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Written reply to PQ on global shift away from coal and fossil fuel

Written reply to PQ on global shift away from coal and fossil fuel


Mr Saktiandi Supaat: To ask the Minister for Trade and Industry with the global shift away from coal and fossil fuel (a) how will Singapore’s petrochemical industries be affected; (b) what is the potential impact on Singapore’s long-term growth; (c) what are Singapore’s plans in terms of allocation of land space and infrastructure for the oil and gas industry; and (d) what major sectors will need to be focused on to balance any potential adverse impact from this shift.

Written Answer by Minister for Trade and Industry Mr Gan Kim Yong

1. Our Energy and Chemicals (E&C) sector is a significant part of our economy. It contributes to 3 percent of Singapore’s GDP and employs about 27,000 workers. Many of these jobs pay well and provide good career progression for Singaporeans. The sector also generates significant spinoffs to sectors such as trading and logistics.

2. The global shift towards clean energy will impact the E&C sector seriously.  It is clear that for the E&C sector to remain competitive and keep growing, companies will need to transform their operations to be among the best-in-class in energy and carbon efficiency globally, and pivot towards producing lower carbon products such as sustainable aviation fuels and bio-based polymers. We also expect the sector to remain relevant as it produces critical inputs needed for the manufacturing of widely-used items such as cosmetics, vehicles and even surgical masks and gowns.

3. The Government will support the E&C sector on this transformation journey.  Where warranted, this support may include the provision of land and infrastructure, largely on Jurong Island. We will also partner the E&C sector to develop low-carbon technologies, such as carbon capture, utilisation, and storage as well as low-carbon hydrogen. These technologies can be pivotal in enabling decarbonisation at scale, and in turn facilitate our transition to a low-carbon economy.

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