Market Insights

Singapore : Leading Global Energy & Chemical Hub

Posted on 29 January, 2010 | Tags:

 

These are challenging times in the global economic environment, and the Singapore economy has not been spared.  Nonetheless, the current turmoil has only served to reinforce our conviction that a diversified economy, anchored on the twin engines of manufacturing and services, remains critical to provide the foundation to power our economy to sustainable growth.
Singapore is today recognized as a leading global energy and chemical hub. As one of the world's top refining export centre and a top 10 petrochemical hub, the sector is an important pillar of Singapore's economy, being the largest contributor to the country's manufacturing output since 2006.
Notwithstanding the current global economic slowdown, major chemicals projects including Shell's cracker plant and ExxonMobil's Singapore parallel train complex are expected to move ahead and come on-stream by 2011.
Despite this slowdown, Singapore's vision to be the Global Energy and Chemical Hub also remains unchanged.  Singapore is pushing ahead with infrastructure investments and Singapore Economic Development Board  is working closely with companies to strengthen capabilities to prepare for the upturn. The aim is to develop an industry that will couple world- class competitiveness with sustainable development growth remains on track.

India-Singapore Partnership in Energy and Chemical sector
With 3,800 Indian companies in Singapore, India represents the second-largest foreign business community in Singapore.  The business connections between India-Singapore took on a new dimension of growth after the signing of India's first ever Comprehensive Economic Cooperation Agreement with Singapore.  An increasing number of Indian companies now use Singapore as a base to access opportunities in the region, leveraging on Singapore's pro-business environment, network of double taxation avoidance agreements and logistics connectivity. 
With Asia becoming an increasingly important consumer of energy and chemical products, Singapore is well-positioned to be a strategic base for Indian energy and chemical companies seeking to internationalize and access new regional and global markets.
 As the centerpiece of the energy and chemical industry, Jurong Island is home to more than 95 leading petroleum, petrochemicals and specialty chemicals companies from all over the world. With its 'plug-and-play' infrastructure and industry integration, Jurong Island provides a world-class infrastructure environment.

Liang Ting Wee   is Director, Energy, Chemicals and Engineering Services, Singapore Economic Development Board