Written reply to PQ on projected domestic demand for critical minerals and strategies to ensure supply security

Question:

Mr Yip Hon Weng: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) what is Singapore's projected domestic demand for critical minerals; (b) what strategies ensure a steady supply given global market developments; (c) whether there are plans to develop local processing capabilities; and (d) how Singapore can further facilitate global trade flows as a connector for these resources. 

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 critical minerals rather than its raw form. Industries that use intermediate products containing critical minerals include semiconductors, artificial intelligence (AI), medical technology as well as batteries and energy storage. While our producers have not raised immediate concerns, we are closely monitoring developments regarding the supply of critical minerals. 

2.           More broadly, we adopt a multi-pronged approach to strengthen supply chain resilience. This includes upholding and shaping the rules-based international trading system to facilitate flows, deepening partnerships with trusted partners and encouraging our firms to diversify their sources. 

3.           Where necessary and economically viable, local production capabilities may also be considered, taking into account competing national priorities and resource constraints. These projects would also need to comply with Singapore's environmental and safety regulatory frameworks. 

4.           Singapore is also a hub for the trading of critical minerals in Asia. Global companies set up trading operations in Singapore to tap on our trade financing, shipping services, deep talent pool and to transact with other parties. We continue to work with these companies to grow their presence in Singapore and to strengthen our trading ecosystems.