Singapore’s manufacturing sector, shaped by the Economic Development Board and Enterprise Singapore, now generates nearly a quarter of GDP. The sector now faces stronger global competition, higher labour costs, and scaling challenges and, to win, the sector must scale smarter by modernising operations and accelerating technology adoption.
Opportunities Amid Industry Pressures
To show what “scaling smarter” looks like in practice, we’ll share a customer success story from a Singapore manufacturer that put them into action.
For more than 40 years, this Singapore manufacturer supply machinery parts across Southeast Asia and the Middle East, building its reputation on precision, reliability, and consistency. However, starting in 2023, their business operations started showing stress as manual processes exposed bottlenecks and inefficiencies. For this company, securing grant funding became the turning point, enabling modernization that directly addressed these challenges.
The Strain of Staying Manual
Inside the factory, operational challenges were evident:
Limited chiller repair capacity: Only about 10 industrial chiller models could be serviced, despite growing customer demand. Monthly revenue was constrained to S$50–70K, servicing roughly 40 units for 10 customers, with lead times averaging three weeks.
Labor-intensive CMP head refurbishment: More than 12 staff manually refurbished Chemical Mechanical Planarization (CMP) heads, recording measurements on paper and tracking parts in Excel. This process was time-consuming, prone to error, and limited service volume.
Service gaps in semiconductor parts cleaning: The lack of cleanroom and ultrasonic cleaning capabilities prevented the company from offering this service, resulting in longer client machine downtime and higher maintenance costs.
Semiconductor electronics repair constraints: Critical components, including Printed Circuit Boards (PCBs), controllers, sensors, and power assemblies, were repaired via costly outsourcing with lead times of around three weeks and external PCB repair costs of S$1K–5K.
These bottlenecks limited service capacity, slowed turnaround, and constrained growth potential, highlighting the need for strategic operational modernisation.
Unlocking Strategic Grant Funding
The company partnered with Real Inbound Consulting (RIC) and successfully secured S$400,000 under the Enterprise Development Grant (EDG) – Innovation & Productivity: Automation.
The EDG - Innovation & Productivity: Automation grant helps Singapore businesses adopt automation solutions to improve efficiency and competitiveness. Click to see more details about this grant.
To ensure the investment addressed the factory’s real challenges, RIC conducted a full production process evaluation and recommended targeted automation and service innovation to solve each challenge:
Industrial Chiller Refurbishment → Automation-enabling equipment
Expand capability from 10 to 40 models (300% increase)
Reduce lead time from three weeks to one week (>50%)
Increase monthly revenue to S$100–140K, processing ~80 units
CMP Head Refurbishment → Headtester & rebuild software
Digitally track all CMP head parts, lifetimes, and failure rates
Reduce labor costs by ~30% and parts management costs by ~50%
Generate additional monthly revenue of S$50–60K for ~40 units
Semiconductor Parts Cleaning → Cleanroom ultrasonic cleaning setup
Reduce servicing turnaround time by >30%
Cut client machine downtime by >20%
Reduce operational costs for clients by more than 10x
Semiconductor Electronics Repair → In-house testing and repair workstations
Eliminate outsourcing costs
Reduce repair lead times from three weeks to one week (>70%)
Provide predictable timelines and improved client satisfaction
These interventions transformed operations into a smart, agile production hub, increasing service capacity, improving turnaround times, reducing costs, and enabling the launch of new, high-value services.
Transforming Operations: From Pressure to Performance
The outcomes were clear – automation and service innovation converted operational pressures into new revenue streams, higher productivity, and stronger client trust.
Metric | Outcome | Strategic Impact |
|---|---|---|
Chiller Refurbishment Capacity | Expanded from ~10 to 40 models, throughput doubled to ~80 units/month | Unlocks higher monthly revenue (S$100–140K), meets broader client demand |
CMP Head Refurbishment | Introduced automation and rebuild software | Reduced labor for 12+ staff, saved 30% time and 50% in parts management costs, additional S$50–60K revenue/month |
Semiconductor Parts Cleaning | Cleanroom ultrasonic cleaning capability | Reduced client machine downtime by >20%, servicing turnaround by >30%, enabled up to 10x cost savings on precision parts |
Semiconductor Electronics Repair | In-house facility established | Eliminated outsourcing costs, reduced PCB repair lead time by >70%, improved client satisfaction |
Overall Operational Efficiency | Production line speed +50%, capacity +30% | Fewer defects (–15%), labor costs –35%, with S$300K annual savings reinvested into growth |
Grants as a Catalyst for Manufacturing Growth
Grants like the EDG - Innovation & Productivity: Automation support Singapore’s national priorities for advanced capabilities, digital adoption, and global competitiveness. They help businesses adopt automation and Industry 4.0 solutions faster, reduce financial risk, and scale operations efficiently.
Specifically, grants enable companies to:
Integrate new technologies without excessive upfront cost
Improve operational efficiency
Scale to meet regional and global demand
Build resilience against labor and cost pressures
For this manufacturer, the EDG enabled measurable operational transformation, turning strategic vision into real, scalable growth while addressing the specific operational bottlenecks that once limited production.
Key Lessons for Manufacturing Leaders
This manufacturer’s journey offers practical insights for other industry leaders:
Target grants strategically: Focus on investments that address specific operational bottlenecks and deliver measurable ROI. Align funding with the Manufacturing 2030 roadmap, which emphasises advanced manufacturing technologies, digitalisation, and workforce upskilling. By linking grants to national priorities, companies can modernise operations while contributing to broader industry competitiveness.
Align technology with workflows: Ensure automation complements existing processes to maximise adoption and benefits. Robotic systems, AI-assisted inspection, and automated material handling are most effective when designed around the realities of the factory floor.
Measure outcomes rigorously: Track key performance indicators such as production speed, capacity, quality, and cost reductions. This provides evidence of impact, informs future investments, and strengthens the business case for further automation or service expansion.
Leverage expert guidance: Consulting partners and platforms like Grantbii simplify application processes, support smooth implementation, and help companies translate grant funding into operational improvements.
Grants should be viewed as strategic partnerships, enabling manufacturers to modernise, scale efficiently, and create measurable value while staying aligned with Singapore’s national industrial objectives.
Your Manufacturing Transformation Starts Here
The right grant funding and expert guidance can improve efficiency, reduce costs, and lay a foundation for growth.
Singapore businesses have a unique opportunity: government programs remain supportive, enabling manufacturers to modernise operations, scale efficiently, and compete globally.
By strategically aligning grant-funded initiatives with operational priorities, companies can transform bottlenecks into measurable growth opportunities, expand service offerings, and strengthen client trust. The choice is clear: lead the evolution in your operations rather than react to industry pressures.
Ready to craft your own success story? Explore 10 Grant Funding Schemes Every SME Should Know in 2025 to discover funding opportunities that could drive your next big step.
