Singapore’s Economic Development Board (EDB) is revamping its Jurong Island strategy to strengthen competitiveness and seize opportunities in the global green transition.
Upgrading, Pivoting, and Going Green
EDB’s refreshed approach focuses on three priorities: upgrading existing infrastructure, pivoting to higher-value chemicals, and capitalizing on sustainability-driven opportunities.
Stephanie Chen, Vice President of Green Economy, Energy and Renewables at EDB, told BackgroundBriefing.news “For us to remain competitive, it’s important to look ahead and figure out how to keep our edge.”
One example is ExxonMobil’s new manufacturing unit, which will start operations this year. The facility will convert low-value refinery byproducts—literally the “bottom of the barrel”—into high-value lubricant base stocks for automotive and marine sectors.
Driving Competitiveness Amid a Down Cycle
The chemical industry is facing a downturn, making innovation critical. Singapore, not being the lowest-cost location, aims to move up the value chain by producing less price-sensitive products.
The strategy also aligns with global sustainability trends. “Historically, our industry has been based on fossil fuels,” Chen noted. “Today, more consumers want to maintain their lifestyle in a way that’s less harmful to the environment.”
Green Partnerships on Jurong Island
Companies like Neste and Petrochemical Corporation of Singapore (PCS) are leading the shift. PCS will use renewable bio-based naphtha—chemically identical to fossil-based feedstock—to produce intermediate products for everyday goods, enabling greener consumer choices without compromising quality.
About the speaker:
Stephanie Chen
Vice President, Green Economy Energy and Renewables
EDB
Stephanie Chen, Vice President, Energy and Renewables at the Singapore Economic Development Board, brings over a decade of experience in strategic account management and industry development. She currently leads efforts to grow Singapore’s energy and renewables sector, while driving industry development for the energy and chemicals industry. Previously, as an Associate Director at Temus, Ms. Chen notably launched and scaled the Step IT Up programme. This initiative successfully enabled individuals without prior tech experience to build careers, with multiple cohorts graduating as software developers and digital business analysts for Temus and its partner organisations. Her extensive career also includes professionalising EDB’s account management practices and attracting foreign direct investments.
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5W1H summary:
| Category | Details |
|---|---|
| What | 1. Refresh Jurong Island strategy 2. Upgrade existing base 3. Pivot to higher-value chemicals |
| How | 1. Partner with companies 2. Invest in new units 3. Use renewable feedstock |
| Why | 1. Stay competitive 2. Move up value chain 3. Capture green transition opportunities |
| Who | 1. EDB 2. ExxonMobil 3. Neste and PCS |
| Where | 1. Jurong Island 2. Singapore 3. EDB initiatives |
| When | 1. Strategy refresh ongoing 2. ExxonMobil unit starts this year 3. Green partnerships announced recently |
Frequently Asked Questions:
1. What is the main goal of EDB’s new Jurong Island strategy?
The goal is to upgrade existing infrastructure, pivot to higher-value products, and leverage green transition opportunities.
2. How is EDB helping companies upgrade their operations?
EDB works with companies to invest in new technologies, such as ExxonMobil’s unit converting low-value byproducts into high-value lubricant base stocks.
3. Why is this strategy important for Singapore?
Singapore is not the lowest-cost location, so moving up the value chain and producing less price-sensitive products ensures competitiveness.
4. What role does the green transition play in this strategy?
It opens new opportunities for renewable feedstock and sustainable products, aligning with global consumer demand for eco-friendly solutions.
5. Which companies are leading green initiatives on Jurong Island?
Neste and PCS are collaborating to use renewable bio-based naphtha for producing greener intermediate products.
Transcript of the interview:
Today at the EDB, one of the key priorities for us is to refresh our sustainable Jurong Island strategy. We’re doing this in three ways.
- Firstly, to upgrade our existing base.
- Secondly, to pivot towards higher value chemicals and products.
- And thirdly, to capitalize on new opportunities that come with the green transition.
And what EDB is doing in order to upgrade, pivot, and take advantage of these opportunities?
One of the things we are doing for example is working with companies to refresh their base. That manifests in investments where companies look to change their products.
ExxonMobil recently announced a major investment. They’re starting up this year a new manufacturing unit within the plant that will allow them to upgrade bottom-of-the-barrel products into higher-value lubricant based stock.
What this means is that product that comes out of the refinery that today is not of that high value. It’s going to be transformed into something that can be used as a component in a higher-value product.
For example, going into a lubricant that can be used by the automotive sector or by the marine sector.
So when you say bottom of the barrel, you mean that quite literally.
It’s literally the bottom of the barrel. The coffee grounds at the bottom.
And what is the aim of this strategy? For what reason do we need it? What are your KPIs?
One is the industry today is in a down cycle. For us to continue remain competitive, it’s important for us to look ahead and figure out how to keep our competitive edge.
One is in terms of making sure that we stay ahead of our competitors moving up the value chain. Singapore is not the lowest cost location and that’s something that we’re very cognizant about.
Therefore being able to produce products that are not price sensitive in the market becomes important for companies that want to build a home here in Singapore. More importantly with the green transition there are new opportunities for companies that may not have come so naturally to them in the past.
As an example, historically our industry has been based on fossil fuels. We take crude oil, it gets refined and then it gets transformed into chemicals that go into your everyday products.
Today with the green transition, more consumers are thinking about how I can continue my current lifestyle but in a way that’s less harmful to the environment. For example, Neste and PCS which is one of the crackers on Jurong Island have announced a partnership where PCS will take in renewable biobased N which is a raw material that is chemically identical to a fossil fuel equivalent.
They can use that to help their customers produce intermediate products that will then go into everyday products that you and I can use, allowing us to continue our lifestyle but in a greener way.