Current Affairs
Weak demand in Singapore petrochemical sector, supply still robust
Although electronics manufacturers have been hit by supply chain disruptions and delays, Singapore’s petrochemical sector is more prone to be impacted by a contraction in demand for petrochemical products.
In 2018, Singapore’s petrochemical imports comprised of just 3 per cent of Chinese market, which minimises the damage from supply chain disruption, as stated by the Economic Development Board (EDB).
However, the Chinese market is a major petrochemical market for Singapore, as it is made up of around 40 per cent of Singapore’s exports in 2018.
“It is too early to predict the effect of Covid-19 on demand in China for petrochemicals, as we do not know how protracted the outbreak will be, but any impact will likely come from the demand side,” said EDB’s Chemicals and Materials Director Khalil A Bakar, when speaking to The Business Times.
The prospects for demand are uncertain in the near future due to the Covid-19 situation, which is likely to affect China’s economy. Petroleum-derived petrochemicals are also made into synthetic polymers such as plastics.
According to a former oil broker overseeing Asian petrochemicals at S&P Global Platts, Vanessa Ronsisvalle, the demand for the chemicals used to produce end-products like synthetic textiles, plastic goods, and cars will be driven down as a result of Chinese factories shutting down.
Ms Ronsisvalle cited Platts Analytics figures for polyethylene demand in China to decline by between 350,000 and 1 million tonnes, using 2020 as the base comparison year. On this basis, she remarked that “polymer demand will certainly deviate from expectations due to the coronavirus.”
The petrochemical sector contributed just under one-tenth of the country’s S$336.2 billion in factory output in 2019, and this is further compounded by the outbreak of Covid-19.
In January, petrochemical output contracted 10.8 per cent, following the decline by 18.8 per cent from 2018 to 2019.
Despite the pessimistic demand side, on the supply side, Singapore players need not worry as much.
The ecosystem on Jurong Island allows firms to source for feedstock and sell their goods in one place, so much so that it is billed in 2018 as a “highly integrated energy and chemicals complex” by Damian Chan, who is EDB’s Assistant Managing Director.
“It is unlikely Singapore will face shortages of raw materials from China,” said Ms Ronsisvall. Petrochemical supply is likely to be ample across South-east Asia as China imports less, which means higher inventory levels are expected in Singapore,” Ms Ronsisvalle added.
A spokesman for industrial gas and engineering company, Linde, told The Business Times that they will continue to supply to their Singapore customers “without disruption and see minimal impact in the immediate term”.
Similarly, Fitch Solutions’ Senior Oil and Gas Analyst Peter Lee remarked that if the consumption of consumer goods and plastics is stronger, the impact from the outbreak could be less damaging.
Citing consumer product demand in China, Mr Lee added, “Even though demand for most fuels are taking a hit – such as gasoline, diesel and, most of all, jet fuel – consumption of feedstocks for the petrochemicals industry… is still rather resilient.”
According to Lin Taohai, a Consumer and Retail Analyst at Fitch noted that “there are early signs that recovery is already here, as retail stores slowly reopen” despite the dampened consumer demand, citing Starbucks and Apple as examples.
“Global demand is likely to see further upward price pressure” on demand from industrialising economies when the outbreak ends, as opined by Dan Marjanovic, a commodities lawyer and a partner at Simmons & Simmons.
EDB’s Mr Khalil believes that “Singapore is in a strong position to recover once the Covid-19 situation stabilises”, buttressed by the growth potential in other Asian markets and ASEAN in general.
“We will also continue to diversify the portfolio of industries in Singapore and the markets that they sell to, so as to strengthen our resilience as an economy,” Mr Khalil concluded.
Current Affairs
TJC issued 3rd POFMA order under Minister K Shanmugam for alleged falsehoods
The Transformative Justice Collective (TJC) was issued its third POFMA correction order on 5 October 2024 under the direction of Minister K Shanmugam for alleged falsehoods about death penalty processes. TJC has rejected the government’s claims, describing POFMA as a tool to suppress dissent.
The Transformative Justice Collective (TJC), an advocacy group opposed to the death penalty, was issued its third Protection from Online Falsehoods and Manipulation Act (POFMA) correction direction on 5 October 2024.
The correction was ordered by Minister for Home Affairs and Law, K Shanmugam, following TJC’s publication of what the Ministry of Home Affairs (MHA) alleges to be false information regarding Singapore’s death row procedures and the prosecution of drug trafficking cases.
These statements were made on TJC’s website and across its social media platforms, including Facebook, Instagram, TikTok, and X (formerly Twitter).
In addition to TJC, civil activist Kokila Annamalai was also issued a correction direction by the minister over posts she made on Facebook and X between 4 and 5 October 2024.
According to MHA, these posts echoed similar views on the death penalty and the legal procedures for drug-related offences, and contained statements that the ministry claims are false concerning the treatment of death row prisoners and the state’s legal responsibilities in drug trafficking cases.
MHA stated that the posts suggested the government schedules and stays executions arbitrarily, without due regard to legal processes, and that the state does not bear the burden of proving drug trafficking charges.
However, these alleged falsehoods are contested by MHA, which maintains that the government strictly follows legal procedures, scheduling executions only after all legal avenues have been exhausted, and that the state always carries the burden of proof in such cases.
In its official release, MHA emphasised, “The prosecution always bears the legal burden of proving its case beyond a reasonable doubt, and this applies to all criminal offences, including drug trafficking.”
It also pointed to an article on the government fact-checking site Factually to provide further clarification on the issues raised.
As a result of these allegations, both TJC and Annamalai are now required to post correction notices. TJC must display these corrections on its website and social media platforms, while Annamalai is required to carry similar notices on her Facebook and X posts.
TikTok has also been issued a targeted correction direction, requiring the platform to communicate the correction to all Singapore-based users who viewed the related TJC post.
In a statement following the issuance of the correction direction, TJC strongly rejected the government’s claims. The group criticised the POFMA law, calling it a “political weapon used to crush dissent,” and argued that the order was more about the exercise of state power than the pursuit of truth. “We have put up the Correction Directions not because we accept any of what the government asserts, but because of the grossly unjust terms of the POFMA law,” TJC stated.
TJC further argued that the government’s control over Singapore’s media landscape enables it to push pro-death penalty views without opposition. The group also stated that it would not engage in prolonged legal battles over the POFMA correction orders, opting to focus on its abolitionist work instead.
This marks the third time TJC has been subject to a POFMA correction direction in recent months.
The group was previously issued two orders in August 2024 for making similar statements concerning death row prisoners.
In its latest statement, MHA noted that despite being corrected previously, TJC had repeated what the ministry views as falsehoods.
MHA also criticised TJC for presenting the perspective of a convicted drug trafficker without acknowledging the harm caused to victims of drug abuse.
Annamalai, a prominent civil rights activist, is also known for her involvement in various social justice campaigns. She was charged in June 2024 for her participation in a pro-Palestinian procession near the Istana. Her posts, now subject to correction, contained information similar to those presented by TJC regarding death penalty procedures and drug-related cases.
POFMA, which was introduced in 2019, allows the government to issue correction directions when it deems falsehoods are being spread online.
Critics of the law argue that it can be used to suppress dissent, while the government asserts that it is a necessary tool for combating misinformation. The law has been frequently invoked against opposition politicians and activists.
As of October 2024, Minister K Shanmugam has issued 17 POFMA directions, more than any other minister. Shanmugam, who was instrumental in introducing POFMA, is followed by National Development Minister Desmond Lee, who has issued 10 POFMA directions.
Major media outlets, including The Straits Times, Channel News Asia, and Mothership, have covered the POFMA directions. However, as of the time of writing, none have included TJC’s response rejecting the government’s allegations.
Current Affairs
Hotel Properties Limited suspends trading ahead of Ong Beng Seng’s court hearing
Hotel Properties Limited (HPL), co-founded by Mr Ong Beng Seng, has halted trading ahead of his court appearance today (4 October). The announcement was made by HPL’s company secretary at about 7.45am, citing a pending release of an announcement. Mr Ong faces one charge of abetting a public servant in obtaining gifts and another charge of obstruction of justice. He is due in court at 2.30pm.
SINGAPORE: Hotel Properties Limited (HPL), the property and hotel developer co-founded by Mr Ong Beng Seng, has requested a trading halt ahead of the Singapore tycoon’s scheduled court appearance today (4 October) afternoon.
This announcement was made by HPL’s company secretary at approximately 7.45am, stating that the halt was due to a pending release of an announcement.
Mr Ong, who serves as HPL’s managing director and controlling shareholder, faces one charge under Section 165, accused of abetting a public servant in obtaining gifts, as well as one charge of obstruction of justice.
He is set to appear in court at 2.30pm on 4 October.
Ong’s charges stem from his involvement in a high-profile corruption case linked to former Singaporean transport minister S Iswaran.
The 80-year-old businessman was named in Iswaran’s initial graft charges earlier this year.
These charges alleged that Iswaran had corruptly received valuable gifts from Ong, including tickets to the 2022 Singapore Formula 1 Grand Prix, flights, and a hotel stay in Doha.
These gifts were allegedly provided to advance Ong’s business interests, particularly in securing contracts with the Singapore Tourism Board for the Singapore GP and the ABBA Voyage virtual concert.
Although Iswaran no longer faces the original corruption charges, the prosecution amended them to lesser charges under Section 165.
Iswaran pleaded guilty on 24 September, 2024, to four counts under this section, which covered over S$400,000 worth of gifts, including flight tickets, sports event access, and luxury items like whisky and wines.
Additionally, he faced one count of obstructing justice for repaying Ong for a Doha-Singapore flight shortly before the Corrupt Practices Investigation Bureau (CPIB) became involved.
On 3 October, Iswaran was sentenced to one year in jail by presiding judge Justice Vincent Hoong.
The prosecution had sought a sentence of six to seven months for all charges, while the defence had asked for a significantly reduced sentence of no more than eight weeks.
Ong, a Malaysian national based in Singapore, was arrested by CPIB in July 2023 and released on bail shortly thereafter. Although no charges were initially filed against him, Ong’s involvement in the case intensified following Iswaran’s guilty plea.
The Attorney-General’s Chambers (AGC) had earlier indicated that it would soon make a decision regarding Ong’s legal standing, which has now led to the current charges.
According to the statement of facts read during Iswaran’s conviction, Ong’s case came to light as part of a broader investigation into his associates, which revealed Iswaran’s use of Ong’s private jet for a flight from Singapore to Doha in December 2022.
CPIB investigators uncovered the flight manifest and seized the document.
Upon learning that the flight records had been obtained, Ong contacted Iswaran, advising him to arrange for Singapore GP to bill him for the flight.
Iswaran subsequently paid Singapore GP S$5,700 for the Doha-Singapore business class flight in May 2023, forming the basis of his obstruction of justice charge.
Mr Ong is recognised as the figure who brought Formula One to Singapore in 2008, marking the first night race in the sport’s history.
He holds the rights to the Singapore Grand Prix. Iswaran was the chairman of the F1 steering committee and acted as the chief negotiator with Singapore GP on business matters concerning the race.
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