Q: Why should European companies look to Asia for growth, and why now?
WL: Asia’s economic weight is hard to ignore. Already accounting for over 35 per cent of global GDP, the region is projected to reach more than 40 per cent by 2040, driven by the expansion of India, China and Southeast Asia
Underpinning this growth is a structural shift in living standards – an expanding middle class, rapid urbanisation and rising incomes – translating into sustained, long-term demand for a greater quantity and quality of goods and services. For chemical companies, this creates a compelling growth opportunity even as demand in more mature markets plateau.
From left to right: Jacqueline Poh, Chief Executive of Jurong Town Council (JTC), Wey-Len Lim, Executive Vice President of Singapore Economic Development Board (EDB), and moderator Tim Rockell at the Asia Downstream Summit 2025.
Q: Which segments do you see the most compelling growth opportunities for chemical companies operating in Asia?
WL: Specialty chemicals stand out as particularly attractive, benefitting disproportionately Asia’s structural demographic shifts. As consumers and industries move up the value chain, demand for higher-performance chemical inputs grows with them, reflected in specialty chemicals projected CAGR of around 4 – 5 per cent, compared to 2.5 – 3.5 per cent for the broader sector. Specialty chemicals also command higher margins and are less exposed to the capacity-driven cycles that have weighed on petrochemicals in recent years.
One segment we see particularly strong momentum in is semiconductors and electronic materials. Asia is home to the world’s most dynamic electronics and semiconductor supply chains, and demand for the specialty materials that enable them is growing rapidly as chipmakers expand capacity across the region. Recent investments in Singapore over the past year illustrate this well: Henkel established its largest electronic adhesives application engineering laboratory in Southeast Asia here, supporting customers across semiconductors and consumer electronics; MacDermid Alpha Electronics Solutions has doubled its manufacturing footprint in Singapore for Argomax, its silver sintering paste for power electronics, driven by surging demand from the electric vehicle sector; and Air Liquide is investing €130 million to build and operate two new ultra-high purity nitrogen facilities to support advanced semiconductor manufacturing. For specialty chemical companies with capabilities in this space, the opportunity is significant.
More broadly, for companies with deep expertise and proprietary technology, Asia represents a market where those capabilities are in growing demand across segments such as electronics, future mobility, healthcare, and consumer products.
Q: How is Singapore positioning itself to capture these growth opportunities in specialty chemicals?
Specialty chemicals now account for approximately 40 per cent of the total value generated by Singapore’s energy and chemicals sector, and the segment has become an increasingly important part of our industry over the past decade.
Our strategy focuses on segments where Singapore’s strengths in innovation, talent, and connectivity give companies an edge. We have identified four key areas aligned to important growth trends: 1) nutrition and agriculture, including flavour and fragrance chemicals; 2) hygiene and health; 3) smart materials and mobility, including electronics and semiconductors; and 4) sustainability – particularly biotech, bio-based, and biodegradable materials.
We are already seeing strong momentum. In 2025, tesa SE set up a state-of-the-art laboratory in partnership with Singapore’s Agency for Science, Technology and Research (A*STAR) to drive the development of removable adhesive solutions for the automotives and electronics industries. Kuraray launched its Asia Pacific Technical Centre in Singapore, alongside a new EVAL™ EVOH resin plant due to open in 2027. And Milliken & Co opened its first Asian manufacturing facility here, bringing microencapsulation technology closer to customers across the region.
One area we are particularly excited about is the bioeconomy. As industry looks to reduce dependence on fossil-based feedstocks, biotechnology offers an alternative pathway to produce chemicals with a lower carbon footprint. With our proximity to bio-feedstock sources and a strong life sciences base, Singapore is well-placed to help companies develop and scale bio-based chemical R&D and production.
AI and digital technologies are also reshaping the industry – from molecule discovery to manufacturing optimisation. Singapore is investing heavily: our National AI R&D Plan commits over S$1 billion (€670 million) over five years, and more than 60 AI Centres of Excellence have been established here as of early 2026, including by Microsoft, Google DeepMind, and Oracle. For specialty chemical companies, this means ready access to a mature and fast-growing AI ecosystem to compress innovation timelines and grow AI capabilities as they expand in Asia.
Q: How can Singapore support chemicals companies’ growth in Asia?
WL: I’d highlight four dimensions.
The first is connectivity and market access. Singapore sits at the heart of Asia, with some of the world’s best-connected sea and airports, and within a short flight of 60 per cent of the world’s population. Our extensive Free Trade Agreement network covers more than 85 per cent of global GDP – including the Regional Comprehensive Economic Partnership connecting ASEAN with China, Japan and Australia – giving Singapore-based companies access to a vast and fast-growing economic space.
The second is our innovation ecosystem. Singapore has built a strong environment spanning fundamental research at NUS and NTU, applied research at A*STAR, and a vibrant startup scene ranked first in Asia-Pacific and fourth globally. This is backed by our Research, Innovation and Enterprise 2030 plan, committing a record S$37 billion (€25 billion) to innovation across advanced manufacturing, digital and AI, bioeconomy, and the low-carbon transition. Singapore also offers robust intellectual property protections, consistently ranked top in Asia and globally.
The third is Jurong Island, which is home to over 100 global companies, and has a plug-and-play environment that allows companies to operate efficiently and at scale. Jurong Island is also being transformed into a sustainable energy and chemicals park, where companies can operate more sustainably.
The fourth is talent. Singapore provides a highly educated, technically skilled and culturally diverse workforce that is a real asset for companies building regional teams to engage across Asian markets.
EDB works closely with companies on their investment and growth plans in Singapore, whether that involves new manufacturing capabilities, scaling R&D, or expanding regional headquarters functions. We’d welcome the conversation.
For more information on how Singapore can support a global E&C company’s expansion to Asia, click here.