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Posts Tagged ‘Sembcorp’

Our flag kanna burn, blame pro PRC FT policies?

In Humour, Vietnam on 17/05/2014 at 6:20 am

It was reported that the recent Vietnamese rioters burnt our national flag and industrial parks because our Singapore’s flag was mistaken as the PRC’s flag. A TRE writer said that this sounded like a convenient excuse for both the authorities of Vietnam as well as Singapore. To the Vietnamese, it could claim that the fire was an honest mistake. To the Singapore Government, it could claim that the fire was not due to any failed foreign policy.

The person went on to argue that S’pore was pro-PRC, and the Viets knew this, and decided to whack us.

Well this could be right. but my take is that the Viets “know” that S’pore has so many PRC* FTs that they think S’pore is part of Greater China: so might as well burn our flag, while they are burning Taiwanese factories and killing a Chinese worker. Anyway burning our flag is a lot less worse than burning S’porean- owned factories, businesses or industrial parks, or killing S’poreans. So in my scale of things that matter, burning our flag is pretty. Lives and property matter more.

Which brings me to FDI. Japan, Taiwan, Singapore and South Korea respectively are Vietnam’s four largest investors, as measured by registered capital. China ranks between 5th and 11th, depending on how Vietnam’s official data is interpreted. A Western analyst says foreign investors are still trying to determine whether there are more serious problems afoot that may pose a potential threat to future investment, such as a bias against foreign investors, or instability in the regime.

(http://www.economist.com/blogs/banyan/2014/05/factory-riots-vietnam)

Given Sembcorp’s biz as a an industrial park developer there, it will be watching closely.

To end, since partying in Orchard Rd is a “trespass” on our sovereignty (at least to one GMS), I look forward to hearing from Goh Meng Seng supporting the govt’s stand on our flag being burnt. If not, I and you the reader can reasonably conclude that GMS is anti-Pinoy or the PAP govt (or both), rather than pro-Singapore. Or at least being pro-S’pore comes lower in his priorities than being ant-Pinoy or anti-PAP.

BTW, I would be more indulgent of GMS if he had simply said that Pinoy partying in Orchard Rd was not to his liking because it was too in S’poreans’ face. But he decided to rant about sovereignty, a technically legalistic concept.

 “I don’t know what you mean by ‘glory,’ ” Alice said.
    Humpty Dumpty smiled contemptuously. “Of course you don’t—till I tell you. I meant ‘there’s a nice knock-down argument for you!’ ”
    “But ‘glory’ doesn’t mean ‘a nice knock-down argument’,” Alice objected.
    “When I use a word,” Humpty Dumpty said, in rather a scornful tone, “it means just what I choose it to mean—neither more nor less.”
    “The question is,” said Alice, “whether you can make words mean so many different things.”
    “The question is,” said Humpty Dumpty, “which is to be master—that’s all.”

    Alice was too much puzzled to say anything, so after a minute Humpty Dumpty began again. “They’ve a temper, some of them—particularly verbs, they’re the proudest—adjectives you can do anything with, but not verbs—however, I can manage the whole lot! Impenetrability! That’s what I say!”

(Thru the Looking-Glass)

Have a gd weekend.

—-

*Slutty looking, violent, cheating shop assistant can get PR meh? There is gd evidence that a PRC prostitute got citizenship.

 

Where S’porean traits produce world-class TLCs

In Energy, Indonesia, Temasek, Vietnam on 28/11/2013 at 6:25 am

More to irritate Temaeek and S’pore (self) haters, especially TRE readers*. There are advantages to S’poreans’ reputation as the Prussians of the East: hardworking, careful, conscientious and mindlessly efficient. These are very qualities that make Keppel and SembCorp world beaters in rig-building.

Singapore’s two main yards, Keppel and SembCorp Marine, have also invested heavily in quality and efficiency. They specialise more in deep-sea rigs than in drill-ships and carriers. Keppel, the bigger of the two, is building a record 20 such monsters this year; next year it will deliver the first of three giant, $600m “jack-up” rigs (ones that are floated into place then jacked up on their legs).

Time is money

The Singaporeans are also good at building things on time, which is vital in an industry where late delivery can cost the operators of rigs and drill-ships over $500,000 a day. Over the past five years, rigs ordered from Keppel and SembCorp were, on average, delivered ahead of schedule, whereas Chinese yards delivered 50-250 days late, says IHS Petrodata, a research firm.

http://www.economist.com/news/business/21590496-korean-and-singaporean-yards-have-adapted-well-chinas-challenge-deeper-better

As to China’s cost advantage, having facilities in Indonesia helps provide cheap labour for SembCorp’s rig building biz. Keppel too has an Indonesian operation, though its tiny compared to SembCorp’s.

And with Vietnam having problems with China over maritime boundaries, one wonders if Chinese built-rigs are allowed in its waters. Remember, energy cos are exploring for oil off Vietnam. Still, the waters do not require the sophisticated rigs built by these TLCs.

Related post: http://atans1.wordpress.com/?s=Temasek+Fab+5

*Though TRE readers will be pleased that these TLCs are not led by ex-generals or ex-Temasek MDs. The CEO of Keppel is a scholar, but I’m not sure of the background of CEO’s SembCorp. But both have worked that these TLs for many yrs. They were not parachuted in like in NOL to teach executives to suck eggs.

M’sia: The only winners of GE 2013

In China, Malaysia, Vietnam on 12/10/2013 at 5:10 am

In the words of the Institute of Southeast Asian Studies (ISEAS), a S’pore govt-funded think tank, in its Oct Asean Monitor

Barisan Nasional’s worst-ever general election performance in May has undermined Prime MinisterNajib Razak’s promise to reform the United Malays National Organization (UMNO) after he took overits leadership in 2009. Outside UMNO, liberal reforms are stridently opposed and resisted by extremist Malay-Muslim groups such as PERKASA and by UMNO-owned media, especially the Utusan Malaysianewspaper. Within UMNO, political momentum favours former Prime Minister Mahathir and his conservative allies, who support preserving the ketuanan Melayu (“Malay ownership”) status quo.

Recognizing that UMNO needs to be further strengthened after its failure to win a convincing majority of the Malay vote, many senior party leaders and veterans will not want the president and deputy president posts, held by Najib and Deputy Prime Minister Muhyddin Yassin, respectively, to be contested duringthe upcoming October party elections. However, the party’s three vice-presidential posts are likely tobe hotly fought over by the incumbents Ahmad Zahid Hamidi, Shafie Apdal and Hishammuddin Husseinand by three challengers, namely Mohd Ali Rustam, Isa Samad and, potentially, Mukhriz Mahathir.

Recent developments have further pressured Najib to follow through with his general-election pledge totackle corruption and crime. The 2013 Global Corruption Barometer report confirms the perception thatthe level of corruption in Malaysia has increased despite the government’s claims to the contrary. Publicconfidence in the corruption-tainted police force received another huge blow from the recent spike inviolent crimes, including more than 30 murder attempts in the past five months.

Because of the country’s deteriorating public finances, a global ratings agency has downgraded Malaysia’ssovereign credit rating outlook from stable to negative. The Malaysian ringgit slid to three-yearlows against the US dollar and to 15-year lows against the Singapore dollar; these slides may generate inflationary pressures. The government announced 10.5 percent and 11 percent hikes respectively in the prices of subsidized 95 RON gasoline and diesel on 3 September, and it is likely that further measuresto strengthen the country’s fiscal position will be introduced.

Key points: The status quo will persist, with conservatives gaining control of the UMNO supremecouncil. Budget 2014 will see the introduction of a GST and the scaling back and rescheduling of publicly funded projects.

The Chinese have to live with the consequences of their vote for Anwar’s group. The Indian community (which marginally supported BN) must be sore with the Chinese.

Related articles: http://www.economist.com/news/asia/21586864-ruling-party-returns-its-old-habits-race-based-handouts-bumi-not-booming

http://blogs.wsj.com/searealtime/2013/10/08/in-talent-battle-malaysia-loses-to-singapore/

Other Asean round-up news:

Vietnam R Sembcorp (belated)

UNDETERRED by the many challenges facing Vietnam’s economy, Sembcorp has once again upped its investment in the socialist republic – this time by building central Vietnam’s first large-scale industrial park worth US$337.8 million.

This latest of five Vietnam-Singapore Industrial Parks (VSIPs) is sited in Quang Ngai province, about 90 minutes’ flight south of Hanoi. It offers manufacturers a new and alternative investment locale that is away from Vietnam’s northern and southern regions, where labour markets are tighter and costs continue to rise.

VSIP Quang Ngai will take shape in the form of a 1,120ha industrial park and integrated township; the industrial park will take up 600ha, with the other 520ha slated for commercial and residential purposes. BT 14th August: PM was in Vietnam BTW.

Thailand is to hand over rice and rubber in part-payment for its new high-speed rail system, it’s reported.

The country’s transport minister is expected to formally agree the barter deal with Chinese premier Li Keqiang … The project to link Bangkok with Nong Khai, close to the Laos border, is part of a proposed 2m baht ($30bn, £19bn) infrastructure investment programme to part-financed with agricultural products. The railway is one day envisaged to link Thailand with the Southern Chinese province of Kunming, via the Laos capital Vientiane.

http://www.bbc.co.uk/news/blogs-news-from-elsewhere-24475574

Vietnam: Getting fashionable again & Yaw’s there

In Vietnam on 09/05/2012 at 6:59 pm

So Yaw, the mystery man from Hougang is reported to be in Hanoi. Pity his Mrs because I hear that the gals in Hanoi are pretty horny.

Seriously, if the report in ST is true, he is smart to try his hand there. Vietnam is back on the radar of int’l investors, and Hanoi, is a less competitive, less int’l place than Ho Chi Minh City. Gd place for someone savvy like Yaw.

While until recently, non-manufacturing investors (like “paper” investors, and those who invest in property) have been giving Vietnam a miss because of inflation, problems in the banking sector, and a downturn in property, Vietnam’s economy has continued to grow by about 6% a year. Largely because of manufacturing: 41% of the economy.

MNCs who make things love the country. Vietnam is Nike’s biggest production centre, Intel has a major chip facility. HP has plants here. Samsung will invest US$1.5 billion in an information technology complex that will bring in 30 more related companies. Nokia is investing about US$300 million in a plant for mobile phones.

No wonder, Singapore’s four joint industrial parks in Vietnam have draw investments worth some US$5.3 billion since the first one started in 1996. Per hectare, the parks now attract US$6 million in investments, nearly twice higher than the national average of US$3.5 million.

And no wonder, Sembcorp Industries recently announced that it has obtained approval to proceed with a $337.82 million industrial park and 1,200-megawatt power plant.A Vietnamese-Singapore joint venture involving Sembcorp will develop the industrial park in Quang Ngai Province in central Vietnam, Sembcorp said.

The Vietnam-Singapore Industrial Park Quang Ngai will comprise a 600-hectare industrial park as well as a 520-hectare site zoned for commercial and residential development. The park will be the Sembcorp-led consortium’s fifth in the country.

Why the other investors are returning to Vietnam:

 http://www.todayonline.com/Commentary/EDC120503-0000002/Vietnam-bounces-back,-for-now

 http://www.todayonline.com/Commentary/EDC120504-0000004/Driving-the-Vietnam-growth-train

DBS Sec remains bullish on offshore & marine sector

In Energy on 16/03/2011 at 6:17 am

(Issued juz before earthquake)

We reiterate our preference for offshore shipyards with strong order flows for 2011. Our top picks are Keppel Corp (‘buy'; TP S$14.63) and Sembcorp Marine (‘buy'; TP S$6.63) as the key beneficiaries of resurgence in premium jack-ups; and Cosco Corp (‘buy'; TP S$3.16) being the leader among Chinese yards for offshore projects. We view a prolonged spike in oil prices as a key risk, as it poses a significant threat to global economic growth.

Indonesia: Bullying instincts arising?

In Energy on 09/07/2010 at 6:32 am

This blog has reported that Indonesia is the new Brazil http://atans1.wordpress.com/2010/03/20/our-neighbour-the-new-brazil/. We should be nice to them but be careful of its bullying tendencies.  Indonesia has form in bullying those it thinks are weak. It succeed in East Timor, West Papua, Acheh and Celebes. It failed against M’sia and S’pore.

It seems to be trying again. Sometime back, our very own superhero MightyMind (or MM Lee in real life) told us,  “We are buying gas from our neighbours; they are thinking of upping the price in spite of the contract”: confirming Indonesian reports that various Indonesian officials have renewed calls for the country to renegotiate a reduction in the volume of gas sold to Singapore, given Indonesia’s growing domestic gas demand.

E.g. in June, Coordinating Economy Minister Hatta Radajasa was quoted as saying, “I have ordered the Energy Ministry and upstream regulator BPMigas to renegotiate the contracts, though we may not achieve what we want. I don’t want to breach the contracts, but we have to try any possibility.”

Energy and Mines Minister Darwin Zahedu Saleh was quoted in mid-June as saying Indonesia will adopt a government-to-government approach, rather than a business-to-business one, to renegotiate the gas supply deals with Singapore.

Indonesian Vice-President Boediono said in June the government will gradually increase its domestic gas price to try to increase investment in the industry and encourage foreign investors to sell their Indonesian gas domestically rather than export it.

But the  government led by the son of MightMind has not gone AWOL. Singapore has already started building a $1.5 billion liquefied natural gas terminal that will starting importing LNG from early-2013, according to MM from Qatar.

The terminal will initially be able to import as much as 490 mscfd of gas, slightly more than the total the three gas pipelines (two from Indonesia and one from Malaya) brings here.

Background info from BT on Indon gas

At present, Sembcorp Gas imports 325 million standard cubic feet daily (mscfd) of natural gas per day from West Natuna in Indonesia under a 22-year deal. This gas goes to major power generators and petrochemical companies here, including Tuas Power, PowerSeraya, ExxonMobil and Ellba Eastern.

From 2011-12, Sembcorp will import an additional 86 million mscfd from Natuna under a second deal that has been struck.

GSPL, a subsidiary of Temasek Holdings, currently imports 350 mscfd of gas daily from Grissik via the Sumatra-Singapore pipeline under a 20-year contract that expires in 2023.

GSPL has recently been in discussions with the production sharing contract holders there, including ConocoPhillips, on a new sales agreement for additional supplies, including for GMR of India’s upcoming Island Power station here.

Both Sembcorp’s and GSPL’s Indonesian piped gas contracts are based on formulas that take into account high sulphur fuel oil prices.

As it is, the Indonesian reports cited a BPMigas official saying the Singapore importers are paying double the amount paid by domestic buyers there.


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