Ambassador of the Republic of Korea to Singapore,

His Excellency Mr. Hong Jin Wook

 

Chairman of DL Group,

Mr. Lee Hae Wook

 

Chief Executive Officer of DL Chemical,

Mr. Kim Jong Hyun

 

Chief Executive Officer of Cariflex,

Mr. Ryu Sang Woo

 

Distinguished guests,

Ladies and gentlemen,

 

1. Good morning. It is my pleasure to join you today for the official opening of Cariflex’s plant in Singapore.

 

2. This is not only Singapore’s first polyisoprene latex plant, but also the world’s largest facility of its kind. When fully ramped up, the plant will double Cariflex’s manufacturing capacity for this product, and generate 80 skilled jobs for Singaporeans. Standing at 350 million US dollars, it will be one of our largest investments from a Korean chemical company in recent years.

 

3. In a time of global uncertainty and a challenging trade climate, this investment is a welcome boost for Singapore. It underscores our reputation as a stable, trusted partner within a growing Asia, and I thank Cariflex for the confidence in us.

 

Growth of Specialty Chemicals Segment in Singapore

 

4. Cariflex is a global leader in polyisoprene rubber latex, a material widely used in the production of surgical gloves and other medical applications. It is part of a broader group of Specialty Chemicals companies in Singapore, many of which offer high-value chemical products used in various end-applications.

 

5. Specialty chemicals is an increasingly important growth segment for Singapore. Over the last ten years, its value-added has doubled to nearly 5 billion Singapore dollars, and it now contributes to 20% of the output in Singapore’s wider energy and chemicals sector.

 

  a. Reports have indicated that globally, this segment will grow steadily at about 3% till the end of the decade.

 

We expect to see rising demand for innovative, high-performance chemicals, as Asian economies continue to develop, and as the global push to sustainability continues.

 

b. Already, there is heightened interest from chemical firms to ramp up capacity in Singapore. This includes not just those with longstanding presence here – like Milliken & Company, which chose Singapore for its first chemical plant in Asia – but also newer companies like Cariflex. Since 2020, Cariflex has scaled up its operations here, beginning with the relocation of its global headquarters, followed by the groundbreaking of this facility more recently. 

 

6. We welcome such expansions.

 

a. Specialty chemical firms produce in smaller volumes to serve niche end-markets, but its products tend to be higher-value and less carbon-intensive than commodity chemicals, and are often borne from years of innovation.

 

b. Growing this segment will go a long way in diversifying our manufacturing sector, and in building an innovation-led economy that will benefit Singaporeans.

 

Positioning Singapore as an Attractive Location for Specialty Chemicals

 

7. Yet, it is not all blind optimism.

 

  a. The positive outlook I just described comes amidst a time of looming dark clouds in the global economy, marked by an escalating trade war, against a backdrop of a weakened international order.

 

b. Actual growth in specialty chemicals may turn out to be more moderate. But this does not mean we just wait and let opportunities slip away.

 

c. We will act fast, stay nimble, and work with businesses to capture our share of value in a more challenging world. 

 

8. To this end, the Government will continue efforts to keep Singapore competitive as a manufacturing location for specialty chemicals. We will preserve strong ties with our trade partners, support plans towards low-carbon and sustainable operations, and develop a high-performing workforce as the segment grows. Let me elaborate.

 

9. First, preserving our global connectivity and networks. One key draw for Singapore is our strategic location as the gateway to Asia, allowing companies like Cariflex to benefit from proximity to growth markets.

 

  a. Underpinning this is the extensive network of Free Trade Agreements, or FTAs, which facilitate flows of goods across jurisdictions in a largely tariff-free manner. In some instances, it also promotes investment access for companies looking to tap growth markets.

 

b. Cariflex’s latest investment is testament to the good work we have done in building such bridges, particularly with the Republic of Korea. Bilateral trade and investments between our two countries have grown steadily. Singapore’s investments into the ROK increased by 13% year-on-year, and today more than 3,000 Korean companies have established presence here. This year, we commemorate 50 years of diplomatic relations, and I look forward to opportunities like this to deepen business linkages between our two countries.

 

10. We will build on this good work and pursue further integration with our economic partners. Besides exploring new areas of collaboration with existing partners, we are also expanding our economic space beyond Asia, with agreements like the MERCOSUR-Singapore FTA, and the Pacific Alliance-Singapore FTA.

 

11. Second, we will support companies to move towards low-carbon and sustainable business operations.

 

12. There continues to be a robust momentum in sustainability, and Cariflex is taking concrete steps to reduce emissions. Its new facility is designed with an enclosed ground flare system that will burn more cleanly, and is infused with advanced process technologies that streamline manufacturing. Cariflex also plans to explore the use of sustainable energy to power its operations, just like its facility in Brazil, when such options become available.

 

13. Singapore will work closely with companies like Cariflex to realise their sustainable goals. We are advancing partnerships that will allow greater access to renewable energy.

 

a. For instance, the Energy Market Authority has granted conditional approvals to import low-carbon electricity from the region, and are progressing the first batch of advanced projects with conditional licenses towards final investment decisions.

 

b. We aim to import around 6 gigawatts of renewable energy by 2035, to meet the energy needs of our companies here.

 

14. Third, we will provide specialty chemicals firms with the workforce supply and capabilities they need to thrive.

 

15. We have moved past the days of mass job creation in the manufacturing sector. With automation, manufacturing workforce has steadily shrunk even as we kept activities productive. The fact that Cariflex’s latest facility will create 80 jobs is already considered a sizable expansion by today’s standards.

 

16. For higher end manufacturing segments like specialty chemicals, building technological skills and capabilities, rather than an abundance of labour, is the key to drive productivity and growth. Cariflex is already providing such opportunities for its employees.

 

  a. For instance, the company sends Singaporean employees in engineering and technical positions for training at its sister plant in Paulínia, Brazil. Over there, they learnt about proprietary production processes, and picked up best practices in de-bottlenecking supply chains.

 

b. Such international stints enable our workers to learn from best-in-class engineers and operators from overseas, and be better positioned to take on high-value skilled jobs in the Singapore plant. This is a win-win outcome for the company and Singapore, and I commend Cariflex for your commitment in developing skilled local talent.

 

17. On our part, the Government will equip local talent to take on the skilled jobs, by introducing industry-relevant courses for students, and helping to ease their experience as new joiners to the sector.

 

18. We are also actively funnelling mid-career entrants into skilled jobs, via training and upskilling efforts like the Career Conversion Programmes.

 

Conclusion

 

19. In closing, I would like to thank Cariflex, DL Chemical, and DL Group once again for your confidence and trust in Singapore. This new facility marks a significant step in the company’s global expansion, and we are happy to be part of your next phase of growth. I very much look forward to deepening our partnership with Cariflex in the years ahead, as we seek out new opportunities that will benefit our economy and our people. Thank you.