The collaboration aims to support 500 small- and mid-sized manufacturers over the next two years. DBS will develop a reference playbook and also offer “competitive sustainable financing solutions”.

DBS and the Singapore Manufacturing Federation (SMF) have signed a memorandum of understanding (MOU) to accelerate the adoption of sustainable practices within Singapore's manufacturing sector. 

This is SMF’s first partnership with a financial institution and signals a major commitment to accelerating sustainability within the manufacturing sector, reads a Feb 27 announcement.

The collaboration aims to support 500 small- and mid-sized manufacturers over the next two years, providing targeted expertise, resources and financial solutions to lower emissions and raise competitiveness in the green economy.

Manufacturing is a cornerstone of Singapore’s economy, contributing approximately 20% of the nation’s GDP. However, it is also one of the nation’s largest carbon emitters, according to data from the National Climate Change Secretariat, responsible for nearly half of Singapore’s primary greenhouse gas emissions in 2022. 

As international markets increasingly prioritise sustainability, manufacturers face mounting pressure to transition to lower-carbon operations, say the two parties.

A recent survey by SMF found that 91% of manufacturers identified sustainability as critical to their global competitiveness. To bridge existing gaps and accelerate the industry’s green transformation, DBS and SMF will provide manufacturers with practical support “at every stage of their decarbonisation journey”.

The partnership will focus on three key pillars, each designed to equip manufacturers with the awareness, tools and financial support needed to transition to a low-carbon economy.

First is training and upskilling for a future-ready workforce. To build awareness and understanding of sustainability across the manufacturing workforce, DBS and SMF will roll out targeted training webinars and in-person workshops to help manufacturers and their employees develop a strong foundation in sustainability. 

Participants will learn about key sustainability concepts, regulatory developments and industry best practices, from measuring carbon footprints and implementing energy-efficient manufacturing processes, to designing for circularity.

As a SkillsFuture Queen Bee partner, DBS will collaborate with SMF to launch a customised industry playbook later this year. The playbook, supported by SkillsFuture Singapore (SSG), will serve as a practical reference tool, offering insights on integrating sustainability into business strategies.

Second, DBS and SMF will create complementary sustainability programmes for a tailored transition. Each manufacturer’s sustainability journey is unique, and the two parties will align their sustainability programmes to provide businesses with “structured yet flexible approaches to decarbonisation”.

DBS will tap its ESG Ready Programme to provide a clear, step-by-step framework to help businesses build sustainability capabilities, develop tailored sustainability roadmaps and access green financing solutions. 

SMF, through its Chief Sustainability Officer-as-a-Service (CSOaaS) Programme, will offer on-demand access to sustainability experts, enabling manufacturers to receive bespoke sustainability advisory to strengthen their daily operations.

Finally, DBS will offer “competitive” sustainable financing. To empower manufacturers to translate their decarbonisation plans into action, DBS will offer a suite of competitive sustainable financing options, such as electric vehicle financing, green property loans and eco renovation loans. 

This will enable manufacturers to invest in the green technology and infrastructure critical for decarbonisation.

Lim Him Chuan, Singapore country head at DBS, says the partnership builds on ongoing efforts to create a robust ecosystem of support for SME and mid-sized enterprises, “providing them with the tools, targeted skills development programme, expertise and financial solutions they need to thrive in an evolving landscape”. 

Koh Kar Siong, group head of corporate and SME banking at DBS, says: “Sustainability is no longer an option; it is a business imperative. As a key driver of Singapore’s economy and a sector with significant decarbonisation potential, manufacturing has a unique opportunity to lead the transition to a greener future. This partnership with SMF directly enables SME and mid-sized manufacturers to adopt sustainable practices while staying competitive in global markets.”

Lennon Tan, president of SMF, says: “By providing structured guidance, hands-on training and financial resources, we are enabling manufacturers to future-proof their businesses and strengthen Singapore’s position as a leader in sustainable industrial practices.”

As at 2.40pm, shares in DBS are trading 16 cents lower, or 0.34% down, at $46.51.