DBS and SMF Partner to Drive Green Manufacturing Shift

In a historic partnership designed to drive emissions down and position Singapore's manufacturing industry for long-term competitiveness, DBS and the Singapore Manufacturing Federation (SMF) have entered into a Memorandum of Understanding (MOU) that will deliver customised sustainability support to 500 small and mid-sized manufacturers within the next two years. This program, the first of its kind between SMF and a bank, aims to provide manufacturers with the tools, training, and capital needed to shift to more sustainable practices.

The collaboration is important since the manufacturing sector contributes 20% of Singapore's GDP but generates close to half of the nation's greenhouse gas emissions. With global sustainability regulations getting stricter, manufacturers who do not keep up may lag behind in the green economy. The DBS-SMF collaboration meets these challenges head-on by providing structured advice on decarbonization options, access to professional advisory services, and competitive green financing options.

DBS Group Head of Corporate and SME Banking, Koh Kar Siong stressed that sustainability today is not just an option, but a matter of business need. "Manu-factories which embed sustainability into their operation will not just mitigate their carbon footprint, but also increase the long-term viability and market attractiveness of their companies," he averred.

The program is constructed on three foundational pillars—upskilling and training, customized sustainability initiatives, and green finance—guaranteeing an end-to-end strategy to help companies go green.

Through the first pillar, DBS and SMF will host a series of workshops, webinars, and industry playbooks aimed at enabling manufacturers to track their carbon footprint, optimize energy efficiency, and embrace circular design principles. One of the main assets for companies will be the sustainability playbook, co-created with SkillsFuture Singapore, that will provide actionable guidance on how to integrate sustainability into business practices. The knowledge-sharing element is likely to equip manufacturers with the knowledge to keep pace with changing environmental standards and customer requirements.

The second pillar is the customized sustainability programs that offer systematic step-by-step instructions to assist manufacturers in creating sustainability roadmaps. DBS will launch its ESG Ready Programme, a specialized programme that will assist companies in understanding the intricacies of sustainability reporting and compliance. SMF will also launch its Chief Sustainability Officer-as-a-Service (CSOaaS), an expert advisory on-demand service to offer practical guidance to companies at various stages of their sustainability journey. These customized programs will allow manufacturers to execute practical and quantifiable sustainability measures while having expert advice from the industry.

In order for sustainability measures to be used for meaningful change, the third pillar of the alliance will give manufacturers access to competitive green financing products. DBS will provide the financing solutions to enable investments in green technologies like electric vehicles, energy-efficient infrastructure, and green upgrades. In making sustainable investment cost-effective and accessible, DBS hopes to enable businesses to speed up their decarbonization process while keeping their books balanced.

Lim Him Chuan, DBS' Singapore Country Head, emphasized that incorporating sustainability in business growth initiatives is crucial. "This tie-up is another step in fulfilling our promise of empowering SMEs and mid-size businesses with the right tools, capabilities, and financial solutions to succeed in an economy that's sustainable," he said.

Lennon Tan, SMF President, shared this view, emphasizing that the collaboration would be instrumental in future-proofing Singapore's manufacturing industry. "By offering structured advice, hands-on training, and capital, we are empowering manufacturers to build their resilience and make Singapore a global leader in sustainable industrial practices," he added.

As Singapore advances towards a green future, the DBS-SMF alliance is a central driver of sustainable development in the manufacturing sector. By overcoming the hurdles of emissions reduction, international standards compliance, and green financing accessibility, the project helps ensure that local manufacturers stay competitively international while supporting the country's overall environmental ambitions.

The effect of this partnership goes beyond individual companies, as a more sustainable manufacturing industry will play an important role in Singapore's overall sustainability goals. With increasing global demands for sustainable production and carbon-neutral supply chains, manufacturers that adopt sustainability will be more likely to secure international collaborations and attract investment.

In the long term, this program will not only enable businesses to save money through energy conservation and eco-friendly practices but also spur innovation in green production. The assistance extended by DBS and SMF will act as a catalyst for change across industries, reinforcing environmental responsibility as an economic growth driver.

Ultimately, the DBS-SMF alliance is a turning point for Singapore's development into a low-carbon economy. By making knowledge, funds, and facilitation available to manufacturers to incorporate sustainability into their businesses, the initiative highlights the value of reconciling economic development with environmental responsibility. As companies evolve to meet new sustainability norms and consumer demands, the manufacturing industry will be poised to come out stronger, greener, and more resilient in the decades to come.