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ENERGY - about Safety Case Regime for MHIs in Singapore · E&C Strategy: Transformation - Sustainability Energy efficiency projects will be a key contributor to our efforts to reduce

Oct 10, 2020

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Page 1: ENERGY - about Safety Case Regime for MHIs in Singapore · E&C Strategy: Transformation - Sustainability Energy efficiency projects will be a key contributor to our efforts to reduce

ENERGY &CHEMICALSINDUSTRY TRANSFORMATION MAP

1

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E&C ITM StrategyTransformation – Leveraging & Enhancing existing base

Growth – Attracting & Anchoring new high value products

E&C ITM

Overview

Key Enablers:

Accelerating industry development through industry partnership Increased involvement of industry associations (SCIC, ASPRI) for productivity and manpower initiatives

Productivity (Plant Operations)

Innovation Jobs & Skills Internationalisation

Improving manufacturing productivity and product slate through: Technology upgrades & feedstock flexibility Digitalization

Developing applied research capabilities to support specialty chemicals product innovation

Market domain knowledge Work with leading companies

to develop market domain knowledge

Platform Technologies Position A*STAR and IHLs as

choice innovation partners Facilitate R&D consortiums

across the value chain

Enhancing skills training, which is central to continued industry growth

Strengthening pool of process technicians

Attraction & retention Skills deepening

Enhancing skills training to meet demand for R&D roles

Equipping workforce with future skills

Establishing avenues and putting in place enablers for SMEs to grow

Support schemes

Facilitate collaboration with MNCs & RIs where relevant

Assistance in gaining access to regional markets

Productivity (Process Construction & Maintenance)

Improving the productivity of a key supporting industry Increasing worker productivity Improving project management practices

2

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OVERVIEW

3

Page 4: ENERGY - about Safety Case Regime for MHIs in Singapore · E&C Strategy: Transformation - Sustainability Energy efficiency projects will be a key contributor to our efforts to reduce

E&C ITM

E&C Coverage4

Utilities

Fuel Advancedmaterials

Clean Energy

PCM Logistics

LNG

E&C

Page 5: ENERGY - about Safety Case Regime for MHIs in Singapore · E&C Strategy: Transformation - Sustainability Energy efficiency projects will be a key contributor to our efforts to reduce

E&C ITM StrategyTransformation – Leveraging & Enhancing existing base

Growth – Attracting & Anchoring new high value products

E&C ITM

Overview

Key Enablers:

Accelerating industry development through industry partnership Increased involvement of industry associations (SCIC, ASPRI) for productivity and manpower initiatives

Productivity (Plant Operations)

Innovation Jobs & Skills Internationalisation

Improving manufacturing productivity and product slate through: Technology upgrades & feedstock flexibility Digitalization

Developing applied research capabilities to support specialty chemicals product innovation

Market domain knowledge Work with leading companies

to develop market domain knowledge

Platform Technologies Position A*STAR and IHLs as

choice innovation partners Facilitate R&D consortiums

across the value chain

Enhancing skills training, which is central to continued industry growth

Strengthening pool of process technicians

Attraction & retention Skills deepening

Enhancing skills training to meet demand for R&D roles

Equipping workforce with future skills

Establishing avenues and putting in place enablers for SMEs to grow

Support schemes

Facilitate collaboration with MNCs & RIs where relevant

Assistance in gaining access to regional markets

Productivity (Process Construction & Maintenance)

Improving the productivity of a key supporting industry Increasing worker productivity Improving project management practices

5

Page 6: ENERGY - about Safety Case Regime for MHIs in Singapore · E&C Strategy: Transformation - Sustainability Energy efficiency projects will be a key contributor to our efforts to reduce

29%

30%

13%

11%

9%

8%Energy & Chemicals

Electronics

Precision Engineering

TransportEngineering

Biomedical

General

Singapore’s Manufacturing Output (2015):

S$283 bn

2015 Performance

TotalOutput:

S$78 billion (10-yr CAGR 1.7%)

VA: 10.6 billion (10-yr CAGR 3.7%)

Employment: 28,400

E&C contributes significantly to Singapore’s economy

Beyond Manufacturing

Headquarters• >40 HQs• S$3.1 bn in wholesale

trade VA

Research & Development• 20 innovation centres

Linkage to Trading• Manufacturing provides substance

to justify trading profit capture

• Trading strengthens manufacturing:(i) Sourcing of competitive feedstock; (ii) Outlets for refinery/cracker products

6

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Singapore has become one of the world’s leading

E&C hubs

Singapore is now

Asia’s leading oil trading hub (3rd

largest globally)

Top 5 export refining hub

Top 10 global chemicals hub

Refining capacity of

more than 1.3 million

barrels/day

Ethylene output capacity

of 4 million

tonnes/annum

Wide range of

Petrochemicals e.g. Elastomers, Polyolefins,

oxo-chemicals

Across different end-marketse.g. oilfield & water, consumer,

lubricant additives, agrochemicals,

animal nutrition

More than 40 years of development…

>S$47 billion in cumulative FAI on JI• ~75% from E&C companies

• ~25% from utilities; logistics; and other

companies

• >100 companies

7

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E&C is a source of good jobs for Singaporeans

Chemicals Job Profiles

Across all manufacturing industries:

High localization (69%)

Highest remuneration per worker (S$104k)Aggregated across job functions

High proportion of PMET jobs (66%)

Multiple Pathways to Success

Razali Bin Abdul Rahman• Graduated with O levels• Rotated through multiple plant assignments

over 30 years• Currently Shift Superintendent, leading a

team of ~100 people who work to ensurethe smooth running of processingoperations.

Dennis Cheong• Graduated with a degree in Chemical

Engineering from Australia; joined Shell in1990 as a mid-career hire

• Rotated through multiple assignments inSingapore, London, and Beijing.

• Currently VP of Shell’s lubricants supply chain(Shell Eastern Trading Ltd)

8

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• Utilities (FY’15 Rev: S$4.2b; Group emp: >7k)

• Invested >S$1b in FAI and employs >200

• Provides wastewater treatment, steam, power, etc.

• Keppel Infrastructure (FY’15 Rev: S$2b, Emp: 2.75k)

• Invested >S$100m in FAI and employs >20

• Provides power to JI and mainland Singapore

Utilities sector

Logistics sector

• FY’15 rev: S$891mil; Group emp: 6k

• 2006: Invested S$55 mil in two logistics hubs

• Group Rev FY’15: S$203mil

• 2011: Invested S$180 mil in an integrated chemical logistics hub

E&C has also enabled the growth of local companies in

supporting sectors

Process Construction & Maintenance Sector

• FY’15 rev: S$688mil; Group emp: 6k

• Largest Singapore industrial engineering services company

• Offices in over 10 different countries

• FY’15 rev: S$121mil; Group emp: 2k

• Established its GHQ, CoE and TCT in Singapore

9

Page 10: ENERGY - about Safety Case Regime for MHIs in Singapore · E&C Strategy: Transformation - Sustainability Energy efficiency projects will be a key contributor to our efforts to reduce

But contribution of local manufacturers is small

2015 E&C Industry Manufacturing Output

Singaporean Companies Foreign MNCs

S$75.6bn

Singaporean SMEs focus more on select functions within the specialty chemicals sector• Company activities are concentrated primarily on blending / toll manufacturing

S$10-50M: 32 coys

>S$10M:234 coys

S$50-100M: 3 coys

>S$100M: 2 coys

Manufacturing output of Singaporean E&C

companies (2015): S$1.4bn

2%

98%

10

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STRATEGY

11

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E&C Industry 2025

E&C will continue to be a key contributor to economic

growth & manufacturing output, and source of good jobs

1960s 1970s 2000s 2025 & Beyond

Integrationwith Chemicals

Jurong Island& Infrastructure

Diversify & Deepen Integration

Singapore’s evolving product portfolio

Singapore’s1st Refinery

Fuels

Derivatives

Commodities

SpecialtiesReduce cyclicality

Strong growthHigh value

2015

Manufacturing Output S$76 bn

Value-add S$10.57 bn

Employment 28.4K

12

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Opportunities & Challenges

Continued growth hinges on (i) harnessing growth

opportunities & (ii) transformation to meet challenges

Challenges:•Growth of the industry needs to be managed sustainably•Carbon tax and water price hikes will have an impact on business costs•Long-term sustainability – need to balance between environmental commitments and cost competitiveness

Opportunities: •Asian megatrends translate to demand for energy, chemicals and products with specialty chemical components

Growing population

Growing affluent middle class

Increasing urbanisation

Climate change

Land constraints

Carbon TaxWater Price Increases

High cost of operating in Singapore (Utilities)

13

Page 14: ENERGY - about Safety Case Regime for MHIs in Singapore · E&C Strategy: Transformation - Sustainability Energy efficiency projects will be a key contributor to our efforts to reduce

E&C Strategy

Twin approach: Transformation & Growth

Improving product portfolio

Growth

Capturing opportunities in manufacturing and R&D for high

value-added products

Transformation through improving competitiveness & sustainability, i.e. • Asset rejuvenation• Infrastructure, cost structure enhancements

14

Transformation Growth

Page 15: ENERGY - about Safety Case Regime for MHIs in Singapore · E&C Strategy: Transformation - Sustainability Energy efficiency projects will be a key contributor to our efforts to reduce

E&C Strategy: Growth

Driving growth through attracting & anchoring

high value-added petrochemical products

Diversifying & upgrading our olefin derivative portfolio

2015 Post 2025

MonoethyleneGlycol

Styrene Monomer

Commodity Polyethylene

Methyl Methacylate

Ultra-high molecular

weight PE

Styrene Butadiene Copolymer

Elastomers

Linear Low-DensityPolyethylene

Larger share of higher value derivatives

Ethylene Oxide

Polyisobutylene

Feedstock for spec chem

Commodity

High-value

15

Propylene Oxide

Acrolein

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E&C Strategy: Growth

The next phase of growth: Specialty Chemicals

End market focused

• Large growth potential (CAGR)

• High VA products

• Resilience to economic cycles

US$8.6 billion

Lubricant additives

US$25.7 billion

Consumer care

US$10.8 billion

Animal nutrition & health

US$36.8 billion

Agriculture chemicals

US$20.6 billion

Oilfield & water

VA Figures

2010 S$2.29bn

2015 S$2.88bn

CAGR 4.6%

16

Functional specialty chemicals

SurfactantsUS$23.4 billion

Industrial Biotech &

Synthetic Biology

Functional PolymersUS$23.3 billion

Figures show APAC mkt size by 2025

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E&C Strategy: Growth

The next phase of growth: Specialty Chemicals17

Singapore’s early wins – Manufacturing & Beyond

Lubricant additives

Calcium salicylate plant - the single largest investmentInfineum has made to date and the first of its kind in Asia Pacific

Global competency centre for oilfield chemicals

17

Oilfield & water

Consumer care

Clariant’s 5th

applications development centre in APAC & the 1st to focus on sensorial testing for personal & home-care

Customer service and R&D centre enabling local development and testing of cosmetic products, shampoos and polishes

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E&C Strategy: Transformation

Enhancements at Plant & Systems levels

COMPETITIVENESS

SUSTAINABILITY

Plant level Systems level

Refinery & Plant Upgrades

Improve products slate

Manufacturing Environment

Manage utilities costReduce carbon

emissions

Enhance feedstock competitiveness &

optionality

Optimize operations

18

Page 19: ENERGY - about Safety Case Regime for MHIs in Singapore · E&C Strategy: Transformation - Sustainability Energy efficiency projects will be a key contributor to our efforts to reduce

E&C Strategy: Transformation - Sustainability

Energy efficiency projects will be a key contributor to our

efforts to reduce carbon emissions from existing plants

• Targets 2% y-o-y EE improvement forBukom refinery

• Through a comprehensive energymonitoring system and a dedicated cross-disciplinary team

• April 2015: Construction of gas-poweredcogeneration facility (FAI: ~US$250mil)

• By 2017: 140ktpa reduction in carbonemissions (equivalent of taking >45,000cars off the roads of Singapore)

Encouraging energy efficiency projects

Systems-levelInitiatives

19

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Not viable due to geological constraints

E&C Strategy: Transformation - Sustainability

Long-term strategy: Carbon capture storage/utilization

Adoption of carbon capture storage/utilization (CCS/CCU) technologies

CCS

X

Limited market incentiveCCU

1st large-scale CCU project on JI.• Uses 25ktpa of CO2 from a neighbouring

plant to produce 70ktpa of Na2CO3 for nichefood and pharmaceutical applications.

CCS/U technology roadmap• Collaboration including NCCS, NRF & EMA• Engagement of oil majors to site CCU

demonstration projects in Singapore• Technology to be commercially feasible

between 2025-2030

Technology Examples

Encouraging energy efficiency projects

Systems-levelInitiatives

20

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PRODUCTIVITYENERGY & CHEMICALS ITM

21

Page 22: ENERGY - about Safety Case Regime for MHIs in Singapore · E&C Strategy: Transformation - Sustainability Energy efficiency projects will be a key contributor to our efforts to reduce

Productivity: Plant Operations

Overview

Productivity Innovation Jobs & Skills PCMInternationali-

sationKey Enablers

Productivity (Plant Operations)

Innovation Jobs & Skills Internationalisation

Improving manufacturing productivity and product slate through: Technology upgrades & feedstock flexibility Digitalization

Developing applied research capabilities to support specialty chemicals product innovation

Market domain knowledge Work with leading companies

to develop market domain knowledge

Platform Technologies Position A*STAR and IHLs as

choice innovation partners Facilitate R&D consortiums

across the value chain

Enhancing skills training, which is central to continued industry growth

Strengthening pool of process technicians

Attraction & retention Skills deepening

Enhancing skills training to meet demand for R&D roles

Equipping workforce with future skills

Establishing avenues and putting in place enablers for SMEs to grow

Support schemes

Facilitate collaboration with MNCs & RIs where relevant

Assistance in gaining access to regional markets

Productivity (Process Construction & Maintenance)

Improving the productivity of a key supporting industry Increasing worker productivity Improving project management practices

22

Page 23: ENERGY - about Safety Case Regime for MHIs in Singapore · E&C Strategy: Transformation - Sustainability Energy efficiency projects will be a key contributor to our efforts to reduce

Productivity

Boost VA / Revenue

Production of higher value grades

Flexibility to manufacture different product grades depending on

market conditions

Improve Efficiency

Replace old production units to increase operational efficiency

Flexibility to use wider range of feedstock so as to opportunistically

tap onto cheap feedstock

Productivity: Technology Upgrades & Feedstock Flexibility

Upgrading existing plants to improve competitiveness

Case Study: TPC’s GPS-2 Line Upgrades

Innovation Jobs & Skills PCM

Block Copolymer

Random Copolymer

Addition Upgrade to enable production of higher value

grades of PP

Ability to flex between multiple grades depending on market conditions

Key EnablersInternationali-

sation

23

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Productivity: Technology Upgrades & Feedstock Flexibility

Increasing refinery complexity to maximize value and

improve resilience

Productivity

Upgrading bottom of the barrel Flexibility of crude diet

Lubricants

Naphtha

FuelsJurong Rock CavernsHelping our refineries adapt to the changing market dynamics• Improve refinery margins by ~US$3-5/bbl• Or ~S$50-80 mil net margins per year

Bottoms

Innovation Jobs & Skills PCM

• New IMO regulations could limit sulphur content in bunker fuel (20-30% of refinery production)

• Upgrades could convert this to lubricant basestock(>200% selling price of fuel oil)

• EDB is engaging the refineries on upgrading opportunities

Key EnablersInternationali-

sation

24

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Productivity: Digitalization

Digitalization will drive the next wave of productivity &

efficiency gains

Productivity

Automation Industrial IoT

Workforce

Enablement

M2M

Communications

Machine

Learning

Virtual Control

Room

Simulation

Programmable

Logic Controllers

Inspection &

Maintenance

Efficiency Gains: Energy Efficiency| Process Optimization |Labor Productivity

Growth: Performance Management | Greater Capacity | Customer Responsiveness

Supervisory Control

& Data Acquisition

Instrumentation

Human-Machine

Interface

AGVs/Drones

Data

Collection &

Processing

Data AnalyticsDigital

Connectivity

Innovation Jobs & Skills PCM

Plant-wide

wireless

connectivity

Des

crip

tive

Pre

dic

tive

Pre

scri

pti

ve

Key EnablersInternationali-

sation

25

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Productivity: Digitalization

Case Studies

Productivity

Lead Demand CustomerTechnology Provider

Chevron Oronite partnered Emerson to install a Pervasive Sensing Infrastructure, which acts as a wireless

“smart” platform to develop applications to improve plant operations and maintenance. This multi-year

initiative focus around upgrading Chevron Oronite field equipment and combining data analytics to drive

energy efficiency, labour productivity, and site safety. The first phase is expected to save the company

30,000 man-hours each year

Sumitomo partnered with Accenture to transform its existing manufacturing operations and global

supply chain in Singapore. This will involve the utilization of technologies such as real-time visualization,

AI, robotics, and smart devices to enable predictive maintenance, improve uptime, optimise supply chain

and drive energy efficiency. To support this, Sumitomo will establish an IoT Center of Excellence in

Singapore which will serve as the nerve center to drive innovation and promote IoT adoption across the

Sumitomo’s entities globally.

Innovation Jobs & Skills PCM Key EnablersInternationali-

sation

26

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Productivity: Digitalization

Next steps: Boost adoption

Technology Providers End Users

OT

IT

Developing new applications and solutions, as well as innovating to

creating new business models

Looking for new but proven offerings that can transform the way they manage and execute

their operations

Productivity Innovation Jobs & Skills PCM Key EnablersInternationali-

sation

RIs & IHLs

Valuable partners to conduct research and development work, and train

more IIoT talent

27

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Productivity: Digitalization

Long-term: Digital Jurong Island

Productivity Innovation Jobs & Skills PCM Key EnablersInternationali-

sation

Present JIPhysical pipeline integration • Feedstock• Products• Utilities

Future JIReal-time information flow• Logistics• Utilities

The next frontier of systems-level optimization

Key Challenges• Cybersecurity• Confidentiality

28

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Productivity: Process Construction & Maintenance

Overview

Productivity Jobs & Skills PCMInnovation Key EnablersInternationali-

sation

Productivity (Plant Operations)

Innovation Jobs & Skills Internationalisation

Improving manufacturing productivity and product slate through: Technology upgrades & feedstock flexibility Digitalization

Developing applied research capabilities to support specialty chemicals product innovation

Market domain knowledge Work with leading companies

to develop market domain knowledge

Platform Technologies Position A*STAR and IHLs as

choice innovation partners Facilitate R&D consortiums

across the value chain

Enhancing skills training, which is central to continued industry growth

Strengthening pool of process technicians

Attraction & retention Skills deepening

Enhancing skills training to meet demand for R&D roles

Equipping workforce with future skills

Establishing avenues and putting in place enablers for SMEs to grow

Support schemes

Facilitate collaboration with MNCs & RIs where relevant

Assistance in gaining access to regional markets

Productivity (Process Construction & Maintenance)

Improving the productivity of a key supporting industry Increasing worker productivity Improving project management practices

29

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• Predominantly Singaporean companies• Highly fragmented with multiple sub-contractors

• >400 PCM contractors; with only 8 Tier 1 contractors (Rev: S$100-600mil; Emp: 2-7k; VA/worker: S$50-60k)• Sub-sized contractors: Rev: <S$5mil; Emp: <50; VA/worker: <S$20k

• Reliant on foreign labour

Snapshot of the PCM sector today

Productivity: PCM

PCM is a critical supporting function for E&C

Sub-Contract

Productivity Jobs & Skills PCMInnovation

MNC EPC Companies

PC Main Contract

PM Main Contract

MNC Refineries & Chemical Plants

>$100M

$5-100M

<$5M

Singaporean PCM

Contractors

Hiap Seng Rotary

PEC

Tier 1

Tier 2

Tier 3

•8 Companies•Emp Size: 2k – 7k

• VA/worker: S$50-60k

•190 Companies•Emp Size: 50-100

• VA/worker: S$20k-30k

•249 Companies•Emp Size: <50

• VA/worker: <S$20k

Ad-MethKwang Peng

Key EnablersInternationali-

sation

30

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Productivity: PCM

Industry taking the lead to spearhead multiple initiatives

to improve its productivity & skills profile

Productivity Jobs & Skills PCMInnovation

Early achievements• Construction of a dormitory close to Jurong Island• Implementation of a turnaround scheduling data-

sharing portalOngoing initiatives• Conducting productivity benchmarking• Increasing mechanisation• Developing a certification system

PCMMC status update

PCM Management Committee

Chaired by EDB, involving SPRING, JTC, WDA, MOM,

Chemicals companies and contractors

• Productivity roadmap endorsed by NPCEC

• To bring Singapore’s PCM sector to the 1st quartile

of PCM productivity in Asia by 2020 (from 3rd quartile at

present)

Key EnablersInternationali-

sation

ProductivityCouncil

Performance Metrics

Turnaround Scheduling

Mechanization

Certification

Pilot Projects

Worker Capability

PCMMC Work Groups

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Productivity: PCM

Increase the productivity of foreign workers

Capability Development1. Revise curriculum for skills2. Standardize cost and duration of courses

Work in Progress1. Right skills for the Right Job initiative –

mandating in Plant owners’ contracts that craftworkers are trained in the relevant skill for thework they are performing

2. Multi-skilling and deep skilling the workers

Mechanization and Automation1. Increase adoption of mechanized tools by

plant owners and PCM companies

Future activities1. Exploring the world of

mechanized tools available (CII)2. Exposure to robotics and IIoT

technologies

Productivity Jobs & Skills PCMInnovation Key EnablersInternationali-

sation

Certification:1. Implementation of a tiered certification

system for productivity for contractors

Ongoing activities1. Benchmarking of craft level productivity2. Developing the criteria for the

different tiers

Desired Outcomes1. Foreign workers are able to perform in their

roles more effectively2. Reduction in the industry’s reliance on foreign

workers

Note: These roles will continue to be filled by foreign labour

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INNOVATIONENERGY & CHEMICALS ITM

33

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Innovation

Overview

Productivity Innovation Jobs & Skills PCM Key EnablersInternationali-

sation

Productivity (Plant Operations)

Innovation Jobs & Skills Internationalisation

Improving manufacturing productivity and product slate through: Technology upgrades & feedstock flexibility Digitalization

Developing applied research capabilities to support specialty chemicals product innovation

Market domain knowledge Work with leading companies

to develop market domain knowledge

Platform Technologies Position A*STAR and IHLs as

choice innovation partners Facilitate R&D consortiums

across the value chain

Enhancing skills training, which is central to continued industry growth

Strengthening pool of process technicians

Attraction & retention Skills deepening

Enhancing skills training to meet demand for R&D roles

Equipping workforce with future skills

Establishing avenues and putting in place enablers for SMEs to grow

Support schemes

Facilitate collaboration with MNCs & RIs where relevant

Assistance in gaining access to regional markets

Productivity (Process Construction & Maintenance)

Improving the productivity of a key supporting industry Increasing worker productivity Improving project management practices

34

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Fundamental R&D

Applications development*

Core manufacturing

Sales & Marketing

After-sales

Best/Necessary Activity

Oilfield & Water Chemicals

Consumer Chemicals

Lubricant Additives

Agricultural Chemicals

Innovation

Singapore as a hub for applications development to

capture the growing APAC market

Productivity Innovation Jobs & Skills PCM Key EnablersInternationali-

sation

Existing Applications Development Centres in Singapore

*Typically involves proving the performance efficacy of a platform technology (e.g. surfactant) for a selected end market (e.g. consumer care) and selected application (e.g. shampoo). Could generate IP but mostly trade secrets.

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Innovation

Developing applied research capabilities

Facilitate unusual consortiums across R&D value chain and develop pre-positioning capabilities

Productivity Innovation Jobs & Skills PCM

Work with leading players to develop domain knowledge in their labs in

Singapore

Companies generally build in-house capabilities as a differentiating

competency

e.g. multi-functional shampoos, coated seeds, waxy oilfield conditions

Position A*STAR RIs and IHLs as choice innovation partners and facilitate

unusual R&D consortiums across the value chain

Companies adopt open innovation models to complement in-house

capabilities

e.g. polymer synthesis, target release & delivery, performance modelling,

characterization and analysis, chemical synthesis of molecular switches

Key EnablersInternationali-

sation

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In Progress:

• A*STAR and EDB are developing R&D Programmes to strengthen capabilities in public institutes (e.g. IAF)

• R&D Programmes to involve leading chemical companies as collaborators and/or technical reviewers

Innovation

Key capabilities to be developed in Public Research

Institutes

Productivity Innovation Jobs & Skills PCM Key Enablers

Prioritized Technology Focus Areas*

Chemical Synthesis of Molecular Switches

Design & Synthesis of Polymer Structures

Target Release & Delivery

Intelligent Formulations

Integrated with:Performance Modelling, Characterization and Analysis

Internationali-sation

Develop key capabilities in Prioritized Technology Focus Areas in partnership with A*STAR, IHLs and industry players

*Validated by company CTOs

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Innovation

Case studies: Partnerships with Companies

Productivity Innovation Jobs & Skills PCM Key EnablersInternationali-

sation

€13 billion German specialty chemicals company

• Working on 3 projects with A*STAR RIs

MRCAs enabling companies to tap on multi-disciplinary capabilities

€5.4 billion European specialty chemicals company

• Completed 2 projects with A*STAR RIs

• In process of expanding MRCA

A*STAR as a platform to facilitate consortiums

UK Specialty Chemicals company supplying Phase Change Material

(PCM)

Singapore SME formulating water-proofing coatings, with interest to incorporate PCM

A*STAR platform enabling technology development of encapsulation of PCM

(Participating institutes include ICES, IMRE, IHPC, NUS and SP)

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JOBS & SKILLSENERGY & CHEMICALS ITM

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Jobs & Skills

Overview

Productivity Jobs & Skills PCMInnovation Key EnablersInternationali-

sation

Productivity (Plant Operations)

Innovation Jobs & Skills Internationalisation

Improving manufacturing productivity and product slate through: Technology upgrades & feedstock flexibility Digitalization

Developing applied research capabilities to support specialty chemicals product innovation

Market domain knowledge Work with leading companies

to develop market domain knowledge

Platform Technologies Position A*STAR and IHLs as

choice innovation partners Facilitate R&D consortiums

across the value chain

Enhancing skills training, which is central to continued industry growth

Strengthening pool of process technicians

Attraction & retention Skills deepening

Enhancing skills training to meet demand for R&D roles

Equipping workforce with future skills

Establishing avenues and putting in place enablers for SMEs to grow

Support schemes

Facilitate collaboration with MNCs & RIs where relevant

Assistance in gaining access to regional markets

Productivity (Process Construction & Maintenance)

Improving the productivity of a key supporting industry Increasing worker productivity Improving project management practices

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Jobs & Skills

E&C produces good jobs for Singaporeans

Productivity Jobs & Skills PCMInnovation Key EnablersInternationali-

sation

41

PME

APT

R&F

10,400

(75% Locals)

8,400

(74% Locals)

9,600

(57% Locals)

2015Total: 28,400Locals: 69%PMET: 66%

0

20

40

60

80

100

120Remuneration Per Worker ($'000)

Principal Statistics of Manufacturing, 2014 –MTI data

Foreign31%Local

69%

High local representation

MOM Data 2015

Our performance today:

Tota

l M

anu

fact

uri

ng

ENER

GY

&C

HEM

ICA

LS

Gen

eral

M

anu

fact

uri

ng

Tran

spo

rt

Engi

nee

rin

g

Pre

cisi

on

En

gin

eeri

ng

Elec

tro

nic

s

Bio

med

ical

En

gin

eeri

ng

MOM Data 2015

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Jobs & Skills

For non-degree holders, the industry provides a wide

range of attractive career paths

Beyond operations, technicians have theflexibility to move into other functions.

Within operations, technicians can progress to specialist or supervisory roles.

With 10 years of experience, technicians’ salary and allowances can amount to S$6,000-7,000 a month.

Productivity Jobs & Skills PCMInnovation Key EnablersInternationali-

sation

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Jobs & Skills

Key Manpower Challenges

With focus on specialties, more R&D labs are being set up with increasing demand for R&D talent in a nascent

industry

2. Increasing demand for R&D talent

Maintain strong pool of CPT, despite leakages from

polytechnics & ITEs

Correct the misperceptions of working in the industry

(e.g. safety, comfort, etc.)

Improve accessibility to and within JI

1. Attraction of technicians

Adoption of new technologies and production methods,

coupled with need for multi-skilling, will result in changing

demands for CET and PET courses.

3. Equipping future skills

Productivity Jobs & Skills PCMInnovation Key EnablersInternationali-

sation

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Jobs & Skills: Initiatives

Creating opportunities for future employees to learn

more about the industry

1. Articulating career pathways, profiling available opportunities

• Singapore Skills Framework for E&C industry

• Profiling opportunities as a process technician through SCIC media publications

2. Industry-led outreach

• Chemical Experience Day, an annual event organized by the SCIC to expose students to the working environment on Jurong Island, and provide a rare glimpse into a day in the life in the industry

• Educators Engagement Programme, a new initiative to develop a 1-day attachment programme for lecturers and teachers, to strengthen industry-PSEI engagements and to keep lecturers up to date with industry trends

Attraction& Retention

Future Skills

R&D

Productivity Jobs & Skills PCMInnovation Key EnablersInternationali-

sation

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Jobs & Skills: Initiatives

Creating opportunities for future employees to learn

more about the industry

3. Earn-and-Learn Programmes

• Advanced Diploma in Chemical Engineering from Singapore Polytechnic was officially launched on 21 Aug 2016

• Further ELPs in the pipeline to ensure continued supply of skilled technicians across the different career tracks in the E&C sector (in line with the Skills Framework)

• Specialist Diploma in Analytical Science (NP)• ELP Certificate (Process) for ITE graduates (TP)• ELP Certificate (QA/QC) for ITE graduates (SP)

4. Enhanced Industrial Attachment

• Industry developed and endorsed IA framework with best practices for consistentquality IAs, and pre/post IA surveys to collect data on impact of IA on careerchoices.

• 6 companies have committed to implementing the IA framework and datacollection from the next IA cycle (Chevron Oronite, Eastman, Shell, Lanxess,Celanese, and Sumitomo).

• EDB will work with appointed SCT and companies on enhanced IA structure (e.g. SPwill lengthen IA to 1 semester and incorporate shift work where possible).

Attraction& Retention

Future Skills

R&D

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sation

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Attraction& Retention

Future Skills

R&DChanging mix of activities to

include more R&DWorking in an

IT-enabled environment

EDB is in the process of validating the evolving capabilities that will be required by the industry in the next 5-10 years:

EDB will work with relevant stakeholders on appropriate interventions, such as:• Niche capabilities modules in WDA courses and PSEIs/IHLs (e.g. new specialist diploma in

specialty chemicals which SP is planning to develop and launch in 2017) • Industry-relevant programmes (e.g. Industrial Postgraduate Programme to train Masters and

PhDs)• Advanced Manufacturing Talent Study – EDB & Accenture to identify potential skillset gaps.

Findings will used to develop a white paper which will be published in April 2017• Highlighting future skillsets required by employers through the Skills Framework

Jobs & Skills: Initiatives

Ensuring the existing & future workforce will be equipped with the

relevant skills to address the evolving needs of the industry

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sation

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Jobs & Skills: Initiatives

Case Study: Advanced Manufacturing Talent Study to

identify emerging skills to support Industry 4.0 adoption

Productivity Jobs & Skills PCMInnovation Key EnablersInternationali-

sation

47

Soft Skills

Technical Skills

Organization Changes

Example of Digital Skills Map by Role:

• On-going government-industry engagements to validate and expand on evolving digital skills

• IHLs - Nurture cross-trained workers with digital skills & multi-domain capabilities

• Industry (e.g. Shell, ExxonMobil) has volunteered resources to provide subject matter expertise to Singapore Polytechnic

• Companies - Drive culture of digital adoption through management commitment and effective decision-making

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KEY ENABLERS ENERGY & CHEMICALS ITM

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Key enablers

Accelerating industry development through industry

partnership

Government

IHLs

Policies & Essential Infrastructure

Human Capital Development

• Manpower & Capability Development issues, though the CHIMAC platform

• Policy consultation – safety case regime, energy efficiency

• Standards development and recognition

• Key partner in PCMMC• Involved in industry-driven

productivity council

Industry

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sation

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Key enablers

Case Study: CHIMAC

The Chemical Industry Manpower Advisory Committee (CHIMAC)

Co-chaired by

Purpose

Recent efforts

Upcoming Initiatives

To look into present and future manpower-related issues in the Chemical Industry such as the labour supply, training and hiring practices

Outreach Programs:1. Chemical Experience Day2. Career Progression Pathway brochure for process

technicians

• Articulating career pathways for process technicians“A Day in the Life of”

• Educators engagement plan• Re-employment risk mitigation

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sation

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Key enablers

What is next?

Increased awareness of the adoption of new technologies

Technologies: Robotics, IIoT

Targets: SMEs, PCM

Key industry association for the Port of Rotterdam

• Represents 700 companies – totalling 180,000 jobsand 3.2% of GDP

• Board comprises: 7 members from chemicalindustry & contractors; 7 members from 3PLs

• Defends interests of port and industry, connectsbusinesses, etc.

• Does capability development – currently buildinglive plant for PCM training

Belgian Federation for Chemistry and Life SciencesIndustries• Represents 800 companies in chemicals & life

sciences• Industry development efforts include infrastructure

/ pipeline network enhancements; and Science,Technology, Engineering & Math promotion.

• Undertakes industry advocacy at the Europeanlevel

Role models?

Productivity Jobs & Skills PCMInnovationInternationali-

sationKey Enablers

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THANK YOUENERGY & CHEMICALS ITM

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APPENDIXENERGY & CHEMICALS ITM

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Innovation

Productivity (Operations)

Jobs & Skills

E&C Strategy

Strategy enablers: Chemicals ITM’s 5 Pillars

Transformation Growth

Productivity (Process Construction & Maintenance)

Internationalisation

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INTERNATIONALISATIONENERGY & CHEMICALS ITM

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Internationalisation

Overview

Productivity Jobs & Skills PCMInternational-

isationInnovation Key Enablers

Productivity (Plant Operations)

Innovation Jobs & Skills Internationalisation

Improving manufacturing productivity and product slate through: Technology upgrades & feedstock flexibility Digitalization

Developing applied research capabilities to support specialty chemicals product innovation

Market domain knowledge Work with leading companies

to develop market domain knowledge

Platform Technologies Position A*STAR and IHLs as

choice innovation partners Facilitate R&D consortiums

across the value chain

Enhancing skills training, which is central to continued industry growth

Strengthening pool of process technicians

Attraction & retention Skills deepening

Enhancing skills training to meet demand for R&D roles

Equipping workforce with future skills

Establishing avenues and putting in place enablers for SMEs to grow

Support schemes

Facilitate collaboration with MNCs & RIs where relevant

Assistance in gaining access to regional markets

Productivity (Process Construction & Maintenance)

Improving the productivity of a key supporting industry Increasing worker productivity Improving project management practices

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Internationalisation

Local SMEs in the Chemicals sector are primarily involved in

blending

Blenders:

• Direct customers are other chemical players

• Largest revenue players are all in business of commodity chemicals

• Almost all specialty players have significant proportion of commodities in their portfolios, and have toll-blending as a value-added service

• Larger pure specialty players (Revenue > S$80m) have a substantial footprint in SEA (e.g. Sunace, Apoil, Aik Moh)

• Few toll-blenders own formulations

>S$100M:

2 coys

S$50-100M: 3 coys

S$10-50M: 32 coys

>S$10M:234 coys

Productivity Jobs & Skills PCMInnovation Key EnablersInternational-

isation

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Internationalisation

Approach: Establishing avenues and putting in place enablers for

SMEs to grow

Capability Development Areas:

• Branding & Marketing Strategy Development• Business Excellence• Business Strategy Innovation• Enhancing Quality and Standards• Financial Management• Human Capital Development• Intellectual Property & Franchising• Productivity Improvement• Service Excellence• Technology Innovation

Collaborations with MNCs & RIsFor SMEs with specific business interests or R&Dproblem statements, we can

• Link them up with MNCs should there bepotential for collaboration;

• Link them up with A*STAR, other RIs toexplore R&D opportunities

Access to regional markets

Gain market access Capability buildingEnterprise-level

Assistance

• Target new markets• Facilitate application lab set-up• Develop distribution network

• Facilitate manufacturing set-up• Improve product offering &

scale of operations

• C-level engagements• Develop joint action plans

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isation

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Internationalisation

Case Study: Enabling our local SMEs to capture opportunities in

the region

Productivity Jobs & Skills PCMInnovation Key Enablers

MahaChem, a Singaporean chemicals player,maintains strong presence in every ASEAN country.To further improve its value proposition of havingdeep understanding of localized needs and demandsof each market, it plans to establish consolidatedsales offices and application labs in SEA.

Through IE’s Joint Action Plan, MahaChem was ableto:

• Conduct a market feasibility study to bettercharacterize the Myanmar skim coat marketthrough the utilization of the GCP grant.

• Receive expedited access to relevant investmentauthority, BKPM, for laboratory set-up in Jakarta,Indonesia.

Establish consolidated sales offices

and in-market application labs

in SEA

Fosters on-going service-

oriented, collaborative relationship

with customers

Innovate to move into

more sophistical and

higher-value portfolios

A central showcase for

suppliers’ new products

• Singapore -- Coating Lab• Malaysia -- Construction Lab• Indonesia -- Personal Care Lab

International-isation

59