Market Monitor - Chemicals performance - Singapore

Market Monitor

  • Singapore
  • Chemicals/Pharma

1st June 2015

In 2015, Singapore’s GDP is forecast to grow a modest 3 %, and the production of chemicals is expected to grow at the same rate.

Market performance at a glance 


  • The chemicals sector contributes to over 30% of Singapore´s manufacturing output. The island state is one of the leading petrochemical hubs in the region, and home to over 90 multinational chemicals corporations.
  • In 2015, Singapore’s GDP is forecast to grow a modest 3%, and chemicals´ production is expected to grow at the same rate. Profit margins are expected to remain stable.
  • There are some government initiatives aimed at attracting investments in this sector, particularly in the petrochemicals and specialty chemicals segments.
  • The overall indebtedness of businesses in this sector is not too high, and banks are generally willing to provide loans.
  • The average payment duration in the chemicals industry is 60 to 90 days. Payment delays and default cases are low, and expected to remain so in the coming months.
  • Due to the general positive indicators, our underwriting stance is relaxed for the chemicals sector.
  • However, we are more restrictive on the bunkering / fuel trading segment, as companies in this subsector have shown lower margins and high debt levels in the past couple of years. The market exit of OW Bunker at the end of 2014 has resulted in many unpaid creditors.

Related documents


The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.