Vulnerability of port of Singapore as a maritime hub due to impact of international trade affairs

• Main Author: Ng, Shi Chin
• Other Authors: Chiu Sai Hoi, Benson
• Format: Final Year Project
• Language: English
• Published: 2019
• Subjects: DRNTU::Engineering::Maritime studies
• Online Access: http://hdl.handle.net/10356/78448
• Institution: Nanyang Technological University

Since 1819, Singapore has been involved in the seaborne trade and has been known as a maritime hub providing services like bunkering, crew changes and petrochemical refinery. Utilising an open economy and an outward-oriented development strategy that relies on the external market for opportunities, Singapore is vulnerable to situations transpiring across locally and globally. The report investigates the global situations causing Singapore’s vulnerability as a maritime hub specifically on the impact of International Trade Affairs. The report employs the Quality Function Deployment methodology through the House of Quality (QFD – HoQ) to identify the relationship between the International Trade Affairs and the services provided by Singapore as a maritime hub. International Trade Affairs and services provided by Singapore are termed Maritime Developments (MDs) and Maritime Hub Requirements (MRs) respectively in this report. The QFD – HoQ requires a two-step process through surveys to gather data. The first step of the survey ranks the level of importance of MRs and the second step determines the level of correlation between the MRs and MDs. Interviews were conducted with academics and industry players to gain insights into the vulnerabilities of Singapore and recommendations to improve and sustain Singapore as a maritime hub. Results collated revealed that US – China Trade War, Iran Sanctions and United States – Mexico – Canada Agreement (USMCA) would impact Singapore as a maritime hub. Singapore’s import and export will be affected by the US-China Trade War and USMCA. Iran Sanctions will impact Singapore’s trade development and GDP while signalling an opportunity to develop new capabilities. Singapore will not be severely impacted by these MDs in the short-term but if left unattended, the long-term disruption will affect the sustainability of Singapore as a maritime hub. To overcome these impacts, diversifying into other trade partners, development of arbitration capabilities, focusing and subsidising training and re-training for local talents, and developing technological advancement and innovation will aid in the sustainability of Singapore as a maritime hub.