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Three Essentials for Transformation
1.     Good morning, it is a real pleasure to see so many of you here in person and also to those joining us virtually for the opening ceremony of the Singapore Maritime Week 2022.

Introduction

2.     As we know, the maritime sector is central to international trade and the global economy. Accounting for over 80 per cent of international movement of goods, it keeps global supply chains flowing. This was especially evident at the height of the COVID-19 pandemic, when sea freight became even more important due to a sharp decline in air freight capacity.

3.     We are now seeing the green shoots of a post-pandemic recovery. Global trade reached a record high in 2021, increasing by about 13 per cent in value from 2019. But the pandemic and geopolitical developments have disrupted supply chains and left a profound and lasting impact. Value chains are becoming more flexible and regional, as countries and companies increasingly rebalance production to adopt a blend of “just-in-time” and “just-in-case” models.

4.     In tandem, the maritime sector is facing other challenges and constraints – in terms of capacity, manpower and carbon emissions. Taken together, these forces herald a sea change for the maritime industry. All stakeholders, from companies to governments, must respond decisively to ensure the maritime sector’s reliability, resilience and readiness for the future. It calls for nothing less than a transformation of the industry.

5.     So this year’s Singapore Maritime Week is aptly themed “Transformation for Growth”. And indeed, we will hear much more about this from DPM Heng in his speech.

Three Essentials for Transformation

6.     If I may share, this transformation must encompass three essential elements – continuous innovation, boundaryless collaboration, and strong talent development.

Continuous Innovation

7.     First, continuous innovation, which is key to attaining new heights in performance and capabilities.

8.     Take the example of Singapore’s Tuas port, which is expected to be the world’s largest fully automated container terminal when completed in the 2040s, with a handling capacity of 65 million TEUs. It will deliver a quantum change in efficiency and sustainability, by deploying state-of-the-art equipment like automated double-trolley electric quay cranes, driverless automated guided vehicles, and automated yard cranes supported by a network of optical cameras and laser sensors.

a.     PSA continues to push the technology frontier further, developing video analytics and robotics-based solutions to reduce manual labour for coning and de-coning operations at the wharf side.

9.     Our innovation efforts extend beyond the port to the wider maritime ecosystem. The most recent Smart Port Challenge in 2021 saw over 150 global start-ups submit their solutions to address challenges faced by the industry. WeavAir was the winner, with a solution that tapped on technology to monitor, aggregate, and standardise data across multiple sources, to provide a comprehensive risk analysis and decision support system. This will enable more accurate risk assessments and simplify the insurance claims management processes in the maritime ecosystem.

10.    Continuous innovation will enable us to harness these and other technologies – such as maritime autonomous ships, additive manufacturing (or 3D printing) and blockchain for supply chain resilience, as well as drones for the efficient transport of supplies in order to transform the industry.

Boundaryless Collaboration

11.    Second, boundaryless collaboration. An enduring lesson from the COVID-19 pandemic is how intricately interconnected we are as a global community. It is only by collaborating across boundaries that we can address the common challenges that confront the maritime industry.

12.    The International Maritime Organization (IMO) plays a central role in this endeavour. It sets the standards for the global maritime industry, and creates the universal regulatory framework for safe, secure, and efficient shipping. Singapore actively supports the IMO by contributing to its governance as a Council member, as well as initiatives to address the challenges and opportunities in international shipping.

13.    We have complemented the IMO’s global efforts with regional initiatives. For instance, Singapore is a founding member of the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP). We have hosted ReCAAP’s Information Sharing Centre since its inception in 2006.

a    The Information Sharing Centre works with the 21 Member Countries to disseminate information and advisories to the maritime community in a timely manner, thereby improving the security and safety of the waters in Asia. With the support of the IMO, the success of ReCAAP has inspired other regions to establish similar arrangements.

14.    Looking ahead, decarbonisation is a major challenge for the maritime industry. And we must act – today and together. As a global maritime hub, Singapore seeks to contribute to this critical effort in a flexible and inclusive way.

a.    At the multilateral level, we have been staunch supporter and advocate of IMO-led initiatives, such as the NextGEN web portal which was launched with Singapore in September last year. The portal compiles and shares maritime decarbonisation initiatives across the world, paving the way for collaboration and capacity building across the public and private sectors, to meet the IMO’s targets to reduce carbon intensity of international shipping by at least 40 per cent by 2030, and at least halve total greenhouse gas emissions by 2050, both from 2008 levels. Since its launch, the portal has hosted projects with more than 500 partners.

b.    At the plurilateral level, we support initiatives among like-minded partners that seek to galvanise action towards more ambitious outcomes. One example is the Clydebank Declaration, which was launched by the United Kingdom at the United Nations Framework Convention on Climate Change’s 26th Conference of Parties (COP26) in November last year. It aims to establish green shipping corridors between ports by deploying zero-emission vessel technologies on voyages, or alternative fuel and charging infrastructure in ports. And in this regard, I am pleased to announce that Singapore will join the Clydebank Declaration for Green Shipping Corridors, together with 22 other Signatory States.

c.    But ultimately, decarbonisation must be a whole-of-industry effort. Efforts at the company and industry level are just as important as government-led efforts. The CASTOR consortium, ITOCHU Corporation, and Sumitomo are leading various initiatives to develop alternative-fuel ships. Singapore welcomes such industry-led collaborations to leverage our maritime hub ecosystem to pilot and deploy green solutions.

15.    Decarbonisation is but one of the myriad challenges that lie ahead. We need our combined capabilities, across nations and importantly, from both the public and private sectors, to chart a path forward for the maritime sector. As part of Singapore’s contribution to such partnership and discourse, the Ministry of Transport and the Maritime and Port Authority have established a Maritime International Advisory Panel (IAP). The Panel comprises 12 cross-sector global business leaders with diverse perspectives on key trends shaping the maritime industry, and how the maritime sector and adjacent industries can collaborate to enhance the connectivity and resilience of global supply chains.

16.    I would like to extend a very warm welcome to the IAP members who are with us today, and we look forward to fruitful discussions over the next two days. The IAP’s deliberation complements our ongoing discussions with the industry, and we can formulate a robust and resilient strategy for our maritime sector.

Strong Talent Development

17.    Finally, strong talent development underpins the transformation of the maritime industry. Over the centuries, as maritime technology has evolved, seafarers around the world have adapted, learned new skills, and honed their craft. In short, the maritime sector and its workforce are no strangers to transformation.

18.    And it is no different today. As the maritime industry pushes ahead with transformation, the nature of maritime jobs will change radically. Our goal is to build a maritime workforce that is future-ready and well-endowed with the skills to meet the new demands of the industry. And this must be a joint effort, bringing together governments, industry, unions, and educators.

19.    It is in this spirit that Maritime Singapore is stepping up efforts to attract and nurture talent. Besides scholarships and awards to attract talent and develop locals for seafaring careers, the tripartite partners recently launched a new initiative to support the skills development of local seafarers – Sail Milestone Achievement Programme (SailMAP). Seafarers undergo a rigorous training programme which involves seagoing journeys and onshore assessments. And in turn, seafarers receive financial incentives when they attain key career milestones. This will support their income when they are not sailing, and are building up their seafaring skills and knowledge.

20.    At the same time, we need to enable existing maritime workers and mid-career switchers to acquire skills in emerging areas such as digitalisation and sustainability, and take on new or expanded roles. Our Career Conversion Programmes help mid-career workers from various backgrounds take up new roles in the Sea Transport sector. Since 2018, over 200 mid-career workers have undergone skills training.

21.    And even as we nurture our homegrown talent, Maritime Singapore will remain open to talent from abroad. It is only by having a judicious blend of local and foreign workers, that we can secure the competitiveness of our maritime sector, attract more investments and ultimately create more jobs.

Conclusion

22.    To succeed in the transformation of the maritime sector, we believe we must focus on the essential elements of continuous innovation, boundaryless collaboration and strong talent development. This endeavour requires partnership across countries, and certainly between the public and private sectors. We hope that the Singapore Maritime Week can serve as a valuable platform.

23.    I would like to thank all the speakers, panellists and guests for joining us, and I would like to wish all participants a productive week ahead as we gain insights, engage in discussions, and strengthen partnerships at the Singapore Maritime Week.

24.    Thank you.