MPA, ESG and MAS agencies closely monitor developments related to Hin Leong Trading Pte Ltd and the broader oil trading and bunkering sectors, says a press release published on MPA website.
Developments closely monitored
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.
Assessments from agencies
ESG
- 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
- 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 Bunkering and TFG Marine which recently received their licences.
ESG and MPA to work together
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 agrees assessment by ESG and MPA
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.
MAS monitoring liquidity
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.
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Source: MPA
