Manufacturing Industry in ASEAN Overview & Trends by frost & sullivan
 

Manufacturing Industry in ASEAN Overview & Trends by frost & sullivan

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Frost & Sullivan's analysis on trends and overview of manufacturing industry in ASEAN presented by Satish Lele, Vice President for Chemicals, Materials & Foods Practice - Asia Pacific, Frost & ...

Frost & Sullivan's analysis on trends and overview of manufacturing industry in ASEAN presented by Satish Lele, Vice President for Chemicals, Materials & Foods Practice - Asia Pacific, Frost & Sullivan at 3D Experience Forum, May 24th, 2012 in Jakarta - Indonesia.

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    Manufacturing Industry in ASEAN Overview & Trends by frost & sullivan Manufacturing Industry in ASEAN Overview & Trends by frost & sullivan Presentation Transcript

    • Manufacturing Industry in ASEAN: Overview & Trends24TH MAY, 2012
    • The Frost & Sullivan StoryPioneered Emerging Market Partnership Relationship& Technology Research with Clients Visionary Innovation• Global Footprint Begins • Growth Partnership Services • Mega Trends Research• Country Economic Research • GIL Global Events • CEO 360 Visionary Perspective• Market & Technical Research • GIL University • GIL Think Tanks• Best Practice Career Training • Growth Team Membership™ • GIL Global Community• MindXChange Events • Growth Consulting • Communities of Practice22
    • Our Industry Coverage Automotive & Transportation Aerospace & Defense Measurement & Consumer Information & Instrumentation Technologies Communication Technologies Automotive Energy & Power Environment & Building HealthcareTransportation & Logistics Systems Technologies Minerals & Mining Chemicals, Materials Electronics & Industrial Automation & Food Security & Process Control33
    • Assessing Manufacturing Excellence4
    • Our Global Footprint 40+ OfficesScanning the Globe for Opportunities and Innovation55
    • Manufacturing Trends6
    • Future Manufacturing The shape of manufacturing is changing7
    • Factory of the Future Future Plant SMART Factory 2020 Current Plant Material Handling conveyer Factory of the future will Lower Production Costs and shorten Innovation and Production Mixing Plant Cycles Processing Plant Work Simulation Material Handling conveyer Drying Chamber 10% decrease in production time; 30% Separation Plant Mixing & Processing Plant savings in project cost; 20% reduction inWaste Water manual labour; Reduced CO2 emissions LV and MV drives coupledProcessing Plant Heating Plant with energy efficient Batching & Blending products Plant Drying Chamber Separation Plant Cleaning Plant Chilling Plant Waste Water Processing Plant Heating Plant Quality Plant Packaging Shop Premium Batching & Blending efficiency class Plant motors, pumps and compressors; Chilling Plant all requiring low voltage drives Remote Support and Diagnosis of Production Equipment, Virtual Cleaning Plant FUTURE TECHNOLOGIES Reality based maintenance and Planning • Current Sensing • Reduced Complexity • Cloud Computing • Software as a Service • Digital Factory • Software configurable hardware Quality Plant Packaging Shop • Mobile Applications • Sustainability • OELD Displays • Virtualization 8
    • Future Manufacturing• Green• Sustainable• Environmentally responsible• Environmentally conscious• Environmentally benign Invest Produce Operate• Clean Green Green Green 9
    • ASEAN Outlook10
    • 11
    • ASEAN: a 2 trillion economy Others (89bil) Vietnam (123bil) Indonesia (846bil) Philippines (213bil) Thailand (346bil) Singapore (260bil) Malaysia (279bil) Gross Domestic Product of SEA Countries, 2011 (in US$)12
    • ASEAN: Growth Zone 2011-2015 Indonesia 6.6 Malaysia 5.5 Philippines 4.6 Singapore 4.7 Thailand 5.2 Viet Nam 7.1 Average 6.0GDP, US$ 13
    • Indonesia – set to break out 2011-2015 Economic Development Acceleration Master plan or MP3EI: USD 400 Bln Investment in GDP USD $16.6 Trillion Infrastructure, GDP p.c. USD $46,000 Industry clusters, 7th largest economy SEZ’s and FTZ’s. Financed by the Government, private sector, FDI and PPP GDP USD $4700 Bln GDP p.c. USD $16,000 10th largest economy GDP USD $1200 Bln GDP USD $706 Bln GDP p.c. USD $4,800 GDP p.c. USD $3,015 14th largest economy 17th largest economy2011 2015 2025 2045 Source: IMF, World Bank, GOI, Frost & Sullivan14
    • ASEAN: Manufacturing driven 25% 36% 26% 22% 21% 20% 100% 80% Manufacturing 60% Other Sectors 40% 20% 0% Source: World Bank, 2010 Manufacturing, value added (% of GDP)15
    • ASEAN: Major Industries Indonesia Thailand • Transport Equipment & • Automobile. Machinery. • Electronics. • Petrochemicals. • Petrochemicals. • Textile & Apparel • Transport Equipment. • Food Malaysia Singapore • Electrical & Electronics. • Electronics. • Petrochemicals. • Biomedical. • Food. • Petrochemicals. • Basic Metal Products. • Precision Engineering. Philippines Vietnam • Electronics. • Textiles & Apparels. • Textile & Apparels. • Food. • Tobacco. • Electrical Products. • Food.1616
    • ASEAN: Manufacturing Drivers Domestic Demand Infrastructure China + 1 Investment Manufacturing Edge17
    • CHALLENGES Opportunities18
    • ASEAN Manufacturing: ChallengesMinimum Exchange Political Capability Productivity Natural Wage Rate Risk Development Innovation Disasters Policy19
    • ASEAN Manufacturing: Challenges • 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 The Global Competitiveness Index 2011-2012 rankings © 2011 World Economic Forum | www.weforum.org/gcr GCI 2011-2012 GCI 2010-2011 Country/Econom y 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 Deloitte, 2010 survey 109 12 Cambodia 97 3.85 Enhancing Competitiveness20
    • ASEAN Manufacturing: ChallengesThe pressure for Higher Productivitywill 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 5.8 % 6.3 % ICT investment 18 % share 29 % ICT share EU 42 % in productivity US 80 % growth Source: IMF 2004 Enhancing Competitiveness 21
    • ASEAN Manufacturing: Opportunities Biomedical Sector Solar Power Smart Grid• S$ 26b for Singapore • >2b investment in • $400 million market in• 10% of GDP Malaysia ASEAN• Fastest growth rate • Global companies – • Investments led by among all sectors Bosch, Panasonic, Thailand and• High value add and Sunpower Singapore profit • Spur other investment • Huge growth potential in Renewable Energy Emerging Sectors22
    • ASEAN Manufacturing: Opportunities Products Under CEPT ASEAN Free Scheme: Trade Area (AFTA) Common Effective  All manufactured Preferential Tariffs products, including Scheme (CEPT) capital goods.  Processed agricultural Successfully reduced products (agricultural tariffs imposed on products are excluded). products traded under the Elimination of Tariffs & CEPT Inclusion List, to a Non Tariffs Barriers range of 0% to 5%. By 2018 Impact of AFTA  Forms a competitive ASEAN region.  Greater trade between firms.  Efficient division of labor.23
    • LAST Word24
    • 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 potential25
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