2015
Economic
Development
Acceleration
Master plan or
MP3EI:
USD 400 Bln
Investment in
Infrastructure,
Industry clusters,
SEZ’s and FTZ’s.
Financed by the
Government,
private sector,
FDI and PPP
2015 2011 2025 2045
Source: IMF, World Bank, GOI, Frost & Sullivan
GDP USD $706 Bln
GDP p.c. USD $3,015
17th largest economy
GDP USD $1200 Bln
GDP p.c. USD $4,800
14th largest economy
GDP USD $4700 Bln
GDP p.c. USD $16,000
10th largest economy
GDP USD $16.6 Trillion
GDP p.c. USD $46,000
7th largest economy
15
ASEAN: Manufacturing driven
Manufacturing, value added (% of GDP)
0%
20%
40%
60%
80%
100%
Manufacturing
Other Sectors
25% 36% 26% 22% 21% 20%
Source: World Bank, 2010
16
ASEAN: Major Industries
16
• Transport Equipment &
Machinery.
• Petrochemicals.
• Textile & Apparel
• Food
• Electrical & Electronics.
• Petrochemicals.
• Food.
• Basic Metal Products.
• Electronics.
• Textile & Apparels.
• Tobacco.
• Food.
Malaysia
Indonesia
Philippines
• Automobile.
• Electronics.
• Petrochemicals.
• Transport Equipment.
• Electronics.
• Biomedical.
• Petrochemicals.
• Precision Engineering.
• Textiles & Apparels.
• Food.
• Electrical Products.
Thailand
Singapore
Vietnam
17
ASEAN: Manufacturing Drivers
Domestic Demand
China + 1
Manufacturing Edge
Infrastructure Investment
19
Minimum Wage Policy
Exchange Rate
Political Risk
Capability Development
Productivity Innovation
Natural Disasters
ASEAN Manufacturing: Challenges
20
ASEAN Manufacturing: Challenges
Deloitte, 2010 survey
• Labour cost is not the main issue, it’s
the quality of people that matters
• Productivity and value add is the key
• Government investment in
manufacturing and innovation
© 2011 World Economic Forum | www.weforum.org/gcr
GCI 2010-2011
Country/Economy Rank Score Rank Change
Singapore 2 5.63 3 1
Malaysia 21 5.08 26 5
China 26 4.90 27 1
Thailand 39 4.52 38 -1
Indonesia 46 4.38 44 -2
India 56 4.30 51 -5
Vietnam 65 4.24 59 -6
Philippines 75 4.08 85 10
Cambodia 97 3.85 109 12
GCI 2011-2012
The Global Competitiveness Index 2011-2012 rankings
Enhancing Competitiveness
21
ASEAN Manufacturing: Challenges
Enhancing Competitiveness
The pressure for Higher Productivity
will never cease.
• IT will be the main contributor to
Productivity
• Investment in New Technology
• Lean Manufacturing, Six Sigma
• Emphasis on research and
Innovation
• Competition
GDP share
of ICT sector
ICT investment
share
ICT share
in productivity
growth
18 % 29 %
5.8 % 6.3 %
42 % 80 % US
EU
Source: IMF 2004
22
ASEAN Manufacturing: Opportunities
Emerging Sectors
Biomedical Sector
• S$ 26b for Singapore
• 10% of GDP
• Fastest growth rate
among all sectors
• High value add and
profit
Solar Power
• >2b investment in
Malaysia
• Global companies –
Bosch, Panasonic,
Sunpower
• Spur other investment
in Renewable Energy
Smart Grid
• $400 million market in
ASEAN
• Investments led by
Thailand and
Singapore
• Huge growth potential
23
ASEAN Manufacturing: Opportunities
Common Effective
Preferential Tariffs
Scheme (CEPT)
Elimination of Tariffs &
Non Tariffs Barriers
By 2018
Successfully reduced
tariffs imposed on
products traded under the
CEPT Inclusion List, to a
range of 0% to 5%.
ASEAN Free
Trade Area (AFTA)
Products Under CEPT
Scheme:
All manufactured
products, including
capital goods.
Processed agricultural
products (agricultural
products are excluded).
Forms a competitive
ASEAN region.
Greater trade between firms.
Efficient division of labor.
Impact of AFTA
25
The Modern Myth of Manufacturing
There is no long term future for Manufacturing. It will
eventually go away to low-wage economies
… IS a Myth
ASEAN as a Manufacturing Powerhouse
Governments and businesses have to stay focused on
productivity and innovation for the >20% share
… CAN be achieved
ASEAN needs to integrate as one The strength of ASEAN manufacturing lies in providing
a unified production base and market
… TO realize its potential