Debated in Parliament on 12 Feb 2019.
Mr Saktiandi Supaat asked the Minister for Trade and Industry (a) whether the Ministry can provide an update on the roadmap laid out for Singapore's energy and chemicals sector and its Industry Transformation Map, including employment demand and supply outlook in the short to medium term; (b) what is the Ministry's long-term strategy to develop the growing energy and petrochemical sector in Singapore; and (c) which foreign country is the largest investor in this sector.
The Energy and Chemicals (E&C) industry is an important sector to Singapore's economy, contributing about 3% of our gross domestic product (GDP) and employing about 28,000 people in 2017. United States (US)-origin companies account for the majority of net fixed assets in the E&C industry.
The E&C Industry Transformation Map (ITM), developed together with the tripartite partners, was launched in October 2017, with a two-pronged strategy focusing on transformation and growth. Transformation aims to improve the competitiveness of refineries and crackers through asset rejuvenation, while growth is driven by opportunities from high value-added petrochemical derivatives and specialty chemicals. The E&C ITM aims to create 1,400 new jobs and contribute $12.7 billion to Singapore’s GDP by 2025.
Over the past one year, the E&C industry has made good progress under several of the ITM pillars. For example, 10 plants have leveraged Industrial Internet of Things (IIoT) technologies to drive efficiency gains and productivity in their plant operations. In terms of innovation, the industry has successfully anchored five application development centres focused on developing applied research capabilities to support specialty chemicals product innovation.
We have also observed good outcomes on the jobs and skills front. The Government is working closely with key industry associations, such as the Singapore Chemical Industry Council (SCIC) and the Association of Process Industry (ASPRI), to create quality jobs and to enable our people to capitalise on these jobs. One particular initiative is the Chemical Industry Manpower Advisory Committee (Chimac), which is co-chaired by the Economic Development Board and SCIC, and looks at present and future manpower-related issues, such as labour supply, training and hiring practices, to ensure that future manpower needs of the growing industry can be met. In addition, through initiatives, such as the Professional Conversion Programmes (PCPs) and SkillsFuture Earn and Learn Programmes (ELP), 86 mid-career workers were reskilled and successfully placed into suitable E&C jobs, while 134 trainees have been placed in 23 E&C companies respectively.
The success of the E&C ITM requires the collective effort of all industry stakeholders. Our trade associations will have to continue playing leadership roles in building capabilities across the community. Companies will have to continue investing in productivity and innovation efforts, and in their workers. Our people, too, must be prepared to upgrade their skills and even take on new job roles. The Government will likewise continue to work with our companies and workers to keep our E&C sector attractive and competitive.
PAPERCUTS