Cautiously optimistic outlook for the year ahead
Singapore’s shipping industry will continue to grapple with the perennial over-capacity problem, manpower constraints, high energy prices and an ever-changing regulatory environment this year, despite an emergent recovery.
Speaking last week at the Singapore Shipping Association’s (SSA) Lunar New Year reception, the organisation’s president, Patrick Phoon, said: The problem of overcapacity could again become a problem as newbuildings enter the market. Bunker price is likely to remain high, thus affecting our operating costs, whilst increased regulation of crew welfare as a result of the entry into force of the Maritime Labour Convention 2006, and the likely entry into force of the Ballast Water Convention in the not too distant future, are big ticket items for the shipping industry. I certainly hope that the Year of the Horse can usher in better fortune for all of us in the shipping industry.
As industry executives tossed the traditional New Year Yusheng, a salmagundi of raw fish and noodles, for prosperity, Singapore’s Minister for Transport Lui Tuck Yew stressed however that all is not doom and gloom. Many of us in the shipping community are now adopting a cautiously optimistic outlook for the year ahead, as the global economy shows signs of recovery.‘
He said that Singapore’s strong fundamentals and resilience enabled Maritime Singapore’ to register good growth last year, despite the weak performance across the industry globally and affirmed his government’s commitment to the industry.
We are investing in infrastructure and sharpening our maritime policies. We continue to grow capacity ahead of demand, with the opening of the first berths at Pasir Panjang Terminal Phase 3 later this year. We have also begun preparatory works for a consolidated container terminal at Tuas. Last year, we also streamlined our port dues structure and enhanced the Maritime Singapore Green Initiative,‘ he told top ranking industry leaders.
The Minister revealed that maritime policies will continue to be refined to provide a more conducive business environment and recognised the importance of developing a quality maritime workforce by way of enhancing maritime education and training.
At an earlier Lunar New Year event, hosted by the Singapore Maritime Officers’ Union (SMOU), it was announced that the Singapore Workforce Development Agency (WDA), NTUC’s Employment & Employability Institute (e2i) and SMOU have committed a further $22 million over a five-year period to support Singaporeans who wish to pursue a maritime career via the Tripartite Nautical Training Award (TNTA) programme set up in 2009. The funding will cover training fees and a monthly allowance of up to S$1400 per cadet during a 31-month training course.
Singapore’s maritime industry contributes 7% of the country’s GDP providing employment for 170 000. However, of the 20 000 officers in more than 4200 Singapore-flagged ships, only 1605 are Singaporeans.
Minister for Health Gan Kim Yong said: SMOU has shown its commitment to developing capability within the maritime industry through its various training schemes. This will allow even more Singaporeans to pursue exciting nautical careers and provide the maritime industry with a healthy pipeline of young and competent officers.
Source: IMarEST
