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SINGAPORE: Singapore has been building itself into a major centre for the maintenance, repair and overhaul (MRO) of aeroplanes, but a new survey conducted by AeroStrategy Management Consultancy suggested that competition is intensifying.
Singapore is the single largest MRO facility in Asia and accounts for a quarter of all MRO activity in the region.
David Stewart, Principal, AeroStrategy Mangement Consulting, said: "The maintenance, repair and overhaul industry in Singapore is very well-positioned to compete effectively over the next five to ten years, particularly in two key markets. One is the engine world and the other is the component world.
"Singapore, over the last decade, has managed to attract some of the most important and best players in the marketplace. For example, Rolls Royce in the form of SAESL, Honeywell, Goodrich... they are all powerful players in their own marketplace."
The clustering of these big names can make the country a competitive one-stop shop.
And industry players said Singapore could leverage on its MRO capabilities to meet the demands of the rapidly expanding network of low-cost carriers in the region.
But they also noted that there is increasing competition, especially from China, where labour costs are much lower.
Mr Stewart said: "Singapore needs to move with the times and become higher up in the value chain. Spend less time on labour-intensive, low value-add stuff and more time with the manufacturers and technologically sophisticated equipment and tasks."
Industry watchers said Singapore would have to develop expertise in areas dealing with special materials, machining and non-destructive testing.
The MRO market in the Asia Pacific is expected to grow to US$15 billion by 2016 and global MRO market is expected to grow at 3.6% per annum to US$58 billion by 2017.
- CNA/so
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