Singapore F1 Grand Prix Gets into Green Gear

Singapore Formula 1 Grand Prix is kicking climate action into higher gear. The event will last three days leading up to the 61-lap race on the evening of 2 Oct 2022.

According to a media statement by Singaporean-based biofuels company Alpha Biofuels, “when the night race returns to the streets of Marina Bay in September—after a two-year hiatus due to the pandemic—a full sustainability audit will also be conducted, which could see data such as the amount of carbon emissions and waste generated by the event being measured and reported for the first time.”

Responding to CNA’s queries, a spokesperson from Singapore GP said that the existing track lighting will be replaced with more energy-efficient LED lights from 2023, and that it will switch to electric or hybrid support vehicles where applicable.

The official Singapore Grand Prix website confirms that management consultancy Faithful + Gould has been appointed to write a Carbon Footprinting Report identifying emission sources of concern. The results will be then audited by Tüv Süd PSB.

On that note, take a look at F1’s 2026 target for 100% sustainable fuel and how ARAMCO creates F1’s sustainable fuel. Also significant is Singapore’s import of renewable (hydro-powered) energy from Laos, its challenges, and questions on large-scale dams.

See below for the sustainability commitments listed on the Singapore Grand Prix website:

Source: Singapore Grand Prix (accessed 26 Sep 2022)

research@segi-enam.com | 30 Sep 2022

Malaysia, Singapore, and the Chicken Problem - Part #2

Following the previous post on Malaysia, Singapore, and the Chicken Problem - Part #1 late last week, here are our thoughts and observations on the matter.

Observations. The aspect I know a bit more about is for Malaysia, it seems clear that producing chickens for the domestic market at the target price is/was loss making per bird. The government was looking at suggestions on palm-based chicken feed to help lower cost but that is unlikely as palm kernel expeller/cake/meal, while well established, is primarily used as feed for ruminants, mostly dairy cows. While the industry hope and experiments for wider use for chickens, that is still a work in progress.

(Inside story: policy analysts were a bit surprised that some plantations made this suggestions when, with basic research, it becomes obvious that palm material not an immediate solution).

Instead, the Malaysians went with a cash handout to B40s and buffer stock policy for now, as the mechanism to help poultry breeders seems uncertain no subsidy support plan has been announced. Governments are likely to be struggling with industries to supply export products to domestic consumers as the high international prices attract big volumes out. Export restrictions can tighten global/regional supply even more and distort export prices upward even more.

Another example is the cooking oil conundrum in Indonesia that has pitted their President against an alleged 'cooking oil mafia.' There is worry about a 'chicken cabal' in Malaysia. While politicians and policy makers figure out chicken suppliers, and with more money in the pocket, B40 consumers may have to find other proteins for their rice.

Further observations. Malaysia observers have noted that even the likes of KFC are resorting to selling more patties as fresh chicken is in acute shortage locally. They are not sure whether this issue can be easily resolved, as the government is still maintaining the price ceiling.

In the meantime, consumers in Singapore are not noticing chicken shortages. A banker friend told me: "We can get chicken everywhere, I just had a curry chicken toastie for lunch." Economists there are not worried about supplies at present, as Singapore can pay for chilled and frozen chickens from other nearby countries such as Thailand and further from Australia.

Malaysia, Singapore, and the Chicken Problem - Part #1

In a move that sent exporters and vendors into a ruffle, Malaysia announced on 23 May that all exports of various chicken products, including live poultry and whole carcasses, are prohibited effective 1 June. The ban is part of the country’s efforts to address the domestic supply shortages and rising prices of poultry.

Food security concerns have been in the forefront of the minds of various nations within Southeast Asia following the Russia-Ukraine war. According to the United Nations, “global food prices have risen by nearly one-third, fertilizer by more than half, and oil prices by almost two-thirds” in the past year.

China Daily published an interesting article on the matter, in which Segi Enam Advisors were quoted:

“In Southeast Asia, there is an opportunity in the crisis in cooking oil,” said Khor Yu Leng, research head for Southeast Asia at Singapore-based consultancy Segi Enam Advisors.

Khor told China Daily that palm oil exports can fill the gap when other vegetable oils like rapeseed oil and sunflower oil, of which both Russia and Ukraine are key exporters, are in tight supply. 

“My check of vessel movements from Indonesia shows a big rise in palm oil tankers going to the Commonwealth of Independent States (and) Russian region,” said Khor. 

While Thailand, also a palm oil producer, pulled back on domestic use of the product in biodiesel to ensure food supplies, Malaysia and Indonesia are sticking to diverting it into domestic transport fuel with 20-30 percent biofuel blending mandates, said Khor. 

Read the full article here: Asian nations enhance food security amid Russia-Ukraine conflict

Carbon Tax News: Updates from Singapore, EU, and Malaysia

Last Friday, Singaporean Finance Minister Lawrence Wong announced in his budget speech that the island nation’s carbon tax rate will be increased as part of Singapore’s efforts to reach net-zero emissions by or around 2050. At the moment, the current tax of S$5 per tonne of emissions will continue to be in force until 2023, and will be increased incrementally before reaching a rate of somewhere between S$50–80 per tonne by 2030. This was higher than initial expectations of a carbon tax increase to anywhere between S$10 and S$15 per tonne, with one expert, PwC’s Chris Woo, remarking “if we don’t tax that supply chain, another country will.”

Over at the EU, carbon prices on its emission trading scheme (ETS) have risen beyond expectations over the past year. This has prompted calls for authorities to address design flaws in the ETS, with recommendations from the European Green Party and Potsdam Institute for Climate Impact Research including reforms aimed at curbing excessive financial speculation. Traders are now reportedly becoming wary following the European Commission agreeing to look into ways to make trading activities more transparent.

From Trading Economics (accessed 21 Feb 2022): “EU carbon permits traded close to €90, down from a record €98.5 reached on February 8th, following news that EU lawmakers were mulling key reforms in the bloc’s carbon market, and higher energy output from non-polluting sources.”

In Malaysia, eyes are now on how national policy and regulators will deal with the Sabah state government’s proposal for the National Conservation Agreement (NCA), a 100-year mega carbon asset concession project in collaboration with Singaporean-based company Hoch Standard Pte Ltd. Social media is alight with the purportedly leaked document of the aforementioned agreement, with interesting comments—including remarks on the statement made by the Sabah Deputy Chief Minister just last week—from investigative website Sarawak Report.

On that note, the Sarawak government has also announced intentions to venture into a carbon credit project, with Mambong assemblyman Dr Jerip Susil revealing that the state may pass a legislation allowing for carbon credits trading to take place this year. In the meantime, the Malaysian government has agreed to the development of a Voluntary Carbon Markets to facilitate international carbon credit transactions.

Covid-19 and the Johorean Property Market

As the pandemic drags on, one obvious victim is real estate. Market outlook in 2020 have been unsurprisingly bleak, although experts have expressed cautious optimism for 2021 as some aspects within the sector gradually improve. Still, it would seem a relatively long way off until a more significant recovery occurs, as owners of property in Johor Bahru would tell you.

Channel News Asia’s Amir Yusof wrote an interesting piece on how the residential property market has been hit by the Covid-19 pandemic. According to a report by property consultancy firm Henry Butcher, Johor contributed 20% of overhang residential properties in Malaysia in 2019, making it the state with the highest proportion of unsold residential property even before the outbreak of the coronavirus. Segi Enam Advisors principal, Khor Yu Leng, contributed her opinion on the matter, explaining that:

“The spending power of the former Johor daily commuters and Singapore residents who visited Johor weekly or otherwise has diminished or disappeared from the Johor economy… A year later, with Johor’s economic umbilical still cut off from Singapore, and Malaysia suffering a big wave of COVID-19, informal social support activities (to help the lower-income households) have been ongoing.” 

Head over here to read the entire article: How Johor’s residential property market has been hit hard by COVID-19

Online Public Interest: Coronavirus and #Masks4All

Here are a couple of #KhorReports infographic on the #coronavirus. The first one is on the #Masks4All campaign (check out #Masks4All.org and #Masks4All.co) following the positive shift in public attitude towards masks despite initial ambivalence on the subject from public authorities. Also, there is a surge in public interest #self-help tips and tricks, such as consuming #vitamin C and #turmeric as well as DIY masks, as well as the emergence of face mask fraud cases in Malaysia.

The second infographic focuses on public interest in mask-wearing in three cities—Hong Kong, New York, and Singapore—and a throwback on mask usage during the Great Influenza of 1918. Also included is a brief update on #China as it gradually eases its #Coronavirus #lockdown.

The Busiest Land Crossing in Southeast Asia: Part #2 - Adjustments & Rethinking for Daily Commuters

Continuing from our first post on the closing of the Johor-Singapore crossing, drastic adjustments and rethinking for Malaysian commuting daily to the Singapore for work. As swathes of people flock the causeway into the city-state, Singapore authorities and employers scramble to facilitate temporary accommodation. Many workers who successfully crossed the border had to sleep rough at train stations (see picture). Those left behind were later allowed to resume work in Singapore.

Accordingly, Singaporean online public interest in matters related the Johor-Singapore crossing lockdown spiked around the time when the Movement Control Order was announced (17 Mar 2020) and enforced (18 Mar 2020) (see graph and map).

On our previous post about the Johor-Singapore crossing see Part #1.

The Busiest Land Crossing in Southeast Asia: Part #1 - Virus Closes It

At the stroke of midnight on 18 Mar 2020, the Johor-Singapore border sealed shut following the enforcement of the two-week Movement Control Order (MCO) in Malaysia. The MCO left one of the busiest land crossing in the world strangely empty the following morning, a stark contrast from the night before when Malaysians workers scrambled to cross into the city-state before the borders were closed.

Data from the Beat the Jam! app shows a comparison between the time typically taken to clear the immigration checkpoints and the time taken on 17-18 Mar 2020. Also see photos showing the difference in traffic congestion on the Causeway at midnight and the morning of 18 Mar 2020.

On the next post about the Johor-Singapore crossing, see Part #2.

In the Media: Did the KL-Singapore High-Speed Rail Unravel Because of Costs?

2 July 2018 in Commentary for Channel News Asia, here (screenshot below). 

Political economist Khor Yu Leng takes a look at the economics of the HSR between Singapore and Malaysia and how it compares to other notable high-speed rail networks in Asia.

And check out our key data summary points here (image on right).