Q: Why is Singapore focusing on specialty chemicals?
Wey-Len: Over the past decade, Singapore’s specialty chemicals sector has steadily grown and now contributes approximately 20 per cent of our total energy and chemicals output. Globally, this sector has an average Compound Annual Growth Rate (CAGR) of 4.4 per cent compared to the overall chemicals CAGR of 1.5 per cent over the next 5 years.
Within specialty chemicals, we have identified four key areas that capture important growth trends: nutrition and agriculture; hygiene and health; smart materials and mobility, including electronics and semiconductors; and sustainability – particularly biotech, bio-based, and biodegradable materials.
Companies like SABIC have chosen to site their US$170 million (S$228.5 million) advanced, specialty chemicals manufacturing facility here, benefitting from Singapore’s robust intellectual property (IP) protection regime, logistical and trade connectivity.
Q: What about the bioeconomy?
Wey-Len: Arising from the energy transition globally, the energy and chemicals industry, too sees an emerging market for sustainable products. The global market for green chemicals is projected to reach US$200 billion (S$261.1 billion) by 2030, with a CAGR of 7.7 per cent between 2025 and 20351. This also builds upon Singapore’s capabilities in industrial biotechnology as part of our push for sustainable manufacturing.
Several companies have already anchored bio-based activities here. Arkema, for instance, has started production of its flagship high-performance polymer derived from renewable castor beans here. Chinese startup Mojia Bio recently announced a collaboration with the Agency for Science, Technology, and Research (A*STAR) on a S$44.8 million next-generation sustainable biomanufacturing platform aimed at producing eco-friendly bio-based molecules.
To support such developments, Singapore has research institute partners like the National Centre for Engineering Biology (NCEB), Singapore Integrative Biosystems and Engineering Research (SIBER), and Singapore Consortium for Synthetic Biology (SINERGY).
We are committed to working with companies to anchor the manufacturing of sustainable chemicals here. They can benefit from our access to bio-feedstock and raw materials from the region, fresh water supply, and wastewater treatment capacity. Singapore is also securing access to green electricity through low-carbon imports from the region that companies with operations here can access.
Q: What other opportunities does Singapore see in the energy transition?
Wey-Len: The energy transition has been a growth driver for Singapore. The market for alternative, sustainable products is growing, driven by regulations and changing consumer preferences.
For example, to promote Sustainable Aviation Fuel (SAF) use, the European Union, the United Kingdom, and Asia-Pacific countries like Japan, Thailand, and Singapore have announced mandates aiming for up to 10 per cent of SAF blending by 2030.
Companies like Neste have already established their Singapore Refinery & Innovation Centre, which includes the world’s largest SAF plant. Similarly, Evonik is building a new manufacturing plant for alkoxide catalysts used in biodiesel production to serve the Asian market.
As we chart our path to net zero, we are closely monitoring global developments as well as the pace of development of decarbonisation technologies.