Closing Remarks by Senior Minister of State for Finance and Transport Mr Chee Hong Tat at the Rolls Royce APAC Marine Summit

Ladies and Gentlemen,

1.     Thank you for inviting me to the APAC Marine Summit today. 

2.      I enjoyed the panel discussion earlier and learnt a lot from the panelists. All of us are in the same boat when it comes to tackling climate change. When sea levels rise, it is a problem that will affect countries all around the world. As a few of the panellists have mentioned earlier, some of these moves require big investments, long-term planning and preparation. It is critical that we start now.

3.     I want to thank Rolls Royce for organising this forum today. Rolls Royce has established operations in Singapore since the 1950s, and today, Singapore has become an important regional centre for Rolls Royce’s businesses in many different areas such as power systems, civil aerospace and defence. We are happy to see your continued growth here over the years, and we look forward to many more years of strong and continued partnership with Rolls Royce.

4.     I also thank all the industry representatives and stakeholders for being here today to discuss the pathways towards sustainable shipping.
 
5.     For the maritime sector, decarbonisation will require a closer collaboration of stakeholders in the sector and beyond, including government, industry, unions and our workers. Our workers and unions must also be part of the solution. Forums such as the APAC Marine Summit are good platforms to exchange expertise and ideas, and foster collaboration among stakeholders.

6.     There has been a renewed push in the maritime sector to accelerate the development of net-zero solutions to reduce the industry’s carbon emissions over time, and at the session this week, I hope the International Maritime Organization is able to obtain the support from the majority of member states to adopt a significantly strengthened level of ambition for 2050. 

7.     2050 may seem some distance away, but if we consider the economic lifespan of ships plying the oceans, the new builds from around 2030 would have to start adopting net-zero solutions, or at least designed to be ready for net-zero solutions such as having dual-fuel engines. We need to do this if we want to achieve net-zero emissions by 2050. So, 2030 is not too far away.   
 
8.     The Singapore Government has been working closely with partners to accelerate decarbonisation in domestic and international shipping.  We need to act now to be ready for the future.  And we need to act together, in close collaboration with our stakeholders, and as a global community, if we want to achieve meaningful impact.  Climate change is a global problem and requires a global set of solutions.

9.     The Maritime and Port Authority of Singapore (MPA) has established Green and Digital Shipping Corridors (GDSCs) with like-minded partners such as the Port of Rotterdam, the Port of Long Beach and the Port of Los Angeles to develop and pilot green and digital solutions. We welcome partners from the industry to join us in developing, piloting, and also in scaling these solutions to other ports and shipping routes.  

10.    We are also preparing our port to bunker the fuels of the future. We are not only focusing on one type of fuel, but also preparing ourselves for a multi-fuel future. We are currently offering LNG and biofuels, besides traditional bunker. MPA has been in discussions with various government agencies and companies to identify potential risks, establish preventive measures, and develop methods for control and mitigation to prepare for the first methanol bunkering operation scheduled for the third quarter of this year. We are also actively studying the safety requirements for the development of standards to enable both methanol and ammonia bunkering in our port.  And we remain open to other net-zero solutions that may emerge in the future.  

Decarbonisation of Domestic Harbour Craft

11.    Domestically, MPA supports the decarbonisation of our harbour craft sector, and we want to achieve our target of net zero emissions by 2050. As I mentioned earlier, this means that all new harbour craft in our port waters must be fully electric, be capable of using B100 biofuels, or be compatible with net-zero fuels from 2030. 

12.    MPA is putting in place the infrastructure required to support electric harbour craft. Charging infrastructure for electric harbour craft operations will be rolled out from 2025.  MPA is partnering A*STAR and research institutes to determine the power requirements for electric harbour craft and identify suitable charging locations.

13.    Sustainable financing of electric harbour craft is an important enabler that would drive adoption rates not just in Singapore but everywhere in the world. MPA is studying various options to facilitate this in Singapore. To support harbour craft owners and operators in their electrification journey, MPA plans to issue an Expression of Interest (EOI) to invite proposals to design and develop solutions to promote the adoption of electric harbour craft in Singapore. 

14.    This EOI will complement existing efforts by joint industry-research consortiums such as the Seatrium Consortium and the ‘Goal Zero’ Consortium, which are funded by MPA and the Singapore Maritime Institute. We encourage industry partners to participate in the EOI when it is issued. 

Talent

15.    A key enabler of our decarbonisation efforts is a skilled maritime talent pool and workforce, comprising both local and international talent. We will keep Singapore open and connected with the world, and we will continue to welcome international talent as we develop our local talent pool. The Singapore Government will continue to support our industry leaders in training and preparing our workforce for the transition towards net zero. 

16.    I welcome Rolls Royce and all industry partners present today to continue working closely with MPA and the Singapore Maritime Foundation to invest in the training and re-skilling of our students and workers. This is a key success factor for our decarbonisation journey, and in the case of Singapore, one of our strengths is our strong tripartite partnerships, where we enjoy the full support of our maritime and port unions, who work together with the Government and employers to prepare for this transition.  

Conclusion 

17.    Let me conclude by thanking Rolls Royce and everyone present this evening for your continued support for Maritime Singapore. This is a journey where the roadmap may not be clearly drawn out yet, and some pathfinding and discovery are required along the way. We are discovering solutions as we go along, and this is best done through collaboration. That is why we are trying to create an ecosystem in Singapore based on trust, strong tripartite partnerships, and the contributions and support of key stakeholders to make things happen. 

18.    I wish you a pleasant evening ahead. Thank you.