SINGAPORE (CNA) – Businesses heavily impacted by the oil spill worry they may not survive a three-month shutdown and the potentially long wait for compensation.
In response, some affected businesses are shifting their operations to unaffected waters after a dredger collided with a stationary bunker vessel, causing an oil tank rupture at Pasir Panjang Terminal two weeks ago.
On Monday (June 24), Singapore’s Minister for Sustainability and the Environment Grace Fu said at a press conference that the clean-up could take three months, after which affected areas will be progressively opened.
Areas that were not as badly hit could be opened earlier, she added.
An owner of a water sports company near East Coast Park said the situation feels similar to when his business had to cease operations during the peak of the COVID-19 pandemic.
“It’s just like COVID … just that only the businesses along the coast are affected,” said Mr Ho Kah Soon, director of Constant Wind Sea Sports Centre.
Mr Ho said he was at a loss when the three-month timeline was announced. “We are still discussing (what to do) and haven’t come up with a concrete plan,” he told the source.
His company, which holds courses like sailing and windsurfing, has suspended all sea sports since the oil spill on June 14. The business cannot take any chances on customers going into the sea until the authorities say that the water is safe, he said.
“We won’t want to take a chance (in opening up). If anyone gets sick, we will be liable,” he said. “We will close for another week and we will see what happens.”
His business has already racked up a five-figure loss in the past week-and-a-half, and Mr Ho fears this will keep going up as the crisis drags on.
“We are dipping into our reserves right now,” he said.
The business can stay afloat for one to two weeks, but beyond that, it would be a struggle, he added.
The situation is not helped by what could be a lengthy process to get compensation.
Mr Ho said he contacted British Marine, the insurer of the bunker vessel, for compensation. The insurer said it has been inundated with claims and that the process may take some time.
As he waits for news of compensation, he hopes the government can lend a hand.
“Hopefully, the government can lend a hand in assistance (and) come up with packages … like they did during COVID,” said Mr Ho. “Any help will be very much appreciated.”
Other than East Coast Park and Sentosa, businesses that operate in the Southern Islands area have also been badly hit.
On June 16, the beaches at St John’s, Lazarus and Kusu islands were closed. Oil slicks were also spotted at Marina South Pier.
Kayakasia has had to stop its kayaking tours to Sentosa and the Southern Islands. To make things worse, the three-month closure timeline falls in the company’s peak season, its founder Sim Cher Huey said.
“July to September are significant months for us as these are the months with the best waters to paddle there,” said Mr Sim. “So it means this year we will be doing much less of these trips.”
Instead of seeking compensation, he plans to increase the number of tours to other locations such as around Pulau Ubin.
“We probably will just run more trips in other parts of Singapore to make up for the loss of our Southern Island and Sentosa trips,” he said, citing the laborious claims process as the deterring factor in pursuing compensation.
However, he still expects to make a loss, as about 50 per cent of his company’s tours are to the waters around the Southern Islands.
“(There will) definitely be some losses and won’t be fully able to pivot because some dates are just not suitable to go to Ubin but only to the Southern Islands,” he said. “So in a way, these dates are lost.”
At Lazarus Island, visitor numbers to “tiny houses” operated by homegrown firm Big Tiny for overnight stays have fallen due to the oil spill.
Big Tiny co-founder Jeff Yeo said that since June 14, bookings have come down by 29 per cent. A fifth of these bookings were cancelled and the rest were postponed.
“Guests are looking to escape from the hustle and bustle of city life and spend time with loved ones on the beach, so with the beaches closed, they might not want to book accommodations,” said Mr Yeo.
The company is tabulating its losses and plans to submit a claim to British Marine.
At Sentosa, all beachfront businesses are open, except for two that have sea activities – floating obstacle course Hydrodash at Palawan Beach and seaside night show Wings of Time at Siloso Beach.
Mount Faber Leisure Group, which runs Wings of Time, said that the attraction has been closed since June 15 for the ongoing clean-up by Sentosa Development Corporation and government agencies.
Its other attractions at Siloso Beach, such as Sentosa SkyJet and Sentosa Musical Fountain, are also closed and will reopen when safety standards are met.
Hydrodash declined to comment for this article.
The source also asked Sentosa Development Corporation whether visitor numbers have been affected. It did not provide information on this but said it would continue to monitor the impact on businesses.
