Maritime industry survival hinged on innovation

Singapore minister says it is the only way firms can overcome brutally low demand and steep fuel prices.

Innovation is the answer to the daunting business challenges of the maritime sector, said Mr Goh Chok Tong, Emeritus Senior Minister, which is why the government is focusing so much on fostering it through increased maritime R&D infrastructure, pro-innovation policies and development of maritime talent.

"The last few years have been exceptionally volatile and the outlook for global trade remains uncertain. This uncertainty stems from the economic troubles in OECD countries as well as an expected slowdown in emerging markets like China. At the same time, fuel prices are rising and financing has tightened. The over-supply of tonnage looks set to worsen as more new-builds ordered before the last global financial crisis are now coming on-stream. Compounding these difficult market conditions is the global shortage of maritime manpower and an increasing attention to the environmental impact of shipping," he said.

"In this challenging climate, the theme for today’s conference, is both timely and highly relevant. Indeed, innovation is the only way for the maritime industry to overcome the key challenges and meet the increasing demands for greater efficiency, safety and environmental sustainability," he added.

"On our part, the Singapore Government remains committed to fostering an innovative culture within our maritime cluster as part of our efforts to develop Singapore into a leading International Maritime Centre. We do so through a three-pronged approach: First, we invest in maritime R&D infrastructure; second, we formulate pro-innovation policies to meet changing business needs; and third, we develop maritime talent to drive innovation across industry," he said.

"Let me start with R&D infrastructure. Every good idea needs an environment to incubate, test-bed and develop. Today, our maritime research centres are engaged in a wide range of research from engineering design of marine and offshore technology to optimization of port operations and IT integration," he added.

"Our second prong is to develop pro-innovation policies and schemes. We recognize that innovation and R&D require significant investment but with no guarantee of success. While shipping companies are focused on their current bottom lines, it is also important that they continue to make long-term investments in R&D so as to meet future challenges," he said.

"Our third and most important prong is to develop a core of local talent who can spur innovation and support the future growth of our maritime industry. To ensure a steady pipeline of talent, we have worked with our IHLs to launch several maritime-related degree and diploma courses," he said further.