Speech by Second Minister S Iswaran at the Opening Ceremony of Sumitomo Chemical's New S-SBR Plant at Shangri-La Hotel

Mr Masakazu Tokura, President of Sumitomo Chemical Company,

Distinguished guests,

Ladies and Gentlemen,

Good evening.

Introduction

It gives me great pleasure to join you this evening for the opening ceremony of Sumitomo Chemical’s new S-SBR¹ plant.

Sumitomo Chemical and Singapore have enjoyed a long-enduring partnership for nearly four decades, beginning in 1975 when Sumitomo led a consortium of Japanese companies to establish the Petrochemical Corporation of Singapore (PCS).  As one of the earliest and largest investors in Jurong Island, Sumitomo Chemical played a significant role in helping Singapore build our leadership position in the chemicals industry today.

Singapore is also glad to have the strong support of leaders like Mr. Tokura, who continue to believe in our ability to help Sumitomo Chemical grow your business.

Singapore will focus growth on higher-value chemical projects

Looking ahead, we see two key trends shaping the Energy and Chemicals sector.  First, the growing middle class in Asia will boost demand for chemical products.  Second, the advent of shale gas will have a significant effect on the global supply chain for energy and chemical products.

As a country with no domestic source of hydrocarbons, we are mindful of the perennial need to keep our industry competitive and sustainable.  In order to do so, we must continue to build on the strong foundation that we have built in our chemicals sector, by focusing growth on the higher value chemical chains.

Sumitomo Chemical’s S-SBR plant is a good example of the kind of high value project that Singapore will continue to emphasise.  The styrene-butadiene rubber produced at this plant is used to make the next generation of fuel-efficient tires, a product which is increasingly attractive in a global environment of rising energy costs.  The enhanced performance of cars using fuel-efficient tires will be friendlier to our environment.  Such projects which require a skilled workforce and well-developed infrastructure, also allow investors to take advantage of Singapore’s strengths.

Singapore is an ideal location for companies to expand their R&D and business development functions

Indeed, these same comparative advantages have allowed Singapore to establish our position as a legal, financial, business and technology hub in the heart of Asia.  In addition, our central location within the Asia-Pacific region, and good connectivity with regional and international cities, allows companies to be closer to their growing number of customers in the region.  As such, like Sumitomo, many other Energy and Chemical firms have chosen Singapore as their regional or global hub for business.

Singapore continues to invest in infrastructure on Jurong Island

To seize growth opportunities in the region, we need a strong partnership between the Government and industry.  This partnership allows the Government to plan infrastructure investments and develop policies that will achieve win-win outcomes for both Singapore and the companies.  It also enables the Government and industry to work collaboratively and proactively together to address the needs of the industry.

One such effort is to keep utilities costs competitive for the industry in Singapore.  We have heard the feedback from the industry on this, and we are addressing it on several fronts.

Three initiatives to highlight efforts to manage utilities cost

First, we encourage and support energy efficiency initiatives.  We are continuously working with companies at both the plant and system levels to reduce energy consumption and realise greater cost savings.  While companies have to take the lead in identifying and implementing the most-appropriate energy saving solutions, the Government has been supporting, and will continue to support, such energy efficiency projects through various schemes.

Second, the Government has facilitated the development of different utilities options, such as biomass coal plants and energy-from-waste generation.  The wider range of utilities options have helped to stabilise prices, while at the same time allowing for the test bedding of novel solutions which have the potential to generate cheaper and greener energy.  

Finally, we have built an LNG terminal, which will allow greater diversification of our natural gas supply.  This in turn will lower the risk of unexpected price fluctuations and the impact of supply disruption.

These initiatives, together with the addition of more than 2,700 MW of installed electricity generation capacity by the end of this year, a 27% increase compared to 2012, will give industrial consumers more options.  Like the first pledge in Sumitomo’s Business Principles, which reflects on the importance of integrity and trust, we believe that trust is the foundation of business and a strong partnership.  Therefore, we welcome continued feedback from the industry and opportunities to work together, as we continue to invest in further improving Jurong Island to support the growing needs of the industry.

Singapore’s established talent base and infrastructure provides companies with the right manpower to drive growth

Sumitomo Chemical’s trust in Singapore has helped better the lives of Singaporeans through the creation of good jobs.

Today, Sumitomo has more than 1,100 employees in Singapore, with roles in a diverse range of technical, commercial and R&D functions that extend beyond manufacturing.

Singapore’s strong talent pool and talent infrastructure also provide companies with the workforce and support required to drive top line growth.  Institutions like the Human Capital Leadership Institute help to boost business leaders’ understanding of Asia, so as to develop unique human capital strategies that address the challenges of emerging markets.  On Singapore’s part, we continue to invest in our workforce, to ensure a steady pipeline of skilled local talent to meet industry needs.  For example, the Chemical Process Technology Centre provides a training ground for the development of operations and maintenance personnel for the industry.

Sumitomo Chemical’s Singapore Corporate Training Institute, the company’s first training institute outside Japan, stands as a prime example of a company-driven initiative to develop regional experts for future leadership positions.  We encourage companies to take advantage of Singapore’s talent infrastructure to extend their reach in Asia, using Singapore as a centre to manage their regional manpower needs.

Conclusion

I would like to end by thanking Mr Tokura and your entire team at Sumitomo for the past four decades of strong partnership with Singapore.  My heartiest congratulations to all of you on the opening of the new S-SBR plant.  I wish you every success in the years ahead as we continue this fruitful partnership between Sumitomo Chemical and Singapore.

Thank you.

¹ S-SBR – Solution Styrene Butadiene Rubber, a synthetic copolymer consisting of styrene and butadiene. Its main application is in the manufacture of fuel-efficient, high performance tires.