Impact of Transition to Low-carbon Emission Regime on Petrochemical Industries and Workers
Ministry of Trade and IndustrySpeakers
Summary
This question concerns employment in the petrochemical industry and the potential impact of a transition to a low-carbon regime on sectors and workers. MP Dennis Tan Lip Fong inquired about workforce demographics and whether the government would study the risks of industry displacement and cascading economic effects. Minister for Trade and Industry Chan Chun Sing reported that the sector employed 27,000 workers in 2020, of which 4,600 were work permit holders. He noted that while a hasty transition poses risks, the industry can adapt by developing green technologies like carbon capture and materials for electric vehicles. The government intends to support companies in becoming global leaders in energy efficiency to secure high-quality jobs and industry competitiveness.
Transcript
21 Mr Dennis Tan Lip Fong asked the Minister for Trade and Industry (a) how many workers are employed in Singapore's petrochemical industries; (b) how many of these workers are work permit holders; and (c) whether the Government will conduct a study on the impact of a low-carbon transition in Singapore affecting our petrochemical industries and its workers, including any cascading effects on related sectors and workers.
Mr Chan Chun Sing: Singapore’s Energy and Chemicals (E&C) sector employed 27,000 workers in 2020, with 4,600 of them being work permit holders.
The Government has been studying the implications of a low-carbon transition on our economy for some time. The E&C sector will be at risk of being downsized or even displaced from Singapore, with its resultant impact on jobs, if we transit too hastily and the E&C companies could not transform and decarbonise their operations sufficiently.
But the E&C sector can also be a beneficiary of the low-carbon transition. For example, the chemicals industry provides silver paste, high performance plastic films and membranes that go into photovoltaic cells and batteries for electric vehicles. The E&C sector is also a key partner in the development of emerging low-carbon technologies, such as carbon capture, utilisation, and storage. These technologies can be pivotal in enabling decarbonisation at scale.
The Government is committed to supporting our E&C companies as they adapt to a low-carbon future. We aim for our E&C sector to be amongst the best-in-class in energy and carbon efficiency globally. If we manage this transition well, the E&C sector can emerge more competitive and vibrant, and continue to create good employment opportunities for Singaporeans.