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Productivity Improvement Workshop

26 July 2017

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Energy & Chemicals in Singapore:

An Overview

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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-markets

e.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

SG: One of the Worlds Leading E&C Hubs

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Singapore remains committed to growing the manufacturing sector and E&C

industry in Singapore.

Energy & Chemicals: Key Mfg Segment

2016 GDP growth : 1.8%2017 GDP growth forecast: 1.0% to 3.0%

Source: Singapore Ministry of Trade and Industry

25%

Others

20%Manufacturing

13%

Financial Services

16%Business Services

5%Transport & Storage

8%

Wholesale & Retail Trade

14%

Construction

2016 GDP: S$410 billion (US$290 billion) Energy and Chemicals accounted for 24.9%

of our S$256 billion manufacturing output in 2016

24.9%

34.2%

12.1%

9.0%

11.1%

8.6% General Industries

BiomedicalManufacturing

TransportEngineering

PrecisionEngineering

Electronics

Energy & Chemicals

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Energy & Chemicals:

Boosting Productivity in Singapore

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Productivity Landscape Today

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Regional Competition for Labour

It may be challenging to meet PCM worker demand due to intensifying regional

competition for skilled labour. Productivity improvements are key to ensuring

Singapore remains cost competitive in the face of regional competition.

Regional provision of PCM labour to meet demand has a tendency to emphasise

workforce size as opposed to labour productivity due. However, there is rising

completion from large projects in the region for foreign labour, which puts a stress

on the supply of foreign labour in Singapore. The rising demand would drive up the

cost of labour and erodes the cost competitiveness of projects here.

RAPID in Pengerang Sadara in Saudi Arabia

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Industry taking the Lead on Initiatives

Early achievements

• Construction of a dormitory close to Jurong Island

• Implementation of a turnaround scheduling data-

sharing portal

Ongoing 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)

Productivity

Council

Performance Metrics

Turnaround Scheduling

Mechanization

Certification

Pilot Projects

Worker Capability

PCMMC Work Groups

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Efforts to Improve Worker Productivity

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 thatcraft workers are trained in the relevant skillfor the work 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

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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Digitalization to Further Drive Productivity

Automation Industrial IoT

Workforce Enablement

M2M Communicat

ions

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 Analytics

DigitalConnectivity

Plant-wide wireless

connectivity

Descriptive

Pre

dic

tive

Pre

scrip

tive

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Boosting 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 RIs & IHLs

Valuable partners to conduct

research and development work,

and train more IIoT talent

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EDB provides this presentation (including oral statements) gratuitously for information only and not for any other purpose. EDB does not warrant the

accuracy, completeness nor suitability for purpose of any information in this presentation. EDB excludes all liability including but not limited to inaccuracies,

incompleteness or lack of suitability for purpose of any information in the presentation.

Thank you