Speech by Minister S Iswaran at Neste Singapore's 10th Anniversary Celebration

SPEECH BY MR S. ISWARAN, MINISTER FOR TRADE AND INDUSTRY (INDUSTRY) AT NESTE SINGAPORE’S 10th ANNIVERSARY CELEBRATION, 20 NOV 2017, 7.05PM, AT THE NATIONAL GALLERY SINGAPORE

Your Excellency, Ms Paula Parviainen, Ambassador of Finland to Singapore,

Dr Matti Lievonen, President and CEO of Neste Corporation,

Distinguished guests,

Ladies and gentlemen,

Good Evening.

Introduction

1                  I am pleased to join you today to celebrate Neste’s 10th year anniversary in Singapore.  This occasion marks another significant milestone in the strong partnership between Neste and Singapore.

2                  When Neste decided to establish its bio-refinery in Singapore back in 2007, this major investment was not only an ambitious and strategic move by Neste, but also a strong vote of confidence for Singapore as a destination for high value added manufacturing.  Today, Neste Singapore serves several key markets across the world with renewable diesel, one of the cleanest forms of diesel on the market.  This is enabled by Singapore’s well connected air and sea links, as well as extensive network of Free Trade Agreements (FTA).  In particular, Neste has benefited from our strong trade links with developed economies, such as the US and Europe, in serving the demand from these markets.

Singapore remains an attractive location for Energy & Chemicals companies to access growth opportunities

3                  Looking ahead, megatrends in Asia such as urbanisation and the growing middle class will also drive demand for more sophisticated goods and services, such as cleaner and more efficient energy sources, as well as high value added chemicals.  It is estimated that developing countries in Asia will account for two-thirds of global energy growth between today and 2040, with the fastest growth coming from India and Southeast Asia.  Asia is also projected to account for over 60% of global chemical sales by 2035.

4                  With our strong connectivity and skilled workforce, developed infrastructure, and robust intellectual property protection regime, Singapore continues to be an attractive location for Energy & Chemicals companies to access growth opportunities in Asia and around the world.

Singapore is committed to sustainable growth

5                  As a city state, Singapore is committed to sustainable growth, and we will continue to partner industry to balance economic competitiveness and growth with the protection of our environment.  Through our efforts over the past decades, Singapore has become a highly liveable and sustainable city.  For example, we were ranked as the most sustainable city in Asia, and second in the world, according to the 2016 Sustainable Cities Index by Arcadis.  

6                  I am pleased to note that Neste shares our values and commitment to sustainable growth.  By generating valuable transportation fuel from waste products such as animal fat, Neste has demonstrated that sustainable growth is a technologically and commercially feasible business.  I was also told that Neste’s fuel can be used directly in existing engines like conventional diesel, while delivering up to 90% reduction in greenhouse gas emissions.  

7                  Singapore contributes around 0.1% of global carbon dioxide emissions.  Though we have limited access to most types of renewable energy, we have made an ambitious pledge to reduce our emissions intensity by 36% from 2005 levels by 2030, and to stabilise our greenhouse gas emissions with the aim of peaking around 2030.  We have also been consulting widely on our Budget 2017 announcement of a carbon tax on large direct emitters of greenhouse gases from 2019. 

8                  Let me elaborate a little further our thinking behind these moves.  First, we see action on climate change as a shared global responsibility.  The Paris Agreement is a significant achievement with most countries pledging to shoulder this responsibility collectively.  Second, we want Singapore to be well-positioned for a future economy by being more productive and efficient in the use of our resources, including energy.  Companies will also need to strengthen their competitiveness by enhancing productivity and energy efficiency through the optimisation and transformation of their processes.

Singapore will continue to support adoption of advanced manufacturing technologies to strengthen our Energy & Chemicals industry

9                  Energy & Chemicals remains an important industry for Singapore, and we are committed to working closely with our partners to position this industry well for the future.  It is with this in mind that we launched the Energy & Chemicals Industry Transformation Map (E&C ITM) in Oct 2017.

10               A key thrust of the E&C ITM is to drive adoption of advanced manufacturing technologies, such as automation, robotics, and the industrial internet-of-things, amongst our manufacturers.  Under the E&C ITM we aim to have at least 20 plants adopt advanced manufacturing technologies by 2020, including all refineries and crackers. 

11               I am encouraged that some of our Energy & Chemicals companies, including Sumitomo Chemical, Chevron Oronite and Denka, have already embarked on advanced manufacturing initiatives.  For instance, Denka partnered Emerson, a leading provider of process control and automation solutions, to deploy pervasive sensing data analytics technologies in its operations.  With these technologies, Denka can now detect and rectify faulty steam traps more effectively, thus reducing its steam consumption, lowering costs and improving energy efficiency.

12               To further support companies in adopting advanced manufacturing technologies, the Singapore Economic Development Board (EDB) launched the Singapore Smart Industry Readiness Index earlier this month.  This first-of-its-kind Index serves as a diagnostic tool that companies, including small and medium-sized enterprises (SMEs), across various industries can use to learn more about advanced manufacturing technologies, evaluate the state of their facilities, and develop a transformation roadmap for implementation.  We encourage more companies to take advantage of advanced manufacturing technologies to raise their productivity and improve their competitiveness.

13               New solutions for reducing carbon emissions are also emerging.  Earlier this year, Jurong Island saw its first commercial scale carbon capture and utilisation project when Novabay officially opened its sodium bicarbonate plant.  We will continue to partner the industry on innovative solutions that will strengthen the competitiveness of our Energy & Chemicals industry. 

Conclusion

14               Let me conclude.  The Energy & Chemicals industry is an important pillar of Singapore’s economy.  We remain committed to working closely with our partners such as Neste to position our industry well for the future.  I would like to congratulate the Neste team again on the company’s 10th year anniversary in Singapore, and I look forward to many more years of successful partnership ahead.  Thank you.