The Growth of Singapore's Maritime Cluster
As the world increasingly looks towards Asia for trade, Singapore has been quick to capitalise on her strategic position to further develop the maritime industry that supports world trade.

The Singapore maritime industry is an important part of the Singapore economy contributing approximately 7%¹⁰ of Singapore’s GDP and employing over 96,000 people¹⁰. The cluster comprises more than 5,000 maritime establishments¹⁰ in the following sectors: (a) Shipping and Port related sectors; (b) Offshore, Shipbuilding and Repair; and (c) Maritime Services such as shipping finance, marine insurance and maritime legal and arbitration services.

Shipping and Port Related Sectors
The port of Singapore remains the world’s busiest in terms of shipping tonnage and container throughput. In 2006, total vessel arrivals in terms of shipping tonnage stood at 1.4 billion¹⁰ gross tonnes (GTs) and container throughput was a record 27.9 million¹⁰ TEUs. In the same year, Singapore sold 31.5 million¹⁰ tonnes of bunkers and remains the top bunkering port in the world in terms of bunker sales.

According to the “Review of Maritime Transport, 2007”, a report by the United Nations Conference on Trade and Development (UNCTAD), Singapore is the 10th most important maritime country. The Singapore Registry of Ships (SRS) has also continued to grow and the Singapore flag is carried in excess of 39 million GT in 2007¹¹.

The growth in the number of major shipping companies establishing operating bases in Singapore has been encouraging. Major reputable international shipping groups from leading maritime countries have made Singapore their shipping hub for Asia.

Offshore, Shipbuilding and Repair
The offshore and marine engineering (OME) sector has also undergone tremendous transformation over the past 40 years. Today, with 70%¹² of the global market share of Floating Production Storage Offloading (FPSO) vessel conversion, 70%¹² of world market share for jack-up rig building and 20%¹² of world market share for ship repair, Singapore boasts a comprehensive offering of repair services, conversions and new constructions for an international clientele.

Shorebased Maritime Services
The growth in Singapore's shorebased maritime services, critical in supporting the expansion of the pool of shipping companies, has been evident in various sectors such as shipping finance and marine insurance.

A plethora of shipping finance-related companies has established offices in Singapore. These include banks, boutique shipping investment banks, private equity arrangers, shipping finance advisers, shipping finance conference organizers and publishers of maritime finance transactional information. In the marine insurance market, Singapore has witnessed good growth between 2006 and 2007 in the number of Lloyd’s Syndicates in Singapore that undertake marine insurance.  The launch of the SGX AsiaClear, the first clearing facility for freight and energy derivatives in Asia, in May 2006 has created opportunities for Singapore to leverage on her position as a key hub port for oil and maritime commerce to serve the Asian energy and Forward Freight Agreements (FFA) market.

Maritime Vibrancy, Maritime Buzz
Flagship events such as Sea Asia and Maritime Week have served to enhance the vibrancy of Singapore’s maritime industry. A biennial maritime conference-cum-exhibition, the inaugural Sea Asia was launched in Apr 2007 in Singapore and attracted over 7,000 participants from 42 countries. Maritime Week, which comprises week-long maritime conferences, seminars and networking events, was another event which reflects the successful collaboration between the government and the industry.  

Medium term outlook
Singapore has been considerably successful in recent years in growing our base of shipowners and operators through various programmes geared towards facilitating the operations of maritime enterprises in Singapore. We expect to witness further growth not only in our pool of shipowner-operators, but also in Singapore’s maritime services including shipping finance, marine insurance and maritime legal and arbitration services in the next few years.

Similarly, the growth for shipbroking and chartering is expected to remain strong and the outlook for the offshore and marine engineering sector positive as demand for oil and gas exploration and production remains robust, especially in Asia. 

In the medium term, we expect the contribution of the Singapore Maritime Cluster to Singapore’s GDP to register steady growth. Employment in the Singapore Maritime Cluster is also likely to keep pace with the cluster’s growth, especially in sectors such as shipping and port related sectors, offshore and shipbuilding & repair sectors.

Useful links:
- Maritime and Port Authority of Singapore www.mpa.gov.sg

¹⁰ Source: The Maritime and Port Authority of Singapore
¹¹ Source: The Maritime and Port Authority of Singapore
¹² Source: Economic Development Board of Singapore. http://www.sedb.com/edb/sg/en_uk/index/industry_sectors/
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