HOW SINGAPORE IS COPING WITH THE DECLINE OF ITS OIL INDUSTRY

In 2020, output from the oil and gas and petrochemical industries here was valued at about USD 60 billion

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Singapore is well-known for being a financial hub and high-tech manufacturing hotbed as well as an attractive destination for visitors. It is also an appealing business centre where many global companies have based their Asian headquarters. What is not very well-known is that Singapore is one of the most important oil trading and refining centres in the world. In fact, it is one of the top three oil trading and refining centres in the world.

With a total crude refining capacity of 1.5 million barrels per day, it is the world’s fourth-largest exporter of refined petroleum, fuels and chemicals.

Key players in the sector, and related industries like builders of offshore rigs and floaters, also site their regional headquarters on the island.

In 2020, output from the oil and gas and petrochemical industries here was valued at about USD 60 billion but this figure fluctuates a fair bit due to the volatile price of oil. The petrochemical industry in Singapore accounts for 23 per cent of the nation’s total merchandise trade, five per cent of GDP and employs almost 30,000 people.

As a comparison, manufacturing is about 30 per cent of GDP and employs close to half a million people and financial services which makes up around 15 per cent of the economy hires over 200,000 people. When British energy giant Shell announced in June that it would assess the viability of its refining and manufacturing facilities on Bukom and Jurong islands, it was met with a little bit of consternation in the country.