Your Excellencies, 

 

Distinguished Guests, 

 

Ladies and gentlemen, 

 

1.      Good morning. Selamat Pagi. Let me start by thanking Malaysia’s Ministry of Transport, Marine Department (MMD), and Shipowners’ Association (MASA) for inviting me to speak at Malaysia Maritime Week. This is MPA’s first physical overseas trip for 2022, and we are excited to be here in Kuala Lumpur. Singapore and Malaysia enjoy strong bilateral relations – from MPA, we value our friendship with the Marine Department and we are glad to be able to join you for your Maritime Week. 

 

2.      2020 and 2021 have been particularly difficult for many of us. COVID-19 has affected how we live, work and play. What we took for granted as normal became “not so normal” – work from home, safe-distancing measures, crew change crisis, port closures, and supply chain disruptions. Against this backdrop, this session titled “Catalyst of Change” is very apt. COVID-19 has catalysed change. 

i) Pre-pandemic, the maritime and shipping sectors were already transforming. We were digitalising to create efficiencies, improve processes, and cutting down administrative layers. We were also finding solutions to decarbonise shipping, working towards the International Maritime Organization (IMO)’s Greenhouse Gas emission goals.

3.      COVID-19 added the impetus (or urgency) for change.

i) For example, port congestions in different parts of the world strengthened our resolve on the need to digitalise global supply chains. Climate change continues to gain momentum – it is becoming clear that maritime sector has to work with the energy sector to find answers to future zero carbon fuels that ships will run on. 

4.      It’s apparent that the world must rally together to resolve these transnational, transboundary issues. These are existential changes that we need to pursue to stay relevant. MPA has been driving change through the three “D”s: Digitalisation, Decarbonisation, Disruption. 

 

5.      Today, I would like to focus on three key principles on catalysing change – Conviction, Collaboration and Communication. 

 

 

 

 

 

 

6.      Conviction, for me, is the most important point, to dealing with changes or making changes. 

 

 

7.      Let’s take a look at the global supply chain.  I had earlier mentioned that COVID-19 provided the impetus for change. In fact, the lines between what was traditionally regarded as “maritime” and “non-maritime” are blurring. Let me cite two examples.

i) First, amidst the supply chain woes that is confronting the world right now, we have seen liners accelerating its vertical integration and venture into areas beyond their traditional domain. In December last year alone, three shipping lines – Maersk, CMA CGM, and MSC – expanded their logistics capabilities including into air cargo. Concurrently, non-traditional players outside maritime are moving into shipping, with Amazon, Walmart, IKEA either chartering their own vessels or buying their own containers in response to the port congestions.

ii) Next, climate change. The green movement continues to gain momentum, and has become a necessary competitive advantage for countries and companies, as consumers place more urgent emphasis on reducing carbon footprint. This means that more attention should be paid to maritime energy transition. For years, ships ran on one single source of energy, from wind to burning coal to oil. But this is changing. There is now the billion-dollar question to answer – what is (or are) the next sustainable energy? Will one single low/zero carbon fuel reign supreme, or will there be a multi-fuel transition? 

 

8.      Amidst these ground shifts, we need to have the conviction that our industry will emerge stronger and stay relevant. So how can we position ourselves to capitalise on these shifts? Let me make two suggestions. 

i) First, we need to establish a talent pool. There is certainly an opportunity for the maritime and shipping sector to cultivate future talents now. Shipping is the backbone of the global economy, especially this region where the Straits of Malacca and Singapore (SOMS) funnels one-third of world trade. But the image of maritime has typically been one that is laborious. We have typically been working in the shadows, but due to the attention on supply chains and green, there is opportunity to re-paint the image of the industry as one that is forward-looking and exciting. 

ii) Second, ASEAN – how do we capitalise opportunities together. Today, ASEAN is the fifth-largest economy in the world and it is well on track to become the fourth largest by 2030. The entry into force of the Regional Comprehensive Economy Partnership (RCEP) earlier this year would further spur the growth of the region. We should build upon the strong foundation. I fondly remember the warm interactions among the ASEAN delegations during ASEAN Maritime Transport Working Group meetings, and the good discussions on how to make Straits of Malacca and Singapore resilient under the Cooperative Mechanism. Amidst the geopolitical shifts, ASEAN unity will be key in differentiating Southeast Asia from other regions. A good example is the ongoing efforts to develop an ASEAN Single Shipping Market (or the ASSM), where Malaysia is playing an important role in. Singapore stands ready to work together with fellow ASEAN member States in supporting the ASSM. 

9.      Difficulties mastered are opportunities gained. I have every belief that the global maritime community can continue attracting the future generations to join us in our endeavour, and ASEAN will become an increasingly growth region with immense opportunities . 

 

 

10.     Next – collaboration to sustain changes on a global scale. This is both ideal and practical. Maritime is a global business. Ideally speaking, everyone should work together, and practically speaking, no one country or single entity would be able to find answers to global supply chains issues or identify the next low/zero carbon fuel alone – it’s close to mission impossible. 

 

11.     This is why Digitalisation and Decarbonisation must be designed to be inclusive – being inter-operable and a bridge-builder, with the goal to connect regions and collaborate with like-minded partners. Let me share two examples of how we can build global communities: 

i) The Port of Singapore is working towards layering digital connectivity over physically connectivity.  It is about connecting data, to enable seamless data transfer and strengthening digital connectivity.

For global supply chain to be resilient, we need a network of ports. Taking the port congestions as an example, we believe that further efficiencies can be created by enhancing port connectivity both upstream and downstream. We are doing so through digitalOCEANSTM, some sort of a universal plug, which aims to help enhance ship-port data exchange inter-operability. If materialised fully, the dream is for ships calling at sea-ports to communicate as well as perform the port reporting requirements and formalities in advance. This will help reduce the administrative workload on crew, relieve ship congestion, while building efficiency simultaneously.  

ii) Second, maritime decarbonisation requires a global, multi-coordinated approach – to achieve IMO’s decarbonisation targets. Horizontal players across the value-chain have to come together and pitch in. The general approach should be one of inclusive, especially when it comes to capacity-building and knowledge sharing. The Global Centre for Maritime Decarbonisation was set up in Singapore to serve the global community, a public-private partnership of $160m, to nudge solutions for the future of shipping.

To ensure an inclusive approach to decarbonisation, Singapore and IMO have also launched NextGEN (Green and Efficient Navigation) which is a virtual eco-system to connect stakeholders across the maritime value chain, to collaborate on solutions together. We hope to involve and enable collaborations to find solutions together. More will be discussed at the Singapore Maritime Week this April. 

 

12.      Last, you need good comms, both externally and internally, to drive change. 

 

 

13.      To our external stakeholders, it is about listening and being practical – two-way communication, active listening, work to find holistic solutions. A strong tripartite partnership, within a country and at the global level, is particularly important during crisis. I recall how port authorities came together at the onset of the pandemic under the Port Authorities Roundtable including US, European, Asian and Malaysian ports including Port Klang Authority, Johor Port Authority, Bintulu Port Authority, Kuantan Port Authority and Kemaman Port Authority to commit to keep our ports open and facilitate crew change. 

 

14.      In Singapore, tripartite collaboration has been helpful in driving the agenda of three “D”s – disruption, decarbonisation and digitalisation. MPA, the Singapore Shipping Association (SSA), Singapore Organisation of Seamen (SOS) and Singapore Maritime Officers’ Union (SMOU) came together often to drive the crew change agenda. While the virus was raging on, we managed to sort out the differing needs and views, to support our seafarers out at sea. All parties raked our brains for a practical approach that works.

 

15.      Through effective and open communication, we succeeded in developing protocols for safe crew change through the Singapore Crew Change Guidebook which was shared with fellow IMO member States. We managed to develop CrewSafe audit programmes that have served as reference guidelines for IMO and other organisations like International Transport Workers’ Federation (ITF), International Maritime Employers Council (IMEC), International Chamber of Shipping (ICS). Similarly, beyond COVID, after understanding companies’ pain points, we partnered up for initiatives such as the Maritime Digitalisation Playbook, driving electronic bills of lading (e-BL), and digital bunkering to improve processes. 

 

 

16.      At the same time, internal communication within an organisation is also important. Even if the senior leadership team is convinced and motivated of the need to drive changes, we need the rest of our colleagues’ buy-in. In MPA, we encourage our officers to take ownership in innovating, become  change agents, and come up with challenge statements to improve processes. We created  the Transformation Office and Sustainability Office and have workstreams in emerging areas due to grounds-up initiatives.

 

17.      I believe it’s important for ideas to come from all sources, from top to bottom, left and right. Operating in this disrupted world requires an organisation to be agile, and receptive to ideas. Communication will be one of the fundamentals that makes it easier for countries, companies, organisations to navigate through changes.

 

 

18.      To conclude, maritime and shipping are at an inflection point. It is critical that we, as one global maritime community stay convicted in finding out the answers that a future maritime industry will need, collaborate across all parties and continue to communicate effectively. I think everyone has much to gain from the new opportunities and solutions that we can co-create – like growing our talent pool together, building an ASEAN Single Shipping Market, decarbonising shipping, and enabling a digital supply chain to make trading much more efficient among us. 

 

19.      Thank you. Terima kasih.