Singapore marine, offshore sector output grew 39% in 2006
The marine and offshore industry is expected to keep growing at a strong pace this year after scoring a record output last year, according to the latest review by the Economic Development Board (EDB). It expects to see growth of some 30 percent in 2007.
Singapore's marine and offshore industry achieved a record output of S$9.8 billion in 2006 due to a strong growth of 39 percent compared to the previous year.
Going forward, the EDB is aiming to focus on higher value work in the sector such as research and development.
The industry currently contributes 1 percent of the country's GDP, bringing in approximately S$2.5 billion in 2006.
The EDB is positive that the growth momentum this year will be strong, going by the robust demand for oil and the investments heading into the sector.
Sia Kheng Yok, Director, Transport Engineering, EDB, said: "In terms of outlook, we're talking about achieving similar levels in the 30 percent range as we've done in the last few years, provided there is no change in the global business environment.
"Last year also saw investments of S$151 million in terms of fixed asset investments. And this investment in capacity, upgrading and new technology will position us well for future growth." But the trade agency is also mindful of the boom-and-bust cycles typical in the marine and offshore sector.
Leveraging on existing strengths, EDB said it expects to put more effort into research and development.
It also aims to build up capabilities in areas including eco-friendly ship design, ship engine design and harsh environment technologies.
The R&D areas are designed to build on Singapore's leading position in two major industry clusters – rig-building, and ship-building, ship repair and ship conversion.
Mr Sia said: "We're very mindful about positioning ourselves for the long term. Hence, the government as well as companies are investing strongly in R&D. For example, if you talk about the oil rig sector, most of the oil exploration is moving into deeper waters and harsher conditions.
"After oil exploration is done, which uses a lot of the oil rigs, the next phase of the development will be production of the oil fields. And we have a strong position there in terms of floating production storage and off-loading vessels."
EDB said it sees growth opportunities in marine equipment manufacturing as equipment suppliers or ship engine makers seek to set up bases in Asia.
The trade agency has already started talks with some industry players in hope of drawing them to Singapore.
Singapore's marine and offshore industry achieved a record output of S$9.8 billion in 2006 due to a strong growth of 39 percent compared to the previous year.
Going forward, the EDB is aiming to focus on higher value work in the sector such as research and development.
The industry currently contributes 1 percent of the country's GDP, bringing in approximately S$2.5 billion in 2006.
The EDB is positive that the growth momentum this year will be strong, going by the robust demand for oil and the investments heading into the sector.
Sia Kheng Yok, Director, Transport Engineering, EDB, said: "In terms of outlook, we're talking about achieving similar levels in the 30 percent range as we've done in the last few years, provided there is no change in the global business environment.
"Last year also saw investments of S$151 million in terms of fixed asset investments. And this investment in capacity, upgrading and new technology will position us well for future growth." But the trade agency is also mindful of the boom-and-bust cycles typical in the marine and offshore sector.
Leveraging on existing strengths, EDB said it expects to put more effort into research and development.
It also aims to build up capabilities in areas including eco-friendly ship design, ship engine design and harsh environment technologies.
The R&D areas are designed to build on Singapore's leading position in two major industry clusters – rig-building, and ship-building, ship repair and ship conversion.
Mr Sia said: "We're very mindful about positioning ourselves for the long term. Hence, the government as well as companies are investing strongly in R&D. For example, if you talk about the oil rig sector, most of the oil exploration is moving into deeper waters and harsher conditions.
"After oil exploration is done, which uses a lot of the oil rigs, the next phase of the development will be production of the oil fields. And we have a strong position there in terms of floating production storage and off-loading vessels."
EDB said it sees growth opportunities in marine equipment manufacturing as equipment suppliers or ship engine makers seek to set up bases in Asia.
The trade agency has already started talks with some industry players in hope of drawing them to Singapore.