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Singapore: Trade finance for bunkering sector ‘entering a different paradigm’, says Helmsman lead lawyer

The newly launched Code of Best Practices – Commodity Financing guidelines will be the new ‘reference point’ taken by banks when considering to give trade finance to trading houses, believes Ian Teo.
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Ian Teo Photo by Helmsman

Singapore’s trade finance sector, which supports the local bunkering industry amongst other activities, is entering a new era, observes the Managing Director of international shipping and commodity law firm Helmsman LLC.

Ian Teo was commenting on the back of the new Code of Best Practices – Commodity Financing guidelines recently launched by the Association of Banks in Singapore (ABS).

“At the end of the day, we are entering a different paradigm. Now, trade finance is going through a lot of changes,” he said during the Helmsman LLC: Buzzkill or Buzzword? Commodity Financing Best Practices webinar held on Tuesday (1 December).

“Banks will be now looking at a lot more conditions and requirements when considering trade finance requests.

“Traders, you will need to think carefully. It can’t be just one guy sitting somewhere, deciding the trade, deciding the risk, deciding the risk management; there must be a system and process in place if you want to persuade your lender that you’re good for money.”

Teo believes the guidelines for commodity trading best practices will be the new “reference point” taken by banks when considering to give trade finance.

“It will do everyone well to study the requirements and to see how we can institute that internally within the trading houses or the bunker company,” he recommends.

“To be fair, obviously not everything that is stated in the guidelines would be suitable for every company. A lot of it depends on the risk profile, size and other aspects of the commercial trading entity.

“For trading houses, you need to understand this paper because that is a sign of what banks will be looking for.

“For the banks, you need to understand these are not legal obligations but guidelines. The Monetary Authority of Singapore has made it very clear that when they supervise you as a bank they will also take into consideration whether you have complied with the trade finance principles.”

Mi Nie v2 Photo by Helmsman

Mi Nie Ho, Credit Risk and Trade Finance Specialist at Helmsman

Mi Nie Ho, Credit Risk and Trade Finance Specialist at Helmsman, was giving a presentation on credit risk management when she noted the financial sector to be taking steps to increase transparency in trades.

“So the banks and regulators are now proposing a central registry where they call it the trade finance registry, a common database for all to lock in security details, and this is to be shared and given access to market participants,” shares Ho.

“Now, why is transparency so important here? It is to ensure that the lenders have funded with full knowledge and the parties who have paid for the cargo have obtained rightful title to the cargo. Also, it’s to avoid a situation of multiple parties clamouring for the rights of just one cargo.”

A series of commodity trading mishaps involving players within the oil trading sector took place in Singapore earlier this year. Among them were cases involving spent bills of lading being pledged to several banks in order to obtain financing; a development which saw different lending parties claiming for the same portion of cargo at court.

Related: Association of Banks in Singapore publishes best practice code for commodity financing
Related: Singapore: 14 banks successfully develop digital Trade Finance Registry proof-of-concept
Related: Lawyers: Not end of the road for parties affected by thorny issues of commodity trading mishaps

Other related: Helmsman explains US and EU Sanctions: What is the Difference?
Other related: After Hin Leong, Is Singapore Still A Premier Commodity Trading Hub?
Other related: IBIA Convention 2020: Session summary of the APAC – Legal, Compliance and Regulations Panel

 

Photo credit: Helmsman LLC
Published: 3 December, 2020

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Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

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11 hours ago

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July 21, 2026

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RESIZED Sora Shimazaki on Pexels

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July). 

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions. 

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Related: Singapore: Hin Leong Founder OK Lim gets jail term slashed to 13.5 years

 

Photo credit: Sora Shimazaki
Published: 21 July, 2026

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Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

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11 hours ago

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July 21, 2026

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RESIZED Drew Beamer

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

  • That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

  • that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
  • that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
  • that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd. 

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Related: Singapore: Director declares Heng Tong Fuels & Shipping’s inability to continue business
Related: Heng Tong Fuels & Shipping in court over DBS Bank bunker tanker loan
Related: Singapore: Bunker tanker “Coastal Neptune” arrested
Related: Heng Tong Fuels & Shipping, Coastal Logistics tankers enter S&P market

 

Photo credit: Drew Beamer
Published: 21 July, 2026

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Winding up

Singapore: Liquidator of Nan Shan Maritime Pte Ltd issues notice of dividend

Third interim dividend to admitted unsecured claims of Nan Shan Maritime is payable from 15 July, according to Government Gazette notice.
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Published

5 days ago

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July 16, 2026

By

RESIZED Drew Beamer

A notice of dividend for Nan Shan Maritime Pte Ltd, which is currently in creditors’ voluntary liquidation, was published on the Government Gazette on Wednesday (15 July). 

The following are the details of the notice:

Name of Company : Nan Shan Maritime (Pte.) Ltd.(In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No. : 201701967H
Address of Registered Office : 10 Anson Road, #10-10, International Plaza, Singapore 079903
Amount per centum : 5.00 Per Centum of all admitted unsecured, claims
First and Final or Otherwise : Third Interim
When Payable : 15 July 2026
Where Payable : Entitlements will be made by way of cheque.

 

Photo credit: Drew Beamer
Published: 16 July, 2026

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