PRIME Minister Lee Hsien Loong has described oil giant ExxonMobil's large-scale investments in Singapore as a confident sign that the country will 'continue to provide a stable and conducive business environment over the long term.'

Speaking on Tuesday at the groundbreaking ceremony in Jurong Island of ExxonMobil's second petrochemical project, Mr Lee labelled the event a 'milestone' for Singapore's chemical industry.

When it starts operating in 2011, the complex - comprising a steam cracker and multiple process units -will be ExxonMobil's largest integrated site in the world.

The chemical complex will also be the global launchpad for the Vistamaxx, the company's new polymer.

On a macro level, PM Lee said the output for Singapore's chemicals cluster is currently $74 billion, higher than that for electronics, with further growth expected over the next 10 years.

'In anticipation of the construction boom in the chemical industry, the Government has acted to head off potential supply constraints,' he explained, citing Jurong Island's expanded security checkpoint to cope with heavier traffic plus the streamlinging of foreign worker rules to make them more flexible.

Mr Lee also stressed the role of technology in growing the industry, saying that Singapore has invested heavily in R&D plus brought in companies and talent to peform cutting-edge research that can be translated into commercial applications.

'Even as we tackle short-term issues, we are also building up the infrasturture and capabilities for long-term, sustained growth,' said Mr Lee.

The ultimate goal - to enhance and reinforce Singapore's position as 'a global oil and chemicals hub.'