Ambassador Thomas Kupfer,
Mr Scott Morrison, Chairman of Metalor Technologies,
Mr Hubert Angleys, CEO of Metalor Technologies,
Distinguished guests,
Ladies and Gentlemen,
1. Good afternoon. It is my pleasure to join you on this happy occasion.
The precious metal cluster has strategic growth potential
2. Singapore continuously pursues new sectors to grow our economy. Precious metal is one such sector. In particular, Gold is a commodity that is gaining demand as an alternative financial asset. Today, Asia accounts for more than 70 per cent of global physical bar investment[1] from 60 per cent in 2010. Moving forward, China, India and Southeast Asia will continue to be key drivers for gold demand.
3. We are delighted that Metalor has chosen Singapore as the site for its world-class bullion manufacturing and refining facility. As the gold sector grows, it is expected to create USD 0.5 billion in value-added, and about 1000 good professional, managerial and executive and technical (PMET) jobs by 2020[2].
Developed gold trading eco-system
4. With Metalor’s entry into Singapore, we now have a robust eco-system for precious metals anchored by an LBMA good delivery refinery. This is significant on several levels.
5. Firstly, the London Bullion Market Association (LBMA) good delivery status is an international hallmark for high product quality and adherence to international compliance and sourcing standards. It is a standard set to deter money laundering and terrorism financing. For these reasons, Singapore has chosen to adopt LBMA’s standards as a key criterion for the exemption of Goods and Services Tax (GST) from precious metals.
6. Secondly, the refinery here will allow for increased cost efficiency among bullion traders in Asia. This is because Singapore is strategically located in the heart of Southeast Asia, and lies at the nexus of gold trading supply chain between the two largest consumers of gold - India and China.
7. Thirdly, the World Gold Council, Singapore Bullion Market Association and Singapore Exchange, with support from the Singapore Government, will launch the world’s first exchange-traded, wholesale kilo gold contract this year. We expect trading to commence as early as September.
8. As the contract will be physically delivered, Metalor Singapore will play a key role in providing competitive premiums for the new trading market and more efficient turnaround time to cater to physical demand.
Metalor as an enabler for our surface engineering cluster
9. But the economic benefits of Metalor’s presence here extend beyond the gold trading sector. Metalor is housed in a specialised development at the JTC Surface Engineering Hub (SEH) @ Tanjong Kling. Metalor will not only enjoy cost savings from shared facilities here such as the centralised wastewater treatment plant, but more importantly, will be working in close proximity to other surface engineering companies, who provide services such as chemical solution supplies, testing and certification. As part of the integrated eco-system of surface engineering companies here, Metalor will be able to source from supporting suppliers and vendors including local Small and Medium Enterprises.
Conclusion
10. As announced by Minister Lim Hng Kiang yesterday at the London Bullion Market Association (LBMA) Market Forum, our vision is to have a transparent and efficient marketplace for the wholesale trade in kilo bars. Through this refinery and other initiatives, we hope to further drive gold trade generating quality employment and new capabilities.
11. On this note, let me warmly congratulate Metalor Singapore for your strategic timing and decision to establish a refinery here. We appreciate this partnership and look forward to your participation to render our new gold trading sector a prosperous one. Thank you.