Singapore is already a force to be reckoned with in the maritime industry. The next step is to make Singapore an International Maritime Centre. "To get there we need more education, cooperation with the government, and a set of support services," says Teo Siong Seng, better known as SS Teo, President of the Singapore Shipping Association.
A man of many roles, SS Teo is President of the SSA, chairman of Singapore Maritime Foundation (SMF), as well as managing director of the second largest Singaporean shipping line, Pacific International Lines. The three roles are related, and he smilingly says, "I always have to make sure I know which one I'm doing."
Developing Singapore
Singapore is already well established as a maritime centre, but it wants to grow even further to create an International Maritime Centre; a hub for international shipping with large pool of foreign shipowners.
"When people think of Singapore, they often associate it with the ships, shipyards and ports, but they don't think much on the supporting services to the maritime industry. I see Singapore developing into an International Maritime Centre with a complete set of supporting services, so that Singapore becomes a ëone stop shop' for international shipping; with lawyers, class societies, ship finance, arbitrations and many other areas of expertise creating a maritime cluster," says SS Teo.
The effort to create such a cluster, or International Maritime Centre, was launched two years ago. It was initiated by the government, and is carried out by the Maritime Port Authorities in co-operation with the SMF.
More opportunities
Asia shipping is set to become even more international in the years to come.
"The market will definitely grow. Of the top ten container ports in the world, seven are located in Asia. Of the top 20 container owners in the world, I believe 12 are Asians. As Asia develops, more owners and maritime related companies will set up base here. At the same time we do see emerging Asian players coming up to take advantage of opportunities, from China, India and South East Asia," says SS Teo. According to him, local operators welcome the competition.
"Most people appreciate that you need a critical mass, a cluster, so that you can create more opportunities. It brings more business, and different disciplines and expertise that complement what we have."
And an International Maritime Centre is something that will last, he claims.
"You can move a factory overnight to Vietnam or to Indonesia, but once you establish a centre, the experience and knowledge that's being build up cannot easily be replaced or moved. London is a good example. Even though they have limited number of ship owners now, they are still recognised as a maritime centre because of the expertise they have available and have gathered over the years."
A large industry
The maritime industry in Singapore employs close to 100.000 people and contributes to about eight percent of the GDP (Gross Domestic Product).
"I don't think people realise how important this industry is to Singapore, and it will only continue to grow. A recent forecast suggests that in less than ten years time the industry would count 200.000 people, and account for 12 percent of the GDP," says SS Teo.
He believes that the industry is robust and can withstand hardships. "Over the last few years we went through Asian economic crisis, the 2001 terrorist attacks, and SARS, but in spite of all that the maritime industry continued to grow. I think there is a lot of room for growth, and that is a message to the young people who are thinking about their careers," says SS Teo.
The beauty of Singapore
Explaining the competition, SS Teo lines up the centres in Asia that Singapore has to compete with. Hong Kong, a well established centre, has a large and respectable pool of local and international ship owners, and takes full advantage of the proximity to China. Shanghai, up and coming, is the maritime centre of the fastest growing economy in the world. He remains undaunted.
"What Singapore has to offer is an overall proposition; we have our stable government and is a transparent society. And the beauty of Singapore is that it's neutral ground. We represent a good balance between the east and the west. There is also ease of communication here; not just flight connections, but also IT. Singapore is competitive," says SS Teo.
He himself is an example of his east-meets-west argument, having studied in Scotland. In fact, one of the areas where Singapore is making a push is within education, having set up last year the first degree course in maritime studies in Singapore. Soon a degree in marine engineering will also be available.
Safety and the environment
Within the shipping industry, concerns for safety and the environment are global. In Europe and America, however, there has been more pressure from the authorities towards the industry due to some highly publicised cases of marine disasters.
"In Europe and the US the governments have insisted on certain rulings.
I am not sure if those rulings have come about with ample consultations, or if they just come as a reaction. Whether it is Asia, the EU or the US, we all believe that we must protect the environment, but in Asia I think there is more consultation between the industry and the authorities before new regulations are implemented," says SS Teo.
Regardless, Singapore supports and complies with the regulations from the International Maritime Organisation (IMO), and is serious in working for a safe and environmentally sustainable industry.
"I don't think anyone in the shipping industry today, whether in Europe, Asia or in America, can sacrifice the environment for commerce," says SS Teo.