Singaporean company International Energy Group, which has teamed up with Malta Enterprise to create an energy hub in Malta, is eyeing the ‘Internet of Things’, one of the major potential spinoffs of the 5G technology for which Malta is to serve as a test bed for Chinese telecommunications giant Huawei.
On Tuesday, the government and the Chinese telecoms company, the world’s largest, signed a Memorandum of Understanding that will see the company open an office at SmartCity and begin research and development activities in Malta.
Specifically, the company has agreed to test its avant-garde 5G mobile technology in Malta and in so doing it will seek to rope in a local partner, presumably one of the country’s own telecommunications companies, to test the promising technology.
Last May, IEG, through its newly incorporated wholly-owned subsidiary, New Silkroutes Group (Europe) Limited, entered into a joint venture with Malta Enterprise Corporation, with the intention of developing Malta into a trading hub for energy products between Europe and Asia.
This week, Dr Goh Jin Hian, who has just been appointed as the CEO of the Singaporean mother company, New Silkroutes Group, said, “We are an investment company with portfolios in energy and technology; our energy division – International Energy Group – has the best-in-class trading system and is developing resources in power generation, while our technology team is at the forefront of (digital) security, communications, analytics, and the cloud which we envision will be the core challenges as we progress into a fifth generation global regime of the Internet of Things (IoT).
“Going forward, we will focus on the development of new products and new markets, and bring our capabilities, policies and capital to places and people who need it.”
5G technology is meant to open up the ‘Internet of Things’, in which devices with embedded electronics – from fridges and air-conditioners and from heart monitoring implants to cars with built-in sensors – will be able to be controlled or accessed remotely.
The company also said that it plans to increase its allocation of Chinese RMB-denominated trades across its energy and technology portfolios in its key target regions, including port cities of China, ASEAN, EU and South Africa.
The joint venture between Malta Enterprise and IEG signed back in May will eventually turn into an oil blending and bunkering operation, also incorporating the wholesale and retail trading of crude oil, intermediate fuel oil and other distillates, building of storage facilities, blending of products for subsequent re-export, and collaboration on projects to reduce energy costs for electricity generation in Malta.
“IEG Malta will initially use Malta as an oil trading hub. Malta Enterprise will have a minority shareholding in the company to be set up in Malta to support this Singaporean initiative,” the newspaper was told recently.
Oil bunkering would see oil transported from one ship to another, while an example of oil blending would be crude oil blending, which would see lower grade crude oil blended with a higher grade in order to produce a blended product at the lowest cost using the minimum amount of higher cost crude oil.
“Malta is determined to become a major oil and gas trading, brokering and processing hub and this shareholding participation must be seen in this context,” a Malta Enterprise spokesperson said.
“The company will facilitate business between different continents of the world through Malta, which is in line with Malta’s economic strategy to do business in all corners of the world and to trade in different monetary currencies. Other benefits for Malta would include the income tax from the company’s profit and the acquisition of knowledge in the sectors of crude oil, intermediate fuel oil and other distillates.
“The company has chosen Malta as its preferred oil hub in the Mediterranean due to its geopolitical location and proximity to mainland Europe.”
This newsroom had sent a number of other questions, including whether this project would require fuel storage units on land or out at sea as well as whether any areas or suitable locations have been highlighted, however Malta Enterprise could not disclose any more commercial information because such information is covered by the commercial secrecy clause of the Malta Enterprise Act, “and moreover because the ultimate shareholder is quoted on the Singapore stock exchange”.
By August last year, the government had already publicly announced the idea of Malta as an energy hub, and in response to questions sent back then, the government replied: “Malta believes that the Mediterranean region offers an untapped potential in terms of security of energy supply and Malta is well placed to become an energy hub. The very idea of creating a Mediterranean Energy Platform is precisely to encourage more cooperation between the Mediterranean countries. This is a concept which is being explored further under the Italian Presidency and with the European Commission.”
Goh Jin Hian had said recently: “Malta has an island economy much like Singapore and Hong Kong, with little natural resources and a dependency on intellect and investment capital. I think Malta has the potential to punch well above its weight class.”