A new international port being built in Malacca will have minimal impact on Singapore as its planned oil storage capacity will be far lower than what is on offer here, Senior Minister of State for Transport Josephine Teo told Parliament. As the expansion of the Kuala Linggi International Port (KLIP) in Malacca will only be completed within the next decade, Mrs Teo highlighted that it is “still too early” to determine its exact impact on Singapore’s economy.
Mrs Teo was replying to Mr Saktiandi Supaat (Bishan-Toa Payoh GRC), who asked about Klip’s impact on Singapore’s status as a regional shipping hub and its economy, and how port services here will stay competitive.
CNA reports Mrs Teo said the Government’s preliminary assessment is that KLIP’s planned oil storage capacity of 1.5 million cubic metres is small relative to Singapore’s current capacity of 20.5 million cubic metres.
“In addition, our position as a regional bunkering and oil storage hub is anchored by a strong ecosystem of oil refineries and oil traders, and by the high volume of ships calling at Singapore for various services,” said Mrs Teo.
Nonetheless, she highlighted that Mr Saktiandi’s question is a “timely reminder” that Singapore must not be complacent, and ensure that its port remains competitive.
The Kuala Linggi International Port (Klip) is expected to store 1.5 million cubic metres of oil, while Singapore has a capacity of 20.5 million cubic metres.
