Singapore, 21 April 2020... the Monetary Authority of Singapore
In response to media reports, Enterprise Singapore (ESG), the Maritime and Port Authority of Singapore (MPA) and the Monetary Authority of Singapore (MAS) confirmed that the agencies are closely monitoring developments related to Hin Leong Trading Pte Ltd and the broader oil trading and bunkering sectors.
2. ESG assessed that Singapore’s oil trading sector remains resilient notwithstanding the challenges posed by the drop in global demand for energy. The sector is sufficiently diversified with more than 130 significant global, regional and local companies that trade energy products. Singapore is also an important regional storage, blending and distribution hub for refined oil products. While Hin Leong is related to UT Singapore Services Private Limited which owns Universal Terminals by common shareholdings, Universal Terminals is operated independently of Hin Leong. Besides Universal Terminals, there are other independent oil terminal operators in Singapore including Vopak, Oiltanking and Tankstore.
3. MPA has assessed that there will be no serious impact on Singapore’s bunkering industry. There may be some short-term minor disruptions due to the lapse of contractual obligations by Ocean Bunkering Services and Hin Leong Marine International. The Singapore bunkering sector is well diversified with 43 other licensed bunker suppliers, including Minerva Bunker and TFG Marine which recently received their licences.
4. ESG and MPA will continue to work with stakeholders to ensure that Singapore’s supply chain for oil products and bunkering operations continue to function well without disruption.
5. MAS is in close contact with the banks on developments related to Hin Leong. MAS agrees with the assessment by ESG and MPA and has reminded the banks not to de-risk indiscriminately from the bunkering and oil trading sectors. Banks should, however, continue to apply judicious credit assessment on individual borrowers to manage their risks.
6. The banks are well capitalised and diversified in their exposures to these sectors. MAS is also closely monitoring liquidity and credit conditions in the market which, on the whole, continue to be supportive of households and businesses.
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About Enterprise Singapore (ESG)
Enterprise Singapore is the government agency championing enterprise development. We work with committed companies to build capabilities, innovate and internationalise. We also support the growth of Singapore as a hub for global trading and startups, and build trust in Singapore’s products and services through quality and standards.
Visit www.enterprisesg.gov.sg for more information.
About the Monetary Authority of Singapore (MAS)
The Monetary Authority of Singapore (MAS) is Singapore’s central bank and integrated financial regulator. As central bank, MAS promotes sustained, non-inflationary economic growth through the conduct of monetary policy and close macroeconomic surveillance and analysis. It manages Singapore’s exchange rate, official foreign reserves, and liquidity in the banking sector. As an integrated financial supervisor, MAS fosters a sound financial services sector through its prudential oversight of all financial institutions in Singapore – banks, insurers, capital market intermediaries, financial advisors, and stock exchanges. It is also responsible for well-functioning financial markets, sound conduct, and investor education. MAS also works with the financial industry to promote Singapore as a dynamic international financial centre. It facilitates the development of infrastructure, adoption of technology, and upgrading of skills in the financial industry.
About the Maritime and Port Authority of Singapore (MPA)
The Maritime and Port Authority of Singapore (MPA) was established on 2 February 1996, with the mission to develop Singapore as a premier global hub port and international maritime centre (IMC), and to advance and safeguard Singapore's strategic maritime interests. MPA is the driving force behind Singapore's port and maritime development, taking on the roles of Port Authority, Port Regulator, Port Planner, IMC Champion, and National Maritime Representative. MPA partners the industry and other agencies to enhance safety, security and environmental protection in our port waters, facilitate port operations and growth, expand the cluster of maritime ancillary services, and promote maritime R&D and manpower development.