PETROCHEMICAL PROJECT

Parliament of Singapore · 20 December 1983 · 5th Parliament

Official Report, 20 December 1983, Vol 43, Issue 3 · Open in the reader (summaries, search, filters)

J.B. JeyaretnamTony Tan Keng Yam
5

Mr J.B. Jeyaretnam asked the Minister for Finance and Minister for Trade and Industry how much Singapore money has been sunk into the Petrochemical project and in view of the present oversupply of petrochemical capacity, what does he estimate the internal rate of return on the investment to be.

Dr Tony Tan Keng Yam: As at 15th December 1983, Singapore's investment in the petrochemical project was S$498 million. This comprised S$233 million in equity and S$265 million in shareholders' loans.

The petrochemical complex is a long-gestation project. It will take a number of years for the full complement of downstream projects to come to full production. Losses must be expected in the initial years of operation. However, over the 20-year life-span of the plants, I expect the rate of return to be satisfactory.

Source: Singapore Parliament Official Report (Hansard) for 20 December 1983. Republished on SGParliament.