Mr Desmond Tay, CEO, vCargo Cloud Pte Ltd
Ladies and Gentlemen
1. Good afternoon. I am delighted to join you today to witness the launch of the CamelONE Marketplace by vCargo Cloud (VCC).
2. I would like to commend VCC for establishing CamelONE Marketplace as the first platform in Singapore that serves as a one-stop aggregator of cargo space for the logistics industry.
3. Such digital platforms will become increasingly important to help transform the logistics industry, which is critical to our economy.
Overview of the Logistics Industry and Trends
4. The Singapore’s Logistics industry is part of the Transport & Storage sector, which accounts for more than 7% of our GDP and employs over 230,000 workers.
5. It is an industry with good growth opportunities brought about by technology trends such as big data, internet-of-things, robotics and automation. These technologies, when applied to the logistics industry, can help logistics companies better optimise their resources and reduce costs.
6. The rise of the middle class in Asia, increased urbanisation and infrastructure developments such as through the Belt and Road Initiative (BRI), will also lead to new opportunities for the logistics sector. For instance, the Chongqing Connectivity Initiative – Southern Transport Corridor – is an example of a demonstrative project that enables improved connectivity between China and ASEAN, which can reduce transportation times and save costs for businesses.
7. Thus, it is important that businesses, especially small and medium enterprises (SMEs), stay agile and capitalise on these opportunities for sustained growth.
Supporting Logistics SMEs in Digitalisation
8. The Logistics Industry Transformation Map (ITM), which was launched in 2016, lays out the growth strategies for the industry to reinforce our position as a global logistics hub. One key focus of the ITM is to strengthen our industry and enterprises’ competitiveness by becoming more productive and innovative.
9. It is crucial for players within the industry to collaborate and take advantage of digital technology to transform the industry so that things can be done much more efficiently and at a lower cost. Today, about 15% of SMEs in the logistics industry have adopted digital solutions such as fleet management, warehouse and inventory management, and track and trace systems for their business. We hope to raise this percentage in future.
10. The SMEs Go Digital Programme is our key programme to help SMEs embark on digitalisation. There are three simple steps.
a. First, the Logistics Industry Digital Plan, which was launched in November last year, enables a company to identify which stage of digitalisation they are at. If they are at Stage 1, the kind of solutions they should adopt are integrated solutions with key functions, such as job assignment, fleet management and inventory management.
b. Second, they can then look for digital solutions that have already been pre-approved by IMDA. These solutions have been assessed by IMDA to be effective, market-tested and cost-effective, supported by reliable vendors.
c. Third, SMEs who want to adopt these solutions can get support from the Productivity Solutions Grant, through the Business Grants Portal.
11. About 140 SMEs in the logistics industry that have adopted these solutions since the launch, with more coming on board.
VCC CamelONE Marketplace
12. The SMEs Go Digital Programme also supports pilot projects by industry leaders, which help groups of SMEs to go digital. We encourage larger players to work with smaller ones, through collective efforts that have a wider sector impact.
13. The CamelONE Marketplace is one such example. VCC brings together large industry leaders such as freight-forwarders and cargo insurers, to make available excess cargo space and premium cargo insurance rates through the platform. SMEs are then able to aggregate their freight demands and enjoy more competitive rates.
14. VCC has since developed the platform to enable cargo and insurance booking, freight e-invoices as well as e-payment of logistics charges. Through this single platform, SMEs can make cargo and insurance booking, track status, receive invoices as well as make payment electronically. In future, SMEs can also look forward to new functions such as trade declarations and e-financing, with enhancements that VCC has planned.
15. IMDA is excited to work with Economic Development Board (EDB), Enterprise Singapore (ESG), Singapore Logistics Association (SLA) and industry leaders such as LCH Lockton, Dimerco and Bollore to be a part of these sector transformation efforts that help businesses to seize new opportunities with digital technology.
16. Once again, I would like to congratulate VCC on the successful launch of CamelONE Marketplace.
17. I wish you every success and encourage all SME freight forwarders to take advantage of this new platform.
18. Thank you.