2nd Hazards Asia Pacific Symposium Opening Ceremony

Bismillahirrahmanirrahim,
Assalamualaikum warahmatullahi wabarakatuh,
Good morning,
Salam Sejahtera,
And Salam 1Malaysia,

Dr Abdul Hapiz Abdullah, Chairman of the Chemical Industries Council of Malaysia,
Mr BP Chow, Chairman of the Institution of Chemical Engineers (IChemE) in Malaysia,
Mr Paul R Ellis, Chairman of the 2nd Hazards AP Organising Committee,
IChemE Council and CICM EXCO Members,
Distinguished speakers and guests,
Ladies and Gentlemen,

On Friday, 11 March 2011, the debate on safety of nuclear energy was reignited once again. The world’s second worst nuclear disaster in Fukushima resulted in thousands being evacuated. The Japanese government also ordered 50 other reactors to be shut down. For a country that derives 30% of its power requirement from nuclear, the scale was unprecedented. A Businessweek report last month said it may take up to 40 years to fully decontaminate the area at a cost of 125 billion US dollars. Two years on, only two of the reactors have been restarted. Meanwhile, the cost of the incident to the Japanese economy is mounting, in the form of imported natural gas.

2. Worldwide, governments had to deal with renewed pressure to diversify away from nuclear energy. In Germany, eight oldest reactors were taken off the grid within days of the Fukushima incident, and will not return to operation. Plants due to be given extension of life are now expected to shut down. Similar stories are repeated in many other countries with established nuclear power industry. Of course, with the passing of time, the future outlook is less bleak. While the debate rages on, the industry has slowly regained its confidence to move on. Plans for new nuclear plants are back on the drawing board. But the damage has been done!

Ladies and Gentlemen,

3. As we know, the Fukushima incident was triggered by an earthquake and the consequent tsunami. Much beyond the control of any government or company. But that didn’t matter. The nuclear industry had to suffer the consequence- public protests, negative perception and fall in share price. The message is, it only takes one incident to drag an industry down. Even if the trigger was beyond our control. Now, imagine the chemical industry facing its own ‘Fukushima’. Only this time, the trigger was fully avoidable. How much worse will the backlash be? I hope we don’t ever find that out. I, for one, don’t really want to know that. Your presence here tells me, neither do you.

4. It wouldn’t matter whether the incident happened in plant A or plant B. We as an industry will be seen through the same tainted glass. One way or another, it will affect us all. In legal lingo, we are jointly and severally responsible for industry safety.

Ladies and Gentlemen,

5. I would like to thank the Chemical Industries Council of Malaysia, CICM, and the Institution of Chemical Engineers, IChemE, for inviting me to say a few words and officiate the 2nd Hazards Asia Pacific symposium.

6. A warm welcome and “Selamat Datang” to our distinguished speakers and conference delegates, especially those from overseas.

7. Congratulation to CICM and the IChemE for the collaborative efforts in bringing together safety professionals and experts from the Industry, Government and the Academia.

8. CICM, the national chemical industry association and IChemE, a professional membership organisation for chemical, biochemical and process engineers, share the same objective. That is, to drive the awareness and importance of achieving high safety standards and performance across the chemical industry.

9. The global voluntary ‘Responsible Care’ initiative, promoted by CICM, is a very good example of the chemical industry’s self-regulatory initiative. Its aim is to continuously improve safety, health and environmental performance. Such voluntary initiatives should be adopted by every chemical company and should be emulated by other industries.

10. The same goes for IChemE’s efforts in training and improving the safety performance of chemical engineers worldwide. Such synergy between both organisations will definitely contribute to stronger process safety leadership, a more vigilant workforce, safer work places and better protection of our precious environment.

Ladies and Gentlemen,

11. The chemical industry is a cross-cutting sector that contributes to many industrial and non-industrial sectors. In 2012, Malaysia exported 46 billion ringgit worth of Chemicals and Chemical products, constituting 6.6% of total Malaysian exports. The American Chemical Society estimates the global Chemical Industry is worth 3 trillion US dollars. According to reports by Frost & Sullivan, the industry grew almost 100% within a span of 11 years between 2001 and 2012. The strong growth was mainly driven by economies in Asia. This was fuelled by higher demands for chemicals due to industrial growth and market liberalisation; prominently seen in countries such as China, India and many others.

12. To remain competitive in the long run, chemical companies in the Asia Pacific region will also need to contend with compliance to new regulations and standards, rising energy and production costs and increasing expectations to innovate and create sustainable products and businesses. Maintaining a good track record of health, safety and environment (HSE) performance is a must. It is considered as a license for companies to continue operating. It is not a ‘nice to have’, it is a ‘must have’.

13. With this background, it is most apt that “Achieving Operational Excellence in a Competitive Environment” has been chosen as the theme for this symposium.

14. The chemical industry is critical for many countries, both developing and developed. Like I mentioned earlier, any catastrophe or even the slightest incident will immediately bring negative attention and public scrutiny. Besides Fukushima, there were Bhopal, Seveso, Flixborough – just to name a few.

15. Thus, as far as the chemical industry is concerned, safety is paramount. An excellent safety record equals reliable supply, safe working environment and a responsible corporate citizenship. It attracts high value customers and high quality talent. To achieve this, we need to be vigilant and continuously improve our HSE performance. Good health and safety management translates into efficiency, productivity, profitability and competitiveness.

16. To achieve operational excellence, we must, first, put in place effective process safety programmes and strong workplace health and safety culture as an integral part of the daily business activities.

17. Secondly, it is important that we, collectively as an industry, learn from our past mistakes. Stories of mistakes and lessons learnt must be shared as much as we share and celebrate our successes. Maybe more so.

18. Thirdly, we should continuously review and improve on existing process safety management systems. At the same time, we must also equip our employees with the right knowledge and skills in keeping up with the advancement in production processes and technologies.

19. To make these a reality, a strong leadership and commitment by the top management of companies is a must. In fact, it must be a given. At the same time, on the ground, chemical engineers and safety personnel are also key to model the right behaviour and mindset. They are also a vital link to provide guidance to the management in achieving a pervasive safety culture and mindset.

20. Authorities will continue to outline the minimum standard to be achieved. Even so, we must always strive to go beyond the minimum required by legislation. After all, health and safety have direct impact on productivity and profitability.

Ladies and Gentlemen,

21. I wish all of you a fruitful deliberation at this 3-day symposium. I truly hope these deliberations can be translated into actionable solutions, no matter how small, in our continuous journey for workplace safety. To prevent a workplace catastrophe, save employee lives, ensure the wellbeing of surrounding communities and environment – these are not only worthy causes, but more importantly, they are our responsibility. It’s a journey that will never be completed, but a highly satisfying one nevertheless.

22. On that note, with “Bismillahirrahmanirrahim”, in the name of God Most Gracious, Most Merciful, I officially declare open this symposium.

Thank you.