THE aerospace industry here enjoyed a record year in 2007, with output growing by more than 10 per cent to a new high of nearly $7 billion, Prime Minister Lee Hsien Loong said at the opening of the Singapore Airshow on Tuesday morning.
With Asia set to lead the growth in air travel this year, despite the challenges facing the aerospace industry, which is beset by high fuel prices and a slowdown in the United States economy, PM Lee said Singapore, being a gateway to the region, is well-positioned to ride these growth trends, citing its excellent infrastructure and connectivity, a skilled workforce, a strong technology base, and a critical mass of aerospace activities.
There are now more than 100 aerospace companies in Singapore, engaging in a wide range of activities across the whole value chain. In manufacturing, Singapore is host to a growing number of world-class operations, like Rolls-Royce which is building a new facility to assemble and test the latest engines for the Boeing 787 and the Airbus 350XWB, the first of its kind in Asia.
In Maintenance, Repair and Overhaul (MRO), it has the most comprehensive suite of capabilities in the region, with nose-to-tail capabilities spanning airframe maintenance and modification, engine overhaul, as well as component and systems repair.
Going forward, Mr Lee said the industry will also focus on technology and capability development.
'Top aerospace companies have found Singapore an attractive location for their R&D activities, because of our high standards of intellectual property protection, strong pool of research talents, both local and foreign, and extensive R&D infrastructure,' he said.
'The Government is taking this a step further by facilitating high-risk research that individual companies may not embark upon on their own, but which are important in driving long-term innovation in the industry.
'Hence our science and technology agency, A*Star, is leading a consortium comprising both local and global industry players to undertake R&D in new areas, such as advanced robotics and non-destructive testing techniques. This will enable the industry to grow new capabilities and enhance its value proposition for the future.'
To sustain the growth of the aerospace industry, first-class infrastructure is needed for companies to expand and exploit their strengths in Singapore, he said.
As part of this effort, Singapore is developing a new 300 hectare Aero-space Park in Seletar, to provide more facilities for aerospace manufacturing, MRO, R&D, and manpower training. It will also help to create new markets and opportunities, including in the fast expanding area of business and general aviation.
Mr Lee said response from the industry to the Aerospace Park has been very positive, with a strong take-up for the first phase of development.
On his upbeat outlook for the industry, Mr Lee pointed to the growing deregulation of air services which will open up new flight routes at more affordable prices, further boosting demand for air travel
He noted that more than two billion passengers take to the skies each year for business and leisure, and some 40 million tonnes of freight are flown annually.
The positive outlook for the industry is also fuelled by the record orders for new aircraft which Airbus and Boeing clinched last year, said Mr Lee, adding that in the next two decades, the global commercial aircraft fleet is expected to more than double in size.
Giving his assessment for the region, PM Lee said: 'In Asia, the signs are particularly encouraging. The region is expected to lead the growth in air travel, as the industry's centre of gravity shifts to the East.
'With China and India integrating more closely into the global grid, demand for air travel in the region will soar. Within South-east Asia, air travel is also expected to take off. The Asean countries are establishing Asean-wide open skies, starting with the first milestone of free access between Asean capitals by the end of this year. There are also opportunities in Asia's defence market, as regional governments look to modernise their defence forces.'
Mr Lee said the industry response to the Aerospace Park has been very positive, with a strong take-up for the first phase of development.
More than 800 companies from 42 countries, representing 59 of Forbes' top 100 aerospace firms, are taking part in the Airshow, at which close to $500 million worth of investments linked to the aerospace industry are expected to be announced over the next few days.
