Mr Png Cheong Boon, CEO, JTC

 

Distinguished Guests,

 

Ladies and Gentlemen,

 

Introduction
I am pleased to join you today at the ground-breaking of the JTC Chemicals Hub @ Tuas View.

 

In the last 20 years, we have worked hard to establish Singapore as a global chemicals hub. Today, the chemicals sector is the largest contributor to Singapore’s manufacturing output, accounting for about one-third of it . It contributes $3.98 billion in value-add, and offers diverse and well-paying jobs for Singaporeans. In fact, Singaporeans currently form about 60 per cent of the sector’s PME workers, and the remuneration per local worker is 1.5 times the manufacturing average.

 

Demand for petrochemical and specialty chemicals products has surged, driven by Asia’s rapid urbanisation and economic growth. These developments have created significant growth opportunities for the chemicals ecosystem, and speciality chemicals in particular.

 

Singapore’s strategic location in the heart of Asia-Pacific, and strong integrated petrochemical base, position us well to ride these trends. The critical mass of higher olefin feedstock enables the production of complex high-value speciality chemicals products. This is supported by the strong infrastructure solutions that we have developed, such as Jurong Island, and the recently opened Jurong Rock Caverns. Separately, private sector players such as Vopak and SK Gas will be jointly developing the first LPG facility in Singapore, which will provide an alternative feedstock for companies on Jurong Island. These projects demonstrate Singapore’s efforts and commitment to ensure the competitiveness of our chemicals industry.

 

With the opening of the JTC Chemicals Hub, we will add to our staple of innovative integrated solutions, and be better able to support local SMEs within the chemicals sector.

 

SMEs across many diverse industries play a critical role in supporting the larger enterprises within the chemicals sector. They provide essential services such as bulk-breaking, customised blending, drumming and palletisation.

 

Many of our SMEs are also important suppliers to regional markets, leveraging on Singapore’s comprehensive shipping and trade networks to seize new opportunities overseas. This is on top of producing and supplying speciality chemicals to a wide range of industries in Singapore, such as the electronics, pharmaceutical, and marine and offshore sectors.

 

JTC and SPRING have been working closely with SMEs in the chemicals sector through regular dialogues, as well as by engaging key industry associations to better understand industry needs and challenges. One key concern raised is the absence of facilities to support small companies that use flammable and toxic chemicals.

 

In response to this, the JTC Chemicals Hub was developed to provide a plug-and-play solution for these companies, enabling a quick start-up and significant cost savings. By clustering chemical companies, large and small, in one location with shared common facilities such as fire-fighting systems, companies can enjoy economies of scale, save on capital costs, and achieve land savings of up to 50 per cent.

 

JTC has also incorporated space for R&D activities in the JTC Chemicals Hub. Companies can use the allocated space to pursue R&D activities, such as formulating and testing new compounds to meet the changing needs of their customers, and for new business opportunities. 
 
Conclusion
The JTC Chemicals Hub is a good example of the Government’s commitment to develop innovative infrastructure solutions to support the chemicals industry for higher productivity.  We will continue to enhance our infrastructure to ensure the long-term sustainable growth of our industry.

 

I congratulate JTC on the launch of the JTC Chemicals Hub and wish all companies involved in this project every success.