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Speech at National Day Observance Ceremony of Sembcorp Marine and Jurong Shipyard

Mr Gan Kim Yong, Acting Minister for Manpower

Mr Tan Kwi Kin,
Group President & CEO of Sembcorp Marine

Mr Wong Weng Sun,
President & COO of Sembcorp Marine and Managing Director of Jurong Shipyard

Mr Tan Ah Chye,
Chairman of Shipbuilding and Marine Engineering Employee's Union (SMEEU) Jurong Shipyard Branch

Union leaders and Distinguished Guests,
Ladies and Gentlemen,
Good Morning

Introduction

I am pleased to join you today at the Observance Ceremony to commemorate Singapore's 43rd National Day.

The Shipping Industry, Innovation and the Singapore Economy

2.   Over the years, the ship repair and ship building industry has transformed itself to become a dynamic and vibrant industry. Today, it is a global market leader in rig building, ship conversion, ship repair and upgrading.

3.   Formed in 1963 as a joint venture with Ishikawajima Harima Heavy Industries, the Jurong Shipyard was Singapore's first commercial shipyard. From humble beginnings, it has since expanded beyond traditional ship repair and ship building into new sectors, such as ship conversion, rig building and offshore engineering. Over the past six years, the Jurong Shipyard has secured no less than 12 semi-submersible and five jack-up rig orders from international customers, with deliveries scheduled up to 2012. These are commendable achievements reflecting Jurong Shipyard's ability to adapt to the changing market.

4.   With greater trade liberalisation and economic growth, the importance of shipping will only increase. Singapore's shipping industry has continued to flourish, due in large part to the strong collective effort and collaboration among the industry, unions and the government. The challenge today is - how do we ensure a smooth-sailing voyage ahead of us?

Safety as a Key Enabler

5.   First, we need to pay greater attention to improving safety at the workplace. Recent accidents in the shipbuilding and ship-repairing industry are clear reminders that more still needs to be done. I am heartened that your industry reacted swiftly to improve safety performance in response to a recent spate of marine accidents. The Association of Singapore Marine Industries (ASMI) together with the Workplace Safety and Health (WSH) Council have worked with 40 shipyards to implement an unprecedented safety “time-out”. Last month, the WSH Council organised a forum for 300 safety professionals and management staff, on how shipyards can build better safety systems and a stronger WSH culture. We have to commit resources to take substantial steps to improve safety outcomes. There is certainly room for improvement.

6.   I understand that the Jurong Shipyard has invested considerable effort and resources in the area of safety management. Creative methods have been used to educate employees on Health, Safety and Environment programmes, such as informational DVDs that disseminate important safety information in an interactive and easy-to-understand manner. I am also encouraged to hear that you have put in place stringent safety management systems. This has been demonstrated through your ‘6Es', namely, Education, Enforcement, Engineering, Environmental, Efficiency and Evaluation. Such efforts at ensuring safety must be sustained to ensure safety becomes an integral part of day-to-day work.

7.   In 2007, the marine sector's workplace fatality rate was 6.9 per 100,000 employees – significantly higher than the national rate of 2.9. I urge the industry's leaders to undertake the challenge to lower your industry's rate to 2.9. With strong leadership and commitment, this goal is within reach.

8.   As a nation, we are taking it a step further. The Prime Minister set the new target to reduce the national workplace fatality rate, to 1.8 per 100,000 employees by 2018. He challenged all of us to innovate and devise better systems and strategies to improve workplace safety.

Manpower Development and Innovation

9.   The success of each business and industry is also determined to a large extent by the quality of its people. We must therefore continuously develop and retain talent to remain competitive. I applaud the Jurong Shipyard for its manpower development efforts including its active involvement in the ASMI Super-V scheme, launched under the Marine Job Re-Creation Programme to make jobs in the marine sector more attractive to Singaporeans. You have made a good start by hiring over 30 supervisors under this scheme. You have also made significant investments to re-employ employees who reach the retirement age of 62 years. To date, the Jurong Shipyard has re-employed 70 workers, positively recognizing the contributions of the older workers.

10.   To stay ahead, innovation is also essential for greater productivity and value creation. I note that Jurong Shipyard has been championing the cause of innovation through various platforms, such as its staff suggestion scheme and safety improvement teams. It is my pleasure to present innovation and safety awards to the winning teams later during the ceremony.

Conclusion

11.   The theme for this year's National Day is 'Celebrating the Singapore Spirit'. It is this “can do” spirit which has united us in times of adversity since independence. With strong collaboration among government, industry and workers, we are well-poised to meet the challenges ahead of us. In closing, let me wish you a Happy National Day.