Written reply to PQ on feasibility study of establishing domestic rare earth processing capabilities

Question:

Mr Kenneth Tiong Boon Kiat: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) whether the Ministry has assessed the feasibility of establishing rare earth processing capabilities in Singapore given their strategic importance to aerospace and defence supply chains; (b) what environmental and regulatory barriers exist, particularly regarding radioactive byproduct disposal; and (c) what alternative strategies Singapore is pursuing to secure access to critical rare earth materials. 

Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong

1.                  Our producers primarily import intermediate or final products containing rare earth rather than its raw form. While they have not raised immediate concerns, we are monitoring developments regarding the supply of rare earths. 

2.                  More broadly, we adopt a multi-pronged approach to strengthen Singapore’s supply chain resilience. This includes supporting a rules-based international trading system, deepening bilateral partnerships with trusted partners, and encouraging our essential firms to diversify their sources of critical supplies. Where necessary and economically viable, local production capabilities may also be considered, taking into account competing national priorities and resource constraints. 

3.                  We would welcome interest from industry to undertake rare earth-related projects in Singapore. Like all heavy industrial activities with environmental impacts including radioactive waste generation, these projects would need to comply with Singapore’s environmental and safety regulatory frameworks. These include requirements stipulated in the Radiation Protection Act (RPA) and Environmental Protection and Management Act (EPMA). For instance, the RPA ensures workers are protected from radiation exposure and that radioactive waste is managed properly. Similarly, the EPMA requires businesses to abide by pollution control requirements.