Mr S Iswaran at the Launch of the 2012 Singapore Edition Of “The Oil And Gas Year”

​Remarks by Mr S Iswaran, Minister in the Prime Minister’s Office and Second Minister for Home Affairs and Trade and Industry at the Launch of the 2012 Singapore Edition Of “The Oil And Gas Year” On Wednesday, 16 January 2013, Oasia Hotel Singapore  

Distinguished guests,

Ladies and gentlemen.

1.            I am pleased to join you this evening for the launch of the Singapore edition of “The Oil and Gas Year” 2012 publication.

2.            I am honoured by the award from “The Oil and Gas Year”.  While the award may be titled “Man of the Year”, it is, in my view, more appropriately regarded as deserved recognition of the collective effort of my government colleagues in the Ministry of Trade and Industry and the Energy Market Authority, as well as our partners and stakeholders in the private and people sectors.  So, I thank you and accept the award on their behalf. 

Significant Contribution from Oil & Gas Sector to Economic Growth

3.            The oil & gas industry has been an integral part of Singapore’s economy ever since we commenced oil trading activities in 1891.  Today, Singapore is a leading oil and petrochemicals hub.  We are also one of the world’s top three export refining centres and the world’s busiest marine bunkering centre.  Oil & gas remains a valuable sector for Singapore’s economic growth and it accounts for almost 5% of Singapore’s gross domestic product (GDP) each year.  Given the increasingly complex energy environment and an evolving oil industry, Singapore must continue to strengthen the competitiveness of this sector by developing new and innovative solutions to enhance the synergies of the refining, trading and logistics activities in Singapore.

Singapore’s Future Energy Landscape

4.            The new year holds many exciting opportunities for Singapore’s energy industry.  For one, 2013 will see the advent of liquefied natural gas (LNG) in Singapore.  Our LNG terminal is slated to commence operations in the second quarter of this year, with its first two tanks having a throughput capacity of 3.5 million tonnes per annum (Mtpa).  LNG is a key element of Singapore’s fuel diversification strategy to enhance our energy security and cost competitiveness.  The LNG terminal also presents new business opportunities, in areas such as LNG trading and bunkering.

5.            With the commissioning of LNG operations, our energy industry is also poised for further growth, as LNG imports will facilitate new investments in the petrochemicals and power generation sectors.  With greater availability of gas, for example, companies will be able to invest in co-generation plants to supply utilities more cost-effectively, and with a lower carbon footprint.  There is also scope for the LNG terminal to offer low-cost and low-carbon integrated services for our petrochemical industries located on Jurong Island.  Cold energy from the LNG terminal could be used for air separation or as a coolant for plant operations, for example.

6.            These are in line with our Jurong Island version 2 initiative, where our government agencies are working closely with the petrochemicals and chemicals industry on the island to ensure strong and sustainable growth.  For sustained growth in the sector, capability building is important.  Today, the Chemical Process Technology Centre (CPTC) on Jurong Island trains a steady stream of manpower to support the industry.  More recently, a Green Campus was also established within the centre to facilitate manpower training and sharing of expertise in energy management and efficient energy use.

Capability Building and Manpower Development Efforts

7.            Similarly, capability building efforts are equally important in the power sector.  The availability of LNG will encourage new electricity generation plantings with more than 2,000 MW of new generation capacity, or about 20% of current installed capacity, scheduled to come online in the next few years.   There are also other growth opportunities arising from smart energy technologies, energy efficiency and energy demand management.

8.            To support continued growth, it is critical that companies are able to draw on a skilled workforce.  Last year, I had announced the formation of an industry-led Power Sector Manpower Taskforce (PSMT), chaired by Mr Quek Poh Huat, to study the manpower needs of the power sector.  The power sector is expected to require approximately 2,400 new technical professionals over the next 10 years.

9.            After extensive consultation and deliberation among industry leaders, union members, Institutions of Higher Learning (IHLs) and other key stakeholders within the energy industry, the PSMT has completed its study and submitted its findings to the Government in December 2012. 

10.         One key recommendation made by the PSMT is to establish a comprehensive framework of initiatives to attract, retain and develop manpower in the power sector.  Proposed initiatives include formalised career progression pathways and training roadmaps for workers in the sector, and scholarships and internships for students pursuing relevant courses.  The PSMT has assessed that such initiatives are critical in encouraging workers to pursue and eventually carve out meaningful careers for

themselves within the sector. 

11.         The PSMT has proposed two other key recommendations, namely, a sector-wide branding exercise, and better alignment of manpower development initiatives across the sector.  The PSMT recommended that the branding exercise be conducted to increase public awareness of the exciting opportunities within the power sector in the coming years, particularly among young Singaporeans.  The PSMT also acknowledged the need for the power sector to concurrently adopt a coordinated approach to drive manpower efforts to ensure the successful implementation of the proposed initiatives, and to minimise duplication.  One recommended initiative is the setting up of a Centralised Training Institute (CTI) as a one-stop centre to meet the training needs of the power sector.

12.         These are constructive suggestions to help us chart the way forward in building manpower capability in the power sector.  I would like to thank Mr Quek Poh Huat and members of the PSMT for their efforts and contributions in preparing their Report and recommendations. The Energy Market Authority of Singapore (EMA) will work closely with industry and other stakeholders to implement the recommendations in a structured manner.  Over time, we hope that these initiatives become self-sustaining and driven by the industry.  Support from the industry is thus vital for these initiatives to be successful, and for Singapore’s energy industry to continue attracting and retaining a skilled workforce.  

13.         The PSMT’s recommendations are relevant not only to the power sector but potentially to other sectors such as petrochemicals and oil & gas.  The challenge of a tighter labour market and a more mobile workforce is common, and building greater skills and capacity in our workforce is the way forward.

14.         I look forward to the industry’s continued support and active participation in our efforts to build manpower capabilities and capacity. This will put us in good stead to secure a vibrant, sustainable and competitive energy industry in Singapore.

15.         Thank you.