Iswaran revealed the possible offshore aid at the launch of Singapore’s first R&D centre for the marine and offshore engineering sector on Monday, by the Agency of Science, Technology and Research (A*Star) and the National University of Singapore (NUS).
“The government is studying, in consultation with the marine and offshore engineering industry and financial institutions, the need for measures for the sector. However, while the government will endeavour to render assistance where appropriate, it cannot be a panacea,” said Iswaran.
“It is critical that companies and financial institutions take appropriate measures in their own long-term interests - to ensure that good businesses survive, respond to the industry's challenges and build capabilities for future growth.”
An aid that is already in place for the offshore marine sector is the extension of port dues concession for OSVs in Singapore port, announced by the Maritime and Port Authority of Singapore (MPA) back in September 2015.
The concessions are applicable to OSVs approved by MPA that do not carry out cargo operations, calling at MPA designated offshore marine locations and/or specific anchorages in port.
Iswaran stressed that the offshore and marine segment, which is going through one of the toughest downturn, remains an important part of Singapore’s economy.
Launched on Monday, Singapore’s Technology Centre for Offshore and Marine Singapore (TCOMS), a joint venture between A*STAR and NUS, hopes to provide state-of-the-art R&D facilities for the industry.
The facilities include the Deepwater Ocean Basin, which is currently being constructed in NUS and is expected to be completed in 2019. This facility will be able to simulate harsh ocean environments and facilitate the development of concepts such as intelligent floating platforms and subsea systems.
The offshore recession, brought about by the collapse in oil prices and the lingering oversupply in the industry, has led job cuts and restructurings among offshore companies. Among those, oil services firm Swiber Holdings went into judicial management in August.
Singapore’s big offshore yards Keppel Offshore & Marine has cut 8,000 jobs so far this year and Sembcorp Marine has cut 8,000 jobs since 2015.
Other companies like Swissco Holdings is struggling to repay its maturing debts, Marco Polo Marine is starting to restructure, ASL Marine is scrambling to secure new fundings, and EMAS Offshore took a full year loss.
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