SINGAPORE AS MARITIME CENTRE (Support of shipping community)

Column No : 1813

SINGAPORE AS MARITIME CENTRE:

(Support of shipping community): 18.

Mr Andy Gan Lai Chiang asked the Minister for Transport whether the plan to turn Singapore into a maritime centre is receiving support from the shipping community.

Mrs Lim Hwee Hua (for the Minister for Transport): Sir, our efforts to promote Singapore as an International Maritime Centre (IMC) have indeed been receiving strong support from our industry partners. In the last few years, we have made good progress and our overtures to companies have met with very positive responses.

One key element to a successful IMC is having a core group of ship owners and maritime operators based in Singapore. In this respect, our fiscal incentive schemes have been very successful. To date, the schemes have encouraged more than 60 reputable international shipping groups from diverse industry segments to base their operations here. This year alone saw another 20 new companies added to these schemes. Feedback from some of these that have relocated here indicates that they have chosen Singapore because of our supportive policies and conducive and stable business environment.

We also have encouraging response from the industry to our manpower development, industry upgrading and R&D promotion efforts. Programmes such as the Maritime Cluster Fund, Maritime Enterprise IT Development (MERIT) Programme and Maritime Innovation and Technology (MINT) Fund enjoy strong take-up rates. Companies find these schemes beneficial, and have been tapping into them to upgrade the skills of their employees, improve their IT systems and develop their R&D capabilities. To date, about 2,000 employees from more than 500 maritime-related companies have benefited from training grants or co-sponsorships for short courses, advanced diplomas, Master degree programmes and overseas attachments. 125 applications from maritime SMEs have been approved under the MERIT Programme. We have also launched a full suite of manpower development programmes, including the Seafaring Alternative - an Investment for Life (SAIL) Scholarship and Tripartite Maritime Scholarship Schemes. These programmes are conducted in partnership with the industry.

Besides companies, industry associations such as the Singapore Maritime Foundation (SMF) and Singapore Shipping Association have also contributed enthusiastically in support of our efforts. They play a valuable role in consolidating the industry's views and providing valuable feedback to the Government, as well as leading and updating their members on the Government's initiatives. This June, SMF led a delegation to the Norshipping Conference at Oslo where Singapore's capabilities were showcased. Their active participation in dialogues with the Maritimeand Port Authority of Singapore and the relevant industry groups have helped create a more conducive business environment. Likewise, efforts are directed at promoting careers within the maritime industry.

While we are still at an early stage compared to mature maritime centres like London, things are moving at a suitably quick pace and in the right direction. Already, companies under our Approved International Shipping (AIS) and Approved Shipping Logistics (ASL) schemes generate business spending in excess of S$2.5 billion annually. The Singapore Registry of Ships has moved up to become the fifth largest registry in the world, with more than 3,100 vessels totalling 31.7 million gross tonnes. Apart from the conventional shipping activities, the Government is also actively gearing up the ancillary service infrastructure. This would include maritime insurance, arbitration, ship financing and derivatives trading.

Mr Speaker, Sir, our IMC efforts are therefore progressing well, as a result of excellent support from the industry. My Ministry will continue to develop this close partnership to bring Singapore's maritime sector into its next stage of growth.