- POSTED: 07 Feb 2014 22:19
Industrial developer JTC Corporation launched JTC Aviation Two at the Seletar Aerospace Park on Friday. The facility will house small and medium enterprises (SMEs) specialising in the supply management and maintenance of aircraft parts.
SINGAPORE: Industrial developer JTC Corporation launched JTC Aviation Two at the Seletar Aerospace Park (SAP) on Friday.
The facility will house small and medium enterprises (SMEs) specialising in the supply management and maintenance of aircraft parts, and aims to foster closer business cooperation within the park.
Singapore's aerospace industry has grown substantially, reporting an average annual growth rate of 10 per cent for the last two decades.
Its rising importance comes amid the push for more domestic higher value-added production.
Minister of State for Trade and Industry, Teo Ser Luck, said: "It's one of the sectors that Singapore will need to put some focus on.
"Not only does it create skilled jobs, it is totally relevant to Singapore as an air hub, so we have to attract companies in this sector, especially MNCs (multinational corporations).
“Singapore, being small, will allow proximity efforts to be more effective. That's why we can mark out Seletar as an aerospace hub. Supply chain will be our competitive advantage."
Singapore's aerospace industry employs some 20,000 workers, with 90 per cent of these jobs requiring skilled labour.
The development aims to consolidate aerospace activities such that aviation firms located at the park can reap benefits from economies of scale.
Dr Loo Choon Yong, chairman of JTC Corporation, said: "By clustering aerospace activities in these premises, we hope to bring companies closer to their partners and customers, as well as benefit from the opportunities for business collaborations within the park.
“JTC will continue to look into more infrastructure and amenity developments to create a conducive environment in the SAP for the aerospace community."
Local SME Tri-Wing Aviation Resources has benefited from operating in close proximity to some of the large MNCs also situated at the aerospace park.
SMEs play an important role in supplying MNCs with aircraft parts.
Johnny Lim, general manager at Tri-Wing Aviation Resources, said: "When MNCs come in, they have more resources than us.
"So for us, rather than to look upon them as competitors, we ride upon them, and they bring about opportunities for us to work with them, to support them with the required components and repair management services."
Currently, Singapore accounts for a quarter of Asia's maintenance, repair and overhaul output.
In 2012, the aerospace sector posted a record output of some S$8.7 billion.