FRENCH MARITIME CLUSTER COMMITTEE SINGAPORE. How could French companies match the Singaporean maritime strategy for the coming years?

Transcription

1 FRENCH MARITIME CLUSTER COMMITTEE SINGAPORE How could French companies match the Singaporean maritime strategy for the coming years?

2 PREVIOUS STUDIES * French Maritime Industry in the ASEAN * Singapore Maritime Strategy Future Singaporean Maritime Strategy and French companies Analysis of the South-East Asian Maritime sector Mapping of the French positioning in the region Mapping of the Singapore Maritime market, its strategy and main actors as well as its international presence Limited at Shipping, LNG and Deepsea Trends Analysis of future trends and challenges faced by Singapore in 3 main topics: Environmental, Technology, Education. *Available on demand 2

3 Asian Strategy Challenge ESSEC SMIB & French Maritime Cluster How could French companies match the Singaporean maritime strategy for the coming years? 3

4 The main sectors we have focused on 4

5 20 interviews with professionals within the maritime sector 5

6 3 MAIN TOPICS Green Initiative New technologies & Future trends Education, Recruitment & Marketing

7 GREEN INITIATIVE

8 Green Initiative, response to the IMO regulation US & Baltic sea: Nox regulation 2017: Ballast regulation 2020: MEPC Sulfur regulations (0,5%/l) 2022: CO2 regulation Sponsor Opportunities Challenges Maritime and Port Authority of Singapore (MPA) Invests up to S$100 million over 5 years in the Maritime Singapore Green Initiative Green Ship Program; Green Port Program; Green Technology Program Economic: companies which apply can enjoy reduction of initial registration fees and other costs Political: improve the image of the company in terms of green involvement and social responsibility Economic: raises important costs of transformation and adaptation for existing ships Political: as there are currently no penalties attached to the regulations of IMO, companies do not apply systematically them and a fortiori the Green policy: 8

9 TECHNOLOGY & FUTURE TRENDS

10 Singapore is anticipating Fertile ecosystem Initiatives Fertile Ecosystem Maritime Centre Call for Proposals Singapore opted for a right mix between Public and Private entities to sharpen its maritime strategy 10

11 Singapore is anticipating Investing on innovation and technology 3 major axes of development to become the Global Maritime Hub Importers & Exporters Petro-chemicals Storage warehouse Port Technology Port & Terminals Op Ship bunkering Pilotage & Tug services R&D ICT Ship Broking & Chartering Ship Owning/Operation Ship Management Ship Agency Ship Technology OME Technology Marine Equipment Manufacturing Maintenance, Repair Offshore Logistics 11

12 Technology that would disrupt the Maritime World Big Data Analytics Communications Sensors Propulsion Human computer Interaction Energy Management Robotics Advanced Material Shipbuilding Smart ship Advanced Manufacturing Warehousing Automatization Autonomous System 12

13 EDUCATION, RECRUITMENT & MARKETING

14 Universities Polytechnics Maritime Education in Singapore MARITIME EDUCATION IN SINGAPORE STUDENTS SCOLARSHIPS GOVERNMENT RELATED MPA sponsorship MaritimeONE Howe Yoon Chong PSA Endowment Fund ASSOCIATIONS ASMI Tripartite Maritime Scholarship (TMSS) CORPORATIONS Keppel Group Scholarship Sembcorp Marine Lua Cheng Eng scholarship WORKERS SPONSORPHIPS Maritime Custer Fund Scheme MCF-Manpower MCF-Development MCF-Productivity MPA Academy EXECUTIVES TRAININGS 14

15 Maritime Education in Singapore International Partnerships INTERNATIONAL PARTNERSHIPS ACADEMIC WORLD CORPORATION PARTNERS (1) 5 main Academic Partners 8% 16% SG Danemark 76% Others * + Others * UK (5%), Thai (3%), Germany (3%), China (3%), Canada (3%) (1) Based on MaritimeONE website and 37 companies 15

16 French Corporations Main Challenges in Maritime Education in Singapore Being visible Retain Right people & Trainings Attract 16

17 GREEN INITIATIVE INSIGHTS

18 WHAT IS IT? RECOMMENDATION #1: SCRUBBERS Device using sea water and chemicals to remove sulphur from engine exhaust gas HOW IS IT A GOOD INVESTMENT? It reduces the switching cost to an entirely new fuel system It is a cheaper solution than low sulphur fuel LIMITS High costs of implementation: between 5 to 10 M$ Scrubber regulation by 2023 The environmental benefits can be discussed Could be interesting for shipbuilders, as scrubbers can be included in new ships or retrofitted into existing vessels in the shipyards. Useful for ship-owners in the short run. 18

19 WHAT IS IT? It helps shipping companies to reduce their sulphur emissions HOW IS IT A GOOD INVESTMENT? It requires limited initial investment costs RECOMMENDATION #2: LOW SULPHUR FUEL Total & CMA-CGM Agreement to provide solutions reducing sulfur emissions through Low sulphur fuel (0,5% and 3,5% and LNG ) LIMITS Significant cost of refining fuel and converting it into low-sulphur fuel Issue of unavailability (unbalance between supply and demand) Where will it be available? It still releases substantial NOx and PM This solution could be interesting for oil & gas companies and Shipowners in the long run 19

20 WHAT IS IT? Natural gas in liquefied form as a result of lowering the temperature to below its boiling point of -162 Celsius HOW IS IT A GOOD INVESTMENT? Asia houses the world s largest importing country and single importer. It is also a major producer Singapore s goal is to be Asia s LNG hub RECOMMENDATION #4: USING LNG LNG Bunkering Vessel in Zeebrugge (Belgium) JV (Gas4sea) between Nippon Yusen Kaisha (NYK), Mitsubishi Corporation and ENGIE. Classified by Bureau Veritas Building the world s first LNG bunkering vessel for refueling LNG-powered vessels at sea LIMITS Lack of LNG fueling infrastructure across the major bunkering destinations High costs of building LNG fuel ships and for the additional safety measures for the storage LNG Bunkering Cooperation MOU between Total Marine Fuels Global Solution and Pavilion Gas in Singapore, at the international Gastech exhibition (Tokyo) Could be interesting for Ship-owners in the long run, for shipbuilder, for bunkering, energy 20

21 WHAT IS IT? To find green innovations and technologies which comply with IMO regulations To ensure green shipping practices and to contribute to economic growth RECOMMENDATION #3: R&D INVESTMENTS DHL incorporated sustainability in its corporate strategy Employ diverse carbon efficiency measures Environmental protection program GoGreen Partnership with the Singapore Management University This solution could be interesting for all companies in the maritime to improve green solutions through R&D CMA CGM Marco Polo Vessel Exhaust gas by-pass system Ballast water treatment system Electronically-controlled Wärtsilä engine that can reduce NOx emissions And a pipe plan to facilitate use of hyphenate lowsulphur fuel 21

22 TECHNOLOGY & FUTURE TRENDS INSIGHTS

23 CHALLENGE: A COST-DRIVEN INDUSTRY RECOMMENDATION #1 Huge fixed costs / low margin profit Long & complex supply chain TARGET: MOVE TOWARDS CUSTOMER-DRIVEN New types of customers: burgeoning Middle Class: 3 billion people = higher expectations (transparency, reliability, etc.) Consumers needs are opportunities Sustainable and effective Supply Chain is key BE MORE CUSTOMER-FOCUSED Take advantage of the innovative environment in Asia Modularity & Adaptability to APAC Region Be disruptive Enable companies to monetize on high value services TRAXENS smart containers This solution could be interesting for logistic companies, start-ups, aerospace, defense 23

24 RECOMMENDATION #2 CHALLENGE: A TRADITIONAL INDUSTRY Many family-owned companies Under-estimation of the threat of new comers due to high entry costs Singapore joined in 2016 the R3 consortium and started to experiment block chain technology with MAS approval. TARGET: MORE TRANSPARENCY, SECURITY & INNOVATIONS Need for accountability and security Invest in technology not to be outdated SCALE UP THANKS TO DIGITIZATION Add value to both businesses & consumers services Block Chain as a way to trace a product life cycle Reap the benefits of being tech-oriented Thales 24

25 RECOMMENDATION #3 CHALLENGE: AN OVERCOMING COMPLEXITY Rigid and secretive way of doing things is obsolete Complexity can not be handled alone TARGET: BE THE FIRST MOVER & COLLABORATE Take advantage of new technologies Reach and develop new markets Create an undiscovered need for the customer DEEPEN PARTNERSHIPS Pre-competitive collaboration Leverage power via co-financing to start to innovate Foster Innovation Multiply MOU, JV with Singaporean fertile ecosystem ST Electronics, Defense Science & Technology (DSTA) & CLS to develop TELEOS-2 the next generation earth observation satellite Signed in 2015 in order to improve data management 25

26 RECOMMENDATION #4 CHALLENGE: THE RISE OF THE FOURTH REVOLUTION Unprecedented change in labour skills Emergence of Artificial Intelligence and robotics Big shift in management and leadership roles PSA strategic moves TARGET: GET READY FOR THE CHANGE Digital approach of Maritime Have the right people Be key players of this change FOCUS ON DATA ANALYTICS AND NEW SKILLS Data management is key, learn to monetize it Predictive analysis to forecast behaviours & trends Train current & future managers Attract data-scientists and talents of tomorrow ECA group, Robotics 26

27 EDUCATION, RECRUITMENT & MARKETING INSIGHTS

28 CHALLENGE: CURRENT TRAININGS ARE NOT ADAPTED TO CORPORATIONS NEEDS RECOMMENDATION #1 Many academic programmes are available They do not train the students to become effective and independent managers or employees Not enough hands-on experience within French companies TARGET: CREATE TAILOR-MADE TRAININGS Create in partnership with local universities but also French Grandes Ecoles/Universities to develop the right programmes or corporations own Academy Offer scholarships mixed with hands-on experiences through apprenticeship or internships SOME EXAMPLES Llyod Register PhD Keppel Offshore & Marine Scholarships at the Higher Nitec Diploma and Undergraduate level, DCNS Master in Maritime Technology in Malaysia in March 28

29 RECOMMENDATION #2 CHALLENGES: LACK OF VISIBILITY & DIFFICULTY TO ATTRACT LOCAL TALENTS French companies are absent of most maritime events and career fairs Students are not aware of the quality and good performance of French corporations Lack of prestige = lack of local talents attraction TARGET: INCREASE REPUTATION TRHOUGH EVENTS Take part in local maritime events and career fairs Create your own events Partner with French companies through Maritime clusters & French Chamber of Commerce Invest in communication INSIGHTS Increase attractiveness aound a French Touch /culture 29

30 RECOMMENDATION #3 CHALENGES: RETAIN GOOD EMPLOYEES & KEEP THEM INVESTED Singaporeans quit their job for competitors and small income increase of change in status Linked to frictional unemployment & Mianzi Do not overstay in the offices Cultural behaviours TARGET: MOTIVATE & USE EASY TOOLS Conduct surveys and in-depth interviews to identify the elements of motivation for Singaporeans to stay in a corporation Communicate on the benefits of staying on the long run in a big group Value seniority (HR career management) Use small income increase and regular status upgrades 30

31 SYNERGIES 31

32 Become more visible and adopt a strong French marketing strategy by: Be more involved in Singaporean associations to improve integration Increase French companies visibility during the Maritime Week Pavillon Créative France Organize your own French Night and gather the main players of the maritime around French companies COMMUNICATE in expert magazines such as Wave, in Singapore newspapers and though social media ORGANIZE more conferences The Norway Night The Royal Norwegian Embassy in Singapore Celebrate the maritime links between Singapore and Norway and strengthen this partnership for the future. Foreign companies are strongly present and managers are participating even as board member. French people are almost absent. French companies must fully integrate the Singapore Maritime ecosystem 32

33 Take the opportunity of the French agencies SMEs Need help to settle in the Singapore maritime market All companies benefits from developing synergies within the French business community in Singapore Sharing information between each sub-sectors The French trade advisers (Conseillers du Commerce Exterieur ) Business France and Embassy services BPI France The French Chamber of Commerce in Singapore French Maritime Cluster 33

34 Conclusion Singapore is encouraging innovations through Labs and incubators supported by funds Improve trans-sectors synergies & knowledge sharing (IT, digital economy and Aerospace to Maritime) Increase help from big corporations towards French SMEs Defense companies are well integrated in Singapore s ecosystem. An interesting example to study. 34

35 Final Proposals Synergies could be created in gathering strength of companies and entities, sharing common objectives, benefiting from Singapore ecosystem and funds for innovation Create French Start-up incubator in Singapore Settle a French Open innovation Lab in Singapore Create a French Think Tank about the Maritime in Singapore The final advice would be to follow Singaporean way of doing to enhance innovation in the Maritime 35