Mr Lim Hng Kiang at the SembCorp Marine 50th Anniversary Gala Dinner

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SPEECH BY MINISTER OF TRADE & INDUSTRY at SEMBCORP MARINE’S 50TH ANNIVERSARY GALA DINNER on 6th November 2013, 8.00pm At Marina Bay Sands Convention Centre

Mr Goh Geok Ling, Chairman, Sembcorp Marine

Mr Ang Kong Hua, Chairman, Sembcorp Industries

Distinguished guests,

Ladies and gentlemen

It is my pleasure to join you this evening. Today is a double celebration for Sembcorp Marine.  The Sembmarine Integrated Yard at Tuas was opened by our Prime Minister earlier this morning and we are gathered here this evening to celebrate 50 years of success of Sembcorp Marine.

Sembcorp Marine’s Success in the Marine & Offshore Industry

2.            As we celebrate this golden jubilee, it is timely to look back and remember that its success today is due to visionary leadership and collective hard work of the management and staff of Sembcorp Marine.

3.            Sembcorp Marine, then known as Jurong Shipyard, was set up in 1963 to be Singapore’s first commercial shipyard offering ship repair services. The move was part of the Government’s effort to develop the marine and offshore industry as one of the key thrusts of Singapore’s industrialisation efforts.

4.            Sembcorp Marine’s success started from a very humble beginning and did not come easy. The most difficult period the company faced over its 50 years is probably the prolonged slump in the industry that followed the economic crisis in the 1980s and lasted through to the 1990s. It was a very difficult period for the industry and many companies had to find ways and means to cut cost just to survive. Sembcorp Marine turned the crisis situation into an opportunity to transform itself and move up the value chain. It embraced technological innovations to improve productivity and project management, and progressively diversified its operations from ship repair and ship building to include offshore engineering, rig-building and offshore production.

5.            Today, we can see that the visionary leadership, hard work and sacrifices by Sembcorp Marine management and staff during those difficult times have paid off. Sembcorp Marine has established itself as a global industry leader in the marine and offshore sector, especially in the design and construction of jack-up rigs, semi-submersibles, drill ships and the conversion of Floating Production and Storage and Offloading (FPSO) vessels.

Need to Continue Transformation for Marine and Offshore Industry

6.            The efforts of companies like Sembcorp Marine have established Singapore as a global leader in the marine and offshore industry. Singapore today accounts for majority of the world’s market share in high-spec jack-up rigs and two-thirds of the world’s FPSO conversions.

7.            Notwithstanding the current global leadership position, the industry needs to continue to innovate and to transform itself to stay ahead of the competition. This is especially important as land and manpower become increasingly valuable in our resource-scarce Singapore. In this regard, I am pleased to note that Sembcorp Marine continues to make innovation and transformation key priority areas for its investment.

8.            The Sembmarine Integrated Yard, which was opened this morning, is an excellent example of such transformational investment to result in quantum leap improvements in land and labour productivity. Another good example is the Sembcorp Marine’s collaboration with Palfinger Systems to jointly develop the Hull Treatment System. This fully-automated system integrates the washing, blasting and coating processes. Apart from cost, material and manpower savings, this system will also result in the reduction of dust emissions.

Government Support for Transformation

9.            The Government will partner and support the marine and offshore industry in its transformation efforts:

10.         First, we will help companies to increase their design and engineering capabilities through the set-up of public research infrastructure such as the Singapore Maritime Institute and ocean-basin test facility.[1]

11.         Second, we will work with companies to look for ways to improve overall productivity through new production technologies, training, equipment and machinery.

12.         Third, we will help the industry attract and develop talent, by partnering the relevant educational institutes to introduce programmes focused on offshore engineering, petroleum engineering, naval architecture and marine engineering.

Bright Outlook for Marine and Offshore Industry

13.         The future of the marine and offshore industry is bright. With increasing energy needs worldwide, more than half a trillion dollars is expected to be spent on oil and gas exploration and production between 2012 and 2016.[2]  As the global leader, the marine and offshore industry in Singapore is well positioned to seize these opportunities in the coming years.

14.         While we look forward to a bright future for the marine and offshore industry in Singapore, industry leaders such as Sembcorp Marine need to continue to forge ahead to develop innovative solutions for the needs of tomorrow. At the same time, the supporting ecosystem of industry partners, suppliers and sub-contractors, also needs to continually transform and upgrade so as to keep pace with the changing needs of the world.

15.         Together, we can work towards the continued success and growth of our marine and offshore industry.

Conclusion

16.         Ladies and Gentlemen, please join me in congratulating the past and present management and staff of Sembcorp Marine on their achievements over the past 50 years. Let us also wish the present and future generations of Sembcorp Marine management and staff continued success in the years ahead.

17.         Thank you very much.

[1]

The Singapore Maritime Institute, was jointly established by EDB, A*STAR and MPA, to coordinate and develop R&D capabilities in the marine and offshore industry. An Executive Committee, chaired by A*STAR Chairman and EDB Chairman, was also set-up to manage the $150 million awarded by NRF in 2012 to support the marine and offshore R&D initiatives, and the establishment of the ocean basin test facility in NUS. The details of the ocean basin test facility are currently being scoped out, and the facility is expected to be completed by 2017.

[2]

Douglas Westwood: Presentation on “Opportunities in the Oil and Gas Value Chain”, 9th November 2012