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FACS Newsletter 1/2000
Chemical Industry Development in Singapore
Bosco Chen
Singapore National Institute of Chemistry, Singapore
Introduction
Chemical industry is a very important part of industries in Singapore. The total
chemical production in 1997 reached USD$17 billions. Although Singapore is lack of
nature resources, many surrounding countries in the region are rich in oils and other
resources which provide starting materials to Singapore's chemical industry. Since
Singapore is small, all development projects are very closely related to government
policies. In 1993, the government established an overall development plan for the
chemical industry. This plan set an objective that the chemical industry must grow in
proportion to the rest of the manufacturing economy and should maintain a minimum of
21% in comparison to the total manufacturing output of the nation. Since 1993, the
chemical industry has been quite successful. In Singapore, the chemical industry
includes three major sectors which are petroleum, petrochemicals, and specialty
chemicals.
Petroleum
Singapore is the 3rd largest oil refinery center and attracts many oil companies to
this country. The total refinery capacity is about 4.2 barrels. Recently, Singapore
Refinery Company has completed USD$0.9 billion catalytic cracker unit which is now
in full production. In addition, BP and Shell have both decided to establish their R&D
centers in Singapore.
Petrochemicals
Singapore Petrochemical Complex is a USD$2.1 billion expansion project and was
completed in December of 1997. This complex includes cracker units and down
stream products, such as ethylene, propylene, styrene monomer, propylene oxide, etc.
There are many companies in this sector. For example, Celanese Singapore is an
important producer of vinyl acetate monomer while DuPont supplies plastics and fibers
for the textile industry. Other major petrochemical companies in Singapore are
Asahikasei Tenac Singapore, Eastman Chemical Singapore, Exxon Chemicals, POVAL
Asia, Lonza Singapore, Mitsui Bisphenol Singapore, Singapore Aromatics Company,
and Teijin.
Specialty Chemicals
The main role of the specialty chemicals in Singapore is to support electronic and
food processing industries. Major companies and highlights are summarized in the
following table.
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Company
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Highlight
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Chevron Chemical
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USD$188 million lubricant
additives plant
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CRI/Criterion Manufacturing
Singapore
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USD$16 million integrated catalyst
manufacturing and regeneration plant
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Santoku Merch
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USD$20 million ultrapure hydrogen
peroxide plant
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Tokuyama Electronic Chemicals
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USD$13 million for ultrapure
isopropyl alcohol and tetramethylamonium hydroxide
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Toshiba Chemical Singapore
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USD$36 million plant manufacturing
epoxy moulding compounds
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Polymer Coating Technologies of
Singapore
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R&D capability in polymer
coating technology
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Wacker Siltronic Singapore
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USD$406 million silicon wafer
facility
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Chemicals Cluster Output Distribution
In 1998, the output distribution among the chemicals cluster is listed as follows:
petroleum (47%), petrochemicals (15%), specialty chemicals (12%), food&beverage
(12%), pharmaceuticals (10%), and healthcare (4%). The investment in this cluster
was USD$1.9 trillions in 1998 which accounted for 37% of the total manufacturing
investment in Singapore.
Infrastructure
Two major infrastructures in Singapore are Tuas View and Jurong Island. Tuas
View with 300 hactare land was actually an expansion project and was completed in
1997. Jurong Island with 2650 hactare land is a USD$4.4 billion project and is
designed to be an integrated chemical complex. This infrastructure is targeted for
completion in 2001.
Manpower
In order to sustain significant growth in the chemical industry, it is extremely vital
to have sufficient manpower equipped with right sets of skills. In 1992, the
government established Chemical Industry Manpower Advisory Committee to address
supply and training of human resources. Recommendations from this committee
included: (1) requesting universities to increase intake by 20%; (2) developing training
classes of core manufacturing techniques for plant people; (3) attracting oversea talents.
Innovation Capability
Innovation capability is a key to maintain competitiveness and ensure future
success. Most of people recognize the importance of innovation capability but not
many people know how to do it. The government is asking National University of
Singapore to work on this issue and increase emphasis on industry-oriented research
projects.
Conclusions
With the right development framework in place, Singapore is very optimistic about
the chemical industry. This industry will definitely continue to expand, grow and
prosper in the future.
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