Mr Lim Hng Kiang at the Opening Ceremony of Alteon Training Singapore Pte Ltd

SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE OPENING CEREMONY OF ALTEON TRAINING SINGAPORE PTE LTD, ON THURSDAY 18 JANUARY 2007, AT 10.25 AM, AT THE NEW TRAINING FACILITY AT CHANGI NORTH

Ms. Sherry Carbary

President, Alteon Training,

Mr. Doug Miller

Vice President, Asia Pacific, Boeing International Corporation

Distinguished Guests,

Ladies and Gentlemen,

Introduction

Good morning. I am delighted to be here today to officiate at the Opening Ceremony of Alteon Singapore.

The establishment of Alteon’s Regional Training Centre in Singapore represents Boeing’s largest investment here to date, with the company planning to invest close to S$100 million.

The Boeing-Singapore partnership has always been an important one for both parties. In October 2005, a three-year agreement was reached with A*STAR to conduct aerospace research in Singapore and, more recently, this partnership has been reinforced by the RSAF’s order of twelve F-15s from Boeing and SIA’s order of twenty 787s.

Today, with the opening of Alteon in Singapore, the stage is set for the existing partnership to scale new heights

Singapore as an Ideal Aerospace and MRO Hub for Asia

Boeing certainly needs no introduction. Having delivered more than 15,000 aircraft, it is a crucial player in the global aviation industry. Alteon is also one of the world’s leading providers of aerospace training.

The aerospace industry is one of the fastest growing industries in Singapore and in the last 15 years it has grown by a compounded annual rate of more than 12%. In the first 3 quarters of last year, the industry grew by more than 15%.

Over the years, Singapore has established itself as a premier air hub, with more than 4,000 weekly flights to 183 cities serving 57 countries worldwide. The industry is expected to continue its strong growth as the travel sector in Asia picks up.

The recent success of Asian Aerospace (AA) 2006, Asia’s largest airshow, underscores our strengths and commitment to the expansion of the industry in this region. Going forward, Singapore Airshow will debut in 2008 after AA moves to Hong Kong. With more than a year to the event, the original exhibition space has already been sold out. An extra 10,000 square meters is to be added to the original 30,000 square meters exhibition hall, making it at least 30 per cent bigger than AA 2006. This is a strong indication of the confidence in the future growth of the industry in Singapore.

Today, Singapore accounts for one-quarter of the total market share for aerospace Maintenance, Repair and Overhaul (MRO) within Asia. Our local companies, ST Aerospace and SIA Engineering Company are amongst the world leaders in airframe maintenance. The top three engine makers – Rolls Royce, GE and Pratt & Whitney - all have a substantial presence in Singapore.

Singapore has now truly established itself as a one-stop shop for the aerospace industry, with competencies in repairing airframes, engines, structural and avionics systems and a wide range of components. New investments made over the last few years have extended our reach into aerospace manufacturing, R&D and supply chain services.

Our Vision to Develop Singapore into a Regional Aerospace Training Campus

In order to make Singapore truly competitive and create a valid value proposition for aerospace companies to continue investing in Singapore, we are fully committed to helping these companies in every way possible, including attending to their specific manpower needs.

Given the tremendous growth potential of the industry, particularly in this region, there is now a growing demand for specialized aerospace-related training. The training of pilots, cabin crew, maintenance personnel and aviation business executives will be imperative in sustaining growth in the aerospace sector.

We are therefore very keen to develop Singapore as a Regional Training center for Aerospace activities.

Our unique combination of a cosmopolitan environment, cultural connectivity, as well as our strong reputation for quality and safety, enhances the overall education and training experience and makes us an ideal place as a center for aviation training.

In addition, our Institutes of Technical Education, Polytechnics, Universities, the Singapore Aviation Academy and a number of private training providers offer a wide variety of courses relevant to the aerospace industry. We are also encouraging more education and training providers to offer courses to support the needs of the regional aerospace sector.

Alteon’s choice of Singapore as its regional training center fits very well with our vision to be the region’s Aerospace Training Campus. I am told that simulator training is fast becoming one of the most efficient ways to train flight crew. With the ability to simulate a wide array of scenarios to replicate real-life experiences in a safe environment, Alteon has carved an important milestone in aerospace training.

I understand that this new facility has the capacity to train more than 6,000 pilot crew annually and is well-positioned to enhance Alteon's reputation as a market leader in aviation training. We welcome you as one of our pioneer partners in achieving our vision of Singapore as a regional Aerospace Training Campus.

Conclusion

Aerospace is a key industry for Singapore, and we are committed to develop it further. With Alteon’s investment, we have taken an important step, towards realizing our regional Aerospace Training Campus vision. I would like to thank you for your confidence in Singapore and I am convinced that you will find this an ideal location for realizing your exciting growth plans in Asia.

I would like to offer the management and staff of Alteon my heartiest congratulations. With great pleasure, I now declare Alteon Training Singapore officially open.