Speech by MOS Low Yen Ling at the Chasen Groundbreaking Ceremony

Mr Justin Low, Managing Director and CEO of Chasen Holdings Limited

Mr Eddie Siah, Executive Director of Chasen Holdings Limited

Distinguished Guests

Ladies and Gentlemen

Introduction

1. Good morning. Thank you for inviting me to join you today.

2. This groundbreaking ceremony marks an important milestone in the growth journey of Chasen Logistics Services (CLS). The company is enlarging its capabilities by offering additional specialised storage services to its semiconductor clients and providing modularised cleanrooms for customers needing such facilities. This positive expansion reaffirms Singapore&rsquo s role as a key node in the global semiconductor supply chain and enhances our value proposition to both existing and potential investors looking for a rich ecosystem to plug into.

Continuous Transformation to Seize Global Opportunities

3. To stay ahead of the curve, logistics companies must be willing and hungry to seize emerging opportunities. In this respect, I commend CLS for its unwavering entrepreneurial spirit and strong investment in capability-building.

CLS started with humble roots in general warehousing and moving services. In the 1990s, they saw an opportunity to support the increasing number of MNCs that had established semiconductor manufacturing operations in Singapore. This sparked a strategic shift towards providing value-added logistics services for the semiconductor sector. There was then a growing demand for such services but relatively limited competition due to the higher entry barriers. Undeterred by the high costs and steep learning curve, CLS began investing in specialised storage technology and training of staff to handle sensitive equipment. The business grew steadily and in 2019, the company worked with  EnterpriseSG  to enhance their warehouse and inventory management processes.

4. Today, CLS continues to grow their business as a leading service provider to semiconductor clients. The new integrated facility at this site will offer 390,000 square feet of warehouse space, tripling CLS&rsquo current storage and goods-handling capacity. Three floors of the five-storey warehouse will be air-conditioned and humidity-controlled for the storage of high-value, sensitive goods. In addition, the ground floor will have 65,000 square feet of cleanroom-ready space. Designed to withstand ground vibrations, CLS will be able to offer modularised and customised cleanrooms that meet the exacting demands of their clients.

Enhancing Productivity to Enable Efficient Movement of Goods  

Cultivating Talent to Stay Relevant and Competitive

5. The success of companies like CLS contributes to Singapore&rsquo s status as a globally competitive trade and supply chain hub. While Singapore has ranked among the top of the World Bank Group&rsquo s  Logistics Performance Index  for the past decade - we must not rest on our laurels. Let&rsquo s always remember that our strength lies in our workforce. Our people form the backbone of the smooth day-to-day logistics operations. It is essential to equip workers with up-to-date skills and to motivate them with meaningful career growth opportunities.

6. I am excited to hear that CLS has plans to redesign job roles and provide additional training to upskill workers. At the same time, it is also working to create more than 60 new roles by 2028 so that both new and existing employees can look forward to many exciting career development opportunities. These new positions include managerial roles to run supply chain operations, as well as specialist functions to support value-added services for cleanroom clients.

7. Logistics companies which are keen on restructuring their approach to talent development may learn about current industry trends from the  Supply Chain Management Jobs Transformation Map  launched earlier in July this year. The roadmap covers topics like how supply chain management roles will transform, and how employees can be trained in preparation for such changes.

The Importance of Sustainability

8. In today&rsquo s business landscape, where best-in-class companies are increasingly adopting stringent sustainability practices, including in their procurement requirements, it is vital to invest in sustainability to remain competitive within the global value chain. Some MNCs have already started to request their suppliers to track their emissions based on the  Greenhouse Gas Protocol.

9. CLS is now reaping the benefits of its foresight in implementing sustainability measures early. Since 2018, the company has been monitoring the carbon emissions of its transport fleet and utilities usage. Its proactive adoption of robust sustainability reporting has helped the company not only secure but also nurture valuable partnerships with key clients. Furthermore, CLS has been diligently managing its greenhouse gas and exhaust air pollutant emissions. CLS is progressively electrifying its transportation fleet and upgrading its vehicles for compliance with Euro 5 and 6 emission standards and greater carbon efficiency. To date, the company has acquired two electric vehicles and five Euro 6 heavy vehicles ranging from 14- to 20-foot trucks. CLS has also taken measures to ensure that its new facility will attain the BCA Green Mark certification. Together, these efforts will help differentiate CLS&rsquo offerings from competitors and allow the business to maintain a strong competitive edge.

10. Companies looking to embark on their sustainability journey may start by familiarising themselves with the  Sustainability Playbook for Enterprises. Jointly developed by EnterpriseSG, SBF and SSG, this playbook helps businesses to assess their Environmental, Social, and Governance (ESG) readiness. It provides a list of resources which companies may use to kickstart their sustainability journey. EnterpriseSG is also working with the Singapore Logistics Association to co-develop a  Logistics Sustainability Playbook. This will consist of sector-specific strategies which companies can adopt to further their sustainability journey. The playbook is targeted for release by Q1/ 2024.

Conclusion

11. I&rsquo d like to convey my heartiest congratulations to CLS. I look forward to your new integrated facility taking the logistics sector in Singapore to greater heights!

12. Thank you.