Performance and Outlook of the Manufacturing Sector in 2020

Coronavirus: Govt cracks down on mask profiteers, retailer Deen Express queried on alleged inflated prices.

Factories that used to make perfume, T-shirts, and cars are now making supplies to fight the coronavirus

Singapore retailers, e-commerce platforms asked to cooperate in stopping mask profiteering

• Despite these economic disruptions, Singapore’s manufacturing sector grew by 3.5 per cent year-on-year (yoy) in 1H20, supported by output expansions in the biomedical manufacturing and precision engineering clusters

• The biomedical manufacturing cluster expanded by 27 per cent yoy in 1H20, extending the 4.1 per cent growth in 2H19. The strong performance of the cluster was due to robust output expansion in the pharmaceuticals segment (36 per cent), as the production of both active pharmaceutical ingredients (APIs) and biological products increased over the period.  

• This was on account of workplace disruptions arising from the Circuit Breaker (CB) measures that were in place for the most part of 2Q20, as well as weak demand for non-COVID-19 related medical devices (e.g., medical implants) as major export markets were mired in their own lockdowns. Nonetheless, an increase in export demand for COVID-19 related medical devices (e.g., respiratory devices) helped to provide some support to the segment during 2Q20 

• Surgical and N95 masks have become highly sought after in recent weeks as the Wuhan virus - which has killed 170 people and infected more than 7,000 people in China  - has prompted consumers to clear shops of products used to prevent its spread.

• E-commerce platforms said they will cooperate with the authorities and remove listings if necessary. The online marketplaces said that while they do not regulate prices, they will ensure that sellers do not hike prices of products used as preventative measures against the Wuhan virus to "unreasonable" levels. (Indicates that sellers still need to increase the price. Just need to ensure not unreasonable)

• To help meet high demand for face masks, Qoo10 is encouraging overseas merchants to make more stock available here, as well as directly sourcing and purchasing masks to add to Singapore's supply, he said.

• The authorities are cracking down on profiteers, following complaints that some businesses and individuals have been selling face masks for grossly inflated prices amid a surge in demand.

• The Government's Price Controller on Thursday (Jan 30) asked a retailer at 313 @ Somerset mall to explain the basis for the selling prices of its masks, giving it until next Monday to respond.

• A packet of 10 surgical masks usually costs around $5 and 20 N95 masks cost about $40. But the masks sold at the Orchard Road store, Deen Express, are alleged to cost much more.

• One of such initiatives is through ST Engineering (a government linked corporation) expanding mask production to include the making of its own melt-blown polypropylene filters to minimise risk of production disruption as a result of key component shortage*.  It is noted that the production capacity of these mask filters is able to help Singapore achieve a stage of self-sufficiency in supply**.  
• To ensure sustainability of adequate supply, the government is also building a mask stockpile as a standby for any urgent distribution to the population. This stockpile will be restocked with supplies after being drawn down. 

• *In her Facebook post, Mdm Ho wrote about how ST Engineering had troubles securing good quality melt-blown filters before deciding to order “custom-built” machines to make its own.
• **The production capacity is adequate to meet full local requirements as it is able to supply everyone in Singapore at least 2 mask filters per week and each filter lasts for an average of about 3 days

• TO prevent profiteering from surgical mask sales in the midst of Wuhan coronavirus worries, retailers and e-commerce platforms will be asked to cooperate with the authorities in tackling errant retailers, Minister for Trade and Industry Chan Chun Sing told media on Thursday. He applauded platforms such as Carousell and Qoo10 for threatening to suspend profiteering sellers.

• Warning letters will also be sent to retailers which are suspected of profiteering, he added: “They will give us an answer to what they are doing and why they are doing what they are doing.”

• The government is also changing its method of mask distribution. While the national stockpile will be prioritised for healthcare workers, there will be a one-off distribution of masks to households.

• In a media release on Thursday evening, the Ministry of Trade and Industry said the government's Price Controller has issued a letter of demand to retailer Deen Express, in response to public complaints of sellers selling surgical masks at "grossly inflated prices".

• “Deen Express is to explain to the Price Controller the basis of their selling prices for the sale of masks, including their cost price and profit margins. MTI will use such information to assess the need for further action under the Price Control Act," said MTI.