Economic and social reasons for its creation

Economic reasons for its creation:

• When the chemical industry was identified in 1980 as an industry cluster capable of contributing significantly to the economic growth of Singapore, amalgamation (the process of merging)of the islands in forming Jurong Island, became the natural choice for the development of a petrochemical complex.



• The petroleum, petrochemical and chemical industries are experiencing rapid growth in Asia. Singapore aims to create a competitive environment on Jurong Island to house these industries



• Singapore is well positioned to play a key role in the growth of Asia-Pacific's petrochemical industry with an integrated hub on Jurong Island. Many multinational companies are already enjoying the benefits of locating on Jurong Island. Companies that have recently announced their intention to locate on Jurong Island include a Sumitomo led consortium (acrylics complex), Eastman Chemical (oxo-alcohols), Chevron (lube additives), Asahi (polyacetal resins), Poval Asia (polyvinyl alcohol), Denka (acetylene black, polystyrene) and Lonza (purified isophthalic acid).

Social reasons for its creation:

• Jurong Island was created to provide greater convenience and value for the chemical industry. Facilities like Banyan LogisPark and the new Meranti LogisPark aim to provide logistic support for island companies which require berths, jetties and other marine facilities. These Storage and Terminal companies will be linked to petrochemical plants on other parts of the island by a pipeline corridor, providing integral support to oil & chemical related activities on the island and in the Southeast Asian region. The establishment of Banyan LogisPark & Meranti LogisPark looks set to enhance Singapore’s position as a premier regional logistics hub for petroleum and petrochemical products.



• With chemical logistics service providers gathering on Jurong Island, companies can outsource a range of logistics facilities and services like storage tanks, chemical warehouses, waste cleaning, maintenance and drumming services to these third-party service providers and enjoy greater cost savings, thereby increasing their competitive edge.



• The planning of the Jurong Island began with the idea of synergy (combined action or functioning), where individual islands could be combined into one main landmass for the purpose of building a petrochemical hub.