Oil refining has long been a staple of Singapore's economy, with companies such as Shell and Mobil laying roots in the then-British colony as early as the 1890s. The country now offers a full range of chemical industry services such as refining, bunkering, petrochemical production, as well as fine and specialty chemicals, oil trading and oil rig manufacturing to companies in the region and worldwide. Singapore has successfully encouraged numerous foreign companies to invest in its chemical industry, by offering incentives and providing infrastructure and seed financing to projects.
Multinational companies dominate the sector.
The government's strategy, since the mid 1990s, has been to move downstream, from petroleum refining to petrochemical and chemical production. The government has also identified pharmaceutical production and life sciences as key areas for new investment. Petroleum, petroleum products, and chemicals are one of Singapore's top five exports, behind electronics and IT products. TDB statistics probably underestimate total trade because they do not capture all exports to Indonesia. Most of the increase in value terms this year reflects sharply higher petroleum prices, rather than any significant increase in volume.