Speech by SMS Low Yen Ling at the Saudi Basic Industries Corporation (SABIC) ULTEM™ Facility Opening Ceremony

Mr. Omar Alharthi, Deputy Head of Mission, Royal Embassy of Saudi Arabia,

Mr. Khalid Al-Dabbagh, Chairman, SABIC,

Mr. Abdulrahman Al-Fageeh, Chief Executive Officer, SABIC,

Mr. Sami Al-Osaimi, Executive Vice President, Polymers Strategic Business Unit, SABIC,

Mr. Sergi Monros, Vice President, Specialties Business Unit, SABIC

Distinguished guests,

Ladies and gentlemen,

Introduction

1. Good morning. I am pleased to join you today for the official opening of Saudi Basic Industries Corporation’s (SABIC) new S$220m ULTEM™ thermoplastic resin manufacturing facility in Singapore.

A Thriving Partnership

2. SABIC is one of the world’s top petrochemical companies and a global market leader in the production of polyethylene, polypropylene, and advanced thermoplastics. SABIC’s partnership with Singapore began in 1991, when it established SABIC Asia Pacific Pte Ltd to focus on the wholesale distribution of petrochemical products. Since then, SABIC has expanded significantly in Singapore to serve the region. In 1994, it opened its Benoi manufacturing facility for engineering plastics. In 2007, SABIC set up its Asia headquarters here to oversee its operations across South Asia, Japan, South Korea, Australia and New Zealand. Today, SABIC employs about 400 workers in Singapore.

3. The opening of SABIC’s new ULTEM™ facility marks a significant milestone in its partnership with Singapore. This is SABIC’s first and only facility in Asia to manufacture high-performance thermoplastic resin, which has a wide range of applications, from electric vehicles and aircraft parts to surgical devices. The ULTEM™ facility will increase SABIC’s global production capacity of ULTEM™ resin by 50% and shorten lead times better to serve the growing demand from its Asian customers.

Singapore as a Leading Hub for the Energy & Chemicals Industry

4. Manufacturing has long been a cornerstone of Singapore’s economy. The E&C sector contributes 3% to our GDP, is the second largest contributor to our manufacturing output, and employs around 26,000 people across more than 100 companies. In FY2023, chemicals comprised the largest share of Singapore’s total fixed asset investment commitments, totalling S$4.5 billion.

5. Looking ahead, rapid urbanisation in Asia and increasing demand for high-tech products like EVs present significant growth opportunities. Companies like SABIC, whose products serve these markets, are well-positioned to expand. The opening of SABIC’s new facility underscores Singapore’s role as a gateway to Asia and a leading hub for the chemicals industry.

Supporting Singapore’s Energy Transition and Net Zero Ambitions

6. We remain committed to addressing global climate change as we grow our chemicals industry. We recognise that the journey to net zero poses unique challenges for the industry. We are here to support companies like SABIC in this transition.

  a. I am pleased to note that SABIC’s new facility integrates advanced process technologies to enhance its sustainability performance. For example, the facility is capable of producing a bio-based version of the ULTEM™ resin that SABIC launched in 2021.

7. The Government is focused on driving a smooth energy transition to support industry efforts. We aim to ensure a viable business environment in Singapore while advancing our net zero ambitions.

  a. We are actively strengthening partnerships and pursuing international collaborations to access green energy. For instance, the Energy Market Authority has granted conditional approvals to import green electricity from neighbouring countries – Malaysia, Thailand, Vietnam, and Laos. By 2035, we aim to import 6GW of renewable electricity, supplying around one-third of Singapore’s electricity needs to meet growing demand.

  b. We also invest in nascent low-carbon technologies to provide low- or zero-carbon solutions for power generation solutions. Ongoing projects include piloting low-carbon ammonia as a fuel source with partners like Keppel and Sembcorp-SLNG.

Conclusion

8. My warmest congratulations to the SABIC team on this important milestone. Thank you for placing your trust and confidence in Singapore. Today’s site opening not only affirms our capabilities but also reinforces the enduring partnership between SABIC and Singapore. As we work toward greater innovation and sustainability, we look forward to supporting your growth in Singapore and across the region and celebrating many more successes together.

9. Thank you.