With more than US$400 billion of proposed energy projects worldwide have been delayed since mid-2014 and pushed into 2017 and beyond, according to consulting firm Wood Mackenzie Ltd, OUR NEIGHBOURS SINGAPORE is FACING the HEAT.
Singapore, the global center for oil-rig construction for decades, the slowdown contributed to the economy contracting the most in four years in the third quarter.
Businesses that have relocated to MALAYSIA over FROM SINGAPORE in recent months include McDermott, Technip, and Subsea 7.
As a RESULT , over a 104 week period more than US$24 billion has been WIPED OUT from the market value of Keppel, Sembcorp and Singapore’s other listed oil-services companies -- or about two thirds of their pre-July 2014 capitalization.
Since then, at least 25,000 jobs have been axed and one company, Swiber Holdings Ltd., has defaulted.
“We’ll see more failures within the oil services sector,” said Song Seng Wun, regional economist with CIMB Private Banking in Singapore, in a telephone interview with Bloomberg.
