INDUSTRIAL SECTOR: THE BLACK HORSE

This might come as a surprise, given the common prediction for a slowdown in the manufacturing sector, but “this sector holds the greatest investment potential”, says Cheong.

He points out that it is likely to reorganise its operations and highlights three factors that might push the need for industrial real estate: supply chain consolidation; inventory management moving from Just-In-Time to Just-In

Case; and manufacturers concentrating production and storage in or near markets.

More importantly, there would also be increased demand in seven areas: vertical farming and agrotechnology, and cold chain storage – both a reaction to our country’s goal for 30 per cent home-grown food; business continuity planning centres; data centres, especially with the introduction of 5G; sustainable industrial and logistic facilities; Industry 5.0, which sees modern manufacturing processes transformed to integrate work for man and machine; and tech incubator/research facilities.

Sim paints a more conservative picture. “The immediate impact of Covid-19 is a fall in the purchasing index. While Singapore will benefit as companies shift manufacturing bases out of China and into South-east Asia – as their products are likely to go out to the rest of the world via Singapore – our manufacturing sector largely produces intermediate products, and we will be impacted when regional markets are sick.”