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INDUSTRY AND INNOVATION

Historically, Singaporeans have relied almost entirely on

the government to provide environmental services and

develop new environmental technologies. However, this

began to change in the mid-1990s and we have

witnessed the growth of a vibrant and dynamic

environmental industry.

In 2002, the environmental services sector contributed

0.6% of Singapore’s GDP. According to the Economic

Development Board (EDB), this contribution to Singapore’s

GDP is projected to grow 5-10% annually over the next

10 years.

A flourishing environmental industry would promote:

Singapore’s sustainability, as innovative solutions are

developed to address difficult environmental

challenges. Innovations would also bring about a wider

range of options for best-sourcing of projects;

Global sustainability because, with improved expertise,

Singapore would be in a better position to contribute

in the international arena;

Economic growth, by creating new and higher-value

jobs.

WHAT’S UNDERWAY

Increasingly, many environmental companies are working

in partnership with MEWR, NEA and PUB to ensure the

sustainability of Singapore’s environment. These companies

possess both the expertise and the technology to offer a

full range of services covering the entire environmental

value chain to both local and global markets.

Currently there are more 250 environmental companies

operating mainly in the following sectors (see Annex for

the key segments in each industry sector):

Waste management and recycling;

Energy services;

Pollution control;

Pest management;

Cleansing services;

Water and used water treatment.

06chapter

TOWARDS ENVIRONMENTAL SUSTAINABILITYState of the Environment 2005 Report

Singapore’s vibrantenvironmental industrycontributes to our goal ofenvironmental sustainability.

Industry &Innovation

Investments in innovation

The environmental industry is constantly looking for new

and innovative ways to solve environmental problems. The

Singapore government facilitates the process by providing

support for R&D and test-bedding.

In 2001, MEWR set up a S$20-million Innovation for

Environmental Sustainability Fund (IES Fund). The objective

is to encourage and assist companies to undertake

innovative environmental projects to help meet our goal

of environmental sustainability.

Solid Waste Management

Collection of municipal waste has been undertaken by the

private sector since 1996. Altvater Jakob Pte Ltd, FME Onyx

Pte Ltd and SembWaste Pte Ltd are currently the three public

waste collectors who help to ensure that the huge amount

of municipal refuse generated daily is collected and disposed

of efficiently.

In addition. industry associations have been formed among

environmental companies to facilitate collaboration and

exchanges of ideas between companies that provide

similar services. Associations such as the Singapore Water

Association are also a common platform for them to co-

operate with government agencies, and have the critical

mass to take on larger projects together and to raise their

international profile. (A description of the major industry

associations can be found in the Annex).

The objective is to encourage and assist companies toundertake innovative environmental projects to helpmeet our goal of environmental sustainability.

The Government has adopted the following approach in

working with the industry to ensure that companies stay

relevant while continuing to grow:

Nurturing new technologies and capabilities to address

environmental needs;

Working in partnership with companies in providing

environmental services;

Positioning Singapore as an environmental hub;

Improving the image and professionalism of the

environmental services sector.

Innovation for Environmental Sustainability Fund

Grants from the IES Fund cover a percentage of the qualifying

cost of a project. The level of funding varies for different

projects, and is capped at $2 million per project.

Full Funding is granted to projects resulting in technologies

that could be employed directly by MEWR and for which

MEWR needs intellectual property rights to the final

technologies/products.

Partial Funding is granted to projects that result in

technologies and products that have industry-wide

benefits or that benefit only the company.

The Environmental Test-bedding Initiative (ETI) jointly

launched by EDB and MEWR in 2003 is another programme

to promote R&D. ETI offers companies a one-stop platform

to approach the relevant government agencies for support

in infrastructure, manpower, regulatory and financial

matters. For instance, through NEA, companies can access

public infrastructure to test-bed and eventually

commercialise new products.

Even foreign companies with registered offices in Singapore

can take advantage of these opportunities to introduce

innovative environmental technologies in Singapore and

the region. DaimlerChrysler, for example, is currently test-

bedding its fuel cell vehicles in Singapore.

Clay as backfill

Marine clay excavated from construction sites is normally discarded because it is too soft as a backfill material. With a grant

from the IES Fund, Hong Leong Asia Ltd devised a clever way to convert marine clay into liquefied soil stabiliser, by mixing it

with cements, water and additive. The resulting material could then be used for backfilling as well as for soil stabilisation. Aside

from eliminating the need to dispose of marine clay, this reduces the need to import sand and good earth for backfilling.

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From furnace slag to asphalt

NatSteel Ltd sought a new use for ladle furnace slag (a waste from its steel making

process). With help from the IES Fund, it found a way to use the slag to produce

road asphalt. Modified asphalt mixes containing the treated slag were used for

a 40-metre stretch of road in Jurong.

The impact on ground water quality was monitored during the road trial. The

project successfully demonstrated that ladle furnace slag is suitable for the

production of road asphalt. NatSteel not only saved on waste disposal costs but

also contributed to environmental sustainability.

ETI offers companies a one-stop platform to approachthe relevant government agencies for support in

infrastructure, manpower, regulatory and financial matters.

A fuel cell car

Working in partnership

MEWR has been actively exploring ways to work in

partnership with the private sector in the provision of high-

quality environmental infrastructure and services. By building

up a pool of players with the requisite expertise and skills,

both NEA and PUB would enjoy greater outsourcing options

and, ultimately, greater cost savings. In this respect, both

the PUB and NEA have been increasing private sector

participation in government projects through outsourcing

and Public-Private Partnership (PPP) arrangements.

By building up a pool of players with the requisite expertiseand skills, both NEA and PUB would enjoy greater outsourcingoptions and, ultimately, greater cost savings.

One stop, two programmes

The Environmental Test-bedding Initiative consists of:

The Singapore Initiative in New Energy Technology

(SINERGY) – a platform for companies and government

entities to collaborate in developing alternative energy

technologies.

Innovation in Environmental Technology (EnnovaTe) –

which deals with other areas like water treatment, waste

management and air pollution control.

Public-private partnerships

Public private partnerships (PPP) are long-term partnering

relationships between the public and private sector to deliver

services. Through PPPs, the public sector will focus on acquiring

services at the most cost-effective basis, rather than directly

owning and operating assets. Singapore’s first desalination plant

is a good example of a PPP. In 2003, PUB has awarded a Design-

Build-Own-Operate (DBOO) contract to SingSpring Pte Ltd, a

wholly owned subsidiary of Hyflux, for the supply of 30 million

gallons per day of desalinated water from the Tuas Desalination

Plant. Recently, PUB awarded another DBOO contract to Keppel

Engineering for the Ulu Pandan NEWater plant. NEA is also

calling a tender for a DBOO contract for an incineration plant.

Through PPP, we can look forward to the private sector providing

a range of public services over long contract periods, and they

build up their operational experience and track records in the

process. By leveraging on the private and public sectors’

expertise, public services can be delivered more cost-efficiently.

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Hubbing for success

Given Singapore’s size, it is difficult for the environmental

industry to thrive if it relies only on domestic demand. To

alleviate this problem, we are positioning Singapore as an

environmental hub, allowing our companies to showcase

their products and services to a wider audience. At the

same time, our industry is being exposed to new ideas and

potential partners to tap the overseas market.

Sharing expertise – the PUB way

One way that PUB supports knowledge transfer to the private sector is through Singapore Utilities International Pte Ltd (SUI),

a wholly owned subsidiary set up for this specific purpose. SUI offers innovative and cost-effective solutions for water supply,

used water treatment and water recycling.

SUI also deploys the expertise of its Centre for Advanced Water Technology to develop and test new technologies to support

clients' operations.

We are positioning Singapore as an environmental hub,allowing our companies to showcase their products andservices to a wider audience.

Industry conferences and trade exhibitions also provide

an opportunity for local companies to showcase

themselves. Singapore has secured the rights to host several

prestigious international conferences. These include the

International Desalination Association World Congress on

Desalination and Water Reuse, the World Hydrogen

Technologies Conference, and the International Water

Association-Asia Pacific Regional Group Conference. (See

Annex for a more comprehensive list of events Singapore

will be hosting in 2005).

Going pro

Traditionally, many jobs in the environmental sector have

commanded low wages. Even when wages have been

comparable to alternative jobs, many Singaporeans have

been turned off by the unglamorous image of the industry.

Little surprise then that there is little local labour in this

sector, or that the environmental sector at present accounts

for only 0.4% of Singapore’s total workforce.

Last but not least, we are taking steps to enhance

professionalism in the industry. For example, the National

Skills Recognition System (NSRS) has been used to

establish skills standards for conservancy cleaning, street

cleaning, waste collection, hawker centre cleaning,

and pest management.

The ‘1000 for 1000’ initiative was launched in September

2003 as a response to this conundrum. The target is to

create and match 1,000 jobs paying more than S$1,000 a

month in the environmental sectors within 18 months, from

October 2003 to March 2005. As at end 2004, 840 Singapore

job seekers have been matched with jobs in the

environmental sector.

To upgrade jobs in the environmental sector, we are:

increasing mechanisation;

introducing performance-based contracts;

re-designing jobs.

Working closely with the Workforce Development Agency

and Community Development Councils, we have also

started a job-matching service. 2,000 job seekers have

received career counselling.

Refuse collection from bin centres used to be done by a

crew comprising a driver and two workmen. Today,

mechanical compactors are used to compress and store

refuse in sealed containers. The compactors are then

towed away by a prime mover operated by a driver. There

is no longer any need for refuse workmen. This has increased

productivity and resulted in a much cleaner working

environment in bin centres. A prime mover driver now

earns about S$2,000 a month, an almost 50% increment

from past salaries.

The target is to create andmatch 1,000 jobs paying morethan S$1,000 a month in theenvironmental sectors within18 months.

WHAT’S IN STORE

We realise that there is more we can do to grow our

environmental industry.

Engaging tertiary institutions

Singapore’s tertiary institutions are a hotbed of cutting

edge R&D activity, and there is tremendous potential for

them to collaborate with local and international

environmental companies. We will facilitate such interactions

to translate environmental R&D into industrial applications.

Only with a holistic package of R&D, human resource and market strategies can we sustain a healthy, vibrant environmental industry

that will spawn new technologies and help us towards the goal of environmental sustainability.

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“After training, I was upgraded to Driver and, as a result,

there is more mechanisation in my job now. I see this as

career advancement as I now supervise two Crews after

the upgrading. In addition, I enjoy a higher salary which

benefits my family too.”

- Mr Ali Bin Abdullah, mechanical sweeper driver

Drumming up demand

We will also continue to explore ways to stimulate demand

for environmental services and products. One way to do

this is to urge organisations to use companies that employ

NSRS-trained staff. This will promote the adoption of NSRS

standards among service providers, and therefore raise

overall professionalism in the industry.

Photo by courtesy of Ngee Ann Polytechnic