Keynote Address by MOS Teo Ser Luck at the Launch of Aviation Two @ Seletar Aerospace Park and Expansion of JTC aeroSpace @ Seletar Aerospace Park

Dr Loo Choon Yong, Chairman, JTC,

Distinguished guests,

Ladies and gentlemen,

Good morning.

I am happy to be here to launch the JTC Aviation Two @ Seletar Aerospace Park and the expansion of JTC aeroSpace @ Seletar Aerospace Park.

Aerospace Industry is a Key Growth Area for Singapore

The aerospace sector is an important part of Singapore’s economy. Over the last two decades, Singapore’s aerospace industry grew at an average rate of 10 per cent per year. Today, we are the most comprehensive centre for maintenance, repair and overhaul (MRO) in Asia, accounting for a quarter of the region's MRO output.

We are also seeing a growing number of aerospace design and manufacturing operations. Companies are leveraging on Singapore’s existing capabilities in precision engineering and electronics to support the production of complex aero-engine components. This growing industry provides attractive and well-paying jobs for Singaporeans and employs close to 20,000 workers, of which 90% are skilled.

Building a Competitive Industry Cluster at the SAP

To grow the aerospace industry, the Government developed the Seletar Aerospace Park (SAP) in 2008. Today, it is an integrated aerospace hub hosting a wide range of high value-added activities including MRO, manufacturing and assembly of aircraft engines and components, business and general aviation, training, and research and development.

A primary reason for the SAP’s success is that it allowed industrialists, suppliers and service providers in the same value chain to be clustered in one location. That helped companies achieve economies of scale and created opportunities for industry collaboration. It also allows JTC and the other economic agencies to engage the industry very closely, and provide various customised infrastructure solutions to cater to the industry’s needs.

Indeed, the business community within the SAP is closely knit. Many companies have benefited from the convenience and cost savings resulting from their proximity to one another. RLC, for example, was drawn to the SAP because of the convenient supply of titanium fan blades for Rolls-Royce, which is located just next door. Fokker Services also gets its supply of parts from companies within the SAP, such as Tri-Wings Aviation and Life Support Equipment, and approaches ST Aerospace for MRO services.

I am pleased to note that Phases 1 and 2 of the SAP have been fully taken up. Riding on the success of these two phases, JTC has started infrastructure works for Phase 3, which will provide another 60 hectares of industrial land when completed.

SMEs in the Aerospace Value Chain

SMEs play an integral role in the aerospace value chain, providing services such as parts supply and MRO, manufacturing of tooling, and machining of precision parts. I am therefore happy to hear that out of the 45 companies that sited their operations at the SAP, 51% are SMEs, for example MAJ Aviation and Wah Son Engineering.

For JTC Aviation One specifically, 80% of the tenants are SMEs which are involved in parts supply chain management, parts and components MRO, medevac¹, as well as training. I have been told that some of these SMEs had consolidated their operations from multiple locations at the SAP. This has helped to optimise their work flow and raise their productivity.

With the launch of JTC’s new developments today, there will be more opportunities for SMEs to set up their operations in, or to consolidate their businesses at, the SAP to cut cost and improve their top-line.

Conclusion

With the continued support from our agencies and aerospace partners, I am certain that we can look forward to a thriving aerospace sector and a vibrant aviation hub in Singapore. Congratulations to JTC on today’s launch, and I wish all companies at the SAP success in their businesses as they continue to scale new heights. Thank you.

¹ Short for “Medical evacuation”, or air transport of persons to a place where they can receive medical care