Singapore Market Criticised by Commodity Firm CEO
Singapore: criticism. File image/Pixabay.
The head of a commodity trading firm has taken a swipe at Singapore's trading environment.
Torbjörn Törnqvist, chief executive of Switzerland-based Gunvor, told the Financial Times that the fallout from a series of company collapses in the city state, including the spectacular implosion of Hin Leong Trading, was a concern as it risked tarnishing the reputation of the entire sector.
"The sheer size of the failures is surprising — it's a concern that the banks are taking so many hits from the sector," Törnqvist was quoted as saying.
"But this is a Singapore problem. One needs to differentiate between the local companies and the international traders like us."
The Singapore government said at the time that the impact of Hin Leong Trading's bankruptcy on credit conditions would be manageable. Hin Leong sought court protection in April.
According to maritime news provider Lloyd's List, around 45% of the Ocean Tankers fleet remains idled off Singapore or Malaysia as ships linked to the its affliate, Hin Leong, are put up for sale by court-appointed judicial managers.