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Speech by Mr Lim Siong Guan, Chairman of the Singapore Economic Development Board, at the groundbreaking ceremony of Natural Fuel Pte Ltd at Banyan Place, Jurong Island on 8 November 2006 at 10.45am
Dr John Hewson, Chairman, Natural Fuel Ltd
Mr Richard Selwood, CEO and Managing Director, Natural Fuel Ltd
Distinguished guests,
Ladies and gentlemen,
1. I am happy to be able to join you in the ground-breaking of Natural Fuel’s world-scale biodiesel production centre on Jurong Island this morning.
2. The EDB is pleased to note that this will be the largest known biodiesel facility in the world, upon full realization. Today’s ground-breaking ceremony marks a milestone as Natural Fuel’s new plant represents one of the largest single manufacturing investments from Australia to-date.
3. Natural Fuel is one of a growing number of Australian companies establishing themselves in Singapore. Over the past five years, the presence of Australian companies has increased by almost 70%, to around 1,500 companies. Many of these companies use Singapore as a base to expand and manage their regional operations.
4. Singapore enjoys excellent relations with Australia. The Singapore-Australia Free Trade Agreement (SAFTA), which entered into force in 2003, is a landmark agreement which brought significant benefits to businesses in both our countries. Bilateral trade continues to grow. Last year, Australia was Singapore’s 11th largest trading partner and bilateral trade reached around S$20 billion compared to S$15 billion in 2004.
5. Natural Fuel is one of our earliest partners in our drive to build a nucleus of businesses based on alternative energy and bio-resources. We started working with Natural Fuel a year and a half after it started up in Perth in October 2003. We are very keen to work with globally-minded companies such as Natural Fuel, whose vision is to be the largest biodiesel company in the world, producing quality biodiesel for global players and building a brand name associated with reliability and quality. The ‘language’ of Natural Fuel is one which Singapore instinctively understands, for trust, quality, reliability and value are what Singapore builds its reputation upon, and what attracts so many investors to Singapore.
6. The demand for alternative energy is on the increase, due to the depletion of conventional energy sources and spiralling oil prices. We believe Singapore can play an important role in the development of this industry. The fact that companies such as Natural Fuel is building a plant in Singapore validates Singapore's value proposition as a location with access to regional feedstock, comprehensive trade links and beneficial international agreements. Singapore would also serve as a centre for further process and product development, as well as activities like carbon trading which will leverage on Singapore’s other capabilities, in this case, our standing as an international financial hub.
7. Specifically on biodiesel and related oleochemicals-based businesses, these can tap on our existing infrastructure and shared facilities, such as the common pipeline corridor, utilities and jetty. Singapore offers the advantage of being well connected to suppliers of multiple types of feedstock from multiple locations. With critical mass, we can further strengthen this infrastructure and logistics linkages to benefit more companies.
8. Singapore also possesses the unique strength of being able to offer varied possibilities of integration into our broad and diverse industry base. For instance, biodiesel production can lead to many downstream products in the oleochemical and consumer care sectors. This will provide Natural Fuel and other companies, additional opportunities to derive value. Biodiesel producers on Jurong Island represent a significant, consolidated source of oleochemical feedstock, like glycerine, for downstream players. I believe Natural Fuel has made an excellent choice in planting its roots in Singapore.
9. My heartiest congratulations to Natural Fuel on your ground-breaking. Thank you for your vote of confidence in Singapore. The EDB wishes you every success, good business and great growth.
10. Thank you. |
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