Granite supply disruption is reminder not to take things for granted: Khaw

Channel NewsAsia 13 Mar 14;

SINGAPORE: National Development Minister Khaw Boon Wan said a recent disruption of granite supply from Indonesia is a useful reminder not to take things for granted.

Writing in his blog post on Thursday, Mr Khaw said Singapore has limited resources and the country's dependency for any natural resource is at stake at any time.

Therefore, a source diversification strategy has helped the construction industry tide over the granite supply disruption.

And together with the national stockpile, it has buffered Singapore well.

The granite supply disruption from Indonesia happened six weeks ago. Mr Khaw said, fortunately, Singapore was prepared for such surprises.

First, Singapore has a national granite stockpile to help the industry tide over any temporary disruption.

Second, as part of the country's diversification strategy, all importers are required to have a small supply from distant regional sources, even during normal times.

Third, there is a "drawer plan" to respond to such temporary disruptions.

Mr Khaw said the government had put that plan into action.

Singapore activated release of granite from the national stockpile and encouraged importers to ramp up supply from distant sources.

Five weeks after the activation of the plan, Mr Khaw said the situation is returning to normal.

Since early March, there has been a steady resumption of granite supply from Indonesia.

Supplies from other sources are coming in readily, and there has been no request to draw down from the national stockpile for the last 13 days.

Accordingly, the government will suspend the application for granite stockpile release from March 14.

But Mr Khaw stressed Singapore must not be complacent.

He said the stockpile will be replenished.

More importantly, the Building and Construction Authority will continue to promote the use of steel, drywalls and recycled concrete aggregates, so as to reduce Singapore's reliance on imports of natural aggregates.

- CNA/gn

Supply of granite from Indonesia resumes
Melissa Tan The Straits Times AsiaOne 16 Mar 14;

SINGAPORE - Indonesia has allowed the supply of granite to Singapore to resume after it banned shipments in January.

There has been a "steady resumption of granite supply from Indonesia" since early this month, said National Development Minister Khaw Boon Wan in a blog post on Thursday.

He also announced that access to the national granite stockpile will close from today, after no one applied for stock this month.

"The situation is returning to normal... Supplies from other sources are coming in readily," the minister said. He did not disclose these other sources.

The Government allowed granite to be released from the national stockpile at Pulau Punggol Timor early last month, after a sudden Indonesian supply disruption in January caused construction delays.

The Building and Construction Authority (BCA) told The Straits Times that the volume of granite it released from the stockpile last month was "much lower than expected" and said that it had approved 168 applications "of small quantities" of granite in February.

Mr Khaw said on Thursday the Government has "always required all importers to have a small supply from distant regional sources, even during normal times".

He also said the national stockpile will be replenished, adding that the BCA will also "continue to promote the use of steel, drywalls and recycled concrete aggregates, so as to reduce our reliance on imports of natural aggregates".

Granite is a major component in making concrete.

The Government set the price at $50 a tonne plus GST for granite from the stockpile for this month, up from $30 a tonne plus GST in February, The Straits Times reported last month. These prices exceeded last month's market average of around $25 a tonne.

MP Lee Bee Wah told Parliament last week that some people had asked if the Government was profiteering from the price hike.

Her comments prompted Mr Khaw to make the point in a blog post last week that the issue of whether the Government was making money from its stockpile was "not a relevant consideration".

"Government is profiteering? Of course, not!" Mr Khaw said in that post. "The consideration is not about profit margins but about ensuring the industry is incentivised to actively source for alternative supply sources."

The BCA declined on Thursday to disclose how much granite had been drawn down from the national stockpile last month.
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