Singapore banks can't afford to be relaxed about rig-building woes

Singapore

IT'S not clear how much of Singapore's bad loans for 2015, the highest since 2009, are due to low commodity prices, because banks don't give a detailed industry breakdown of their assets. Given the city's focus on becoming a global rig-building hub, chances are there's a link.

Another report on Monday from Sembcorp Marine, the world's second-largest maker of offshore exploration rigs, suggests there's more pain to come. Sembcorp reported a net loss of S$537 million, its first since 2003, and warned of difficulties ahead for the indus-try as oil prices remain low and more customers cancel or delay orders.