Mr Chan Soo Sen at the launchof the European Aeronautic Defence and Space Company's (EADS’) Singapore Research & Technology Centre

SPEECH BY MINISTER OF STATE FOR TRADE & INDUSTRY AND EDUCATION, MR CHAN SOO SEN, AT THE LAUNCH OF THE EUROPEAN AERONAUTIC DEFENCE AND SPACE COMPANY’S (EADS’) SINGAPORE RESEARCH & TECHNOLOGY CENTRE ON TUESDAY, 21 FEBRUARY 2006, 3.30 PM AT THE CHANGI INTERNATIONAL EXHIBITION AND CONVENTION CENTRE

Distinguished guests,

Ladies and gentlemen,

Good afternoon,

1.It is a great pleasure to be here today to launch the European Aeronautic Defense and Space Company’s, or EADS’, Singapore Research and Technology Centre.

EADS and Singapore have a Strong Relationship that Goes Many Years Back

2.EADS’ relationship with Singapore goes back almost 20 years when, Euro copter South East Asia Pte Ltd (Euro copter S.E.A.), then known as Sam aero, set up a 12-man operation here in 1978 to handle the maintenance, repair and modification of helicopters. Since then, Euro copter S.E.A., which is majority owned by EADS, has grown into a regional headquarters, employing some 110 people. And just this week, they announced the setting-up of “Euro copter Training Services Asia” (ETSA), a regional pilot training school in Singapore. This pilot training school is expected to be established by the end of 2006 and aims to train several hundred helicopter pilots a year from all over Asia. Besides Euro copter training aircraft, there will also be a full range of state-of-the-art training devices, which will provide simulator training to helicopter pilots.

3.Just as the company has grown, so has its relationship with Singapore deepened. In the area of defense, Euro copter supplies the Super Puma and the Fennec helicopters to the Republic of Singapore Air force, while the MBDA, which is partially owned by EADS, supplies missile systems to the Singapore Armed Forces. And most recently, with SIA being the launch customer for the Airbus A380, the bond that we have with EADS will only get stronger.

Singapore’s Strong Focus on R&D

4.Currently, Singapore accounts for more than a quarter of the maintenance, repair and overhaul, or MRO, output in Asia. We are the largest and most comprehensive MRO hub in Asia. We are known as Asia’s MRO hub because of our continuous effort to upgrade our skills and move up the value chain. Today, we not only undertake MRO work, we also undertake repair development, rotables and asset management, design and engineering projects and, of course, Research and Development (R&D).

5.R&D has always been a priority for Singapore. In 2004, we spent around 2.3% of our GDP on R&D. With the recent formation of the National Research Foundation to coordinate R&D at the national level, our target is to grow our national R&D spending to 3% of GDP by 2010.

6.Under the recently launched Science & Technology Plan 2010, the Ministry of Trade & Industry will increase R&D investments over the next 5 years. We will intensify R&D efforts to support our key industries, and also attract more corporate R&D centers to be located in Singapore. All these will help ensure that we remain competitive in the aerospace industry not only by anchoring more knowledge-intensive activities here, but also by keeping ahead of the competition.

Singapore is Suitable for Aerospace R&D

7.And this is where EADS comes into the picture. This new 25-man Singapore Research and Technology Centre will be the first outside of Europe and will undertake R&D for EADS’ wide variety of businesses ranging from aerospace to defense and security systems. In some instances, some of the R&D will be done in collaboration with our Research Institutes and universities. This will help strengthen our local R&D capabilities further, grow our local talent and also attract the best talent in the world.

8.I have no doubt that EADS’ decision to site their R&D activities here in Singapore testifies to our suitability as a location for high-end R&D. Our emphasis on intellectual property rights, our strong education system and our openness to talented individuals from all over the world make Singapore an attractive place for R&D activities. In addition, our ability to offer well-coordinated, multi-disciplinary R&D in one compact location is an advantage that we have over other locations. EADS’ Singapore Research and Technology Centre is a much welcomed addition to our local R&D scene.

Conclusion

9.I congratulate the management and staff of EADS on the launch of your new corporate research and technology center. I truly believe that the EADS-Singapore partnership will continue to soar to new heights.

10.Thank you.