ENERGY & CHEMICALS INDUSTRY TRANSFORMATION MAP 1
ENERGY &CHEMICALSINDUSTRY TRANSFORMATION MAP
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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
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OVERVIEW
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E&C ITM
E&C Coverage4
Utilities
Fuel Advancedmaterials
Clean Energy
PCM Logistics
LNG
E&C
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
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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
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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
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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)
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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
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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%
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STRATEGY
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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
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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)
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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
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Transformation Growth
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
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Propylene Oxide
Acrolein
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%
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Functional specialty chemicals
SurfactantsUS$23.4 billion
Industrial Biotech &
Synthetic Biology
Functional PolymersUS$23.3 billion
Figures show APAC mkt size by 2025
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
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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
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
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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
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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
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PRODUCTIVITYENERGY & CHEMICALS ITM
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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
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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
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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
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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
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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
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
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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
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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
• 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
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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
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
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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
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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
36
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
37
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
39
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
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:
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MOM Data 2015
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
Productivity Jobs & Skills PCMInnovation Key EnablersInternationali-
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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Jobs & Skills: Initiatives
Case Study: Advanced Manufacturing Talent Study to
identify emerging skills to support Industry 4.0 adoption
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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
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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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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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?
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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
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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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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
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