Exclusive: In blow to Singapore's expansion, Malaysia bans sea sand exports
https://www.reuters.com/article/us-...-malaysia-bans-sea-sand-exports-idUSKCN1TY0C4
(Reuters) - Malaysia, Singapore’s biggest source for sea sand, has banned the export of the commodity, according to officials in Kuala Lumpur, a move that traders said could complicate the island-state’s ambitious expansion plans on reclaimed land.
Malaysian Prime Minister Mohamad Mahathir, who came to power in a shock election last year, imposed a ban on all sea sand exports on October 3, two senior government sources with direct knowledge of the decision told Reuters.
The government sources, asking not to be named due to the sensitivity of the matter, said Mahathir was upset that Malaysia’s land was being used to increase the size of its wealthier neighbor. He was also concerned corrupt Malaysian officials were benefiting from the secretive business. The ban was never made public because of the potential diplomatic fallout, the sources said. Singapore has not made any public comment on the ban.
Two traders importing sand to Singapore, who both asked not to be named, said the commodity is becoming scarcer and driving Singapore to source sand from as far as India, which would push up costs. Shipping is the biggest single cost in acquiring sand.
The traders added Singapore has been stockpiling sand in recent years which could provide a buffer against any immediate bottleneck in supplies. Sea sand is mostly used for land reclamation, while river sand is a core component in constructions materials like cement.
Singapore imported 59 million tonnes of sand from Malaysia in 2018, at a cost of $347 million, according to United Nations Comtrade data, which is based on information provided by individual countries’ customs offices. That accounted for 97% of Singapore’s total sand imports in the year by volume, and 95% of Malaysia’s global sand sales.
Singapore has already reclaimed its continental shelf, which means the depth of sea that is needed to be filled with sand for reclamation has significantly increased, said C.M. Wang, an engineering professor who has advised on Singapore projects. Singapore now needs more sand or new methods of reclamation, like using polders and “Very Large Floating Structures”.
Also, the pace of Singapore’s expansion is accelerating. In 2018, Singapore grew 2.7 square kilometers, the biggest annual expansion in a decade, official data shows.