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Viewing cable 08SINGAPORE1339, SINGAPORE EYEING NUCLEAR ENERGY FOR THE FUTURE

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Reference ID Created Released Classification Origin
08SINGAPORE1339 2008-12-23 09:20 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Singapore
R 230920Z DEC 08
FM AMEMBASSY SINGAPORE
TO SECSTATE WASHDC 6177
INFO ASEAN MEMBER COLLECTIVE
DEPT OF COMMERCE WASHDC
DEPT OF ENERGY WASHINGTON DC
UNCLAS SINGAPORE 001339 
 
 
SENSITIVE 
 
STATE FOR EAP/MLS 
STATE FOR T/MHUMPHREY 
STATE PASS COMMERCE FOR SLOPP 
 
E.O. 12958: N/A 
TAGS: ENRG EINV ETRD ECON SN
SUBJECT:  SINGAPORE EYEING NUCLEAR ENERGY FOR THE FUTURE 
 
REF:  A) STATE 127423; B)SINGAPORE 1243; C) SINGAPORE 1248 
 
1. (SBU) SUMMARY:  Singapore supports the use of nuclear energy for 
electricity generation, but it currently lacks the land space and 
technological expertise within its workforce to safely build and 
operate a nuclear facility.  The GOS and other local energy experts 
view nuclear power as a viable future alternative to Singapore's 
dependence on natural gas imports and a way to better ensure its 
long-term energy security.  Singapore will likely use foreign direct 
investment to develop nuclear energy capabilities that it can either 
export in the near term or use to develop its own nuclear power 
facilities 20 or 30 years from now when it might be possible to 
build safer plants with smaller footprints.  Singapore has been a 
member of the International Atomic Energy Agency since 1967 and it 
is a party to the Treaty on the Non-proliferation of Nuclear Weapons 
(NPT).  End Summary. 
 
2.  (SBU) In response to reftel A, post has compiled information 
about Singapore's nascent nuclear energy industry.  Post's responses 
follow the questions that were included in reftel A. 
 
Overview of Civil Nuclear Power Program 
--------------------------------------- 
 
3. (SBU) Describe any plans for the development of nuclear power in 
your country.  Also, describe any existing or planned nuclear power 
related facilities in your country, such as uranium mining, if any. 
Do you foresee an expansion of these facilities? 
 
Singapore does not currently have a nuclear power industry.  It also 
lacks natural resources and a domestic mining industry.  Singapore 
does not have the land space to safely house a reactor, but 
authorities believe it may be an option in 20 or 30 years when 
technology has improved to build smaller and safer reactors. 
Singapore Energy Market Authority (EMA) Deputy CEO Lawrence Wong 
told the DCM that the GOS would like to create the conditions for 
development of a nuclear power plant so the government is prepared 
to respond when it is considered feasible from an economic 
perspective (ref B). 
 
4. (SBU) If your country is considering the pursuit of nuclear 
power, describe the underlying motivations (e.g., current or 
anticipated power shortages, energy security, or other industrial 
uses, such as desalination). 
 
Singapore is almost entirely dependent on natural gas imports for 
its electricity generation, making it potentially vulnerable to 
supply disruptions.  It also lacks an environment conducive to using 
other alternative energy sources such as wind or hydro power.  The 
GOS views nuclear as a potentially "clean" option to diversify its 
energy supplies and enhance its energy security (ref C). 
 
5.  (SBU) If there are plans to pursue nuclear power, describe the 
anticipated government role in the financing of its civil nuclear 
sector.  For example, does the government plan to provide subsidies, 
tax breaks, loan guarantees, or other financial incentives?  Would 
some or all nuclear power plants be state-owned and operated?  Would 
you seek financing from international investment banks and 
organizations or consortium arrangements? 
 
The GOS takes an active role in steering the development of new 
business sectors to ensure they will be successful and will add 
higher value jobs to the economy.  The Economic Development Board 
(EDB) promotes foreign direct investment in Singapore, which the GOS 
has used to develop other energy technologies such as solar, wind 
and biofuel refining.  Even if Singapore does not consume the 
technologies it develops domestically, it continually looks for 
opportunities to evolve its economy by bringing in more 
sophisticated and higher-value technology manufacturing for export. 
It would likely use the same approach to develop the nuclear energy 
sector until such a time when it can implement nuclear power 
domestically.  The EMA would continue to regulate the power sector 
and the National Environment Agency (NEA) would likely be the 
primary health regulator monitoring risks associated with nuclear 
energy.  There are also several key government-linked companies that 
dominate Singapore's power sector, such as sovereign wealth fund 
Temasek and its subsidiaries.  It is unclear what their role in 
nuclear power might be in the future and what kind of incentives 
they might receive to develop that part of the energy mix. 
 
6.  (SBU) What are the names and titles of the key nuclear decision 
making government bodies and top officials? 
 
The following ministries/agencies and officials are involved in 
driving Singapore energy policy: 
 
- Ministry of Foreign Affairs (MFA):  Paul KOH Kok Hong, 
Director/Special Duties (Energy).  Koh's office in MFA worked with 
 
the Ministry of Trade and Industry to develop Singapore's National 
Energy Policy, which was released in November 2007.  Koh's office 
also helped create the Energy Studies Institute (ESI), a new energy 
policy think-tank. 
- Energy Market Authority (EMA): Lawrence Wong, Deputy CEO, and 
David Tan, Deputy Chief Executive, Energy Policy and Planning 
Division.  EMA is the chief energy market regulator.  Tan is also 
active in ESI. 
- Ministry of Trade and Industry (MTI):  LIM Chee Hwee, Director, 
MTI's Energy Division.  MTI covers a range of economic issues.  EMA 
is a statutory board within MTI, as is A*Star (the Agency for 
Science, Technology and Research), which could be involved with the 
R&D side of nuclear technologies. 
- Economic Development Board (EDB):  Eugene LEONG Jhi Ghin, Head of 
the Energy division within the Energy, Chemicals and Engineering 
Services section within EDB. 
 
7.  (SBU) Does your country have an existing nuclear regulatory 
authority?  What are its inspection/enforcement powers?  If so, how 
large is it (i.e., how many people does it employ)? 
If not, are there plans to establish such an authority? 
 
Singapore does not currently have a nuclear regulatory authority 
with the responsibility of inspecting nuclear facilities.  However, 
the NEA includes the Center for Radiation Protection and Nuclear 
Science (CRPNS), which acts as the national authority for radiation 
protection and nuclear safety in Singapore.  The CRPNS represents 
Singapore in the IAEA Convention for Radiation Accidents, 
Notification and Assistance and the Convention on Nuclear Safety. 
CRPNS also has responsibility for coordinating GOS planning and 
response to radiological contamination events in Singapore caused by 
nuclear accidents in neighboring countries. 
 
8.  (SBU) Does your country have a domestic nuclear liability law? 
If so, please summarize its major elements.  In particular, is there 
a minimum level of required liability coverage required for 
operation?  If your country is not party to an international 
liability regime, is there any consideration being given to joining 
one?  If so, which international liability regime (Vienna 
Convention, Paris Convention, Convention on Supplementary 
Compensation for Nuclear Damage) is being considered. 
 
Singapore does not have a nuclear liability law in place that 
affects the general public.  However, the Radiation Protection Act 
of 2007 controls the import, export, sale, transport, possession and 
use of radioactive materials and irradiating apparatus.  In 
accordance with the Act, the CRPNS regulates the disposal of 
radioactive waste from hospitals, laboratories, and industrial 
sites, in line with the specifications of the IAEA TECDOC 855, which 
pertains to clearance levels for radioactivity in solid materials. 
 
9.  (SBU) Is the manufacturing base in your country (including 
high-tech components and heavy industry) involved in nuclear-related 
products or services?  Does it seem likely that any components or 
contracting services for new plants could be sourced locally, or 
would the majority of this need to be imported? 
 
Singapore has an advanced, high-tech manufacturing sector, but it 
does not include nuclear-related products and services.  The GOS, 
through the EDB, will likely encourage investment by foreign firms 
that offer nuclear-related products or services to develop its own 
domestic capabilities in this area. 
 
10.  (SBU) How extensive is your country's nuclear-trained 
workforce?  Does your country have a significant engineering, 
technician and construction base that could be readily converted 
into a nuclear workforce (e.g., engineers, high precision 
manufacturing, robust quality assurance programs, high quality 
construction)?  Will the development of civil nuclear power require 
a significant foreign workforce?  Are programs in place, or being 
developed, for training of domestic personnel (e.g., in skilled 
trades and nuclear regulation)? 
 
Singapore does not have a nuclear-trained workforce.  However, it 
does have a highly skilled workforce and advanced manufacturing 
capability that could be converted to nuclear. 
 
Opportunities for U.S. Industry 
------------------------------- 
 
11.  (SBU) Does your country have any current or anticipated 
nuclear-related tenders?  If so, please describe the 
tender/selection process for new contracts, its timing, and indicate 
any U.S. firms considering bidding. 
 
Post is not aware of any nuclear-related tenders in Singapore at 
this time. 
 
12.  (SBU) What nuclear sector opportunities do you foresee for U.S. 
industry (e.g., feasibility studies or other consulting services, 
plant construction management, reactor sales, fuel cycle service 
provision, plant operations, waste management, or logistics)? 
 
Singapore remains an important financial, trade, and high-tech 
manufacturing hub with a sophisticated and well-educated workforce. 
GOS plans to develop a nuclear industry are still in the development 
phase and not entirely clear, but Singapore would likely welcome 
discussion of investment from U.S. firms interested in using 
Singapore as a base for nuclear technology-related product or 
service offerings in Asia. 
 
13.  (SBU) If applicable, what are the primary companies (domestic 
and foreign) involved in (or considering involvement in) your 
country's civil nuclear sector?  Please include utilities, plant 
operators, fuel cycle service providers, technology vendors, and 
major construction or consulting firms. 
 
There are no foreign or domestic companies involved in nuclear power 
generation within Singapore at this time.  However, companies such 
as U.S.-based Thorium Power have visited Singapore to discuss 
potential opportunities here.  Invensys Process Systems, a 
London-based firm specializing in consulting, software and 
technologies supporting power and energy companies, has had 
operations in Singapore for approximately 30 years.  According to 
recent press reports, it is exploring nuclear energy opportunities 
in Southeast Asia. 
 
Foreign Competitors 
------------------- 
 
14.  (SBU) Are there other nuclear supplier countries engaging your 
country?  Please describe any available details on formal agreements 
including existing or potential (1) MOUs on nuclear cooperation; (2) 
legal frameworks for nuclear commerce; or (3) arrangements for 
technical or information exchanges. 
 
According to FOO Siang-Tse, MTI Deputy Director for Energy Policy, 
Singapore does not have any MOUs or agreements on nuclear technology 
exchanges or other initiatives with other countries at this time. 
 
15.  (SBU) Are there any political considerations your country may 
take into account when choosing to cooperate with competing nuclear 
supplier states? 
 
Singapore is commercially minded and pragmatic.  As noted in public 
remarks by LEE Kuan Yew, Singapore's founding father, Singapore will 
not rule out nuclear energy as an option, but given its small size 
and close proximity to countries such as Malaysia and Indonesia, it 
will have to cooperate with its neighbors to develop safety and 
security standards before developing its own nuclear power facility. 
 
 
HERBOLD 
 
 
NNNN 
 



End Cable Text