Navigating Singapore's Manufacturing Sector: Classification, Requirements, and Key Activities
- a22162
- Oct 10
- 5 min read
Singapore Manufacturing Sector Explained
Navigating Singapore's Manufacturing Sector: Classification, Requirements, and Key Activities
Singapore's manufacturing sector is a vital pillar of its economy, contributing significantly to the nation's GDP. For businesses operating or planning to enter this space, understanding the official classification, requirements, and key activities is crucial for compliance, accessing government support, and strategic planning.
Official Classification: The Singapore Standard Industrial Classification (SSIC)
The foundation for classifying a business as part of the manufacturing sector in Singapore is the Singapore Standard Industrial Classification (SSIC). Maintained by the Singapore Department of Statistics (DOS), the SSIC is the national standard for classifying economic activities and is used by various government agencies, including the Accounting and Corporate Regulatory Authority (ACRA) and the Ministry of Manpower (MOM).
Key Classification Principles:
Principal Activity: A company's SSIC code is primarily determined by its principal business activity. This is the activity that contributes the most value-added to the goods and services produced by the business.
SSIC Structure: The SSIC is a hierarchical, five-digit numerical coding system. The broad category for manufacturing is typically found in Section C: Manufacturing (Divisions 10-33 in the latest SSIC versions). The subsequent digits provide finer detail on the specific type of manufacturing activity.
Requirements to be Classified as a Manufacturing Sector Entity
While the SSIC code is the official classification, specific regulatory bodies, particularly the Ministry of Manpower (MOM) for foreign worker quotas, have additional operational requirements for a business to be formally recognised as a manufacturing entity:
Use of Machinery: The business must use machinery to manufacture or produce items from raw materials. Manufacturing is fundamentally defined as the physical or chemical transformation of materials, substances, or components into new products.
Designated Industrial Area: The company must operate in a designated industrial setting area, typically in a building that has been officially classified for manufacturing use (e.g., a factory or industrial building).
Valid Factory Notification/Registration: The establishment must have a valid factory notification or registration with the Ministry of Manpower (MOM), depending on the size and risk profile of the operations.
Food Processing: For food processing companies, a valid Singapore Food Agency (SFA) licence to operate a food processing establishment or slaughter-house is required.
Note: Getting classified correctly is essential for compliance, especially concerning MOM's foreign worker quotas and levy rates, which vary significantly across sectors like Manufacturing, Construction, and Services.
Examples of Manufacturing Activities in Singapore
Singapore's manufacturing sector is characterised by its focus on high-value, advanced manufacturing, particularly in electronics, chemicals, and biomedical sciences. Manufacturing activities generally fall into various divisions under the SSIC.
Key Manufacturing Industries and Activities:
Industry Sector (SSIC Division Examples) | Example Activities |
Electronics & Precision Engineering (Divisions 26, 27, 28) | Manufacturing of semiconductor wafers, integrated circuits, hard disk drives, electronic components, precision tools, and industrial robotics. |
Chemicals & Energy (Divisions 19, 20) | Manufacturing of petrochemical products, specialty chemicals, basic industrial acids and alkalis, and refined petroleum products. |
Biomedical Sciences (Division 21, 32) | Manufacturing of pharmaceuticals and biological products, medical devices, and diagnostic equipment. |
General Manufacturing (Various Divisions) | Manufacturing of machinery and equipment (e.g., oil and gas field machinery), fabricated metal products, furniture, paper products, and printing. |
Food & Beverages (Division 10, 11) | Manufacturing or processing of food products (e.g., ready-to-eat meals, sauces), drinks, and nutritional products. |
Activities that May be Classified as Manufacturing (Depending on Scale/Value-Add):
Assembly of ready-made parts to form a new, functional product.
Bulk-breaking (e.g., cutting large materials into smaller, customised sizes).
Basic Modification (e.g., cutting or trimming of parts).
Sole Printing (e.g., printing of posters, T-shirts, name cards).
Electroplating, hot-tip galvanising, die-casting, and heat treatment.
Activities Generally Excluded from Core Manufacturing Classification:
Repair and maintenance (generally classified under Services).
Testing or quality control (if performed as a standalone service).
Simple packing or repacking (without a substantial transformation).
Wholesale and retail trade of manufactured goods (even if self-produced).
In conclusion, for a business to be definitively classified as being in the manufacturing sector in Singapore, its principal activity must involve the physical or chemical transformation of materials into new products, as reflected by the correct SSIC code, and its operations must comply with the industrial and factory regulations set by relevant government bodies like ACRA and MOM.
Partnering with Bestar Singapore: Your Gateway to Seamless Manufacturing Compliance and Growth
Navigating Singapore's Manufacturing Sector: Classification, Requirements, and Key Activities
Navigating Singapore's highly-regulated Manufacturing Sector (Section C of the SSIC) requires more than just production expertise; it demands meticulous administrative and regulatory compliance. Bestar Singapore is a comprehensive partner that offers specialized accounting, corporate, and advisory services to help manufacturing companies successfully establish, operate, and scale in this vital industry.
1. Expert Manufacturing Classification & Setup
The first critical step for any manufacturing business is accurate classification, as this impacts everything from licenses to foreign worker quotas.
Singapore Standard Industrial Classification (SSIC) Selection: Bestar provides expert consultation to help you identify the precise SSIC code that reflects your company's principal activity (the one that generates the most value-added). A correct SSIC code is non-negotiable for ACRA registration, IRAS tax profiling, and eligibility for government grants tailored to the manufacturing sector.
Company Incorporation & Factory Registration: We manage the entire company incorporation process, including the mandatory appointment of a local resident director and a Company Secretary. We also advise on the initial requirements for MOM's Factory Notification or Registration, ensuring your industrial premises meet the necessary regulatory standards from day one.
Work Pass and Manpower Consulting: Manufacturing is a quota-controlled sector for foreign workers. Bestar assists with the application for various Work Passes (e.g., Employment Pass, S Pass, Work Permit) and provides advice on the specific quota and levy requirements for the manufacturing industry, ensuring your manpower strategy is compliant.
2. Comprehensive Regulatory Compliance & Advisory
Manufacturing involves a heightened level of regulatory oversight, especially in areas of safety, environment, and product quality.
Licensing and Permits: We advise on securing the necessary operational licenses specific to your manufacturing vertical. This may include:
Singapore Food Agency (SFA) licenses for food processing.
Health Sciences Authority (HSA) Manufacturer's Licenses for pharmaceuticals and medical devices.
Advisory on compliance with standards from agencies like NEA (environmental) and SCDF (fire safety).
Corporate Secretarial Services: As your appointed Corporate Secretary, Bestar ensures continuous compliance with the Singapore Companies Act. This includes managing statutory registers, filing of Annual Returns (AR) with ACRA, and ensuring timely submission of all corporate resolutions.
Tax Planning and Compliance: We handle corporate tax filing with IRAS and provide strategic advice on tax incentives and schemes available specifically to the manufacturing and industrial sectors.
3. Financial & Operational Back Office Support
A robust back office is essential for maintaining efficient operations and meeting statutory audit requirements.
Bookkeeping and Accounting: Bestar's team manages all bookkeeping and accounting functions, adhering to the Singapore Financial Reporting Standards (SFRS). Accurate financial records are vital for demonstrating operational stability, securing financing, and conducting financial audits.
Audit and Assurance Services: We provide expert audit services to meet statutory requirements, enhancing your company's financial transparency and credibility for investors, banks, and stakeholders in the capital-intensive manufacturing industry.
Payroll Outsourcing: We offer payroll processing services, including the accurate computation and submission of statutory deductions like CPF, saving your HR team valuable time and ensuring compliance with all local employment laws.
By leveraging Bestar Singapore's integrated services, your manufacturing business can mitigate compliance risks, optimize operational efficiency, and focus core resources on high-value production and innovation.
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