Frost & Sullivan: APAC increases production investment
With middle-class consumer purchasing on the rise Manufacturers are investing in new production facilities to meet escalated demand.
As a result of this increase of production plants and machines, there has been an drive in a requirement for machine tools. An analysis by Frost & Sullivan predicts that this will push the machine tool market in Asia-Pacific to grow at a compound annual growth rate (CAGR) of 2.2% between 2018 and 2023, reaching US$10bn in revenue.
"Business expansion strategies and plant localisation of end-user industries are set to drive the growth of the machine tool industry in the APAC region," commented Divya Saiprasad, Principal Consultant, Industrials at Frost & Sullivan. "The rise in demand for machine tools can be attributed to the increase in the production of auto components and growth of the automotive industry."
Frost & Sullivan expects Japan, South Korea and Taiwan to remain the top three markets for machine tools in the APAC region, contributing 69.5% in 2023. While economies such as Vietnam, Indonesia and Thailand are predicted to show strong growth in the next three years, as a result of foreign direct investment (FDI).
"On the end-user vertical front, engineering and automotive sectors are projected to remain dominant," commented Saiprasad. "The aviation sector is also expected to further supplement the market for machine tools, given the demand from the burgeoning upper-middle-class population."
How can machine tool vendors tap into further growth?
Integrating new features and technologies to increase the efficiency of multi-task tools
Harnessing IoT and Big Data for preventive and predictive maintenance
Developing smart machines equipped with AI, robots, and software technologies
Increasing production efficiency, shortening delivery times, and maintaining price competitiveness
Expanding sales, distribution, and aftermarket service channels
Image source: Frost & Sullivan
Business Chief Legend: Ho Ching, CEO of Temasek
Ask Singaporeans who Ho Ching is, and the majority will answer the ‘wife of Prime Minister Lee Hsien Loong’. And that’s certainly true. However, she’s also the CEO of Temasek Holdings, Singapore’s sovereign wealth fund, and one of the world’s largest investment companies.
Well, she is until October 1, 2021, as she recently announced she would be retiring following 16 years as CEO of the investment giant.
Since taking the reins in 2004, two years after joining Temasek as Executive Director, Ho has gradually transformed what was an investment firm wholly owned by Singapore’s Government into an active investor worldwide, splashing out on sectors like life sciences and tech, expanding its physical footprint with 11 offices worldwide (from London to Mumbai to San Francisco) and delivering growth of US$120 billion between 2010-2020.
Described by Temasek chairman Lim Boon Heng as having taken “bold steps to open new pathways in finding the character of the organisations”, Ho is credited with building Temasek’s international portfolio, with China recently surpassing Singapore for the first time.
As global a footprint as Ho may have however, she has her feet firmly planted on Singapore soil and is committed to this tiny city-state where she was not only educated (excluding a year at Stanford) but has remained throughout her long and illustrious career – first as an engineer at the Ministry of Defence in 1976, where she met her husband, and most notably as CEO of Singapore Technologies, where she spent a decade, and where she is credited with repositioning and growing the group into the largest listed defence engineering company in Asia.
It’s little wonder Ho has featured on Forbes’ annual World’s Most Powerful Women list for the past 16 years, in 2007 as the third most powerful woman in business outside the US, and in 2020 at #30 worldwide.
But it’s not all business. Ho has a strong track record in Singapore public service, serving as chairman of the Singapore Institute of Standards and Industrial Research and as deputy chairman of the Economic Development Board; and is a committed philanthropist with a focus on learning difficulties and healthcare.
As the pandemic kicked off, she not only led active investments in technology and life sciences, with German COVID-19 vaccine developer BioNTech among the most recent additions to Temasek’s portfolio, but through the Temasek Foundation – the firm’s philanthropic arm which supports vulnerable groups close to Ho’s heart, handed out hand sanitiser and face masks.
So, you would be forgiven for thinking that at age 68, Ho might simply relax. But in March 2021, just as she announced her retirement from Temasek, Ho joined the Board of Directors of Wellcome Leap, a US-based non-profit organisation that’s dedicated to accelerating innovations in global health. Not ready to put her firmly grounded feet up yet it seems.