Speech By Minister S Iswaran At The VIP Dinner For The Asia Petrochemical Industry Conference at the Raffles City Convention Centre

Dr Tay Kin Bee, Chairman, Singapore Chemical Industry Council (SCIC),

Chairmen of the Asia Petrochemical Industry Conference (APIC) Steering Committee Member Associations,

Distinguished guests,

Ladies and gentlemen,

Good Evening.

Introduction

1                I am pleased to join you today at the Asia Petrochemical Industry Conference (APIC) 2016, organised by the Singapore Chemical Industry Council (SCIC).  Given the strong turnout of industry delegates, I believe many of you would have engaged in productive discussions earlier today.  I am also confident that these two days of conference will yield interesting insights as we collectively chart a course for the petrochemicals industry. 

2                The theme for this year’s conference – “The New Challenge: Promoting Flexibility, Innovation and Efficiency to Drive Sustainable Growth” – is important and timely.  While the global economic outlook remains uncertain and oil prices remain depressed, we continue to see opportunities in Asia driven by a rising middle class, urbanisation and industrialisation.  Tightening emissions regulations and increasing demand for cleaner fuels and lubricants are seen by some as constraints, but also provide opportunities for the industry to orientate towards sustainable growth.   Let me share a few thoughts from a Singapore perspective. 

Singapore remains committed to growing the Energy & Chemicals industry

3                The Energy & Chemicals industry remains a key part of Singapore’s manufacturing sector.  It accounted for around a third of Singapore’s manufacturing output in 2015, and employs over 25,000 people.  Singapore’s role as a global chemicals hub has grown in tandem with developments on Jurong Island, which is home to over 100 global companies and has attracted cumulative investments of more than S$47 billion.  Building on our strong foundations in refining and petrochemicals, Singapore has also moved into high-value derivatives and specialty chemicals.  This in turn creates demand for petrochemical feedstock, and improves the overall resilience of our Energy & Chemicals industry through greater integration.

4                Jurong Island will continue to be the centrepiece of our integrated strategy for the Energy & Chemicals industry.  We remain committed to strengthen the competitiveness of Jurong Island through various initiatives.  These include feedstock diversification and storage through the Liquefied Petroleum Gas terminal and Jurong Rock Caverns.  We are improving energy competitiveness through the Liquefied Natural Gas (LNG) terminal and second tranche of LNG Procurement, as well as energy efficiency through process de-bottlenecking and co-generation.  The A*STAR Institute of Chemical and Engineering Sciences located on Jurong Island also supports industry-aligned R&D, from the development of new molecules, to the scaling up of lab-based processes for industrial production. 

Partnerships will play an increasing role in driving industry transformation

5                I am also heartened to know that SCIC is contributing to our Energy & Chemicals industry by administering the Responsible Care Programme, a global initiative to drive the industry’s continued commitment to health, safety and the environment.  SCIC is also working with the Association of Process Industry (ASPRI) and members of the industry, alongside support from the Singapore Economic Development Board (EDB), to oversee a three-year partnership to improve project management practices and drive productivity improvements.  This partnership comprises three workgroups – the first supports the development of a benchmarking programme to demonstrate the benefits of project-level productivity improvement; the second will be responsible for certification; while the third will look into mechanisation initiatives. 

6                Partnership among industry, industry associations and government will play an increasingly important role in driving industry transformation towards a more sustainable future.  The APIC takes this a step further by bringing together the petrochemical industry associations from key regional players to elevate the level of collaboration.  Such strong partnership between government and industry are a key focus of the Committee on the Future Economy (CFE), which aims to envision new economic possibilities and strategies that can strengthen and sustain Singapore’s competitiveness over the next decade and beyond.

Conclusion

7                In closing, we continue to see opportunities in Asia, predicated on its strong fundamentals for growth and development.  Singapore remains committed to the Energy and Chemicals industry, and we will continue to work with our partners to drive this industry towards a more sustainable future.  On this note, I wish you all a successful conference and a pleasant evening.  Thank you.