Speech by Minister-in-charge of Energy and Science & Technology in the Ministry of Trade and Industry Dr Tan See Leng at the Indo-Pacific Energy Security Ministerial and Business Forum

Secretary Burgum, Minister Akazawa,

Honourable Ministers and Excellencies,

1.    A very good morning to you all.

I am delighted to be here for the inaugural Indo-Pacific Energy Security Ministerial and Business Forum in Tokyo. 

2.    March is the start of the flower viewing season in Japan, or “Hanami”. Beyond appreciating nature’s beauty, Hanami is also about communities coming together and connecting over meaningful engagements and conversations. 

3.    I would like to thank the United States and Japan for co-hosting this event, which could not have come at a better time. 

a.    The ongoing conflict in the Middle East has affected all of us, impacting energy prices, trade and investments. This is particularly more so for Asia, as we are trade-exposed and have to import almost all of our energy. 

b.    Yet, we expect the energy demand to continue to keep growing as our economies become more reliant on electricity to drive growth in advanced manufacturing, AI and electric vehicle adoption. 

4.    The need for energy security and reliability will be critical, and we must all work together to build a more resilient energy future for all of us. I will share more on how we are doing this both at home and within the region. 

Portfolio Diversification 

5.    In Singapore, we are geographically disadvantaged. We are a very small country. We diversify our energy portfolio and we pursue all feasible options to strengthen our energy reliability, security and our own resilience. 

a.    Natural gas will continue to underpin the security of our system for the foreseeable future, hence we invest significantly in natural gas supply chains.

For example, even as we speak, we are building a second LNG terminal to expand our capacity. To secure our gas supply chain, we established GasCo to centralise gas procurement and source gas commercially from diverse sources, from Australia, right up to the US. 

b.    We will double down on indigenous sources of energy, especially on solar. Just last year, we achieved our 2030 target of 2 gigawatt-peak of installed solar capacity, five years ahead of time.

So we’re now raising our sights and our ambition to 3 gigawatt-peak by 2030, and we aspire to double last year’s achievement of 2 gigawatt-peak within the second half of 2030.

However, Singapore faces challenges as we are small and densely built up. In fact, we are one of the most solar-dense countries in the world. As a result, solar will only supply, at best, about 10% of our electricity demand. 

c.    Nuclear energy, on the other hand, has high fuel density and is especially attractive for land-scarce Singapore.

We are therefore seriously studying the potential deployment of advanced nuclear energy technologies, such as small modular reactors, which have the potential to be a safe, reliable, and cost-competitive option for us.

Singapore is prepared to work with like-minded countries to build capabilities, share knowledge and best practices as we explore these promising technologies together. 

Regional interconnectivity 

6.    Within the region, we are working closely with ASEAN neighbours to strengthen regional interconnectivity and build the ASEAN Power Grid, or the APG. 

The APG is an ambitious long-term endeavour which, once realised, will significantly strengthen the energy resilience of our region.

It will allow countries to diversify supply sources and respond more effectively and nimbly to system disruptions. 

7.    The APG has been gaining strong momentum in recent years. I am glad that we are making good progress. 

a.    We have successfully implemented the Laos-Thailand-Malaysia-Singapore Power Integration Project to demonstrate the viability of multilateral, cross-border electricity trading within ASEAN. 

b.    We are also developing frameworks to support regional initiatives including the development of subsea power cables, and the cross-border trading of renewable energy certificates.

8.    The strong partnership with all of the ASEAN member states will be crucial in ensuring the success of the APG. This brings me to my next point on partnership. 

Working with all partners 

9.    Singapore will work with all partners towards this shared outcome, through building capability and financing for key infrastructure projects. 

a.    On nuclear energy, we are partnering with international leaders such as the United States and the Republic of Korea on capability building especially in nuclear safety and technology assessment. 

b.    We are also seeing strong interest from international partners who want to be part of building the APG, including through financing support.

We are working closely with the Asian Development Bank and the World Bank to secure financing for interconnector projects throughout the region through the ASEAN Power Grid Financing Initiative.

Their expertise will be invaluable in helping the region unlock capital, reduce investment risks, and ensure the financial viability of these projects. 

10.         Once again, I would like to express my appreciation to the US and Japan for organising this meaningful dialogue.

I want to also take the opportunity to also invite all of you to the Singapore International Energy Week in the last week of October this year, to continue this important conversation.

You will also get to enjoy some semblance of “Hanami” in Singapore all year round, at our Gardens by the Bay. 

11.         Thank you. Arigato gozaimasu.