Merger of Singapore’s two major shipyard (part II : impact on maritime cluster (offshore & marine engineering, maritime services) and Singapore)

• Main Author: Gan, Daryl Yong Han
• Other Authors: -
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2021
• Subjects: Engineering::Maritime studies
• Online Access: https://hdl.handle.net/10356/150298
• Institution: Nanyang Technological University

The purpose of this research is to identify and evaluate the possible impacts of the merger between Keppel Offshore and Marine (KOM) and Sembcorp Marine (SCM) on the maritime cluster and Singapore. Singapore is a small country that is heavily reliant on international trade as such, we have always regarded our maritime industry as an essential pillar in supporting our economic development and to date, it accounts for the employment of 170,000 people (Maritime and Port Authority (MPA), 2021). Meanwhile, KOM and SCM who are major players of our maritime industry employs 22,000 (Jiang, 2020) and 20,000 (Kang, 2020) employees respectively. Together, that adds up to about 25% of the total maritime workforce. Therefore, the potential merger between and KOM and SCM could have a significant impact as it directly involves 25% of the total maritime workforce and indirectly affects the remaining 75% in sectors of Singapore’s maritime cluster. Findings from literature and industry’s experts have revealed that the potential merger between KOM and SCM would bring about some impacts for the maritime cluster and Singapore, of which, some are positive while some are negative. Some of the key impacts found were the effects on the Offshore and Marine (O&M) Engineering’s supply, maritime service providers and the global standings of the shipyards. These impacts will however, vary accordingly to the intent of the merger and the market condition. Overall, this paper seeks to enable readers to have a better understanding on the impacts of the potential merger between KOM and SCM on the maritime cluster and Singapore.