Mr Lee Yi Shyan at the National Trades Union Congress Aerospace and Aviation Cluster National Day Observance Ceremony

SPEECH BY MR LEE YI SHYAN, SENIOR MINISTER OF STATE, MINISTRY OF TRADE & INDUSTRY AND NATIONAL DEVELOPMENT AT THE NATIONAL TRADES UNION CONGRESS AEROSPACE & AVIATION CLUSTER NATIONAL DAY OBSERVANCE CEREMONY, AT 3.15 PM ON TUESDAY, 13 AUGUST 2013

Mr Lim Kuang Beng,

Chairman, Aerospace & Aviation Cluster  

Mr Ong Hwee Liang,

Vice-Chairman, Aerospace & Aviation Cluster

Mr Andy Lim,

Vice- Chairman, Aerospace & Aviation Cluster

Ms Cham Hui Fong,

NTUC Assistant Secretary General

Aerospace & Aviation Cluster members,

Management & tripartite partners

Fellow Singaporeans

            I am pleased to join all of you today at this National Day Observance Ceremony organised by the Aerospace & Aviation Cluster.

2.         Everyone here has a story of growing up in Singapore. Each of us is a mosaic, unique and special, but when put together, we form Singapore. This is why I like the theme "many stories, one Singapore" of this year's National Day celebration. Singapore is colorful, vibrant and inclusive. We have progressed much since independence 48 years ago.

3.         Celebrating Singapore’s 48th birthday at Changi Airport is especially meaningful in light of this year’s theme. Changi Airport has a special place in every Singaporean’s heart. It is a national icon and an emotional anchor. Many of us feel relieved after landing in Changi airport. As one of my friends likes to say: "Nothing beats coming home to Changi Airport!"

4.         Changi Airport opened in 1981. Just seven years later, it did Singapore proud when it won its first ‘World’s Best Airport’ award by the Business Traveller (UK) magazine. It has continued to win this accolade consecutively for 25 years, and has been the world's most awarded airport since 1981.

5.         However, I do not think Changi Airport won the various accolades simply because of its architecture or impressive equipment alone. There have been grander airport buildings built in cities over the last 10 years in Asia. I believe international travellers love Changi because of its prompt service, inviting ambience and engaging shopping. For Singaporeans, Changi Airport mirrors Singapore's progress, made possible due to a group of hardworking and committed people. We all like Changi Airport because of its warmth and people-centricity. Some say they like our airport because it does not look and feel like one.

Overview of Aerospace Industry

6.         Parallel to the growth of the aviation industry characterised by Changi airport is our burgeoning aerospace industry. Singapore is now home to over 100 aerospace companies serving global markets, many of which base their regional headquarters here, such as Rolls-Royce, Bombardier, EADS Pratt & Whitney. The new Seletar Aerospace Park has also drawn strong interest and support from the industry. Singapore’s strategic location in the heart of Asia, connectivity, stable environment, skilled talent and plug and play infrastructure offers companies value as they seek to harness the growth of Asia.

7.         More importantly, this is a high value manufacturing industry that plays to Singapore’s strengths, and provides good career opportunities for Singaporeans[1] - 9 out of 10 of jobs in the aerospace are skilled, and 4 out of 5 jobs go to locals.

Challenges Ahead

8.         However, as with all “icons” of success, previous achievements are no guarantee of continued growth. The competition for Changi’s aviation hub position has grown keener with newer, bigger airports all around. Airlines’ business models are also changing. Firstly, long haul flights to traditional markets in Europe and USA are facing strong headwinds. Intra Asia and regional flights on the other hand are flourishing, with the emergence and rapid growth of low-cost carriers. Secondly, the evolution of alliances and partnerships would also influence airlines' use of Changi airport as their bases. In short, we have to be alert and equip ourselves with the right type of skills and infrastructure to seize new opportunities.

Overcoming Challenges

9.         Nevertheless, I am confident that the prospects for the aerospace and aviation industry remain sanguine. Air traffic and aircraft fleet size in Asia are poised for strong growth, bolstered by rising demand from regional economies such as China, India and ASEAN. Changi is well-positioned to benefit from growth in these markets.

10.       That said, while Changi has taken steps to keep costs competitive, improve efficiency and enhance service levels, it must also adapt its services and facilities in preparation for the changes ahead, in order to retain its position as a leading air hub.

11.       The industry must also build on its strong foundation and continue to move up the value chain. With increasing global competition, it is imperative that our companies invest in productivity initiatives and innovative solutions, in order to sharpen their competitive edge.

12.       Employees too, have an important role to play in the drive to restructure and boost the industry’s productivity. They can co-create solutions together with the company’s management, contribute ideas and provide support for productivity initiatives. It is also critical for our workers to have deep knowledge of the sectors, strong skills and capabilities through continuing education and training.

Conclusion

13.       Today as we gather to celebrate our nation’s birthday, I would like to encourage the tripartite partners in the Aerospace and Aviation cluster to continue to work closely together in the years ahead, so that we can build on the strong foundation of tripartism of today for tomorrow’s success. 

14.       On this note, let me wish everyone a happy National Day! Thank you.

[1]

On average, the remuneration per worker in the industry is about S$68,500, over 50% higher than the manufacturing average.