S’pore cements position as leading Asia-Pacific aerospace hub: Iswaran
A worker cleaning up at the ST Engineering exhibition booth in preparation for the upcoming Singapore Airshow 2016. Photo: Don Wong
SINGAPORE — The Republic is cementing its position as the leading Asia-Pacific aerospace hub by enhancing capabilities and developing new growth clusters as it continues to support local aerospace companies. This is happening in both the existing stronghold of MRO (maintenance, repair and operations) services and new market segments of aero-engine development, engineering and manufacturing, as well as premium aftermarket services, Mr S Iswaran, Minister for Trade and Industry (Industry) said today (Feb 15).
“The long term prospects of Singapore’s aerospace industry remains bright,” he said. “The government will partner industry to further develop R&D, infrastructure and manpower capabilities to enable Singapore based companies to address new challenges and tap on emerging opportunities.” Mr Iswaran said this in his keynote address at the A*STAR Aerospace Technology Leadership Forum held in conjunction with the ongoing Singapore Airshow this week.
Underscoring the strong growth potential of the sector, the Committee on Future Economy (CFE) has identified aerospace as key vertical under the advanced manufacturing cluster. Public-private partnerships is key to enabling the aerospace industry to benefit from public R&D investments, and move towards the “Future of Aerospace”, he said. Under the National Research, Innovation and Enterprise 2020 (RIE2020) Plan announced last month, Singapore government is investing S$3.3 billion in Advanced Manufacturing and Engineering (AME) public R&D capabilities over the next five years.
“Secondly, beyond R&D and innovation, we are committed to supporting industry led co-innovation and supplier partnerships. Third, we will continue our efforts to develop a steady pipeline of highly skilled talent for the aerospace industry by deepening synergies between our pre-employment education and industry needs,” he added.
The domestic aerospace industry grew at a compounded annual growth rate (CAGR) of 8.6 per cent over the past two decades, outperforming the 5 per cent CAGR of the manufacturing sector. Mr Iswaran noted that in 2014, the aerospace industry contributed an output of S$8.3 billion, and had a value-add (VA) of S$3 billion. Employment in the sector, in the same period, grew 4 per cent with close to 20,000 employed in the aerospace industry in 2014 of which 90 per cent were skilled jobs.
“Singapore’s aerospace sector has grown strongly over the past decade and has created good jobs for our people. Going forward, we expect continued strong growth for the sector,” he said.
Singapore is currently the top maintenance, repair and overhaul (MRO) hub in Asia, contributing over 10 per cent of global output and is home to one of the most advanced MRO clusters in the region, with over 100 companies providing an array of nose-to-tail MRO capabilities for airframes, engines, components, avionics as well as aircraft modifications and conversions. The Republic’s aviation eco-system includes home-grown global leaders ST Aerospace and SIA Engineering Company (SIAEC), that, Mr Iswaran noted, are among the world’s top five airframe MRO companies.
He said that the global airline fleet is expected to double over the next 20 years, with approximately 40,000 new planes being commissioned. Over 40 per cent of these will be replacements for current inventory, with the Asia-Pacific accounting for over a third of the deliveries. However, given the average age of aircraft increased from 15 years in the mid-70s to 25 years today, the MRO market is poised to thrive, potentially growing from USD$60.7 billion in 2013 to reach USD$89 billion by 2023, he said.
