KEYNOTE
ADDRESS BY MR LIM HNG KIANG, MINISTER FOR TRADE AND
INDUSTRY AT THE JURONGISLAND RECLAMATION COMPLETION
CEREMONY ON FRIDAY 25
SEPTEMBER 2009, 10.40
AM
Ladies and
Gentlemen
Good
morning.
It gives me great pleasure to join you today at this
ceremony to celebrate the completion of JurongIsland's
reclamation.This is a significant milestone in the
history of Singapore’s industrial
development.
History of
JurongIsland
hieve
this, we were confronted with a huge land challenge-finding
sufficient land to house the
sector.
We lacked industrial land on the Singapore mainland to
house more chemical companies.So how to do this offshore?This gave
rise to the bold idea to reclaim and join seven southern islands
into what we know today as JurongIsland. From an initial area of
less than 1,000ha, Jurong Island now spans a land mass of about
3,000ha.And, on top of that, I am happy to note that we have
managed to complete the reclamation of JurongIsland ahead of
schedule, thus enabling us to market it more holistically to
investors.
But the story
of JurongIsland is not just a matter of reclamation.The key was
industry integration.It was about helping chemical companies save
costs by capitalising on vertical and horizontal linkages: upstream
plants supplying feedstock to downstream manufacturers, sharing
common facilities.It was about finding out the right match of
companies to maximize the synergies of integration and
co-location.It was about reaping the benefits of economies of
scale.To realise this
vision, we needed companies to believe in us and our perseverance
paid off, with some of the world's largest chemical companies, such
as DuPont, ExxonMobil, Eastman, Mitsui Chemicals, Sumitomo and
Vopak, agreeing to invest millions of dollars on an island which
was very much still under water. These companies
came in on our assurance and our track record that we would soon
reclaim the plots of land and lay the network of infrastructure.We
exceeded their expectations.Today,
JurongIsland is home to 95 companies and is the cornerstone of
Singapore’s energy and chemical
industry.
Overcoming
Adversity and Challenges
The story of JurongIsland is the result of innovation,
determination, hard work, and perseverance. This project showcases
the foresight, tenacity and teamwork of many government agencies in
overcoming extraordinary odds.Their efforts have contributed in no
small part to Singapore’s economic success.
One example of such tenacity was evident when, in 2005,
ExxonMobil was seriously considering locating its second
world-scale cracker in Singapore. To meet their needs for a
contiguous plot of land next to their current cracker on
JurongIsland, we diverted and realigned a stretch of Jurong Island
Highway, together with 17 pipelines and 4 core fiber optic cables.
This was a mammoth undertaking – it required a delicate balance of
meeting both the needs of ExxonMobil, as well as other companies
which would be affected by the relocation of pipelines and
cables.JTC worked closely with affected companies and agencies to
devise innovative solutions to minimise disruption to business
operations on the island.
We also did not allow disruption to the import of sea
sand to delay our reclamation plans.We opened up alternative
sources of sand supply and explored other ways to meet our needs.
Overcoming such challenges eventually saw JurongIsland, all 3,000ha
of it, come to fruition thereby allowing us to continually secure
investments to deepen the cluster linkages on
JurongIsland.
A Strong Chemical Cluster-A generator of high output and
good jobs
Today, JurongIsland has achieved comparable standing to
other chemical hubs in much larger countries such as Japan and
Germany.This has allowed us to attract many world renowned energy
and chemical companies to
Singapore.
95 leading energy and chemical companies have invested
more than S$31 billion dollars in fixed assets on JurongIsland.Such
a diverse group of both global and local companies allow us to
foster a strong thriving chemical cluster with many upstream and
downstream linkages across various companies.JurongIsland enables
these companies to enjoy production synergies and cost
efficiencies.
Collectively, these companies accounted for 80% of the
energy and chemical industry manufacturing output, which in itself
is the largest contributor to our manufacturing output, at almost
40% in 2008.
The energy and chemical industry also generates good jobs
for locals.It has the highest proportion of locals employed and
highest skills profile among all other manufacturing industries.The
remuneration per worker for chemical sector is almost twice that of
the manufacturing average.
The development of JurongIsland has also nurtured many
promising local companies in the construction, utilities and
logistics arenas.One such example is Rotary Engineering, which
started as a small company offering electrical subcontracting works
to the oil majors in Singapore.Rotary has since evolved to become
one of Asia Pacific’s leading players in providing engineering,
procurement, construction and maintenance services for the oil and
gas, petrochemical and pharmaceutical industries.Today, Rotary
employs over 7,500 employees in more than 30 joint ventures and
other operations in Asia Pacific and Middle
East.
JurongIsland
– Moving
Forward
Notwithstanding the milestone event today, we will
continue to identify ways to adjust the Jurong Island profile to
bring about stronger integration for greater operating efficiencies
by the companies. We intend to achieve a critical mass of
feedstock, move to higher value chemical chains which produce
specialty chemicals and advanced materials, and partner companies
in developing new chemical products.
To achieve this vision, we set up a Research and
Development centre, the Institute of Chemical and Engineering
Sciences or ICES Laboratories on JurongIsland back in 2004.ICES has
since hosted several corporate laboratories to carry out R&D in
chemical and process engineering.For example, Mitsui Chemicals has
collaborated with ICES on catalysis research.The collaboration
effort was so successful that Mitsui decided to set up its first
R&D center outside Japan.This initiative proved to be a win-win
for both Mitsui and ICES. While Mitsui was able to jumpstart its
operations in Singapore by leveraging on ready infrastructure and
equipment; ICES was able to advance its research collaboration with
Mitsui.
In the longer term, our plan is to position JurongIsland
as the industrial development model of tomorrow, one which couples
world class competitiveness with sustainable and responsible
development growth.
Conclusion
JurongIsland was conceived through vision and guts, and
carried through with determination and dedication by people who
passionately believed that we could develop a world class energy
and chemical industry in Singapore. Many of the key players are
here with us today.Over the past few decades, JurongIsland has
played a major role in advancing Singapore’s economy.The success of
JurongIsland lies in the tireless efforts and entrepreneurial
spirit of various agencies to create a plug-and-operate environment
for companies keen to invest in Singapore.They have done so by
putting in place robust infrastructure and building manpower
capabilities to jumpstart their operations. The end result is a
top-notch working environment that meets the needs of the companies
which are located here.
Our special thanks go to the tenants of JurongIsland who
provided the viability and vibrancy of JurongIsland.I would like to
thank you for your faith and support in the growth of JurongIsland
and your contribution in the years
ahead.