High Oil Prices Buoy Singapore's Offshore Industry

BMI View: Singapore's offshore services industry is currently enjoying a boom, thanks to high oil prices increasing demand for its high spec oil exploration & production (E&P) equipment. The government's multi-million dollar grant for more R&D in the sector highlights its willingness to help it maintain its edge. In the longer term, Singapore's ability to maintain a leadership position in the marine and offshore services sector will depend on ameliorating and sustaining economies of scale, in order to prevent rising costs from eroding its competitive advantage against cheaper rivals like China.

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