Singapore SMEs branch out into mask manufacturing as new revenue source

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SINGAPORE - Digital printing firm AVS Technologies faced difficulties obtaining surgical masks for its workers earlier this year but meeting that challenge has generated a new revenue stream for the company.

It set up a production facility - three machines to produce adult and child-sized masks - that became operational in May with the capacity to produce about five million masks a month.

"We went in blind during the circuit breaker period. We asked our staff in China to help us source the machines and ship them over to Singapore, and converted a storage facility (for production)," AVS Technologies general manager Kelvin Mun told The Straits Times.

The firm is among several local businesses that have branched out into mask production as a new revenue source amid the coronavirus pandemic.

AVS Technologies, which distributes digital printing products and provides services such as 3D printing and CNC (computer numerical control) milling, has invested close to $1 million to get its WellM brand of surgical masks off the ground.

A spokesman for the Ministry of Trade and Industry (MTI) said the outbreak is showing how opportunities can emerge from difficult times.

Many local small and medium-sized enterprises have established surgical and reusable mask manufacturing facilities here since the onset of the virus outbreak, which has increased local production capacity, he said, citing medical contract manufacturer Racer Technology as one such firm.

Government agencies such as the Agency for Science, Technology and Research, the Economic Development Board and Enterprise Singapore have been advising companies on setting up manufacturing facilities and the internationally recognised standards that apply to surgical masks and N95 respirators, the MTI spokesman added.

Mr Mun said the next step for the AVS mask business is to widen its overseas reach - it exports to Malaysia and Canada and is setting up sales channels and obtaining testing approval in the United States.

"We set up our mask manufacturing as a long-term plan, and are looking at opportunities to move into medical manufacturing. (In the past few months,) when the printing business was quite quiet, the mask production has helped to grow and stabilise the company," he said.

Meanwhile, medical equipment firm Mohar Medical has been producing surgical masks at its facility here with a capacity of up to two million a month since May.

Employees at work in the mask manufacturing facilities of Mohar Medical. ST PHOTO: KELVIN CHNG

Investment firm DIP Investments, which wholly owns the brand, invested a six-figure sum that it will recoup "within the next month", said Mohar Medical managing director Jaslyn Kaur.

DIP Investments plans to invest in a second manufacturing plant in South-east Asia within the next year in response to export inquiries for five to 10 million masks over the next two months, she said, adding that Mohar Medical will add gloves and hand sanitiser to its product range by the end of the year.

Gaming company Razer, which has been dispensing its locally produced masks through vending machines here since June, said its production capacity is five million masks a month but it has the capability to double this.

The capacity was set up so the firm could meet increased demand in the future, so it has no plans to expand its production facility for now, a spokesman said.

"Our focus remains on ensuring sufficient supply of masks in the region, and we are still evaluating the long-term plan for our mask production lines," he added.

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