Speech by Minister Gan Kim Yong at Financial Times Commodities Asia Summit 2023

Distinguished guests

Ladies and gentlemen

Introduction

1. Welcome to the fourth edition of the Financial Times Commodities Asia Summit, co-organised by the Financial Times and Enterprise Singapore. Let me first apologise for not being able to join you in person this year. But I would like to express my gratitude for your continued support of this event.

Singapore continues to grow our trade ecosystem

2. Singapore serves as a vital node in the global commodity trade. Our connectivity with the rest of the world, our logistics infrastructure, our extensive network of 27 FTAs with 64 trading partners, and new agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership or CPTPP will allow traders to gain easier access to a wider range of markets and capture new opportunities.

3. Today, close to 400 global traders have chosen to anchor their key business activities in Singapore. Last year, we welcomed new international traders such as the Abu Dhabi National Oil Company.

4. We also continue to work with the trading community to build new capabilities in emerging areas such as innovation and sustainability.

5. I urge companies to tap on open innovation platforms, such as Enterprise Singapore’s Sustainability Open Innovation Challenge, to access new ideas from solution providers and startups from around the world. Global traders like Olam Agri and Royal Golden Eagle were successfully matched with startups from Brazil and Canada to explore cost-effective environmental solutions.

Singapore actively supports the trade of sustainable products

6. Some of you would have participated in the Carbon Markets Forum yesterday. This is a new feature of the Summit and reflects the rise of the green economy in international trade. Singapore is taking steps to develop a strong carbon services ecosystem here. This will allow more global companies and traders to use Singapore as a gateway to access high-quality carbon projects in the region, and to originate, finance and trade carbon credits with other countries.

7. We already have over 100 firms in this domain, including energy players such as Chevron and Engie. They have diversified into the carbon credits trade, as well as carbon exchanges ACX and Climate Impact X. These firms have created many exciting and high-value jobs such as carbon traders, carbon verification and audit specialists as well as carbon programme managers.

8. We are doing more to ensure that we remain a competitive and attractive investment destination in a low-carbon future. For example, we are supporting the trade of sustainable commodities, such as carbon credits, biofuels and LNG. We are also developing initiatives to expand the talent pipeline for the sector as the demand for skilled manpower grows. Programmes such as the Leadership Development Initiative for LNG trading demonstrate our commitment to this effort. Launched last year by Enterprise Singapore, the initiative helps local professionals to acquire relevant new competencies. I am happy to note that global traders such as Totalenergies as well as Osaka Gas Energy Supply and Trading have joined us in this programme.

Conclusion

9. It is often said that trading is Singapore’s lifeline. But more than that, it is in Singapore’s DNA. The Government will continue to support the sector and we welcome all of you to join us in this journey.

10. I wish all of you a fruitful conference ahead and trust that you will gain fresh insights and form valuable partnerships during your time here. Thank you.