• Follow Us On Our Preferred Social Media Platform:

MPA, ESG, MAS issue statement to reassure bunker trading sector remains ‘resilient’

22 Apr 2020

The Maritime and Port Authority of Singapore (MPA), Enterprise Singapore (ESG) and Monetary Authority of Singapore (MAS) on Tuesday (21 April) issued a joint statement addressing the impact of Hin Leong Trading’s recent financial woes on the bunkering industry: 

No Serious Impact on Oil Trading and Bunkering Sectors; Banking System Remains Sound 

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. 

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. 

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 licenses.

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 without disruption. 

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. 

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.

The full press release is available for download here

Related: Singapore’s Police Force commence investigations into Hin Leong Trading
Related: Report: Hin Leong Trading founder gave instructions to hide USD 800 million losses
Related: Singapore: Ocean Bunkering Services to discontinue marine fuel deliveries
Related: Hin Leong in debt restructuring exercise; Ocean Tankers a separate entity, says CEO
Related: Report: Hin Leong Trading finances under scrutiny, amid credit pull from two banks


Photo credit: Maritime and Port Authority of Singapore
Published: 22 April, 2020

 

Related News

Featured News

Our Industry Partners

  • argus

PR Newswire