Could you explain the function of Enterprise Singapore, especially in relation to the chemicals and petrochemicals industry?
Enterprise Singapore is the Singapore government agency championing enterprise development. Our primary role is to foster local enterprise growth, but we also support the growth of Singapore as a premier global commodity trading hub. This involves collaborating with global traders across various sectors including energy, agri-commodities, metal, and minerals to anchor their global or regional headquarters in Singapore. Our goal is to establish Singapore as the central hub for these companies to orchestrate their trading operations, thereby promoting a dynamic and diverse trading ecosystem within the region.
How are fluctuating commodity prices and the shift towards green legislation impacting the trading landscape?
The trading landscape in Singapore has evolved significantly from its early days of trading spices and tin to now dealing with modern commodities like biofuel, carbon credits, and essential EV metals such as nickel and lithium. This evolution reflects not only the shift in key products being traded today, but also the diversity of the players involved in the supply chain of such products. Currently, Singapore is home to around 400 global traders from various regions including the US, Europe, Latin America, North Asia, and Southeast Asia. Our continued efforts aim to cement Singapore’s status as a global trading hub.
Could you elaborate on the responsibilities of Enterprise Singapore in relation to Jurong Island and the broader chemicals industry?
While the Economic Development Board (EDB) focuses on attracting international companies to set up manufacturing operations on Jurong Island, Enterprise Singapore also works with these companies to grow their trading and other business activities in Singapore. These companies might have their manufacturing and refining activities based in Jurong Island, but have a separate office function overseeing their trading operations in our Central Business District. Companies like ExxonMobil have major operations here which focus on the refining of crude oil and petrochemicals on Jurong Island, but also does the trading of these products and other products such as LNG from Singapore.
What opportunities are currently present in Singapore to attract more global trading companies, especially considering uncertainties in regions like Hong Kong?
Singapore is strategically positioned in Asia, making it a pivotal region for attracting global commodity trade flows. Our location is advantageous as we are close to major sources of commodities and demand centers. For instance, Australia, which is a major supplier of iron ore necessary for steel production, can fulfil demand from countries like China and India. Additionally, the industrialization of Southeast Asia has boosted demand for energy products, and this has attracted major players from the Middle East to set up operations in Singapore to serve this growing market.
In light of your Trade 2030 strategy, how does Enterprise Singapore plan to deepen and widen trade?
To deepen trade, we aim to help global traders here diversify beyond traditional trading activities to areas such as innovation or sustainability-related activities, to secure new growth opportunities. We also invest in efforts to build the capabilities of our companies, to ensure they have access to relevant resources and networks to embark on these new business activities.
To widen trade, we are looking to expand the types of products these companies trade in. For example, helping companies transition from the trade of fossil fuel LNG to synthetic LNG and to introduce greener product alternatives like biofuels and low-carbon steel. Additionally, we are actively working to broaden our network of traders, attracting more global players from regions as distant as Colombia and the Middle East to anchor their trading activities here.
These efforts are designed to plug Singapore deeper into global trade flows and make us a more compelling choice for companies looking to scale and grow their business activities in the region.
In terms of commodities being traded, are you seeing a shift towards more sustainable options like biopolymers and bio-based fuels?
Indeed, we are witnessing a notable shift towards more sustainable commodities such as biopolymers and bio-based fuels. This is driven by a global push towards sustainability and government policies that support the energy transition, which has in turn bolstered demand for greener alternatives.
Increasingly, our trading mix and activities have expanded to cover biofuels, alongside traditional energy commodities like oil and refined petroleum products. Today, biofuels trading involves both the trading of the feedstock required for production and the final biofuel products.
Feedstocks such as used cooking oil (UCO) and palm oil mill effluent (POME) are procured by companies to produce biofuel, which are then marketed to end users. This diversification in trading aligns with growing regional demands, due to governments stipulating high biofuel blends, such as B35 in Indonesia.
How is the startup ecosystem influencing the trading environment in Singapore?
Singapore has a robust innovation and startup ecosystem – we have the technical expertise and resources to support traders here with the development of innovative technologies and new products to grow their business activities. For example, the use of artificial intelligence (AI) in trading processes is becoming more prevalent, and we are seeing more traders partnering tech startups to incorporate AI solutions into their processes. Additionally, startups are finding novel applications for traditional commodities, like converting agricultural products and its by-products into alternative foods, such as plant-based meats or cheeses.
Can you discuss how Enterprise Singapore supports local companies in their international ventures, particularly in the trading of new products like carbon credits?
Enterprise Singapore works closely with Singapore companies to expand their trading activities internationally, particularly in new and emerging commodities such as biofuel and carbon credits. For instance, we supported the partnership between local company Apeiron Bioenergy and international firm Jet Zero to conduct a feasibility study to source and develop low-carbon intensity feedstocks from waste oils and non-edible crops to advance sustainable aviation fuels development under the Australia-Singapore Go Green Co-Innovation Program. Apeiron Bioenergy will lend its experience and knowledge in waste-based feedstock collection, while Jet Zero will focus on domestic investment in non-edible crop processing and refining.
This is part of our broader strategy to foster cross-border partnerships that enable our local enterprises to tap the expertise and networks of overseas corporates to scale up and enhance their global competitiveness.
