Daily Archives: August 1, 2019

The Sand Industry: Opaque, Illegal, Unsustainable

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.  Those plans include the development of the Tuas mega port, slated to be the world’s biggest container terminal. Singapore has increased its land area by a quarter since independence in 1965, mostly by using sand to reclaim coastal areas.

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, 2018… Endie Shazlie Akbar, Mahathir’s press secretary, confirmed that the government had put a stop to sand exports last year. However, he denied that it was aimed at curbing Singapore’s expansion plans, saying it was a move to clamp down on illegal sand smuggling….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.

The sand industry is opaque with no international price index, making it difficult to gauge the financial impact of a ban by Malaysia.  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.The data does not distinguish between types of sand.  When Indonesia banned exports to Singapore in 2007, citing environmental concerns, it caused a “sand crisis” in the city-state that saw building activity almost come to a halt. Singapore has since bolstered its stockpiles.

Unsustainable sand dredging disrupts sediment flows and fishing grounds, destroying livelihoods and polluting water sources in some of the poorest communities in Asia.  But Singapore criticized Indonesia for allegedly using the ban as leverage in negotiations over an extradition treaty and border delineation.

River Dredging for Extraction of Sand

Excerpts from Fathin Ungku, Rozanna Latiff , Exclusive: In blow to Singapore’s expansion, Malaysia bans sea sand exports, Reuters, July 2, 2019