More metals and minerals companies setting up shop in Singapore

SINGAPORE: More metals and minerals companies are using Singapore as an investment platform to venture into developing markets, such as Indonesia and the Middle East, said Singapore Trade and Industry Minister Lim Hng Kiang.

Speaking at a dinner hosted by the London Metal Exchange (LME) on Friday, Mr Lim said companies have tapped on the country's strong trading infrastructure for exploration and project origination

The companies also benefited from Singapore's network of Investment Guarantee Agreements (IGAs) and Double Tax Avoidance Agreements (DTAs).

Mr Lim said the metal trading sector in Singapore has grown significantly since the establishment of LME's presence here 25 years ago.

Singapore currently captures 10 per cent of the global market share of the trade for aluminium and copper intermediates and Mr Lim said it has attracted many companies to the city-state.

Singapore is home to 26 companies in the metals industry and Mr Lim said they are among the most important global players in the market.

The minister added that despite the volatile global economic environment, aluminium and copper trade is expected to continue to contribute strongly to the growing demand for industrial materials on the back of rapid growth in Asia.

Mr Lim said some companies have estimated that the world's demand for commodities, including base metals, will double over the next 15 to 20 years.

Going forward, Mr Lim said the government is committed to grow Singapore as a complete metals hub for Asia.

It had announced an initiative to enhance Singapore's status as an international trading hub during the annual budget in February.

Under the new initiative, investment-grade gold and other precious metals will be exempted from Singapore's goods and services tax.

Mr Lim welcomed LME's plans to grow its activities in Singapore, including customising training programmes to meet regional needs.

Mr Lim said such activities will help to strengthen LME's industry position, and will also help Singapore to be more attuned to regional demand trends.