SPEECH BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE & INDUSTRY AND EDUCATION, AT THE Singapore Chemical Industry Council (SCIC) Annual Dinner 2010 and Responsible Care Awards 2009 Presentation, ON THURSDAY, 1 APRIL 2010, 1905 HRS AT THE PACIFIC BALLROOM, PAN PACIFIC HOTEL

Mr Chockalingam, Chairman, SCIC

Distinguished Guests,

Ladies and Gentlemen,

Introduction

Good evening. I am pleased to join you at the Singapore Chemical Industry Council’s (SCIC) annual dinner and awards presentation ceremony.

The chemical industry has been an integral part of Singapore’s economy. In 2009, the industry contributed about S$59 billion, or about one-third of Singapore’s total manufacturing output. The recent global economic downturn may have dampened output somewhat. But with global economy now turning a corner, the outlook for the chemical sector in the medium and long term is promising. Increasingly, Asia is becoming a key consumer of chemical products. With our excellent infrastructure and connectivity, Singapore remains a strategic base for companies looking to invest in Asia for the long run. We are recognised as a leading global energy and chemical hub, and the government remains committed to the further development of the chemical industry in Singapore.

Chemical Industry’s Commitment to Responsible Care and Sustainable Development

Even as we continue to push ahead with plans to further develop the industry, we will not relinquish our high standards of environmental protection and workplace safety. These are important fundamentals in ensuring that we grow our industry responsibly and sustainably. In this regard, SCIC has been a key partner in championing responsible care and safety in the chemical industry. Next year, SCIC will celebrate the tenth anniversary of its Responsible Care Awards. In the last nine years, SCIC has initiated numerous Responsible Care activities such as training workshops, best practices sharing seminars, and other outreach efforts to help the chemical industry improve its operations in terms of health, safety and environmental standards.

With cclimate change now a major global concern, there is an even greater onus on the industry to improve safety and environmental practices. Indeed, more companiesin Singapore are investing in facilities that are best-in-class in terms of environmental friendliness. One example is Shell’s Mono-Ethylene Glycol (or MEG)plant. Its proprietary OMEGA (“only MEG advantaged”) process produces significantly less carbon dioxide and by-products compared to traditional manufacturing processes. Lucite’s Alpha technology plant is another example. It produces methyl methacrylate (or MMA) and the proprietary technology is more environmentally friendly since it does not employ the use of toxic and corrosive chemicals. Environmental sustainability can even be a driver for competitiveness. Compared to other production technologies, Lucite’s total cost of production can be reduced by up to 40 per cent.

JurongIsland - a Model of Sustainable Development

The government is also supporting the industry’s responsible care efforts by investing in infrastructure to strengthen the competitiveness and sustainability of the industry. There have been joint efforts to develop creative systems-level solutions in areas such as energy, environment and logistics through integration, by reaping economies of scale across individual companies. For example, the JurongIsland container barging terminal is an initiative driven by various agenciesto provide an alternative means of cargo transportation.Currently, goods and hazardous cargo are being transported piecemeal via trucks between JurongIsland and ports on the mainland. On completion, the JBT will offer an alternative for the consolidated bulk transport of materials by sea via barges. Besides alleviating traffic congestion on the island, it is estimated that the barging solution will reduce carbon emissions by as much as 30 per cent compared to conventional trucking.

The government is also work closely with the chemical sector to develop energy efficiency solutions. Innovative solutions being studied include the channeling of “cold energy” from LNG for other industrial uses and the usage of waste heat for water-desalination. Also being considered are carbon capture and utilization technologies. For example, CO2 streams generated on the island could be used to manufacture other chemical products.

The next phase of JurongIsland’s development will help our chemical industry move up in tandem to the next level. By leveraging on our strong industrial base and technology capabilities, there is great potential for us to collectively developJurongIsland as a truly world-class industrial development; one that couples competitiveness with sustainable and responsible development and growth.

Conclusion

This evening, 31 companies will be receiving the 2009 Responsible Care Awards. I would like to extend my heartiest congratulations to all the winners. It is a fitting recognition of your commitment to improve the health, safety and environmental standards through best practices at the workplace. On that note, I wish you all the very best and an enjoyable evening.

Thank you.