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Speech at The Singapore Chemical Industry Council Annual Dinner 2007 cum Responsible Care Awards 2006 Presentation

Mr Gan Kim Yong, Minister of State for Education and Manpower, Singapore Marriott Hotel, Grand Ballroom

Dr A Chockalingam, Chairman;

Singapore Chemical Industry Council;

Ladies and Gentlemen;

It gives me great pleasure to join you this evening at your annual dinner and awards presentation ceremony.

Strong growth in Singapore's chemical industry

2.   The chemical industry has always been a major pillar of Singapore's manufacturing sector. Last year, the industry's output totalled $75 billion. This is a 12% increase from the year before and represents one-third of Singapore's total manufacturing output. The chemical industry has since overtaken the electronics sector as the largest contributor to Singapore's manufacturing output.

3.   The outlook of the industry is promising. Over the next 10 years, even stronger growth is expected in the chemical industry and the Singapore Chemical Industry Council (SCIC) has anticipated a doubling of the industry's output. This optimism is fuelled by the numerous projects in the pipeline, such as Shell's new ethylene cracker and downstream mono-ethylene glycol (MEG) plant. When completed, these projects and upcoming plants will position Singapore firmly as the petrochemical hub in the region, generating more jobs and opportunities for all of us.

4.   To sustain this growth, the industry will need access to enough workers. This is a challenge in today's tight labour market. My Ministry will work with the industry to help Singaporeans seize the job opportunities that will be created as the sector grows. MOM announced recently that it will adjust foreign manpower policies to allow in more foreign workers in some sectors to supplement the local workforce, in order to help businesses grow. Specifically for the process industry, MOM will increase the Dependency Ratio to 1:5 from the current 1:4 from 1 April 2007 as well as allow the cross deployment of foreign workers within the industry.

Enhanced Vigilance in Workplace Safety and Health

5.   With more workers, employers have a greater responsibility to ensure a safe and healthy work environment. With 23,000 workers in your industry and increased business activity, new workplace risks will emerge. The BP Texas City refinery accident in March 2005, where 15 died and more than 170 injured, is a grim reminder that safety and health cannot be taken for granted. This was one of the most serious workplace disasters in the United States over the past two decades. The lesson is that we need to maintain high vigilance over workplace safety.

Raise workplace safety and health standards

6.   But I am confident that your industry will continue with its efforts to keep your workplaces safe and protect our workers from harm's way. The chemical industry has consistently been a leader in workplace safety and health standards. In the last Annual Safety and Health Performance Awards co-organised by the Ministry and the Workplace Safety and Health Advisory Committee, chemical companies dominated the top two categories of the awards, i.e. the Workplace Safety and Health excellence and gold awards. The industry also saw a reduction in the number of fatalities from 5 in 2005 to 1 in 2006. This is testimony to the high safety and health standards you have set and your continued efforts to improve workplace safety.

Industry's Leadership in Responsible Care

7.   I wish to commend you also for the industry's active role in driving "Responsible Care" in Singapore, a global chemical industry initiative aimed at improving Health, Safety and Environmental performances. Since 1990, you have sought to raise awareness and industry standards on safety and health through establishing a network of Responsible Care signatories, sharing of best practices as well as community programmes. I am heartened to note that this is the sixth year that the SCIC has organised the Responsible Care Awards. The award is attracting more applications year-on-year, reflecting the fact that more companies are committed to caring for their workers' safety and health.

8.   Your challenge is to extend the workplace safety and health movement to also involve the small and medium enterprises (SME) within your industry, This is critical as SMEs account for more than 70% of the 133 workplace injuries last year in your industry. Get some of the forerunners in leading workplace safety and health practices to be agents of change and to serve as mentors for SMES in safety and health standards.

9.   To achieve this, we can work through the supply chain and procurement processes. The bigger players amongst you can encourage contractors as well as small and medium enterprises within the supply chain to raise their standards and capabilities in managing safety and health at work. As mentors, you can also influence companies that supply to and support your industry, to emulate the progress that the chemical industry has achieved in workplace safety and health. This way, I am confident that Singapore will move one step closer to becoming a centre of excellence in workplace safety and health.

Conclusion

10.   In closing, I would like to commend the Singapore Chemical Industry Council for your role in galvanising the industry towards higher safety and health standards. Your commitment in taking ownership of safety and health outcomes as an industry is worthy of emulation by other sectors. Finally, allow me to extend my heartiest congratulations to the winners of the Responsible Care Awards 2006. I wish all of you an enjoyable evening.