Mr Lim Hng Kiang at the Foundation Stone Ceremony for Neste Oil's NExBTL Biorefinery

SPEECH BY MR LIM HNG KIANG MINISTER FOR TRADE & INDUSTRY AT THE FOUNDATION STONE CEREMONY FOR NESTE OIL’S NExBTL BIOREFINERY ON FRIDAY, 6 MARCH 2009, 11:15 AM AT TUAS SOUTH LANE

Your Excellency Ms Satu Mattila, Finnish Ambassador to Singapore;

Mr Matti Lievonen, President & CEO of Neste Oil;

Distinguished Guests;

Ladies and Gentlemen;

INTRODUCTION

Good morning.It gives me great pleasure to join you here today for the Foundation Stone Ceremony of Neste Oil’s NExBTL biorefinery.

I first visited Neste’s NExBTL diesel production plant in Porvoo during my trip to Finland in 2007.I was deeply impressed by that state-of-the-art facility and the intensive research that supports it.Neste Oil’s decision to invest S$1.2 billion to build this plant to produce NExBTL renewable diesel affirmsSingapore’s position as a trusted business destination.The plant's capacity of 800,000 tons per annum (tpa) makes it the largest facility producing diesel fuel from renewable feedstock in Asia, aligned with Neste Oil’s strategic goal of becoming the world’s leading renewable diesel producer.

It is indeed a great honour for Singapore to be home to Neste Oil’s first world-scale NExBTL biorefinery in Asia. We see this as the beginning of a strategic long-term partnership between Neste Oil and Singapore.I thank you for your strong vote of confidence in us.

SINGAPORE’S STRONG FUNDAMENTALS

Today’s ceremony takes place against a sobering backdrop of the global economic turmoil.Global economies are struggling to cope with a crisis driven by the confluence of falling demand and the collapse of the financial industry.Singapore has not been spared the ramifications of this recession.Our GDP growth has dropped from 7.7% in 2007 to 1.1% last year.Notwithstanding the challenges, we firmly believe that Singapore’s economy is resilient and well-positioned to weather the current crises.

Over the years, we have made efforts to strengthen our manufacturing base by diversifying into high value-added activities and exploring new growth industries. This reiterates our strong commitment in maintaining a well-diversified economy where manufacturing remains a key contributor to GDP.

Singapore is committed to help companies navigate through this downturn. The strong foundations built up in the energy and chemical industries over the last decades make Singapore an ideal partner to companies as they pursue their next phase of growth and it is precisely during these testing times, that businesses ought to adopt a long-term view and position themselves for future growth.

Despite the immediate challenges, we are confident that the outlook of the energy and chemicals industries remains positive. Underlying this optimistic sentiment are two long-term trends which we believe are critically important – first, the Asia growth story and second, increasing emphasis on addressing environmental challenges.

THE ASIA GROWTH STORY

The Asia growth story is intact and anchored by the twin engines of China and India, and increasingly, ASEAN, which is emerging as an important economic driver.

Given the region’s positive economic growth and increasing desire for a better life for its people, long-term demand for energy from this part of the world will be significant. Singapore, right in the heart of Asia, is well-positioned to play a critical role in meeting the region’s energy needs. Singapore intend to further strengthen our role as Asia’s leading oil hub by expanding and upgrading our refineries. We are also enhancing our trading infrastructure to better provide the range and quality of products needed.

ADDRESSING ENVIRONMENTAL CHALLENGES

Singapore wants to grow our industries in a sustainable and responsible way.We may be a small city state lacking in natural resources, but we remain unyielding in supporting the implementation and creation of technologies that can address the environmental challenges that confront us. This could, in turn, lead to new energy solutions in niche verticals including solar and biofuels. With our strengths in the oil and petrochemicals industry, Singapore is uniquely positioned to capitalise on growth opportunities in the biofuels sector.

Neste Oil’s biorefinery is an excellent example of our efforts to capture and maximise value from renewable technologies. It deploys a proprietary NExBTL technology which uses renewable feedstock to produce high quality biofuel. This project is an important showcase of how new technology is implemented on a large commercial scale.

PRE-POSITIONING SINGAPORE FOR THE UPTURN

As Singapore prepares for the economic upturn, we must not forget to strengthen our fundamentals and enhance our capabilities. That is why we are helping companies upgrade their manpower capabilities through various funding initiatives.I am especially heartened to hear that Neste Oil plans to hire and train 100 personnel, including engineers, technicians and operators, who will commence work in the NExBTL facility over the next two years.

At the same time, Singapore continues to invest heavily in technology and research development. We want to attract more companies, like Neste Oil, who can bring new and sustainable technologies to our industries.This will ensure that Singapore remains competitive and sustainable in the long run.

CONCLUSION

In conclusion, I extend my thanks to Neste Oil for choosing Singapore as your home for your first biofuel investment in Asia. We share the same long-term views on energy and sustainable development in building Singapore’s energy and chemical industry, and we will continue to provide a stable and conducive business environment for your activities.

I congratulate the management and staff of Neste Oil on the foundation stone ceremony of the NExBTL biorefinery and wish you every success in this and all future ventures.Let us write this new chapter together.Thank you.