SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE & INDUSTRY, AT THE GROUNDBREAKING CEREMONY FOR RENEWABLE ENERGY CORPORATION (REC)’S INTEGRATED SOLAR MANUFACTURING FACILITY ON FRIDAY, 31 OCTOBER 2008 AT 10:30 AM, 20A TUAS SOUTH AVE 14

Her Excellency Ms Janne Julsrud 

Norwegian Ambassador to Singapore 

Mr Erik Thorsen 

President and CEO, Renewable Energy Corporation ASA 

Distinguished Guests 

Ladies and Gentlemen 

Introduction 

I am very happy to join you for the Renewable Energy Corporation’s “Here Comes the Sun” celebrations, which mark the official groundbreaking of its Integrated Solar Manufacturing Facility in Singapore. 

It is indeed a great honour for Singapore to host REC’s first integrated manufacturing facility for solar wafers, cells and modules. Today, we stand on a site slated to become the largest manufacturing centre for REC in the world. Going beyond manufacturing, I am pleased to note that REC will also conduct R&D, process innovation and development here. It will be the seed for a world-class ecosystem of supporting companies providing equipment, materials and logistics. 

Strong Fundamentals of Singapore’s Economy

Amidst the current financial crisis and global economic slowdown, REC’s Phase 1 investment of about S$3 billion is not only one of the largest investments ever made in our city state, but also one which reflects confidence in the strong fundamentals of our diversified economy.

Over the years, Singapore has made every effort to grow competencies in our labour force, and to constantly improve our physical infrastructure. This is how we have remained an attractive investment destination for companies like REC looking to expand into Asia. The current global economic downturn will be a period for us to consolidate our strengths, and to build our capabilities through manpower training and upgrading, in preparation for riding the next wave.

The Clean Energy Industry

One of Singapore’s strategies is to have a diversified economy, so as to help minimise the impact of global economic slowdowns.We constantly monitor opportunities to create new industry clusters, and the Economic Development Board is at the forefront of identifying industry clusters that are high in value added and which create good jobs.The Clean Energy industry is one example, and in support of it, the Government has provided S$350 million in funding to develop research and manpower capabilities.

Despite the near-term challenges caused by the financial crisis, the long-term prospects for the global Clean Energy industry remain bright. Technology will keep advancing, and as the world moves toward addressing climate change and the depletion of fossil fuels, new solutions will be required, and new markets will emerge.

Singapore’s value Proposition

We are thus delighted to kick-start Singapore’s Clean Energy industry cluster with the siting of the world’s top integrated solar company in Singapore.

As a small city state, we may not always offer the lowest absolute costs, but we offer a value proposition that differentiate us from other locations.

For example, solar manufacturing projects are capital-intensive and companies look for places with long term political stability, consistent pro-business policies, and ease of doing business. These create a low risk environment which provides benefits that cannot be underestimated.

Also, the solar industry is technology- and knowledge-intensive, requiring multi-disciplinary research in areas such as materials science and manufacturing process. Singapore has cultivated expertise in fundamental technologies for some years now, and we are actively creating new programmes to support innovation in the Clean Energy industry. One key development is the recent establishment of the Solar Energy Research Institute of Singapore, SERIS at the National University of Singapore. We look forward to SERIS supporting companies like REC in the further advancement of solar technology.

Job Creation

The Clean Energy sector will create new and exciting opportunities for the workforce, including 1,300 jobs in the first phase of the REC project alone.

Our two local universities - the National University of Singapore and the Nanyang Technological University, as well as the polytechnics have recently launched programmes to provide specialised manpower in Clean Energy, including the solar industry. The Workforce Development Agency is also exploring ways to retrain our workers and prepare them for this fast-growing sector.

I am also pleased to note that REC is doing its part to develop human capital for this manufacturing facility, and this includes training attachments in various REC facilities in Scandinavia.

As REC and other Clean Energy companies proceed to ramp up their activities, I want to encourage Singaporeans to seize these opportunities to upgrade themselves and to pursue careers in this bright new industry.

Conclusion

In conclusion, I would like to thank the board and management of REC for choosing Singapore for this investment and I am confident that Singapore will continue to be competitive, dynamic, and a great place to expand your activities.

We remain very committed to help you succeed in this exciting but challenging environment, because your success is also our success. We see this as the start of a long lasting partnership, a fruitful and meaningful partnership.We wish you many sunny days here in Singapore.

Thank you.