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SINGAPORE: Asia Pacific is in a strong economic expansion phase and growth in air passenger and cargo traffic has been robust.
This has led to more airlines expanding their fleets.
And as the largest aerospace maintenance, repair and overhaul hub in the region, Singapore has clearly been benefiting.
"We are also seeing the rise of low cost carriers in Asia Pacific and this is very important because a lot of the maintenance repair and overhaul work for these carriers are outsourced. And exactly that plays into the strengths of Singapore where maintenance repair overhaul is our bread and butter," says Sia Kheng Yok, Director, Transport Engineeering, Economic Development Board (EDB).
In 2006 Singapore's aerospace industry achieved a record output of S$6.3b and employed 17,600 workers.
It also drew in S$220m in fixed asset investments.
And going forward, EDB says it has put in place several initiatives to further expand the aerospace sector.
"We announced last year our investment in Seletar Aerospace Park. The masterplan is well advanced and we expect that later this year we should be able to open our doors for new investments from companies seeking to expand in Seletar Aerospace Park," says Sia.
R&D as well as education and training are other areas that the EDB is focusing on.
Analysts say that Singapore remains strongly competitive in the aerospace engineering segment and is set to keep its edge even over lower cost competitors in the region.
"At the end of the day it's about delivery as well. If you are able to turn around the aircraft very quickly and do a very good job on it that is what would be the key for the customers - after all every day the plane is locked up- in the hangar here it's revenue lost for these carriers, " says Song Seng Wun, CEO & Regional Economist, Singapore Research, CIMB-GK Research.
With the underlying strong growth potential of air travel in the region analysts expect Singapore's aerospace sector to achieve EDB's projection of doubling its output by 2018. - CNA/yy
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