Expansion of Singapore’s chemical industry over the last three decades has been phenomenal. From under S$20 billion in the early 90s, the industry’s annual manufacturing output rose nearly fivefold to over S$100 billion at its height. Today, Singapore is a leading chemical hub and home to some of the world’s largest chemical plants.
Singapore has achieved its current status by design. While the chemical industry was making slow but steady gains since the first Shell refinery was open on Pulau Bukom in 1961, the potential was seen to be far bigger. By building on its refining capacity, already one of the top three in the world by the 1970s with the completion of three more facilities, it was felt that Singapore could be a regional centre for petrochemicals.
Reclamation work began in earnest in 1995 to merge seven islands in Singapore’s south into a single landmass to serve as a dedicated centre for petrochemicals. Through the creation of a cluster, the output of one company could become the input of another without the need to transport intermediates between chemical plants. By having common facilities, companies could also plug and play into shared utilities and services, and benefit from the economies of scale.
The bold decision paid off. Jurong Island is now home to over 100 companies in chemical manufacture and research, as companies have built on its sound foundation in refining and petrochemicals to expand into high-value specialty chemicals and derivatives. For a resource poor country, this is quite a feat.
It was a point noted by Prime Minister Lee Hsien Loong at JTC Corporation’s 50th Anniversary Dinner on 25 May 2018: “It is a huge achievement considering that we have no energy supplies of our own, not much land area, nor any other natural advantages except that we had the idea, we could execute and implement, and we made it happen.”
As an integral member of the chemical eco-system, the Association of Process Industry (ASPRI) has played a key role in the industry’s success. By working with government agencies, plant owners and other stakeholders on issues ranging from manpower and training to productivity and digitisation, it has helped to foster the development of industry members.
In this Silver Jubilee year, we take a trip down memory lane to trace ASPRI’s development over the last 25 years.
SHORT TAKE ON ASPRI
The beginning
ASPRI was formed on 7 March 1997 with the aim of upgrading contractors through workers’ training and technological advancements to meet clients’ requirements in the areas of productivity, quality and safety. Formerly known as the Process Industry Contractors’ Association (Singapore) or PICAS, it had some 50 members led by Mr Frankie Tan from Hiap Seng.
The industry was on the cusp of its biggest expansion as Singapore had embarked on its plan to amalgamate seven islands off Jurong for petrochemicals. It was an ambitious undertaking as nothing of this scale had ever been attempted in Singapore.
Singapore Economic Development Board (EDB) officials began promoting the island to would-be investors in 1992 even while the concept was taking shape. It was a formidable task Mr Lee noted as they were selling “stretches of seawater, with only the promise of land sometime in the future”.
Even as the physical infrastructure was being put in place, the EDB saw the pressing need to build up industry capacity. The process construction and maintenance (PCM) sector was expanding along with the expansion of the chemical industry. From undertaking basic cleaning, welding, fitting and scaffolding in the 60s, companies had begun to assume more responsibilities in process construction and maintenance. But as the chemical industry was embarking on a new phase of development, it was felt that PCM companies would have to level up in order to perform their roles more effectively.
In January 1995, the EDB launched Process-LIUP, the first industry-wide Local Industry Upgrading Programme (LIUP) for the chemical industry. The intent was to provide the chemical industry with a core group of contractors which could provide reliable engineering and maintenance services.
Six industry majors – Du Pont Singapore, Esso Singapore, Mobil Oil Singapore, Shell, Singapore Petrochemical Complex and Singapore Refining Co – worked with the EDB to introduce better work methods and techniques, and upgrade the skills of contractors and contractors’ management systems and capabilities. PICAS acted as programme co-ordinator, providing administrative support. Some 40 PCM companies were to benefit from the programme.
As Immediate Past President of ASPRI, Mr Charles Quek recalled, “EDB had this LIUP. The whole industry was more or less driven by LIUP. ASPRI served in a supporting role to work with the EDB and the plant owners on LIUP. I think one of the first initiatives or key initiatives at the time was driven by EDB to promote the skills of the workforce.”
Renamed to broaden membership base
On 25 April 2001, the Association assumed a new name, Association of Process Industry (ASPRI). The rationale was given by Mr Joseph Khow, ASPRI’s President 2002-2004. In his message to the Directory of Singapore Process & Chemical Industries in 2004, Mr Khow said, “The foremost reason in the transition of name was to extend the membership to all other service providers within the process industry, and possibly some plant owners, so as to engage them to be an active member in building a strong process industry. This requires the effort and contribution from all parties within the value chain to strive for the eventual realisation of a shared common objective of high service standard for the industry.”
ASPRI’s intent was to broaden the base to include plant owners, suppliers and manufacturers with the aim of building a strong community in which all members would share common objectives and interests in enhancing the professionalism of the industry, upgrade skill levels and improve the industry practices and techniques. “The name ASPRI has given the Association a better image,”, said Mr James Goh, who succeeded Mr Khow as President in 2004.
The membership grew. From 168 members at end March 2001, ASPRI’s membership rose to 258 in 2007, 300 in 2017 and about 600 today. From a fledgling, financially challenged association in its formative years with barely enough to pay staff salaries, ASPRI now has a well-tuned secretariat, working closely with government agencies, plant owners and other stakeholders to advance the best interests of industry members through initiatives such as the Local Enterprise and Association Development (LEAD) and PCM Management Committee (PCMMC).
ASPRI also built on the LIUP programme after it came to a close. “ASPRI continued to build on LIUP’s created foundations to grow, especially to establish a common standard on skills training with government agencies,” said Mr Goh, ASPRI President, 2004-2012.
Local Enterprise and Association Development (LEAD)
ASPRI was awarded the LEAD in 2006. Jointly administered by SPRING Singapore and International Enterprise Singapore, the forerunners of Enterprise Singapore (ESG), LEAD allowed associations and chambers to tap into funds to enhance the competitiveness of their members and capture new growth opportunities.
For ASPRI, the award was a game changer as it enabled the Association to be more proactive in driving industry growth. The initial LEAD grant was for a period of three years, with further extension for another two.
Specifically, ASPRI drew on the funds to:
• Help members secure more sustainable long-term contracts by identifying new outsourcing opportunities from major plant owners and help connect the parties involved;
• Internationalise through organising trade missions to Japan in 2007 and the Middle East in 2009; and
• Develop training courses for various levels above the craftsmen level in line with the Process Workforce Skills Qualification.
In announcing the award at ASPRI’s 10th anniversary dinner on 21 April 2006 attended by 300 guests, Mr Chan Soo Sen, then Minister for State for Education & Trade and Industry, said, “I think our companies need to aim higher and shoot further. Firstly, our companies have to aim higher by upgrading their capabilities so that they can handle larger and more complex projects. Examples of important capabilities include areas such as project management, design engineering, machinery upgrading, and maintenance management.
“Secondly, our companies must be prepared to shoot further, and go where their clients are expanding. Because when their clients prosper, so do our companies. The challenge for our companies is to serve their clients so well that they would want to invite our companies to venture anywhere in the world with them.”
But securing it was a long-drawn process because of a mismatched between what ASPRI proposed and what the agencies were willing to support. As the programme was relatively new, SPRING had to determine “what was qualifying, what was not, what they could support, what they could not support. Then there were things that we wanted to do, but they didn’t want to support, the things they wanted to do but we didn’t quite want to do. We were having quite a bit of struggle”, said Mr Quek.
ASPRI made the application soon after the LEAD programme was announced in May 2005. “We were one of the pioneers, so the demands were very stringent. We went through 17 drafts!” he remarked.
The timing for the grant was opportune. The LEAD award came just as ASPRI was wrapping up Process LIUP after 10 years. “The achievements and the confidence gained put ASPRI in good stead to move on to the next lap to help members to further expand their capabilities and level up to a higher playing field,” noted Mr Goh.
The PCM sector was riding high as Singapore’s chemical industry was in the midst of its biggest expansion with the launch of two major projects. ExxonMobil Asia Pacific had embarked on the construction of a world-scale steam-cracking complex adjacent to its Singapore refinery. Along with the new ethylene cracker, the parallel train would include new world-scale polyethylene, polypropylene and speciality elastomer plants, an aromatics extraction unit, and oxoalcohol expansion. Shell Eastern Petroleum also decided to proceed with the construction of a new world-scale ethylene cracker on Pulau Bukom. The integrated refinery and petrochemicals project included modifications and additions to the Bukom refinery and a new mono-ethylene glycol plant.
When fully operational, these investments would help to double Singapore’s existing naphtha cracking capacity and provide a boost to the country’s petrochemical output.
Also under construction on Jurong Island were Ciba Specialty Chemicals, RohMax Oil Additives, Lube International, Sumitomo Chemical and Huntsman.
The biomedical sector was in its second wave of new investment and expansion. Among them were GSK’s S$300-million plant to produce bulk bacteria paediatric vaccines against infectious disease, its largest in Asia; Lonza and Bio*One Capital’s S$350-million mammalian cell culture facility to manufacture commercial biopharmaceuticals under a new joint venture, Lonza Biologics Tuas; and Novartis’ Pharma’s S$310-million plant to produce bulk active ingredients for the company.
It was the best years for the PCM sector. “Between the late 1990s to 2010, the industry had seen tremendous growth…Austin Energy, at one point, we booked S$100 million turnover as against S$4 or S$5 million in 1999. It is harder to see such growth in this industry as we progressed. We grew in terms of timely delivery, safety standards and quality issues. We progressed very well the industry as a whole,” recalled Mr Anbalagan Rajagopal, who was then the Managing Director of Austin Energy (Asia) and Davy Omega (SEA) Pte Ltd. Austin Energy, which was in thermal insulation and fireproofing, was sold to Nordic Group in 2015. Mr Rajagopal remains Davy Omega’s General Manager.
PCM Management Committee (PCMMC)
Formed in 2013 under the umbrella of the National Productivity Council, PCMMC brings together stakeholders in the chemical industry to address productivity challenges in the PCM sector. Among them are PCM contractors represented by ASPRI, plant owners and relevant government agencies such as the EDB, Ministry of Manpower (MOM), Workforce Development Agency (WDA), ESG, JTC and Skills Future Singapore.
Since its formation, several initiatives have been implemented, which have resulted in a number of changes within the industry. High on the list is the development of a workers’ dormitory that can accommodate 7,900 residents. Completed in 2016 in Jalan Papan, 12 minutes by road to Jurong Island, ASPRI-Westlite Dormitory-Papan allows residents to commute easily to and from work. By reducing the travelling time, it has improved workers’ wellbeing. Co-located with the ASPRI Integrated Training Centre (AITC), it has allowed workers to use the spare time more productively to attend classes, hone their capability and scale up.
The committee also initiated a three-year productivity partnership with the Construction Industry Institute (CII) of Texas in 2015 to study and implement best practices, metrics and benchmarking for project management, as well as implement a certification system on productivity. It set up the Process Industry Productivity Council in 2015 to increase productivity and help oversee the implementation of the project. Comprising of plant owners, ASPRI members and a representative from the Singapore Chemical Industry Council (SCIC), the 17-member council formed four workgroups to drive the effort – Pilot Project, Mechanisation, Certification, and Productivity Practices Workgroups.
As the ability to measure is key to any improvement, the workgroups have developed two project productivity tools which plant owners and PCM contractors can utilise to determine how their existing activities and practices can be made more efficient.
Activity Analysis (AA) seeks to measure the amount of time workers spent on actual construction such as tool time, wench time and direct work hours and which are the areas in need of improvement, while the Best Productivity Practices Implementation Index (BPPII) measures the implementation level of practices that have the potential to improve craft productivity score in construction projects, maintenance activities and shutdowns/turnarounds.
The Productivity Council also developed the Productivity Certification Framework (PCF) to serve as the industry’s yardstick for productivity and provide a measured approach to track and benchmark productivity efforts and improvements. Under the framework, which was unveiled at the Productivity Improvement Forum on 13 November 2019, PCM companies are to be evaluated in four areas – improvements in planning and execution via project management tools, technology adoption, staff development, and how well they collect data that can be analysed.
Rotary, one of the big six PCM companies piloting it, has given the PCF its unequivocal vote of approval. “The Productivity Certification Framework is part of the Productivity Council’s initiative to track and benchmark productivity efforts. Our Chairman of the Rotary Group of Companies is the Vice-Chair of the Productivity Council and we are very much involved in the various workgroups for the process industry in the Productivity Council,” said Ian Choo, Chief Operating Officer of Rotary Engineering.
“Yes, I will recommend the PCF to our fellow PCM Contractors because the whole objective is to truncate down the importance of productivity, the importance of productive solutions to the industry so that everyone takes note of them and adopts them. Certification is one way to move the industry in this direction,” he added.
A key player in tank construction and maintenance, Rotary sets high expectations in SQP - safety, quality and productivity. “Obviously we cannot compromise on safety and quality in our work, whether it’s construction or maintenance. Safety and quality - it is a given expectation that we need to uphold. In the productivity front, we have done a lot of improvements in terms of mechanisation, automation and innovative productivity improvement. From our learning experience in construction, we apply it to tank maintenance and that’s how we are able to propose to our clients’ customised solutions to be able to repair and refurbish their tanks in as short a time as possible. To them time is money,” Mr Choo remarked.
Following the successful pilot, the framework is being rolled out to the rest of the PCM sector.
Enduring leadership
In the course of 25 years, ASPRI has had only seven presidents. In the initial years, the presidency was changed either annually or biennially by common agreement among the key founding members of ASPRI. Mr Frankie Tan was succeeded by Mr Chia Kim Piow, Mr Wong Peng and Mr Joseph Khow. That changed when Mr James Goh assumed leadership. He was President for eight years while his successor, Mr Charles Quek, was at the helm for 10 years. Current President Mr Danny Chua succeeded Mr Quek in July 2022.
Mr Goh shared, “During the first two years, I was able to spend much time with the Secretariat team to oversee many initiatives with government agencies and sit in many committees to network with other trade associations and institutions, as I was running a small business for which I was the sole owner.”
One of his first tasks was to develop the Secretariat and mobilise its membership. As Mr Quek, who was part of the Executive Council (EC), recalled, “I remember being in James’ team at that time, one of our focuses was to build a strong Secretariat to be able to get our members together, engaging members, trying to help our members as much as we could. As a new association, we had very good members’ support. We were trying very hard to make sure that we were relevant to their challenges, their concerns. I think over the years, our team and Chantal at that time, were able to get a lot of good rapport, we were able to help our members address their issues and engage with the authorities. We did a lot of government advocacy.
“If you ask me from than till now, what has happened? A few key things have evolved over the years. Today, we have a very competent, very stable Secretariat. Actually, for the past few years, my life has been much easier with an effective Secretariat team in place.”
Their lengthy stay was unplanned. “Charles and myself, in that position for such a long duration was unintentional, but we had enjoyed our contributions so much, especially with a STRONG team involving fellow council members and Secretariat staff,” said Mr Goh.
The stability of ASPRI’s leadership has made a significant difference in the Association’s development and helped to foster strong ties with its key partners. “James and myself, collectively we have 18 years between both of us. There’s that consistency of what we wanted to do, what we wanted to achieve. Because they see the same people, whatever relationship they built can be sustained,” Mr Quek observed.
The Association also benefitted from the wise counsel of two advisors – Mr Chan Soo Sen, 2006-2008, followed by Mr Lee Yi Shyan, 2009-2018. Both were government ministers. Mr Chan was then the Minister of State for Education and Trade & Industry while Mr Lee was then Minister of State for Trade & Industry.
Their appointment underscored the government’s interest in the Association’s wellbeing. Having committed billions to building up the chemical and energy industry as well as pharmaceuticals, the government had every reason to ensure all parties within the eco-system operated in sync for the good of the industries. As the PCM sector was the weakest link, it had to level up to provide essential support to the oil majors and pharmaceutical giants based here. Government’s interest in ASPRI and the PCM sector has endured till today.
STAYING RELEVANT TO CHALLENGES CONFRONTING MEMBERS
Since its formation in 1997, ASPRI has spared no effort in addressing members concerns. By working with government agencies, plant owners and other stakeholders, ASPRI has developed a par excellent training centre to upskill the rank and file, spurred members to adopt technology and digitise to reduce reliance on manpower and improve efficiency and safety, and organised field trips to widen vistas.
As the world evolves, new challenges are being thrown up. The transition to clean energy is top on the list, which will have implications for ASPRI members. By staying abreast of developments and working with members to face these challenges squarely, ASPRI has stayed relevant to the industry’s needs.
Skills Development Part of ASPRI’s DNA
Skills development has been part of ASPRI’s raison d’tre since the very beginning. To upgrade the skills of workers, Process LIUP together with the EDB and the industry identified 13 core skills for the PCM sector. A training blueprint for the skillsets were developed under the Institute of Technical Education (ITE)’s Skills Evaluation Test Certificate (SETC) system. After undergoing on-the-job training (OJT), trainees were put to the test at members’ test centres.
In the early years, ASPRI acted as a co-ordinator as both the training and testing were conducted by members under the supervision and invigilation of the ITE. With the formation of the ASPRI Institute of Process Industry (ASPRI-IPI) in December 2008 with the support of plant owners and members, and grants from the WDA, ASPRI began to assume responsibility for training.
Initially, a 3,000-sq. ft training centre was set at Tradehub 21. Fitted with one classroom and one workshop, it provided nationally recognised Workforce Skills Qualifications (WSQ) and placement programmes for the process sector. However, training for MOM related courses and ITE’s SETC courses involving the 13 core skills remained with ASPRI members.
In 2013, a decision was taken to consolidate and streamline all training under ASPRI-IPI.
Ramping up training with ASPRI Integrated Training Centre
Skills development took a quantum leap with the construction of the ASPRI Integrated Training Centre (AITC) in 2017. At 40,000 sq. ft, it is more than 13 times bigger than the previous centre. In its first full financial year, FY17/18, it trained 12,700 workers, and the number had increased year on year to 30,000 in FY19/20 before Covid-19 hit. For an industry employing 30,000 workers, it was quite an achievement!
The establishment of AITC was opportune. “PMCMC under the chairmanship of EDB wanted to look at having a dormitory near Jurong Island for process workers to reduce their fatigue,” said Mr Quek.
This provided an opening for ASPRI – how could ASPRI leverage on this? At a brainstorming session in early 2015, this issue was considered by the EC. “If we were given this piece of land, what shall we do? How can we help the industry?” recalled Ms Caphine Lee, General Manager, ASPRI-IPI.
It was decided then that a training centre would fit the bill. Through deliberation, everything became a lot clearer – what kind of courses ASPRI should provide, which level should it begin with as well as the centre’s mission and vision.
With the help of consultants KPMG, ASPRI submitted a proposal – that the new facility should include a training centre. By co-locating accommodation and training within a single facility, workers’ training could be ramped up.
With the benefit of hindsight, it was an astute suggestion, but in 2015 when the training centre was being deliberated it seemed a tad too ambitious. Cost was a key concern as a dormitory and training facility would easily push total investment over S$200 million. There was also no precedent in having a full-scale training centre integrated with a dormitory in Singapore. ASPRI also did not have historical training numbers to make its case.
“There was quite a bit of justification to win over the plant owners and PCMMC,” said Mr Quek.
Against grave odds, ASPRI was able to convince PCMMC to let it champion the project. The Association also managed to line up the financing and resolve outstanding issues concerning the land title to enable the project to kick off as planned.
Work on the project began in March 2015. Developed at the cost of S$200 million by dormitory operator Centurion-Lian Beng Papan Pte Ltd on the 1.5-hectare land it leased from ASPRI, it comprised a two 18-storey blocks for 7,900 workers and a 40,000-sq. ft. training centre. The project was completed in 2016 after 15 months.
“I thank my team. I remember the time when Francis, Lim Fong Suan and James, the first trustees for the board, we spent so many hours to get to that stage. It was satisfying to pull it off and we were able to get our members to support it,” Mr Quek recalled.
Within six months the dormitory had 80% occupancy, which exceeded earlier expectations. Equally gratifying was the progress of the training centre.
Owned and operated by ASPRI, the centre has eight training classrooms, eight practical workshops, two computer labs, a lecture hall, and a multi-purpose hall that can host up to 200 participants. It offers both process industry-specific courses and employability skills courses such as the computer literacy and conversational English.
Within four years, it had delivered more than 1 million training hours! “President has given us the target to hit 1 million hours within five years. From FY2016 to FY2020, within four years, ASPRI-IPI delivered more than 1 million training hours to the Process Industry,” said Ms Lee.
Phased development
The AITC was developed in phases. In the first phase, it conducted theory classes which just needed classroom space. This gave the centre time to equip and build up its technical training capability.
“We had to build up our investment. It was really a very risky move, because from only 3,000 sq. ft. we shifted to a 40,000 sq. ft facility. It’s more than 10 times. During that time our EC was also worried. So we did a phase approach to see how much the industry could support us,” said Ms Lee.
The centre is almost wholly dependent on its members because of its location. While it is ideally suited for foreign workers (FWs), because of its proximity to Jurong Island, it is some distance away from everything else and hence is not ideally suited for third party training.
“Thankfully, we had a lot of support from the members,” said Ms Lee. “The centre delivers ‘real training’ to give workers the right training, the right skills, to help member companies and improve their competency.”
ASPRI invested S$2 million to equip the centre. Taking pride of place is a 4-in-1 skid that resembles a live plant unit to provide real-life training on plant equipment, electrical, instrumentation and thermal insulation. Designed and built by members with equipment sponsored by members, EDB, JTC and plant owners, the skid serves multiple functions.
“We have these 13 core skills. These core skills are important to us. It’s how MOM recognises our workers. That means if you get PCM work permit holders, they must engage only in work that requires these 13 core skills,” Ms Lee noted.
As the 13 core skills are interdependent, ASPRI decided then to do a multi-functional skid instead of single setups to train workers from different core skills together.
The skid can also be used to train the workers to be multi-skilled. “Even if they are not from the same core skill when they are working in the field, they are able to appreciate the work of other disciplines to improve their safety and coordination. And the skid also allows us to run supervisory skills – how do you manage to supervise a multi-skill, multi-discipline project? So that takes our training to another level,” Mr Quek added.
Strong take-up amongst dorm residents
The centre is a hit amongst residents. Apart from mandatory courses on safety and core skills, which are paid by companies, residents on their own accord turn up on evenings and weekends to attend courses on a broad range of subjects.
“We have identified about 34 courses that are suitable for them, from the entry level to supervisory level, including safety, soft skills, literacy, even Excel course. All these are 90% subsidised from the course fee, sponsored by ASPRI, not from any government funding. So, it empowers workers who stay in Jalan Papan to come over,” said Ms Lee.
Based on AITC’s training statistics, at least 80% of the workers have attended at least one course on their own accord, as they appreciate that skill upgrading is their passport to better work prospects. The certificates they receive are recognised by companies in the region as well as the Middle East.
“Workers attend our training because they want a better future for their families. And they know that by going for proper structured training and upgrading themselves, not only can they work in Singapore, they can work elsewhere where they will be considered skilled workers. That’s the first reason,” said Ms Lee. “Second reason, if they are unskilled, they can only work 14 years in Singapore, but if they are skilled, they can work for 26 years. So that also prolong their employment if they want to stay.”
Developing to its own beat
Today, the AITC conducts courses for entry level workers to supervisors. Everything on its curriculum is in sync with industry requirements. It has a Technical Advisory committee comprising EC members representing different trades. “The AITC Technical Training Advisory Committee (A-TAC) drives us in terms of technical knowledge and even industry best practices, and we work with different parties to make it happen,” Ms Lee said.
Having established the basics, AITC has set its sights higher. It is in the midst of partnering international certification bodies to roll out industry recognised deep skilling courses for supervisors and foremen to hone their technical capability. The supervisory courses it currently conducts are all safety related – to meet the requirements of MOM and plant owners.
The industry demands it. Most plant owners are multinationals who set high standards for every façade of their operation, including the qualification of workers employed by sub-contractors as it also affects the companies’ performance. Some of these trades like welding, painting and corrosion protection already have international accreditation and companies are known to engage trainers on their own account to develop their workers to achieve these higher standards.
AITC has developed to its own beat since it was established. “It was not modelled after other centres, instead we are the role models for other industries now,” said Mr Goh.
In 2019, before Covid-19 restricted movements, the centre received 36 industry visits from associations’ representatives, government officials, plant owners and engineering service providers.
Along with ASPRI’s annual Directory of Singapore Process & Chemical Industries and the traditional seventh lunar month auction, AITC provides a steady revenue stream for ASPRI to help fund its extensive programme.
Tackling An Intractable Problem – Manpower
Seen as dirty and dangerous, the PCM sector faces challenges in attracting Singaporean workers. Along with Marine and Construction sectors, it relies heavily on foreigners to undertake the manual tasks. Over the years the government has tightened the requirements while increasing the FWs’ levy to force companies to scale back on FWs’ employment and ramp up on automation.
“It is going to be very tough, which is why ASPRI got to help our members in this particular area,” said Mr Danny Chua, President of ASPRI 14th Executive Council.
Without sufficient workers, some are finding themselves at a disadvantage as they are unable to pitch for contracts lest they cannot fulfil them. But those who have automated are reaping the benefits in the present environment as workers are in short supply. It was particularly acute during the pandemic when many FWs returned home to be with their families amidst the uncertainties. Many did not return, and those who did had to deal with strict border restrictions imposed to contain the virus spread.
Grooming a new generation of middle level managers
While the dearth of manpower is a longstanding issue, it has become more critical to address it, and address it now with the industry’s ageing workforce. Not only is the industry unable to find operators to fill the rank and file, going forward it will face difficulties in employing people with the right qualifications for supervisory and technical positions.
To attract people, particularly the younger generation to join the industry, member companies will have to transform and this can take several forms, Mr Chua suggested.
“Firstly, adoption of new technology. This can also mean discarding old and traditional methods of doing business. We believe that by doing so, new challenges and excitement are injected into the job, something that I believe the younger generation is actually looking forward to.
“Secondly, adoption of apprenticeships, to actually attract more manpower. We all know SMEs in countries such as Japan and Germany are known to provide apprenticeships to students who have yet to graduate. I personally see potential for such collaboration between ASPRI and some of the educational institutions to embark on a similar programme.
“The third one is actually provision of continuous and lifelong training. ASPRI-IPI can play a major part by providing new syllabus and curriculum that are contemporary and relevant to the industry.”
“The first and the third are already in motion, whereas the second, on the adoption of apprenticeship, this is something that is relatively new. We tried before we were not very successful, but we are going to try again,” Mr Chua noted.
There are challenges in running such a programme, he accepted. “For example, the National Service that the students have to go through, two and a half years. During this period, they may change their mind about joining the organisation that they were attached to during their apprenticeship. This is something that we have got to discuss and see how we can overcome it.”
The ITEs and polytechnics are a good source for the apprenticeship programme.
Companies are also looking at migrant workers as potential candidates – not for apprenticeship – but as candidates who they can nurture to positions of authority.
“There are a lot of migrant workers who come to Singapore to work and have acquired a lot of knowledge and experiences. I’m very, very certain that every organisation today, and I’m referring to member companies, has at least one migrant worker who started working as a general worker but is currently assuming a managerial role. They play a large part in making what our SMES are today, and they will continue to do so. They are brilliant individuals who work extremely hard when given the opportunities. And I have to say that I’m very proud that our member companies do practice meritocracy,” said Mr Chua.
As other countries are also eyeing this pool of capable young men, who are very mobile, his advice to Singapore employers - offer them something better. “It is imperative that we provide them career progression as well. And by doing so, we are actually providing them job security and a greater sense of belonging to the organisation.”
Spurring Members to Adopt Technology
For years the PCM companies have been asked to mechanise. By replacing men with machines, the industry can tick many of the boxes – increase productivity, improve safety, reduce manpower and ensure better finishing – and lower the industry’s dependence on manpower, mostly foreign. Until recently, the industry has been slow to adopt mechanisation, as there is the usual resistance - if it is not broken, why fix it?
Things are beginning to change. “What we have done for the last two years is to create a lot of awareness on the tech solutions that are available in the market for adoption. To be honest with you, we do see more and more companies acquiring new capabilities that not only make the work safer, but also improve productivity,” said Mr Chua.
It is not just digital solutions, but also hardware such as equipment and robotics solutions. “We understand that some companies have also started collaborating with both local and overseas tech companies to bring in some of these latest technologies to Singapore,” he added.
Surmounting hurdles to adoption
In the past mechanisation was a bigger challenge for companies. CYC International for which Mr Chua is the Managing Director had to develop its own robots from scratch as none was available for tank cleaning. It required quite a bit of effort. Working with an Italian manufacturer in robotics, it took a year of going back and forth from manufacturing to commissioning before the first robot was completed.
As Mr Chua so vividly recalled, “I remember before the robot was ready, I was going around with a sandbox made of wood to provide a three-dimensional kind of thing. I presented it to customers in order to assure them that ‘we know the robot can work, will work, we’ll make it work and whatever modification that we need, we are prepared to go for it’. It took a number of months of travelling to and fro, talking to the clients and understanding their requirements, and then in the late evening, we would go back to the European counterpart because of the time difference and then share with them. ‘This is what the clients need. They would say, ‘No, no, it cannot be done this way. How about I give you another idea.’ And the next day, I would go back to the clients again. So it’s a lot of selling and trying to solicit the kind of interests.”
Introduced in 2014, it was the first of its kind in Asia. It can crawl into the tank, suck out all the sludge, and at the same time is able to wash. “So effectively the robot does exactly what the human does inside the tank,” Mr Chua noted.
With the robot, only three workers are required to set up and operate it, with none working inside the tank. It would have required six to 18 workers, depending on the size and complexity, to clean a tank manually.
Apart from having to overcome technical issues, companies also had to deal with customer resistance and the occasional regulatory roadblocks, which could easily deter some companies from even trying. There is the moot issue of safety, and the experience of FRP Products is illustrative.
FRP has used centrifugal wheel type blasting machines for surface preparation since the mid-90s. They are a cut over using hand powered tools as the machines not only remove rust, mill scales, paint and other surface contaminants, they also vacuum up the debris on completion, saving manpower and time, including hours spent on housekeeping.
But as the machines are being deployed at customers’ facilities, FRP must first get the clients to buy in, that the machines benefit them. It was not always easy. In the early days it was against the law to use the machines because the power capacity exceeded the legal limit of 110 volts. Centrifugal wheel type blasting machines have 400 volts.
“You got to convince not only the client but MOM. MOM would want to know more details before they could say yes or no,” said Mr Loh Lock Mun, Director of FRP Products.
Every time FRP had to use the machine for blasting, it had to apply for permission as approval was job specific. “There were a lot of challenges, so small players may not want to spend that kind of time,” he noted.
The process is a lot easier today on the regulatory front. “Nowadays they say everything you can do but tell us your integration procedure, how are you going to take care of the high risks. It is an easier process. It comes down to whether you want to do it, rather than you want to do it but face a lot of hurdles,” said Mr Loh.
Lowering bar for adoption of new technology
In more recent years, mechanisation has gained added currency as machines are more easily available at lower price points. The cost of not employing machines has also become more prohibitive. Apart from the ever-increasing FWs’ levy, companies also face difficulty in getting workers, which will adversely affect the ability to secure contracts.
To help industry members mechanised, the Process Industry Productivity Council’s Mechanisation Workgroup has scoured the world to compile a list of relevant tools and equipment which companies can adopt to mechanise their operations. The database provides detailed information such as advantages and disadvantages of the different equipment, video demonstrations and supplier contacts.
ASPRI is also trying to lower companies’ resistance to adoption of new technology through staff training. “We let the workers learn the trade, teach them what is the latest in welding, what’s the latest in formwork, casting concrete, all the different services,” said Mr Quek.
Once they have hands-on experience and have benefitted from them, they can then go back to the companies and persuade their bosses, “You know everyone do like this now, you buy one set and try. That may provide the change,” said Mr Quek.
Admittedly some trades cannot be so easily automated. Among them is scaffolding. “Scaffolding can be very labour intensive, and given the nature of our industry, the scaffold is not so straightforward. Every project for scaffolding has different requirements, different designs, a lot of calculation and stuff like that. Now for such sophisticated work, it’s not so easy to find some robotic or mechanised tools to replace the use of manpower. The technology is not there,” said Mr Chua.
For this, companies would have to look for process improvement to enable them to accomplish their tasks faster without compromising safety.
Organising Field Trips to Widen Vistas
In the course of 25 years ASPRI has organised several field trips to Korea, Taiwan, Japan, the Middle East, Vietnam, China, US, Canada and the Netherlands, with plans for more as these trips have generated value beyond the obvious – to network and build up contacts. Being physically present and seeing the facilities at first hand provide a different perspective even in our Internet age where almost everything seems to be available at the click of a mouse.
As FRP’s Mr Loh noted, after seeing certain practices or how people actually do and use technology, you begin to wonder “if we had adopted this idea, could we have saved ourselves a lot of trouble?”
He recalled a trip to the US Gulf, a key centre for the US oil and gas industry, over 10 years ago. “We went to Baton Rouge in 2011, we looked at how they operated. We didn’t look at one or two things, we looked at all the craft in general terms, how they actually managed their contractors, how the contractors communicated with plant owners, etc. We asked them funny things like, ‘How is it that your vehicles are not equipped with spark arrestors?’”
Unlike the US where spark arrestors on vehicles are only required in selected areas like forests where dry leaves can ignite and cause fires, in Singapore vehicles operating on Jurong Island have to be fitted with spark arrestors as plant owners fear pools of combustible liquids may ignite should vehicles run over them. “How often do you see combustible liquid on the road to the extent that it can catch fire?” he asked. “It’s very rare.”
The industry was told it was a global requirement but as the visit to the US plant revealed, it was not. “We tend to do things on an imaginary basis. Over there they are being practical,” Mr Loh added.
Over the next year or two trips will be organised possibly to the Netherlands and the US. “The Netherlands, they are pretty advanced because they have got a lot of oil majors in the Netherlands, and whatever is happening in Europe will one day spill over to us. So we can go there, link up with local contractors, learn from them, and hopefully, be able to adopt something from them and bring it back here to Singapore to help improve the capabilities of our contractors,” said Mr Chua.
The same for the US. “It’s been quite a number of years since we send a delegation up to the US. And they also came back with a number of learning lessons for us, some of which have been implemented successfully here in Singapore,” he added.
“It’s going to be a lot of learning a lot of interaction. We have to make sure that we find the right people to go there,” Mr Chua noted.
Standing Shoulder to Shoulder with Industry Members During Covid-19
An unprecedented crisis of global proportion, Covid-19 has dealt a heavy blow on the global economy. As the pandemic swept across the world from China’s Wuhan, where the virus first surfaced in December 2019, it roiled lives and livelihood.
The PCM sector felt the sharp end of the pandemic. At the height in early 2020, dormitories were forced to lockdown when the transmission razed amongst the FWs’ community. Work came to a near standstill as only critical maintenance services were permitted.
It was an anxious time for all. Companies had to decide on the fly what to do next: How many workers should they decant from the dormitories to safer lodgings to ensure that work could continue? With bills continuing to pile up while income had slowed, what else could they possibly cut back to stay afloat?
There was also a lot of confusion as advisories from the MOM, EDB and Building & Construction Authority (BCA) were changing so frequently as officials tried to grapple with the fast-evolving situation.
“I think one of the key areas that affected us was actually foreign labour. In the PCM industry, we are very much dependent on foreign labour for our projects. For a long time, foreign labour could not come to Singapore because of the Covid measures and that significantly impacted us in terms of being able to execute our projects normally. Of course, without sufficient labour resource, projects and the timeline of projects were severely impacted. This affected the contractors and also the end users and developers. We experienced significant increase in costs and timeline for completion,” said Rotary’s Mr Choo.
ASPRI rose to the challenge. “I think what we did during the Covid was good. Our Secretariat team was agile and able to very quickly organise to support members during this very challenging time. I remember so much information was coming in. The EDB and ESG were engaging us every day, sometimes multiple times a day. We had to manage these, and we were also running the dormitory,” said Mr Quek.
Keeping members informed
Headed by Executive Director Wayne Yap, the Secretariat team marshalled all available resources to keep members informed, whether it was new precautionary and containment measures or updates from the various government ministries and agencies.
The Association also organised webinars to tackle specific issues. On 1 June 2020, it had a webinar on “Safe Management Measures for the Process Construction and Maintenance Industry” to deal with queries on work resumption after the Circuit Breaker, 7 April-1 June. And on 15 July, a second webinar was organised to explain the grants and support schemes that the government had extended to help PCM companies minimise the impact of Covid-19.
Making appeal for waiver extension on their Foreign Workers’ Levy (FWL)
ASPRI also helped members to appeal to the MOM for waiver extension on their FWLs, which accounted for a significant chunk of their operating cost.
MOM had earlier granted 100% FWL waiver and S$750 FWL rebate to the process and Marine & Offshore industries for the months of April to July as most of the workers were confined to their dormitories. Before the waiver lapsed in August, ASPRI together with the Association of Singapore Marine Industries (ASMI) conducted an online survey to back their case. The survey found only 50% of their foreign workforce were expected to resume work after the first half of August and 75% only after the second half the month.
MOM responded positively to their request. Not only did it fully waive the levies due in August and September, it also reduced the FWL for the rest of the year, and offered some FWL levy rebate.
Addressing migrant workers’ mental health
Also of great concern to the Association was the declining mental health of migrant workers during the pandemic. With so many workers confined in their dormitories with little to occupy themselves, training was stepped up. As in-person classes were disallowed, ASPRI-IPI used the Internet to good effect by conducting e-training. The e-courses, some of which were existing courses while others were new, were made available free to members’ employees, through IPI Connect and on the Bolster Safety e-platform.
To help workers keep themselves occupied during the lockdown period, ASPRI-IPI also provided regular newsfeeds, relevant safety videos, technical information and quizzes for them to enjoy refreshers in various skills and knowledge.
Lessons learned
Having weathered the pandemic, the most unsettling crisis in the industry’s history, ASPRI members have learned valuable lessons. Top of the list is the importance of flexibility and nimbleness.
As part of their Business Continuity Management programme, the Cyclect group has diversified its business units’ resources, locations and teams. Although this system increased its operating cost, it served the company well during Covid.
“When one client’s site was locked down, we diverted manpower, equipment and other resources to expedite other sites. If our resources were concentrated on a single client or in a single location, a lock down would have caused massive impact,” said Mr Melvin Tan, Group Managing Director of Cyclect Group.
“Our operations in eight countries also greatly helped the company in its fight to keep healthy. We could obtain overseas resources and also revenue to support the overall business. For example, when Singapore was in trouble, China was fully operational, they were taking care of the bills. But now it’s the other way around. That’s how we diversify our portfolio,” he added.
The same too for Rotary, which has operations in Singapore, Indonesia, Thailand and the Middle East. “We are lucky in a sense that in terms of revenue and orderbook, we are rather diversified. Apart from having projects in Singapore we also have projects overseas,” said Mr Choo.
“The peculiar thing about Covid is that Singapore took a more conservative approach in terms of managing Covid, whereas in other countries it was not so. That’s good and bad. In countries, especially the Middle East, the impact of Covid was not as severe. Construction activities were allowed to proceed. Our workers were also not locked down in the dormitories. We had to comply with safe management measures, which did not significantly affect the construction progress. Of course, there were additional swap and routine tests that had to be done. In Singapore, we had the Circuit Breaker and the gradual restart of construction activities,” he added.
As we prepare ourselves for the next crisis, what form or shape it will take is anyone’s guess. By leveraging on the recent experience and taking steps to prepare ahead for the next crisis, ASPRI and its member companies will not be caught flat footed but can better respond the next time round.
Driving Digital Adoption in ASPRI
The digitalisation drive has gained traction ever since the pandemic hit. What was once seen as being good to have has become a must have as they enable companies to overcome the acute manpower shortage, rising business costs and multiple issues arising from safe management measures. It was quite apparent during the pandemic that companies which had some digital processes in place fared a lot better than those which did not.
Appreciating the value of digitalisation, ASPRI began its push to encourage members to digitalise in 2018 as digital adoption amongst members was relatively low. Working with the Singapore Institute of Manufacturing Technology and other trade associations such as SGTech, ASPRI began to source for available solutions that members could adopt in their workplace, beginning with back-end functions such as finance, administration and human resource.
The following year, a workgroup was formed within ASPRI. Called the Digitalisation, Innovation & Technology Adoption (DITA) Workgroup headed by Mr Chua, it organised seminars, webinars, workshops and sharing sessions to help members better understand the need to transform and adopt digital-supported work solutions, and create awareness of solutions available in the market for adoption.
Through the interactions it dawned on ASPRI that there was a need for a measurement which could help assess members’ digitalisation readiness. Working with BDO Singapore, it developed the Process Construction Digital Readiness Index (DRI) to help member companies assess their digital and technological readiness.
“We have actually tried other kinds of indexes or surveys in order to get a good feel or a pulse on what is the current status of our member companies. We realised then that we needed to have one that was actually customised for our industry because our member companies have different craft and different craft would face different challenges in terms of the adoption of digitalisation and technology,” said Mr Chua.
PCM Digital Readiness Index (DRI)
The PCM DRI is being rolled out after several rounds of pilot tests and tweaked to be more user friendly. “We get our members to fill up the survey giving a fair assessment of where they stand. Then we do profiling. With this profiling, we can then identify different groups - how far they are, how advanced they are in terms of digitalisation, in terms of transformation, and in terms of adoption of technology, and how sophisticated they are,” Mr Chua said.
By completing this exercise, which requires possibly half an hour, member companies will receive a comprehensive report on their current state of adoption as compared to other companies in the industry. This report also provides the companies the technologies that are available for adoption and the various grants that are available.
“Certain members in terms of software, back-end automation, they are quite there. But then we’ll have to help them explore in terms of the hardware, mechanised tools, what are those that they can adopt,” he remarked. But for those who are still lagging behind, “we have to think about customising programmes for them, creating awareness to help them to transform”.
In order to execute this well demand a lot of resources. “It is a lot of work. But if we are truly to move forward as an industry, as a sector, I think this is necessary. And I think it will be worth the journey of getting people on board and at the same time lift those at the lowest level up to a higher level,” said Mr Chua.
PCM Digital Plan (IDP)
The DRI dovetailed with the PCM Digital Plan (IDP) which was jointly developed by the Infocomm Media Development Authority (IMDA) and ESG to build industry digital capabilities and mitigate some of the challenges companies faced.
Speaking at the virtual launch on 26 August 2021, Ms Low Yen Ling, Minister of State for Trade & Industry and Ministry of Culture, Community & Youth (MCCY), said the PCM IDP comprises a Digital Roadmap that helps in identifying gaps in members’ digital capabilities and provides a step-by-step guide on the digital solutions that SMEs can adopt at three different stages:
• Stage 1 initiates SMEs on their digitalisation journey. It provides a list of the basic digital solutions that help to streamline operations and optimise the use of resources. Solutions that PCM companies can adopt include Workforce Management, Inventory Management and Project Management solutions.
• Stage 2 provides solutions for companies which are ready to scale up their digitalisation efforts leveraging on Internet of Things and data analytics for better planning decisions. For example, by using sensors and cameras to enable remote inspections at multiple plant sites concurrently, companies can increase their efficiency and reduce the need for on-site manpower.
• Stage 3 helps to identify advanced technologies that SMEs can adopt to strengthen their competitive edge. Through the use of robotic solutions for laborious and repetitive tasks such as blasting and painting, cleaning and disinfecting for instance, they can free their employees to take on higher-value roles as well as reduce risk of workplace accidents.
The PCM IDP Digital Roadmap provides an online self-assessment checklist for SMEs to better understand their digital maturity and readiness, as well as identify gaps in their digital capabilities. The checklist takes into consideration factors such as the SME’s current business operations, level of digitalisation and business expansion plans.
Grants are available to assist companies to adopt the tools. To expedite adoption, the ESG and IMDA have pre-approved certain solutions that are available in the market. For those not on the pre-approved list, companies will have to convince the authorities to provide the grant. ASPRI can support member companies in their application if these tools are deemed useful in improving companies’ productivity.
As digitalisation will affect other facades of a company’s operation, from improving productivity to adoption of greener technology, Mr Chua hopes that digital adoption will one day be embedded within the industry, just like safety.
“We take pride in our industry. Safety has become second nature with every employee and every organisation, and we are well known for that. With digital technology adoption, we are moving in the same way as we have done for safety, building up the kind of culture. It’s not something we can change overnight. We have got to start in a progressive manner. We start with one and hopefully that one will influence another one. This is the kind of progression that we are looking for, perhaps a kind of herd mentality.”
Helping PCM Industry Make Energy Transition
Once dismissed as fringe and not competitive, renewable energy has become mainstream in a world scarred by the fallout from climate change. In a report published in September 2021, the World Meteorological Organization said the number of floods, droughts and other disasters has spiked almost five times over the last 50 years, from 711 in the 1970s to over 3,000 in 2010s. In 2020, it estimated 30.7 million people became climate refugees, three times more than the number affected by armed conflicts and violence. By 2050, the number of climate refugees is forecast to top 200 million.
The world has begun the transition to cleaner energy to reduce carbon emissions from fossil fuels, a key contributor to global warming. While the Russia-Ukraine conflict may have caused some of the countries to renege on their commitments as they grapple with the energy shortfall, we are constantly reminded that mankind ignores global warming at their peril.
A low-lying island nation that faces an existential threat from climate change, Singapore has a national agenda for sustainable development. Unveiled in February 2021, the Singapore Green Plan comprises five pillars which touch on almost every dimension of the nation’s life, from how we live to how we work and play. The wide-ranging plan cuts across all sectors of society, ranging from infrastructural development, research and innovation to training programmes.
Two key pillars have direct impact on the Energy and Chemical (E&C) Industry, said Mr Ethan Ng, Director, Oil Markets, Midstream & Downstream Consulting, S&P Global Commodity Insights. “Energy reset, which mainly looks at the usage of green energy, for example solar or clean energy imports. It also involves the use of sustainable fuels for global trade and travel, which in this case resonates with aviation fuel and cleaner energy vehicles.
“The second pillar, what we call the green economy, mainly looks at increasing carbon and energy efficiency investments, that actually promote sustainability as one of the key pillars for businesses, and the main goal is actually to transform Singapore into a carbon service hub and Jurong Island specifically into a sustainable Energy and Chemicals hub.”
Jurong Island – the epicentre of Singapore’s climate commitments
Home to more than 100 leading companies, Jurong Island is to be transformed into a sustainable Energy and Chemicals Park. While it is recognised that Jurong Island has made strides in being green, it is felt that it can do more.
The plan is focused around two areas – increasing output of sustainable products such as bio-based fuels and chemicals, and enabling sustainable production to reduce carbon emissions and pollution. In announcing the plan on 10 Nov 2021, Minister of Trade and Industry Gan Kim Yong said, “Our aspiration is for the E&C sector to, first, increase its output of sustainable products by four times from 2019 levels and, second, achieve more than six million tonnes of carbon abatement per annum from low-carbon solutions, all by 2050.”
Shell Singapore’s new pyrolysis oil upgrader in Pulau Bukom is the first project in step with the sustainability ambitions for Jurong Island. Slated to begin operations in 2023, it will process up to 50,000 tonnes per year of pyrolysis oil from converting plastic waste, around 7.8 billion plastic bags.
The investment is part of a plan to transform the Bukom manufacturing site into Shell Energy and Chemicals Park Singapore, similar to other Shell sites in the US, Canada, Germany and the Netherlands, focusing on low-carbon emissions projects. The investment is also in line with Shell Singapore’s target to halve carbon emissions from its own operations by 2030 from 2016 levels on a net basis, as well as wider Shell’s target to be a net zero emissions energy business by 2050.
Linde, the world’s largest industrial gas company by revenue and market share, is investing US$1.4 billion to expand its existing gasification complex on Jurong Island; integrating it with ExxonMobil’s project to produce and supply additional hydrogen and synthesis gas. Scheduled to come onstream in 2023, the bulk of its initial production will be channelled to support ExxonMobil’s plan to convert fuel oil and other residue crude products into higher-value base stocks for lubricants and distillates. This investment has generated much interest as hydrogen has been identified as expanding its application beyond a feedstock to be a potential fuel of the future.
“Such mega-investments would enable economies of scale and competitive hydrogen solutions for the future. So, stay tuned for more hydrogen solutions from Linde Gas,” said Lawrence Koh, APAC Senior Originator, Hydrogen & Decarbonisation.
Linde Gas Singapore is currently exploring the feasibility and development of building a carbon dioxide liquefaction and storage facility with Singapore LNG Corp (SLNG), owner, developer and operator of Singapore’s sole LNG terminal. If feasible, the facility will be located adjacent to the SLNG Terminal on Jurong Island and would involve using cold energy from the SLNG terminal’s operations to liquefy the carbon dioxide, which would then be stored in tanks on-site before being exported.
PCM companies make energy transition
Some PCM companies have also seen the light and have made the energy transition. Cyclect is possibly earlier than most. It recognised the potential of moving towards a cleaner, greener energy future since 2010.
“Many of the markets including the PCM industry was becoming increasingly competitive. We identified climate change and energy scarcity as a potential driver of the future and pivoted to providing solutions that promoted environmental and social sustainability,” said Mr Tan, the third generation of the Tan family who is running Cyclect.
Working with the National University of Singapore, it began research on waste heat recovery after having a flash of inspiration. “I was driving home from Tuas along the AYE, and was admiring the beautiful flare coming from the various stacks on Jurong Island. I was thinking just how much energy was being just dumped without harvesting. That’s what triggered our journey to seek a better way to harness wasted energy,” said Mr Tan.
A research and development (R&D) team was established within the company to undertake research. From recovery of low-grade waste heat, research expanded to clean energy, coal and even robotic sensors. It has published papers and received patents.
Even though it no longer has an in-house R&D team but work with institutes of higher learning, its research capability has raised its cachet, helping it to secure contracts at home and abroad. “With our experience in heat recovery, power and electrical engineering, we helped large manufacturing facilities reduce their waste to generate energy that will help reduce carbon emissions. For more than a decade, some of these plants have saved hundreds of million tonnes of CO2,” Mr Tan told the CEO Magazine.
Its latest project involves a 50 megawatts (MW) project in Bangladesh. Under the agreement with the Bangladesh Power Development Board, Cyclect plans to build many more solar photovoltaic power plants on a build, own and operate basis.
“I have observed that truly global companies are innovative companies that use a variety of tools to help it gain a competitive edge. Only with the effective use of many diverse tools, ranging from intellectual property to financial engineering to collaborations with innovative technologies from other fields, can companies transform from local to global. Without innovation, companies will not have the opportunity to manage the changes that are inevitable, and risk becoming irrelevant,” said Mr Tan.
Enabling members to level up
Not everyone is as keyed up with the transition to clean energy. Most suspect that new investments in Jurong Island going forward will be cleaner, greener and smaller. There will be less of the traditional large-scale ethylene cracker, refinery or big petrochemical projects which are pollutive and carbon intensity, and this will have implications for ASPRI members.
“I reckon the capital investments may be smaller as compared to the past two decades, but maintenance component will be more because there are more live plants operating now. So, I believe we should be focusing more on maintenance now,” said Mr Rajagopal.
It may not happen overnight. “I do believe that petrochemical industry will still continue to see the kind of traditional investment projects that we have seen. That will not change overnight, maybe even by 2025,” said S&P’s Mr Ng.
But ASPRI has stepped up efforts to prepare members for what is to come.
“The government has actually developed a blueprint for the energy transition, particularly for Jurong Island. We do have members who have raised concerns. We have been preparing behind the scene to come up with different programmes and different courses to help our members through this transition,” said Mr Chua.
The first step is to create awareness among member companies, including the current state of climate change and the emerging technologies that will disrupt the industry. ASPRI is also planning to set up a new chapter on sustainability, where members can participate, give ideas and feedback, as well as provide the association the direction it should take.
Member companies can also learn new ideas, concepts and technologies from experts in the field which they can adopt. “We are part of an ecosystem and in order for the ecosystem to work, we have got to play our part,” Mr Chua noted.
In addition, ASPRI plans to engage a consultant to curate something that can help provide members some visibility. “As we get more clarity on what is to come, I think then the Association can step up to focus on certain more immediate, more promising technology, work with plant owners, with technology providers and then provide the platform for collaboration into these new areas. And we think Jurong Island does provide a great training ground for our members,” said Mr Quek.
Challenges and opportunities
“The shift to clean energy will have its challenges but will also create other opportunities for members of ASPRI,” said Linde’s Mr. Koh. “For example, the expansion of our existing gasification complex requires the expertise and partnerships with local and international contractors. Some of the larger contractors involved in this project are ASPRI members, which include PEC, Hiap Seng, Rotary and other PCM companies. There are many opportunities for partnerships, and it is important to maintain and strengthen relationships with our local contractors.”
“There has also been an increasing focus on sustainability, and it is critical for the industry to develop skills and capabilities to meet such new sustainable project requirements of the future. Traditional oil and gas projects will change,” Mr Koh added.
As Singapore is the only country in the region that has imposed a carbon tax, it is forcing companies to do things differently. At S$5 per metric tonne, it is relatively low for now, but there are plans to raise it up to between S$50 to S$80 per tonne of emission by 2030.
“Jurong Island petrochemical companies and refineries will be more inclined to invest in carbon reduction technology than any other plants around. For this reason, I think a lot new technologies, new projects on carbon reduction will be initiated here. This opens up new opportunities for Singapore to do a lot of pilots,” said Mr Quek. Once the pilot works, it can be rolled out into the region.
The trade skills required likely will remain relevant but what will change could be the nature of the trades. Said Mr Quek, “There will be certain new skills that we need to acquire to meet the new kinds of projects or investments. We need to stay attuned so that we know what is going to come, how do we get our workers, get our member companies ready to move towards that. We have to feel the pulse and rally our members and move in tandem with the development. This is a challenge that ASPRI has to step up to.”
New Face at ASPRI
Even as ASPRI celebrates its Silver Jubilee, it is bidding farewell to its longest President Mr Charles Quek who has decided to step down, having served the Association faithfully and with credit for 20 years, including 10 years as President. He is succeeded by Mr Danny Chua, who like his predecessors was elected to the presidency unopposed.
Mr Chua has been with the Association since 2002, about two years after he joined the family business, CYC International. He was roped into the sub-committee for productivity in his first year at ASPRI, followed by the youth committee, before being asked by EC member Mr Francis Tay and Past President James Goh to join the EC.
“Well, initially, I did not agree. I felt that I was not ready to commit to the cause of ASPRI due to my business commitments. I just came on board my family business, so I told them to wait for me for another year or two, and by then I should have already settled down with my business. And that’s what I did,” said Mr Chua.
He joined the EC as Treasurer in 2016 and subsequently, as Secretary. He considers himself blessed for having inherited an Association which is acknowledged to be strong and cohesive.
Said Mr Chua,“I have been with ASPRI for close to a decade. One of our greatest strengths is that we have very supportive member companies who respect one another, even though they may be competitors. Many of our member companies have not just gone through this particular pandemic but previous crises as well. What came out from this current crisis is actually the resilience of spirit of our member companies, our Executive Council and Secretariat. There will always be some form of disagreements to the approaches, but our open, frank and candid discussions have helped develop trust among our member companies and ASPRI. I personally hope that we can capitalise on such strength to help our industry in our energy transition over the next 25 years.
“I have my predecessors to thank for that and that’s one of the reasons why I’m willing to take up the challenge to be honest with you. But putting that aside, definitely it is not a one-man effort. We require all the necessary support, not just the council members but the Secretariat.”
His hope is to build on ASPRI’s assets to create an even more conducive environment for member companies to collaborate rather than compete, especially in technology adoption and even overseas expansion. Ten years from now his wish is that the industry will continue to stay relevant to the Singapore economy.
“We will see a lot of transformation in our industry in this coming decade, and it is crucial that we continue to help member companies stay relevant and competitive. I do hope that our member companies will be in the forefront spearheading sustainability for the betterment of our climate. I’m quite certain more companies will transform over the next decade and they will have a lot of plans to expand their business operations overseas.”
